Friday, May 9, 2008

RFID Delivered a $12,000 Savings in First Month

Looking for a way to achieve a $12,000 saving in materials cost?

Consider a RFID Tracking System!

According to an article in RFID Update by John Burnell, a large commercial painting contractor implemented RFID tracking for inventory control and saved $12,000 in the first month. Vulcan Painters previously had issues keeping track of what materials were issued to job sites and what was returned.

In addition to inventory accuracy related to use, Vulcan’s new RFID system reduced misplaced and unaccounted for materials as well as reduced losses from expired paint.

HOW VULCAN IMPLEMENTED RFID:
Moderate to high-cost inventory items in the Vulcan facility were tagged with an RFID tag. Project managers use handheld computers integrated with RFID readers to select and load the items required for the job. The handheld application assigns the materials to the project manager and job site. When the workers leave the facility wit the materials, they pass through a RFID portal read which records all tagged objects as well as identifies any items that were not “checked out” by the manager.

When employees return to the facility, they scan the items they are returning with a handheld RFID reader and enter the storage location. The collected data allows Vulcan to keep real-time tabs on their inventory and also search by expiration, brand, color, etc.

EXPANDING RFID FOR VULCAN:
The article also indicated that Vulcan Painters could further their savings if they wanted to implement RFID tracking to the work sites themselves. Ford recently announced new RFID reader-equipped pickup trucks and work vans that could held further their tracking abilities. Currently they are only tracking materials as the leave and come back to the storage facility, but RFID is also a very viable solution for asset management (i.e ladders, scaffolding, etc.).

At time publish, Vulcan does not have plans to expand RFID beyond materials, but if they continue to save anything near $12,000 past month one…they just might want to further their savings as well as efficiency.

Have you considered RFID for inventory control or asset management?

Dynamic Computer is a great source of RFID information and can help you determine if RFID is an investment worth initiating. Visit the Dynamic Computer Corporation website or contact us 248-473-2200. We even have a Demo area to visually show you RFID in action.

Labels: ,

Links to this post:

Create a Link

<< Home