ΟΙΚΟΝΟΜΙΚΟ ΠΑΝΕΠΙΣΤΗΜΙΟ ΑΘΗΝΩΝ
ΤΜΗΜΑ ΔΙΟΙΚΗΤΙΚΗΣ ΕΠΙΣΤΗΜΗΣ ΚΑΙ ΤΕΧΝΟΛΟΓΙΑΣ www.eltrun.gr
Empowering Distribution Center operations with RFID
Angeliki Karagiannaki
SmartRFID Unit of the
ELTRUN E-Business Research Center http://www.eltrun.gr; akaragianaki@aueb.gr

Company
Sector
Year
Format
Application
Tag/Reader Supplier
System Integrator
Status
Labeling
Country
• Diakinisis- a 3PL operator
• Distribution
• 2008
• Passive UHF RFID
• Storage and Shipment
• Alien Technology
• Business Effectiveness
• Roll-out
• Pallet
• Greece

Inefficiencies before RFID
• Time –consuming and unreliable stock taking
• Remarkable variances between accounting and physical stocks
• Overstated or understated inventory levels
• Difficulty in locating the pallets on storage racks during order assembly
• Mistakes during loading
• Product obsolescence due to overstocked inventory.
• No establishment of unforgiving rules for pallet storage

TRUCK TAG
FLOOR TAG
RFID TAGGED
PALLETS
LOCATION TAG
RFID-ENABLED FLTS
RFID PRINTER

RFID-enabled processes
Storage Picking Shipping Inventory
Physical
Count

RFID-enabled Storage Process
1. Attach RFID labels on pallets
2. Link Pallet Barcodes with
Pallet RFID Label – Update
WMS
3. Forklift Truck reach Pallet
RFID Label
2
1
4. The Storage Location is shown on the terminal via WMS
5. Reading of
Storage Rack
RFID Label –
Confirmation of correct storage location

RFID-enabled Full Pallets Picking
1. FLT Driver reads on the terminal Pallets & Location to retrieve
2. Confirmation of correct Pallet pickup Επιβεβαίωση
Εξαγωγής
Παλέτας
3. Pallet pickup
4. Automatic Loading Control (Correct pallet, carrier, order)
ORDE
R 3
ΟΚ

RFID-enabled Shipping Process
1. Move assembled orders to the loading area
2. Automatic Loading Control
(Pallet, carrier, order) – Loading
ORDE
R 3
ΟΚ

RFID-enabled Inventory Physical Count
Stock Taking by moving properly equipped FLT through the aisles

• Achieved near 100% pallet traceability of pallets through the distribution center
• Improved correct storage location of pallets by more than 25%
• Expedited stock taking improved by 40%
• Faster pallets movement by 30% – The FLT operator completes pallet storage and retrieval on his driver’s seat – no need to get off for pallet – rack scanning etc
• 80% reduction in shipment errors
• Overall process improvement of 20%

RFID IMPLEMENTATION of DIAKINISIS CASE
• Alternative RFID implementations
Process C Process D
–
(Receiving) (RFID (Storage) (Picking) (Shipping)
Numerous possible ways of implementing RFID within an warehouse by RFID…
• RFID process redesign problem
• Different implementation  different value of RFID
• no clear cut answer as to which RFID implementation is the best
RECEIVING
– IT IS IMPORTANT TO
STORAGE ORDER PICKING
SHIPPING
–
…is not supported by
…is not
RFID…
RFID…
– decide on a specific one based on a credible evaluation of the alternatives
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A generic warehouse simulation model
• Video (SIMUL8 software)

Simulation Results
80,00
70,00
60,00
50,00
DIAKINISIS CASE
Implementation 5
Implementation7
Implementation 3
As-is
40,00
30,00
20,00
10,00
0,00 pallets
Labor Utilisation
Implementation 2
Implementation 6
Implementation 8
Implementation 4 cases as-is tagging inhouse tagging by all the suppliers tagging by the large suppliers tagging inhouse & by the large suppliers
13

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