jamison rfid - eskimo cold storage rfid implementation case study

Jamison RFID/ Eskimo Cold Storage/ Datex RFID Implementation Case Study

By Angela Cox

About Eskimo Cold Storage

In operation for seven years

• Located in Gainesville, GA

• Open 24 hours ,6 days a week

• Multi-temperature warehouse

• 32,000 pallet positions

• 550 to 600 pallet positions per aisle

Association Members

About Jamison RFID

In business for 107 years

• Four manufacturing plants in North America

• Supply over 5,600 cold chain customers

• Supply RFID portals

• Four company divisions: Jamison Door Company, Jamison/ HCR Inc.,

Jamison Latin America and Jamison RFID

About Datex

In business for over 35 years

• Offices in the US, Canada and Latin America

• Services customers in the US, Canada, Latin

America, Europe and the Middle East

• Provides supply chain software, mobility solutions,

professional services, and IT managed services

Why Did Eskimo Need RFID?

Operational Issues: Human Error

• Items put away in incorrect pallet position

• Missed inventory tracking activities

• Slow picking due to misplaced items

How Do These Issues Occur?

Inventory Putaway Process

1. Items are received into receiving locations

2. Insert spacers for blast freezing

3. Move into blast freezer

4. Removed from blast freezer

5. Spacers are removed

6. Inventory is put into warehouse storage

Mobile device scans are missed here -> inventory is lost

What Problems Did Lost Inventory Cause?

Profit Losses

• Chargebacks to customer

• Lost employee productivity

• Held back or merged shipments which significantly increased

shipping costs

• Equipment is out of service while used for searching for misplaced

inventory

• Loss of trust with customers

Cost of Lost/ Misplaced Pallets

Picking cost per pallet= $3.13

+

Average time to find pallet= 4 hours $40.00

(based on $10/hr employee wage)

=

$50 average

____________________________________________________________________________

On average 3% of pallets are mishandled 4176 pallets per year x $50

=

$208,800 + $25,000 chargeback fees

=

$233,800 lost per year

The Solution

RFID Implementation/ Integration

1. Chose two largest customers to test project

2. Apply RFID tags to all product owned by chosen customers

3. Install RFID portals and NEMA enclosures

4. Integrate RFID portals with Datex FootPrint® WMS

How RFID Works

RFID Tag

RFID Portal WMS

Portal reads RFID

tag

Portal transfers

data to WMS

Middleware

Benefits of RFID for Eskimo Cold Storage

Lost and misplaced pallets are reduced or even eliminated

• Discovery time is reduced to approximately 10 minutes from 4 hours

• Reduced chargeback costs

Fast Return on Investment (ROI) period

Cost of RFID Solution = (-) $100,000

+

Chargeback & Misplaced Pallet Costs = (+) $233,800

=

$133,800 saved in first year

(ROI period is estimated at 4 months)

Contact Us

800.933.2839

Online demonstration

marketing@datexcorp.com

Web chat

@Datexcorp

Datex Corporation