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Freightliner Improves Inventory Accuracy With New RFID Solution

Freightliner's Portland, Oregon Truck manufacturing plant.
by Staff Writers
Mt Gilead NC (SPX) Dec 17, 2007
Compsee and System Concepts have announced that Freightliner's Portland, Oregon Truck manufacturing plant deployed an RFID solution based on System Concepts' TraxWare Software Suite combined with Motorola/Symbol's RFID hardware utilizing the XR-400 series readers, along with a selection of metal mount RFID tags mounted on the mobile tugs and paper RFID 4" x 6" smart labels attached to inventory totes.

The deployment of this RFID solution has provided the management at Freightliner with a better way to track the manufacturing replenishment process, along with reducing the labor required to accurately control inventory.

Freightliner's manufacturing process calls for inventory parts needed on the production line to be put into inventory totes that are transferred via tugs onto the Shop Floor and returned back into the warehouse for replenishment. The process utilizes upwards of 750 totes that are transferred on the average of 6 to 7 time per shift.

Louis Fleischer, Plant Automation-Project Manager, commissioned System Concepts to perform an RFID Engineering Study to verify the physics and business flow for this project. This study identified two (2) choke points (portals) between the warehouse and the manufacturing facility that could be utilized as the data collection points to capture these transactions.

As each inventory tote identified with RFID labels moves via tugs with metal-mount RFID tags through these portals, this movement breaks a sensor beam that triggers the RFID reader to scan and read any tags within the portal. These transactions are updated to a Freightliner supplied SQL database on a corporate server recording the location, actual date and time (server time) of the transaction and the tote and tug information seen in the portal.

Mr. Fleischer affirms the key to success in deploying RFID is a business case for Supply Chain Management (SCM) material visibility. This deployment started with a Proof of Concept (POC) partnered with System Concepts' RFID software and their warehouse and work-in-process knowledge from other successful RFID installations. According to Mr. Fleischer; "We were successful because this RFID solution solved problems within our existing supply chain event rather than in isolation. A core problem was solved!"

"At this point in the evolution of data collection technology, a "closed-loop" challenge is where radio frequency identification (RFID) really excels!" quotes L. Allen Bennett, President and CEO of System Concepts, Inc. "Working with Freightliner and its engineers who had this vision, this project was the perfect match for us. When you use the right hardware, with our software, select the right RFID tags and labels to match the environment, and the knowledge to use them correctly, it's easy to solve these types of challenges."

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