Application of RFID in Kunming Tobacco Logistics Distribution
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The global business competition in the 21st century is not only a single competition that surpasses the fields of technology, cost and management, but also a comprehensive competition of the advantages and disadvantages of various global supply chains. The multinational commercial retail giants have invested heavily in their supply chain strategy, planning, operation management, distribution center planning, warehouse planning, etc., using today’s most advanced science and technology to establish a fast and efficient operating system. The construction of the cigarette sales network of Kunming Tobacco Company was launched in this context. After nearly four years of hard work, it has successively built a marketing center, a telephone order center, an electronic settlement center, a logistics distribution center, and an inspection service center. The sales volume of cigarettes has steadily increased year by year, and the economic benefits of enterprises have been greatly improved.
In the early stage of sales network operation, as the company’s regional supply chain operations gradually tend to be fully intensive, with the gradual increase in the number and variety of daily incoming and outgoing goods, and the increasing complexity of customer needs, this has resulted in increased investment in human resources and increased difficulty in warehousing management. Many factors such as capital occupation are not conducive to intensive operation. To this end, the company learns from the warehouse management experience of advanced foreign companies and applies radio frequency identification (RFID) technology to construct a completely digital warehouse for the cigarette distribution center.
[Principle of Radio Frequency Identification Technology (RFID)]
The goods are pallets as the basic digital management unit, that is, an HF-915MHz electronic tag is embedded on the pallet. This will not affect the appearance quality of the goods, but also increase the overall digital average unit quantity of the goods, facilitating the realization of accurate digital management of large quantities of goods. The application of electronic tags in logistics distribution centers is based on digital warehouse management application software, computer wireless network technology, and modern logistics three-dimensional high-bay warehouse ideas.
【Digital Warehouse RFID Application Process】
Incoming goods: When the goods enter the warehouse through the incoming conveyor belt, the information of each pallet is written into the pallet through the incoming reader reader, and then the outgoing position is calculated through the computer warehouse management information system, and the inventory instruction is sent to the forklift vehicle system through the network system , And store it in the corresponding cargo space as required.
Shipment: After receiving the shipment instruction, the forklift goes to the designated cargo location to pick up the pallet cargo. Forklift the front forklift reader to confirm the accuracy of the pallet goods again, and then send the pallet goods to the conveyor belt at the outgoing port, and the conveyor belt reader at the outgoing port reads whether the pallet label information is accurate and verifies that the shipment is correct.
Through the inventory management of the pallets of goods, the first-in-first-out management in the flat warehouse is fully realized, which greatly improves the storage capacity of the warehouse.
[Introduction to RFID]
Electronic tags (RFID) have the characteristics of data storage function, large capacity, high frequency band (UHF), and long recognition distance. Practice has proved that Kunming Tobacco Company’s use of electronic tags has the advantages of small investment, reusability, low annual operating costs, and pallet batches as the basic unit of digitization of goods compared with barcodes.
Through the above methods, the digital warehouse management information system has realized: cigarette receiving management, cigarette real tray warehousing management, warehouse business management, cigarette real pallet delivery management, interface services and other software functions,
【running result】
Since the project was put into operation, the system has been operating stably. Judging from the effect of system operation for a period of time, the system can achieve the following main functions more prominently:
1) Realize the first-in first-out management of goods.
Before the construction of the digital warehouse project, the original distribution center warehouse inventory management relied on manual methods, which could only achieve floor-level management. It is impossible to distinguish each batch of inventory goods at all. When shipping from the warehouse, the first-in first-out management of the goods cannot be achieved, which leads to long-term storage of some goods in the warehouse, which affects the quality of the products and the image of the company.
After the digital warehouse is completed, advanced technologies such as RFID, wireless local area network, database, etc. can be used to realize the management of cigarette trays. For each batch of goods in the warehouse, the storage time, storage location and other information are automatically recorded by the system. When the goods are out of the warehouse, the first-in first-out management of the goods can be realized on this basis.
2) Real-time management of warehouse inventory.
The inventory management of the original cigarette distribution center warehouse relied on manual reports and manual statistics. As a result, company leaders and related departments such as the telephone order center were unable to accurately understand the warehouse inventory information in a timely manner. In addition, with the development of the company’s business, the number and variety of daily incoming and outgoing goods have gradually expanded, and customer needs have become increasingly complex. Whether the warehouse inventory can be managed in real time has become an important factor affecting the establishment of a fast and efficient operating system. Since the digital warehouse project was completed and put into operation, this situation has been greatly changed. Managers and related departments can accurately grasp the inventory status of the cigarette distribution center warehouse in real time. The real-time management of warehouse inventory provides a scientific basis for company leaders and related departments to make business decisions. At the same time, relevant departments such as the telephone ordering center can grasp the status of each cigarette brand and quantity in the warehouse in real time to ensure that daily customer orders and the company’s operations are carried out smoothly. With the cooperation of the company’s cigarette sales network construction and other projects, at present, the company’s cigarette business can complete a (launch plan -> telephone order -> settlement -> sorting -> delivery) sales cycle in one day.
3) Material tracking and graphical management.
On the basis of realizing cigarette pallet position management, the system can also realize the functions of material tracking and graphical management. This function allows the stock materials to be reflected in a graphical manner very intuitively and quickly. Greatly improve the storage efficiency and precision of cigarette item management.
4) Optimize business processes and improve work efficiency.
After the completion of the digital warehouse project, combined with computer technology and pallet management, the business process of the cigarette distribution center has been optimized to a large extent. When entering the warehouse, the goods are directly stacked on the pallets after being scanned on the conveyor belt, and the pallets are automatically sent to the corresponding floors by the elevator under the control of the system, and finally the pallets are sent to the storage space allocated by the system by the forklift. When leaving the warehouse, the forklift will send the target pallets to the hoist according to the system instructions and the principle of first in, first out, and then to the sorting center for sorting. Through the effective management and use of the pallets, the number of cigarette cargo handling and damage are reduced. Probability, improve operation efficiency. Specifically: Before the implementation of the digital warehouse project, it would take about 3-3.5 hours to complete the first shipment of 4,000 cigarettes. After the project was completed, this time was reduced to about 2 hours. The time for the second replenishment out of the warehouse has also been shortened from the original 2-2.5 hours to about 1 hour. The construction of a digital warehouse not only realizes the faster finding of the required goods, but also reduces the occurrence of out-of-sales in the variety of commodity supplies, maintains accurate and appropriate inventory, eliminates human operation errors, shortens the supply and sales planning time, and reduces inventory occupation Funds and lower freight costs enable retailers to meet their sales in a timely manner.
In the process of building a digital warehouse, Kunming Tobacco Company made full use of existing resources and relied on mature technologies such as existing networks, wireless data communications, RFID technology, network technology, and modern logistics information software to effectively improve the company’s overall operating level. A comprehensive logistics information management system that integrates logistics, information flow and value flow is realized, accurate control of inventory, full use of existing resources, and modern logistics information software technology to enable the entire warehousing system to achieve positioning management and optimization, and finally It improves the level of network construction work and provides reference cases for tobacco companies to achieve the goals of digital commerce.
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