June 02, 2004RFID Success StoryWhere RFID Works By Deena M. Amato Mccoy Wireless yard management system streamlines shipments While RFID may still be just a glimmer in Wal Mart�s eye, there�s one place where the much hyped technology is already up and running: at the NYK Logistics Long Beach, Calif. facility, a 70 acre yard and transload facility with 1,200 parking slots and 250 dock doors. Thanks to an RFID system installed a year ago, NYK gets 100 percent accurate location information for every container, trailer and hostler tractor within the yard. The company automates more than 90 percent of its yard operations. The automated system replaces the need for all manual data re entry, so all inbound and movement information is populated within the system electronically. This eliminates time consuming paperwork. The RFID system is helping NYK increase dock door utilization and yard throughput, and reduce yard congestion. Drivers report a 50 percent reduction in time spent on site to complete a double transaction. The average time a driver spends in the yard has decreased to an average of 20 minutes But it wasn�t always that easy. NYK operates on a 24 hour a day, seven day a week schedule, and processes more than 1,000 gate transactions daily during its peak season. Containers and trailers from 11 different steamship lines and between 12 to 15 domestic carriers check into and out of the facility. Each year NYK manages more than 50,000 inbound ocean freight containers from the Port of Los Angeles/Long Beach, Calif., and 30,000 outbound trailers. Today, as retail companies step up their use of overseas suppliers and import more product to fill store shelves, the idea of partnering with third party logistics (3PL) companies that manage and execute logistics function has become quite common. Target Stores is among the companies tapping the services of NYK. They've designated responsibility for coordinating shipments to 22 different Target distribution centers in the United States to NYK � no small task given the breadth of the operation and the fact that it requires precise monitoring. Chains like Target and others also need to ensure that products are arriving at 3PL yards, distribution centers and stores in a timely manner, especially during peak seasons. The process is often hindered by errors caused by manual processes. �It�s critical to have 100 percent data accuracy,� says Matt Armanino, senior vice president of WhereNet, a Santa Clara, Calif. based company that provides integrated wireless location and communication infrastructure. �The human element causes inherent errors due to re keying information, latency and other delays in the collection of data. As decision support systems are added to the mix, another Achilles Heel evolves. Decision making is only as good as the data a company bases its decisions on,� says Aramanio. �Retailers do not just want visibility to goods within a store or warehouse. They also want to know status of inbound shipments from marine terminals and where these shipments originated from,� Aramanio says. �They want better asset management to gain better data and visibility that can lighten black holes in the inbound delivery process.�
Monitoring this process became a cumbersome task. NYK relied on a homegrown yard management system and manual labor to manage this ever changing yard. Yard personnel, armed with clipboards, roamed the yard, manually scanned bar codes on containers, and then entered data into the management system in an effort to keep yard inventory current. Between a time consuming manual process and a steadily increasing volume from retail companies like target, NYK decided it was time to maximize the facility�s efficiency and increase the throughput of the yard. �As imports are increasing, we needed a system that would make this handling process as easy as possible,� says Rick Pople, general manager at the NYK Logistics United Warehouse and Distribution division. �At the same time, we were concerned with just in time deliveries and getting inventory where it needs to be, when it needs to be there, without its sitting on a dock,� he adds. �The more that product is re handled, the more it costs to get inventory into the hands of the customer. There is an ongoing need to take time and costs out of the supply chain.� Bar Codes Are Not Enough Ideally, NYK wanted a system that could increase revenue as a result of better yard throughput, improve level of service performance through timely processing of containers, and finally, reduce costs through better gate productivity, improved hostler efficiency and the elimination of manual yard checks. NYK chose the WhereSoft Yard 4.0 yard management software and Real Time Locating System solution. The RFID based solution enables companies to have immediate connectivity to the location and status of assets. After signing the deal in March 2003, NYK deployed the system in less than 75 days, and had the system live by June. How It Works �Every couple of minutes signals are transmitted through the infrastructure,� Pople says. �Sophisticated visualization software uses algorithms to detect signals from the tags, and determines each driver�s and container�s location. This creates a localized GPS [global positioning system] that can pinpoint equipment in the yard.� All yard moves are conveyed to the drivers via wireless devices that run the WhereSoft Yard program. Drivers can map their next move simply by touching the unit�s screen. The driver is then directed to his dedicated parking slot. Then drivers are directed to a dock door to either unload and consolidate a container or bring their empty trailers for loading. All data resides in a database housed on a SQL server at the yard. The data filled repository keeps management abreast of all movement data in real time. �We had a very smooth peak season which ran between September and November,� Pople says. �We conduct a large chunk of business during that eight week period. Volume goes up very quickly, and the velocity [the unloading and reloading of trucks] of equipment increases significantly,� he reports. This system allowed us to handle these operations without any hiccups. We were able to provide accurate inventory information to our carriers and customers.� Pleased with initial results, NYK is already looking ahead to future enhancements. �We expect the system to increase visibility even more for our next peak season,� Pople adds. �We hope to explore the addition of a web based system that will give us an on line, real time view into inventory.� STORES - June: Where RFID Works (and It’s Not Wal Mart) Posted by Craig at June 2, 2004 05:38 PM |