Supply chain technologies – at Woolworths

Citation

(2003), "Supply chain technologies – at Woolworths", Work Study, Vol. 52 No. 1. https://doi.org/10.1108/ws.2003.07952aaf.003

Supply chain technologies – at Woolworths

Supply chain technologies – at Woolworths

Supply chain management requires accurate, up-to-date information about components and products within the chain. Recent advances in supply chain technology include the establishment of electronic catalogues linked to the monitoring of product movement via a combination of radio frequency identification (RFID) for products and vehicle location/wireless communications technologies for transportation vehicles and trailers/containers. This ability to monitor location becomes ever more important – the logistics industry is being asked by shippers to take control of door-to-door movements of product, to manage the details and the hand-offs. This should enable reduced inventories, less warehouse space, and better matching of product SKU to demand point, which in turn enables the logistics providers to differentiate themselves and create margin.

As an example, Savi Technology has recently been selected by Woolworths UK to automate their supply chain.

The resulting real-time information network will help improve management of dollies, roll cages, and totes and the security of consumer products they transport within Woolworth's supply chain network. Through the deployment of Savi's Web-based SmartChain software platform that is uniquely linked with wireless tracking systems, the information network will reduce inventory shrinkage while improving operational efficiency, inventory management and customer service.

"This project, funded in part by the UK Government's 'Chipping of Goods Initiative', is a significant opportunity to demonstrate to the business community and the RFID industry the potential of RFID in crime prevention, business process improvement and cost reduction," said Geoff O'Neill, head of Woolworths Central Logistics for New Sales Channels. "Woolworths has chosen Savi, Microlise and IPI as their partners because of their expertise in the areas of supply chain tracking and systems integration. This application will provide Woolworths with real-time visibility of the whereabouts of its stock, improve operational efficiency and prevent crime within the supply chain by providing an audit trail of who picked merchandise, its current location, its destination, and everyone who handled it along the supply chain."

To maximise real-time security, visibility and management of its supply chain assets and their contents, Woolworths will deploy a full complement of Savi's products and services. These solutions include the Savi Asset Management System software application for reusable transportation containers (RTCs), and the Savi SmartChain platform, which transforms raw data into actionable information and drives automated alerts; EchoPoint Series 600 tag and reader hardware components that automatically collect and transmit data; and the universal data appliance protocol (UDAP), Savi's openly licensable protocol linking data from different wireless tracking systems to the Savi SmartChain™ software platform.

The project initially involves the installation of the SmartChain software platform at Woolworth's key distribution centre in Swindon and a number of its stores. Some 16,500 EchoPoint Series 600 active tags will be affixed to Woolworth's conveyances moving back and forth between distribution facilities and retail stores. These smart tags are affixed to assets and tracked by the RFID system in real time, while automatically transmitting event-related Alerts and other key data to Savi's SmartChain software platform, from which the assets can be managed via a computer screen.

Real-time visibility and management of Woolworth's conveyances is achieved through the interoperability of two leading-edge technologies. First, RFID smart tags affixed to supply chain assets assign each dolly, roll cage and tote a unique identification code. Savi's EchoPoint Reader and SignPost system captures the conveyance's identification, location, status and other stored information whenever they pass by, and then transmits the data to the Savi SmartChain platform, which reports on the status of the system and assets. From there, users get instant Alerts and other key data on a personal computer screen through the Savi Asset Management software, which provides comprehensive features to manage the full life cycle of an asset, including acquisition, finance, security, maintenance, management and disposal.

Savi's solution also will be integrated with Woolworths' existing DPS database system for booking, tracking and sequencing of their supply chain assets. The integrated solution is aimed at individually identifying and controlling the loading of conveyances to stores and back to the warehouse, checking on store deliveries and shortages, real-time status, location and collection of returned products, such as CDs and DVDs, and reports about error rates, picking-to-loading times and asset utilisation.

As companies begin to implement scan-based trading, a consignment relationship wherein a manufacturer owns products until they are scanned at checkout, it is essential that retailers and suppliers are sharing correct information. The same goes for collaborative planning, forecasting, and replenishment (CPFR) applications, which allow companies to better manage their inventory flow.

In addition, there is the issue of trade exchanges and the services they offer. According to Gartner, by 2003, 60 per cent of supply chain management activity will be outside of the enterprise, with public eMarketplace collaboration representing 15 per cent of this functionality.

Synchronisation of information in today's commerce is the foundation for creating additional efficiencies in a supply chain. When partners communicate inconsistent information, it causes an increasingly inefficient supply chain, leading to incorrect product deliveries, inefficient inventory management and out-of-stock items.

It is imperative to synchronise across the enterprise and supply chain to decrease and nearly eliminate many of the inefficiencies caused by inconsistent or outdated product information. Synchronisation provides clean data, an important foundation in making any business more efficient.