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The well-known American consumer goods manufacturer Heinz has conducted case studies and product scenario tests conducted by IBM Business Consulting Services. As to why, where and how to implement RFID technology, which supplier to use, RFID has a development direction in the next 10 years. Clear understanding.
Business needs
As a large number of leading retailers require the use of radio frequency identification (RFID) technology, and more and more retailers use RFID to track products in the supply chain, Heinz hopes to determine how to use the technology most effectively to meet the retailer’s needs. Requirements, while enabling the company to get the most benefits.
Main challenge
RFID can be used to reduce administrative errors, reduce labor costs associated with scanning barcodes, reduce internal theft and delivery errors, and improve inventory control and tracking capabilities. A large number of companies hope to use RFID technology to track products in the supply chain, work in progress, and many other applications. This technology can also meet the requirements of major retailers, but a large number of commodity manufacturers only adopt the “stick and ship” strategy, only sticking RFID tags on their products, instead of adopting this technology in the entire supply and production line to achieve maximum income. Heinz hopes to make sure that the RFID strategy is in line with future market trends and make full use of the technology to improve business processes, so that the company can obtain the highest return on investment.
solution
IBM Business Consulting Services
IBM Business Consulting Services and Heinz work together to study market trends, formulate reliable business cases, and test RFID technology to determine the best suppliers and how to integrate RFID technology into the entire supply chain most effectively. IBM uses RFID business case modeling tools to estimate potential costs and benefits.
The IBM team conducted a lot of research in cooperation with Heinz to determine the expected benefits through holding seminars and collecting data, and to determine the cost of configuring factories and warehouses. The IBM team combined the company information learned through the survey with IBM’s benchmarks, current white papers and market information to formulate a comprehensive technical concept. When formulating a potential business case, the costs and benefits of the 10-year period are listed in stages to suit the established deployment path. NPV, ROI, IRR, and balance point are used to determine the best deployment path. In addition, IBM has also determined the best product line and facility deployment schedule to meet the retailer’s requirements.
IBM’s testing laboratory in Gaithersburg has conducted readiness tests on Heinz’s 17 products to determine how these products are labeled in different ways under different conditions (such as conveyor belts, container or pallet labels). The laboratory test simulates the retailer’s requirements to determine the extent to which the product meets the requirements and determine the measures (such as labeling methods, packaging, etc.) required to meet the requirements. At the same time, the laboratory conducts tests with different tag and reader suppliers to determine the best combination of Heinz products.
IBM Business Consulting Services also conducted an RFID pilot project at its distribution center in Dallas, Texas, to test RFID applications provided by Heinz.
result
Through the test, Heinz has met the retailer’s requirements for implementing RFID technology. The survey helps the company to go beyond the “post-and-deliver strategy” and integrate the technology into the entire supply and production line to obtain the greatest benefits and the highest return on investment. At the same time, the survey also enables the company to more clearly understand and predict market trends, and helps Heinz formulate effective business strategies to deal with technological challenges.
Customer Information
Heinz
Heinz is a U.S. food company that owns a number of world-renowned brands of products, which are sold globally. The company’s market position in more than 50 countries is among the best. The brand value of the Heinz brand is as high as 2.5 billion US dollars, and the sales of Heinz’s 15 most famous brands account for two-thirds of the company’s annual sales.
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