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THE APPLICATION OF RFID IN WAREHOUSE PROCESS: CASE STUDY OF

CONSUMER PRODUCT MANUFACTURER IN THAILAND

Article  in  Logforum · September 2014

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 LogForum 2014, 10 (4), 423-431

> Scientific Journal of Logistics <

http://www.logforum.net p-ISSN 1895-2038 e-ISSN 1734-459X

THE APPLICATION OF RFID IN WAREHOUSE PROCESS: CASE

STUDY OF CONSUMER PRODUCT MANUFACTURER IN THAILAND

Natanaree Sooksaksun, Sriyos Sudsertsin

King Mongkut's University of Technology North Bangkok, Thailand

ABSTRACT. Background: This warehouse has three main problems: poor accuracy of inventory location, long cycle
time of receiving process and non-real time empty storage location. Therefore, the objective of this research is to improve
the process in the warehouse by applying radio frequency identification (RFID) technology.
Methods: There are four steps in this research. First of all, the current of the receiving process and the picking process
are studied. Second is to give the guideline for RFID application. Third is to implement of RFID system in this
warehouse. The last one is to compare the result of the current process and the proposed process.
Results and conclusions: The passive ultra high frequency (UHF) RFID is selected for used in this warehouse. The
RFID readers are attached on forklift trucks, the warehouse entrance and loading dock area. The system used RFID tags
in two forms: one form used to identify pallets and another to indicate the locations of shelves on which pallets are
stored. After using RFID system in this warehouse, the results showed that the accuracy of inventory location increased
from 78.2% to 100%. The cycle time reduces from 66 minutes to 47 minutes which is down to 28.79%. . Moreover, the
empty storage location are known real time.

Key words: RFID, Warehouse, Receiving process, Picking process.

INTRODUCTION
In warehouse of consumer product
Warehouse management is one important manufacturer, it is very difficult to
activity of supply chain management. There management. The complexity of warehouse
are four main activities in the warehouse management depends on the number storage
processes [Rouwenhorst et al., 2000]. The keeping unit (SKU), quantities of each SKU
receiving process is the first process and the number of orders received and
encountered by an arriving product. The shipping. This warehouse has three main
products may be check and wait for problems: poor accuracy of inventory location,
transportation to the next process. Second long cycle time of receiving process and non-
activity is the storage process that products are real time empty storage location. It is
placed in storage locations. Third, the picking necessary to improve warehouse management
process is a process of retrieving products from efficiency and decrease error rates.
warehouse storage locations to satisfy
customer orders. The last one is the shipping Radio Frequency Identification or RFID is
process that orders are checked, packed and the technology which uses radio frequency to
eventually loaded the carrier. The efficiency of identify objects and transfer data by the
a warehouse depends on how efficiently it can wireless non-contact and it can be
perform the activities. automatically tracked and traced on each

Copyright: Wyższa Szkoła Logistyki, Poznań, Polska

Citation: Sooksaksun N., Sudsertsin S., 2014, The application of RFID in warehouse process: case study of consumer product
manufacturer in Thailand. LogForum 10 (4), 423-431
URL: http://www.logforum.net/vol10/issue4/no6
Accepted: 13.08.2014, on-line: 29.09.2014.
Sooksaksun N., Sudsertsin S., 2014, The application of RFID in warehouse process: case study of consumer
product manufacturer in Thailand. LogForum 10 (4), 423-431.
URL: http://www.logforum.net/vol10/issue4/no6

product item or pallet by using the RFID tag. The information is read by an RFID reader
RFID technology consists of an antenna, RFID when a tag passes by it. The reader can track
reader and RFID tag. When the RFID tag the tag's movement in real time and pass its
passes through the field of the scanning digital identity and other relevant information
antenna, it detects the activation signal from to a computer system.
the antenna and it transmits the information on
its microchip to be picked up by the scanning There are many researches in field of RFID.
antenna. RFID tags can be read in a wide For example, Spekman and Sweenry [2006]
variety of circumstances, where barcodes or presented a comprehensive overview of RFID
other optically read technologies are useless technology. The goal is to provide insights
and it is developed for collecting and tagging regarding the implementation and use of RFID
data will help managing warehouse data more by focusing on its advantages and its problem.
effectively. Schultae et al. [2006] presented that the RFID-
based navigation and position system shall
Therefore, the objective of this research is support wood carriers to cut back on
to improve the process in the warehouse by unproductive times in the forest by localizing
applying RFID technology. woodpiles in a more efficient way. Janke et al.
[2007] proposed the German logistics
The remainder of this paper is organized as company that has successfully implemented
follows. The related literatures are reviewed in and tested a system to backtrack goods
section 2. In section 3, the methodology of this dispatched through the transport chains of two
research is explained. In section 4, the results large food suppliers. Wang et al., [2010]
of the methodology are proposed. The last proposed a digital warehouse management
section is conclusion and recommend. system in the tobacco industry based on RFID
technology. Cyplik and Patecki [2011]
compared the possibilities of applications of
LITERATURE REVIEW identification methods based on RFID and
RTLS (Real Time Location Systems) in certain
In the past decades, RFID technologies economic conditions. Zhu et al., [2012]
have attached considerable attentions [Sarac et provided an overview of the current state of
al., 2008] Currently, RFID is an importance RFID application in different industries and its
technology for revolutionizing a wide range of impact on business operations. Dwivedi et al.,
applications including supply chain [2013] studied the factors affecting the use of
management [James et al., 2013]. RFID can RFID systems and user satisfaction in a library
apply in different parts of supply chain such as context by empirically testing relevant
warehouse management, transportation constructs from DeLone and McLean's IS
management, production scheduling, order Success Model. Liu et al., [2013] viewed the
management, inventory management and asset RFID technology as an operation strategy to
management systems [Banks et al., 2007]. ensure food safety, and proposed three pricing
decision models according to different
operation strategies and market situations. Fan
The RFID system consists of three
et al. [2014] considered the situation of a
components: reader, tag and host computer
retailer subject to inventory inaccuracies
[Sulaiman et al., 2012]. The tag is the part that
stemming from shrinkage problems. They
collects real time data and then transmits that
apply a newsvendor model to analyze how to
data via radio waves. The tags usually have
reduce inventory shrinkage problems by
two parts, a small chip and an antenna.
deploying RFID.
Information is stored and processed by the chip
while the antenna is used to receive and
transmit information. RFID tags can be either
passive or active tag. An active tag has a small METHODOLOGY
battery on board and is activated when in the
presence of an RFID reader. A passive tag is The methodology of this research is shown
cheaper and smaller because it has no battery. in figure 1.

424
Sooksaksun N., Sudsertsin S., 2014, The application of RFID in warehouse process: case study of consumer
product manufacturer in Thailand. LogForum 10 (4), 423-431.
URL: http://www.logforum.net/vol10/issue4/no6

First of all, the general information of an paper-based; therefore, it is not real-time. In

existing warehouse such as receiving process the storage process, this warehouse used the
and picking process are studied by using 3G random storage policy that allows the storage
principles. The first G is Genba or the actual location for a particular product to change or
place. The second G is Genbutsu or the actual float overtime. Moreover, the picking process
thing. The last one is Genjitsu or Genshou or is shows in figure 3.
the actual situation. Moreover, the cycle time
of receiving process and the accuracy of However, this warehouse has three main
inventory location are collected. Second, the problems. The first problem is the long cycle
fundamental level of RFID is studied. For time of receiving process that the cycle time of
example, what is RFID? How do the parts fit? receiving process (10 pallets per trip) is 66
After that, the RFID system of this warehouse minutes per trip. The second problem is the
is designed. Third, the RFID system is poor accuracy of inventory location which the
implemented in this warehouse. After that, the accuracy of inventory location is 72.87%. The
RFID system is tested. The last step, after the last problem is the non-real time empty storage
RFID system is used, the cycle time of location which effect to the quantitative of
receiving process and the accuracy of storage location for the finished goods and the
inventory location are collected. Next, the data time for finding the storage location.
are compared between before and after using Therefore, the RFID system is selected to
RFID. improve warehouse management efficiency
and reduce error rates.
Study an existing warehouse
The guideline for the application of RFID
Study how to apply RFID
The RFID system consists of three
Implement RFID in the warehouse
components. The first component is the
antenna. This research selects the passive ultra
high frequency (UHF) RFID base on EPC
Compare before and after implement
class 1 Gen1 standard for this warehouse
because it is inexpensive price and not require
Fig. 1. The methodology of this research
Rys. 1. Metodologia badań power source to operate. The second
component is RFID tags. Two forms of RFID
tags are selected to use in this warehouse. First
form is called a pallet tag that is used to
RESULTS
identify pallets (figure 4). Another is called a
location tag that is used to indicate the
The general information of an existing
locations of shelves on which pallets are stored
warehouse
(figure 5).
This factory manufactures consumer
The last component is RFID reader. There
product such as toothpaste, washing powder
are three forms of the RFID readers. The first
and hand soap. After the goods are produced,
form is the desktop reader (figure 6) that is
they are transported to the warehouse. This
used in production line to generate data to
factory has two warehouses. One warehouse is
RFID tag before attach to finished goods
next to the production line that is not pallet. The second form (figure 7) is RFID
considered in this research. The other one is far
reader and antenna which mounted on the
from the factory that storage the export
warehouse entrance and loading dock. It can be
product. The distance between the factory and automatically traced on each finished goods
this warehouse is approximate 4 kilometers.
pallet to be moving pass. The last one (figure
The finished goods are transported from the
8) is the reader which mounted on forklift
factory to this warehouse by truck which
trucks with antenna and touch screen
contains 10 pallets per trip. Figure 2 shows the
computer. This reader can read both pallet tag
existing of receiving process in this warehouse.
and location tag for verifying the correct
The information of the receiving process used
location of shelves.

425
Sooksaksun N., Sudsertsin S., 2014, The application of RFID in warehouse process: case study of consumer
product manufacturer in Thailand. LogForum 10 (4), 423-431.
URL: http://www.logforum.net/vol10/issue4/no6

Finished goods Transport to warehouse

Palletizing Move to receiving area

Labelling Checking

Move to receiving area Find location to storage

Checking Print location document

Move to loading dock Move to location

Print transport documents Storage

Drop pallets into the truck

Fig. 2. The receiving process

Rys. 2. Przebieg procesu odbioru

Receive order

Print picking list

Receive picking list

Picking pallet

Move to loading dock

Checking

Update inventory stock

Detect empty storage location

Drop pallet into truck

Fig. 3. The picking process

Rys. 3. Proces podjęcia

426
Sooksaksun N., Sudsertsin S., 2014, The application of RFID in warehouse process: case study of consumer
product manufacturer in Thailand. LogForum 10 (4), 423-431.
URL: http://www.logforum.net/vol10/issue4/no6

Fig. 4. Pallet tag

Rys. 4. Tag na palecie

Fig. 7. Gate reader and antenna

Rys. 7. Czytnik na bramce i antena

Fig. 5. Location tag

Rys. 5. Tag lokalizacji

Fig. 8. Reader which mounted on the Forklift

truck
Rys. 8. Czytnik zamontowany na wózku
widłowym

Fig. 6. Desktop reader

Rys. 6. Czytnik

The implementation of RFID in the warehouse From the figure 9, after the finished good is
produced, production data is linked to the
Integrating RFID technology into RFID tags which attach to each pallet.
warehouse process, based on the analysis of Warehouse staff will know the number of
the current processes, the receiving process is pallet which is transport to the warehouse.
changed after using RFID system to be the Therefore, they will prepare the storage
receiving process in Figure 9. location. The first gate reader where is
installed between end of production line and
warehouse can be automatically traced on each

427
Sooksaksun N., Sudsertsin S., 2014, The application of RFID in warehouse process: case study of consumer
product manufacturer in Thailand. LogForum 10 (4), 423-431.
URL: http://www.logforum.net/vol10/issue4/no6

finished goods pallet to be moving pass to warehouse, RFID tag which attach to each
specify the destination warehouse. The second pallets is read by forklift reader and show the
gate reader where is installed at shipping area location to be stored on a touch screen
can be traced on each pallet to be moving pass computer which mounted on the forklift truck.
and specify automatically the location in the The forklift truck moves pallet to the location
destination warehouse and drop pallets into the and stores while location tag is read to verify
truck. When transport pallets to the destination by forklift reader.

Finished goods

Palletizing

Generate data to RFID tag

Attach RFID tag to pallet

Pass RFID gate reader1

Move to loading dock

Pass RFID gate reader2

Drop pallets into the truck

Transport to warehouse

Read pallet tag by forklift

reader
Move to location

Verify location tag by forklift

reader
Storage

Fig. 9. The receiving process after using RFID system

Rys. 9. Proces odbioru po użyciu systemu RFID

Moreover, the picking process is changed

after using RFID system which is shown in The comparison before and after RFID
figure 10. implementation

From the figure 10, the picking list is After implement RFID system, the data is
shown in the touch screen monitor. After that, collected. The results are shown in table 1.
the staff will pick the pallet by reading both
pallet tag and location tag. Therefore, the From the table 1, the implement RFID in
inventory stock and empty storage location are the receiving process can help to solve the
updated real time. Next, the pallet is moved to problems. The average total cycle time of
the loading dock. All pallets are checked and receiving process is reduced by 28.79%. The
dropped into the truck. This process can accuracy of inventory location is 100%.
improve the storage location management Moreover, the empty storage locations are
which the empty storage location can use in the known real time, so it help to save time to find
receiving process real time. the empty storage location.

428
Sooksaksun N., Sudsertsin S., 2014, The application of RFID in warehouse process: case study of consumer
product manufacturer in Thailand. LogForum 10 (4), 423-431.
URL: http://www.logforum.net/vol10/issue4/no6

Receive order

Picking list show in touch

screen monitor

Read RFID tag & update

Picking pallet
inventory stock

Move to loading dock

Detect empty storage location

Checking

Drop pallet into truck

Fig. 10. The picking process after using RFID system

Rys. 10. Proces podjęcia po użyciu systemu RFID

Table 1 Comparison before and after RFID implementation

Tabela 1. Porównanie przed i po wdrożeniu RFID

Items Before RFID implementation After RFID implement Difference

The average total cycle time of receiving
66 minutes per trip 47 minutes per trip 28.79%.
process (10 pallets per trip)
The accuracy of inventory location 72.8 % 100% 27.2%
The empty storage location information Non-real time
Real time
(wait for warehouse staff input the data)

minutes. Moreover, the empty storage location

are known real time.
CONCLUSION AND RECOMMEND
However, this research focuses only one
The objective of this research is to improve warehouse that far from the factory; therefore,
the process in the warehouse by using RFID it has gap to improve other warehouse of the
technology. This warehouse has three factory.
significant problems. The first problem is an
inaccuracy of inventory location that the
accuracy of inventory location is 72.8 percent. REFERENCES
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Sooksaksun N., Sudsertsin S., 2014, The application of RFID in warehouse process: case study of consumer
product manufacturer in Thailand. LogForum 10 (4), 423-431.
URL: http://www.logforum.net/vol10/issue4/no6

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ZASTOSOWANIE APLIKACJI RFID W PROCESIE MAGAZYNOWYM

- STUDIUM PRZYPADKU U PRODUCENTA WYROBÓW
KONSUMENCKICH W TAJLANDII
STRESZCZENIE. Wstęp: W analizowanym magazynie występowały trzy podstawowe problemy: słaby poziom
dokładności określenia miejsca składowania, długi okres cyklu pozyskiwania oraz brak bieżącej informacji o pustych
miejscach składowania. Celem tej pracy było poprawienie procesu w omawianym magazynie poprzez wprowadzenie
technologii RFID.
Metody: Badania przeprowadzono w czterech etapach. Pierwszym etapem było przeanalizowanie istniejącej sytuacji.
Drugim - przekazanie wytycznym dla wprowadzenia technologii RFID. Trzecim - wdrożenie systemu FRID
w analizowanym magazynie. Ostatnim etapem było porównanie wyników aktualnego procesu z proponowanym.
Wybrano pasywną ultra wysoką częstotliwość (UHF) RFID do stosowania w danym przypadku. Czytniki RFID zostały
przymocowane do wózków widłowych, na wejściu do magazynu oraz na polu załadowczym. Tagi RFID były używane
w dwóch wersjach: do identyfikacji palet oraz do identyfikacji miejsc składowania towaru na regałach.
Wyniki i wnioski: Po wprowadzeniu technologii RFID, trafność danych dotyczących lokalizacji towaru w magazynie
wzrosła z 78,2% do 100%. Cykl roboczy został zredukowany z 66 minut d o47 minut, czyli 28,79%. Jednocześnie
uzyskano informację o pustych miejscach składowania.

Słowa kluczowe: RFID, magazyn, proces odbioru, proces pobrania

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 Sooksaksun N., Sudsertsin S., 2014, The application of RFID in warehouse process: case study of consumer
product manufacturer in Thailand. LogForum 10 (4), 423-431.
URL: http://www.logforum.net/vol10/issue4/no6

DIE ANWENDUNG VON RFID-VERFAHREN IN LAGERPROZESSEN -

STUDIENFALL BEIM HERSTELLER VON KONSUMERZEUGNISSEN
IN THAILAND
ZUSAMMENFASSUNG. Einleitung: Innerhalb des analysierten Lagers traten drei Hauptprobleme auf: fehlende
Präzision bei der Identifikation eines Lagerplatzes, lange Zeit für Kommissionierung und Warenausführung und fehlende
Information über die freien Lagerplätze. Das Ziel der Arbeit war es, die Prozesse im betreffenden Lager mit Hilfe der
RFID-Technologie zu verbessern.
Methoden: Die Untersuchungen vor Ort wurden in vier Etappen durchgeführt. Innerhalb der ersten Etappe hat man die
bestehende Situation analysiert. Innerhalb der zweiten - erfolgte die Bereitstellung von Richtlinien für die Einführung der
RFID-Technologie. In der dritten Etappe - die Einführung des RFID-Systems im analysierten Lager. In der letzten Etappe
hat man einen Vergleich der Ergebnisse des herkömmlichen Prozesses mit denen des vorgeschlagenen Systems
vorgenommen. Es wurde eine passive Ultra-Hochfrequenz (UHF) RFID für den betreffenden Anwendungsfall
ausgewählt. Die RFID-Leser wurden an Gabelstapler befestigt, ferner am Lagereingang und innerhalb der Verladefläche
positioniert. Die RFID-Tags wurden in zweierlei Versionen in Anspruch genommen: als die Version für die
Identifikation von Paletten und als die Version für die Identifikation von Lagerplätzen im Regalfach.
Ergebnisse und Fazit: In Folge der Einführung der RFID-Technologie ist die Daten- Effizienz hinsichtlich der
effektiven Warenidentifikation im Lager von 78,2% auf 100% angestiegen. Der Arbeitszyklus wurde von 66 auf 47
Minuten, das heißt um 28,79%, reduziert. Gleichzeitig gewann man die Information über die freien Lagerplätze.

Codewörter: RFID, Lager, Entnahme-Prozeß, Aufnahme-Prozeß

Natanaree Sooksaksun, Sriyos Sudsertsin

Department of Industrial Management
Faculty of Industrial and Technology Management
King Mongkut's University of Technology North Bangkok
Thailand
e-mail: [email protected]

431

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