improving visibility in the cold storage warehouse with rfid, and roi in 6 months!
DESCRIPTION
Improving Visibility in the Cold Storage Warehouse with RFIDTRANSCRIPT
Improving Visibility in the Cold Storage Warehouse with RFID
Karen Reece, Vice President, Eskimo Cold StorageAnthony J Dublino, Dir. Commercial Business, N America - Jamison RFID
Who is Eskimo ?• Eskimo Cold Storage handles all types of frozen foods ranging from
poultry to seafood- with the ability to blast freeze products and have ready for shipment the next day.
• Our focus is on customer service made evident by 24/7 availability, Eskimo Cold Storage also offers exporting and real time inventory tracking.
• A company built on decades of experience and a love for the industry, Eskimo Cold Storage employs the latest technology to deliver the highest quality service.
• We have 10.9 Million Cubic Feet of space with 32,000 pallet positions- which are 7 levels high.
Eskimo Technology Overview…
• Eskimo Cold Storage originally used a WMS bar-code tracking solution to manage our inventory…
• By installing an RFID inventory tracking solution, we then further:– Improved our inventory visibility– Decreased search time for lost pallets– Increased productivity operations over 50%.
Warehouse Layout…
Receiving Area…
64 Receiving / Shipping Docks
Inside the operation…10.9 Million Cubic Feet
High Bay Warehouse
Running 2 Shifts
X 6 days per week.
How Cold is it ? 0 to -25 degrees Smurfette Michael Myers
The Problem…
• Mis-handled Pallets (at Put away) = • Lost Pallets (at Picking)• $25,000 per year in Chargebacks– Vendors (Lost, Late or Missed Shipment)– Demurrage– Freight
• Customer “TRUST” becomes an issue…
Eskimo Data…1• 20 Trucks per day• 24 Pallets per Truck• 480 Pallets per Day• 290 work days per year = • 139,200 Pallets Processed per YEAR• 3% or 4176 Pallets per year are mishandled• 32,000 Pallet Positions - Total• 600 Pallet Positions per Aisle
Eskimo Data…2• Lost Pallets (at Picking)– Pallets handled per year = 139,200– 3% pallets misplaced = 4176– $ per hour per worker $12.50 (includes benefits)– Picking Cost per “Normal” pallet (avg.) = $3.13– Time to find misplaced pallet = 4 hours (Average)– Picking Cost per LOST pallet (avg.) = $50– LOST Dollars per year = $50 x 4176 = $208,800– Chargebacks per year = $ 25,000
The Solution…1• RFID at Pallet Level
The Solution…2• RFID System located at the end of each aisle.
The Solution…3• Time to find ANY Lost Pallets is <10 minutes
The Solution…ROI
• RFID Tracking at the end of each aisle gave a “Confirmation” of which aisle was used for pallet storage. – Cost of the RFID Solution = $100,000– Chargeback Savings = $ 25,000 (year)– Misplaced Pallet Savings = $208,000 (year)– TOTAL Savings = $233,000 (year)– ROI for the RFID Solution 4.3 Months
Karen is HAPPY
Anthony J DublinoJamison RFID(a division of Jamison Door)[email protected]
Questions are cool!
Karen R. ReeceVice PresidentEskimo Cold [email protected] ext 223