TNT Logistics has launched an initiative to develop the use of RFID technology as part of its logistics solution offered to automotive manufacturers. Based on several pilots, this initiative will eventually lead to industry solutions for all parts of the automotive supply chain.
According to Terry McIntyre, corporate technology services manager, TNT Logistics North America, there are currently no industry-based RFID automotive mandates, like Wal-Mart’s mandate in the retail industry.
“While the auto industry has been using RFID successfully in production processes for some time, the use of it elsewhere in the supply chain has been slow in coming. That is until now,” said McIntyre.
The RFID initiative at the Material Sequencing Centre (MSC) operated by TNT Logistics for Ford Motor Co supports Ford's Dearborn truck assembly plant in Dearborn, Michigan, USA. Prior to the initiative's outset, the operation experienced a series of disconnected electronic and manual processes, leaving it vulnerable to interruption caused by late deliveries, part shortages, misplaced or lost parts.
As part of the Ford/TNT initiative, RFID tags and a network of WhereNet’s wireless locating sensors were set up to provide real-time location and status information for thousands of mobile racks shared between the plant and TNT's facility. Devices at the MSC’s dock doors trigger the RFID tag to emit a signal when a rack full of parts is loaded onto a truck bound for the plant. Through this automatic data collection process, utilising TIBCO software solutions, the system confirms the load has been built, and validates that it is in ready-to-ship status. The system can also trigger an advanced shipping notice to advise the factory of material en route.
The initiative includes automated gate arrival, load and unload rack validation, rack traceability and real-time location system (RTLS) alerts to improve communications between the MSC and the assembly plant. These business events will be fulfilled using TIBCO complex event processing and real-time visibility software to help prevent interruptions and manual interventions in the automotive supply chain.
When fully executed, the RFID initiative will provide real-time visibility and a synchronised assembly process to deliver an uninterrupted flow of parts from the MSC to line-side at the truck plant. Additionally, the solution will help to automate workflow, reduce inventory and prevent business interruption in the assembly process. In the case of Ford, it will have an active integrated RFID solution that can be deployed around the world at more than 50 manufacturing sites to leverage the capital investment it has made in the WhereNet infrastructure.
“RFID has the potential to transform the manufacturing and retail industries,” said Ram Menon, senior vice president, TIBCO Software. “Early adopters like TNT have already witnessed the tangible benefits the technology has to offer for simplifying operational efficiency.”
