EXPORTING AN RFID-ENABLED SUPPLY CHAIN MANAGEMENT STRATEGY

RFID gives Taiwanese exporter an instant read on business operations


Background


Leading Taiwanese exporter Lay Grand International Co., Ltd., supplies decorative products to North American retailers, including Sam’s Club, from its base of operations in Hong Kong and mainland China. In the competitive retail industry, where orders are often awarded to the lowest cost vendor, conducting efficient, accurate business operations is critical to preserving profit margins – and winning repeat business.


Challenge


Lay Grand handled key processes such as order processing, inventory management and shipment inspection manually, increasing costs and the potential for human error. In addition, it needed to comply with Sam’s Club RFID pallet-tagging program for the infrequent, but large shipments it sent the company. Could RFID help Lay Grand ring up a new strategy for streamlining its supply chain?


Solution


Lay Grand has leased an RFID-enabled supply chain optimization system from Tranz Technologies, E2, which is comprised of information management software and RFID readers. The E2 system, which conforms to EPCglobal’s EPCIS v1.0.1 standard, and has been favoured and subsidized by the Taiwan Government’s Ministry of Economic Affairs and is designed to bring the benefits of RFID to small and medium-sized enterprises. Meanwhile, merchandise is tagged with high performance ShortDipole™ UHF tags, ensuring accurate reads.


Success


The new RFID-enabled solution has optimized Lay Grand’s supply chain by:

 

  • Capturing and managing product events throughout key work processes at the company’s Shenzhen distribution center
  • Electronically verifying that tagged products and cartons match packing lists before they are shipped
  • Improving shipping and receiving efficiency
  • Increasing inventory accuracy


The data is in: Lay Grand’s RFID solution delivers the goods. As a consequence, the company is fast-tracking its work to deploy the E2 system to other factories and logistics centers.