YCH Group chooses Intermec in-vehicle terminals to improve supply chain management capabilities
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In the past 10 years, competition in the logistics and supply chain markets in the Asia-Pacific region has become increasingly fierce, and professional companies from many countries and regions are vying for market share. Especially during the economic downturn from 2008 to 2009, these companies need a higher level of reliability and accuracy, and they must also pay attention to reducing costs, transportation and inventory turnover (TAT). YC HG roup was established in Singapore more than fifty years ago, hoping to meet and exceed customer requirements by providing innovative solutions and new technologies. YCH’s technology use strategy is to provide end-to-end supply chain management to help customers enhance their competitive advantage. This strategy enables YCH to add value to specialized markets such as high-tech, chemical, pharmaceutical and fast-moving consumer goods, as well as low-temperature transportation and management supply chains under various geographic conditions. In the past 10 years, YCH has effectively expanded its market share in Asia and now has offices in Singapore, Malaysia, Thailand, Indonesia, China, Taiwan, Hong Kong, the Philippines, Australia, India, Vietnam and South Korea.
Advance to a higher level
In 2008, YCH’s management made a decision to upgrade their plant in Penang, Malaysia to the largest supply chain management nerve center in their network that implements radio frequency identification capabilities. The factory provides supply chain solutions for large multinational technology companies. For the following reasons, it was selected as the stage for the first deployment of a new generation of management platform. First, the customer needs to have a significant improvement in inventory turnaround time (TAT), which requires a comprehensive inspection of the entire existing system. In addition, the complexity of the 220,000 square foot factory area provides an ideal business case for technology implementation. In the space of about two football fields, there are 3,000 inventory units that need to be managed for customers. They come from 300 providers and are stored in more than 30,000 locations. If the warehouse management process is not fundamentally rectified, it will be impossible to speed up the turnaround time in this complex operating environment.
Streamline the process
The solution of the nerve center of the supply chain with RFID function can greatly reduce human data input errors and reduce the dependence on time-consuming error correction work. The purpose of implementing advanced technology is to optimize the workforce and minimize retraining; it is not designed to replace full-time employees. One of the important benefits that technology brings to employees is the ability to avoid manual data entry. In the past, forklift operators had to manually process paper inventory records while also operating the vehicle. In order to improve the process, YCH’s IT staff designed a system so that all pallets arriving at the factory area are affixed with RFID tags in the temporary storage area. Then, the operator will send each pallet to the designated position of the system. If the goods are placed in the correct position, the RFID system on the forklift can detect and confirm. If the operator tries to store the pallet on the wrong shelf position, the RFID system will automatically issue a warning and give the correct destination.
When an order is received, the warehouse will execute a similar but reversed system workflow. The RFID system on the forklift will automatically read the RFID tag information on the pallet to confirm whether the removed inventory is correct, avoiding errors in picking and picking. In the order transfer area, the RFID tag of the pallet will once again communicate with the customized loading platform to ensure accurate delivery. In all stages of the work, if the pallet is incorrectly positioned or operated incorrectly, the operator will be notified.
Looking for a solution
When deciding which way to interact with operators is best, the company looked at a variety of options. For the new system, it is very important to be able to inform the operator of the correct position of the pallet in a clear, simple and intuitive way and to issue an error alarm. Everyone feels that the SMS method is too casual for employees. Small screen devices cannot be read clearly, and devices that emit alarm sounds are not easy to hear in a warehouse environment. In the process of choosing the right display device, everyone found that the Intermec CV 30 fixed computer can meet the various needs of operators and managers. Its small, sturdy design is very suitable for being fixed to a forklift in a warehouse, and the screen is clear and easy to read for truck operators and will not block the line of sight during work. Another advantage of CV 30 is the use of a touch screen, which allows the operator to input data without using a heavy keyboard. The platform supports flexible, it can support Microsoft CE. NET 5.0 or Windows Mobile 5.0 operating system, and it is convenient to use color coding to alarm on each pallet stack or cargo.
During the program selection process, 75 operators working in the warehouse helped evaluate and give feedback on CV 30. The operator praised the flexibility of the CV 30. When installed in the cab of a forklift, it is safe and efficient to use and does not affect driving. More importantly, this paperless, wireless system enables operators to work more accurately and efficiently. The training and preparation time required for the equipment has been reduced to a minimum, and I ntermec’s partner and local Y3 Technologies in Malaysia provide full support. This sturdy and durable device can continue to work well in a dusty warehouse environment with poor temperature conditions.
In addition, CV 30 can also provide accurate and real-time inventory information through wireless communication capabilities. Because the RFID system can automatically obtain the status of pallets entering and leaving the warehouse, the shift supervisor can manage the supply chain in real time. In the long run, real-time interactive information will be integrated into the database, and the process will be further optimized through tools such as real-time business intelligence billboards.
Efforts to continue to add value
The immediate effect is obvious. Operators no longer need to update paper records manually, and managers can also obtain snapshots of inventory management data in real time. In the long term, the use of personnel will be improved, because operators can be redeployed to work from data input to warehouse storage and warehouse export. The number of temporary workers hired during peak business periods each year has also decreased. The RFID-based system’s alarm and automatic cycle counting avoid pallet position errors. As a result, labor-intensive inspections and warehouse work interruptions have been reduced by 40%. And most importantly, it goes far beyond the business goal of shortening inventory turnaround time (TAT). Calculations show that a 20% increase has been achieved.
The implementation of the RFID solution and the Intermec CV 30 device has improved the efficiency of the sorting and loading process, thereby greatly improving the production efficiency. Unnecessary work interruptions are significantly reduced, and automation achieves resource savings. YCH also reported that the new system improves the safety of forklift operators due to the use of the wide-screen, easy-to-install CV 30 device. In addition, getting rid of paper in the system is also conducive to environmental protection, which is also one of YCH’s measures to achieve green logistics, and the space required to store records is also reduced.
In continuous progress, YCH promises to bring more added value to its world-class customers through IT optimization of the entire supply chain. The increasing use of RFID, wireless mobile solutions, and web services will enable real-time information flow, system control, and e-commerce connections to provide support for achieving these goals. Therefore, YCH is already planning to implement the experience and technology gained from the Penang facility in other parts of Asia-they are very grateful to have Intermec such a global credible partner to accompany them.
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