RFID Gets a Lift

Logistics Insight Asia, 1/9/2007

Adding mobility to RFID systems with forklift-mounted readers not only improves warehouse operations but reduces overall RFID project cost.

Most current supply chain RFID operations involve tracking pallets, containers and cases, and much of this activity is driven by compliance with customer initiatives (e.g. retailer, DoD, aerospace), which has made it difficult for manufacturers and their distribution wings to get a positive financial return on their RFID investments.

RFID has been proven time and again to provide strong ROI when it is combined with improved business processes that reduce labor and prevent errors. A combination of mobile and fixedposition RFID readers supports these operations and helps deliver these benefits.

Adding mobility to RFID systems with forklift-mounted readers adds value to compliance, shipping, receiving and other RFID implementations. They are an emerging resource for improving supply chain visibility and reducing capital expenditure and labor costs. Mobile systems can be implemented for a fraction of the cost of many traditional RFID infrastructure configurations, while supporting more uses.

Forklifts can be much more than vehicles for moving goods. When integrated with RFID and vehicle-mounted computers, forklifts become mobile data hubs that deliver strong returnon- investment from lower implementation costs, more operations flexibility, and a more complete, real-time view of inventory.

Forklift + RFID
Integrating RFID and forklift operations improves ROI in four primary ways:

1. Reduced capital expenditures
Whether used for basic “slapand- ship” compliance or more extensive applications, forklift and other mobile RFID systems can save significant implementation costs compared to traditional configurations.

Organizations that need to ship or receive RFID-tagged cases and pallets typically install fixed-position RFID readers at dock doors to record tagged shipments or, alternatively, install readers at a portion of dock doors and have a manager spend a significant amount of time scheduling and coordinating pickups and deliveries so tagged shipments are processed at RFIDenabled locations.

The first option requires RFID hardware and networking at each dock door, even if only a fraction of shipments need RFID processing, while the second option greatly complicates yard management and transportation planning and requires managerial time.

Compare this to forklifts, which are commonly allocated in a ratio of approximately one forklift for every four dock doors. By integrating RFID read/write capability with the forklift, not the dock door, businesses can efficiently handle their dockdoor RFID operations with the same 1:4 equipment ratio and reduce RFID hardware costs by 75 percent.

2. Increased asset utilization
RFID-enabled forklifts can process tagged cartons and pallets wherever goods are handled, such as at picking and putaway locations, staging areas, packaging lines, and even within trailers or in the yard. Mobile readers can be used multiple ways throughout a facility, which provides superior asset utilization to application- or location-specific readers.

RFID forklift systems can also include real-time location service (RTLS) features to further enhance asset utilization. A module on the forklift works with the wireless LAN in the facility to provide real-time location data. Software applications can use the data to provide real-time feedback and recommendations, or for longer-term asset utilization, productivity and trend reporting.

3. Scalability
Because mobile RFID systems for dock door applications can also be used throughout the facility, new RFID readers may not have to be purchased every time new applications are added or operations are expanded. RFID processes for picking, replenishment, shipment verification, inventory transfers can be completed with the same mobile equipment used at the dock door.

The inherent scalability of mobile systems takes much of the incremental cost out of expanded RFID operations, making it practical to introduce additional labor-saving applications that leverage the initial investment and improve overall ROI.

Design requirements
An RFID system should be designed specifically for forklift operator needs and usage environments to ensure safety, convenience and reliable operation. Each component must be rugged enough to withstand the shock, vibration, bumps and cleaning that go with forklifts, without impairing the operator’s vision or access to controls.

Besides providing reliable, RFID read/write capabilities, forklift-mounted systems should integrate tightly with the mobile computer used on the vehicle and the load backrest, along with the enterprise wireless network and security protocols.

RFID antennae should be mounted on the forklift load backrest so they will be very close to tags on pallets, cases or rack locations. Ideally, the antenna will fit within the profile of the backrest so it does not obstruct the operator’s view or protrude outside the protective housing, where it is more susceptible to damage. Antennae should offer flexible placement options and cables should be secured to prevent tangling and potential damage.

The mobile computer used with the RFID system needs to offer features such as vibration, shock and dirt resistance; an easy -to-read screen; and resistance to temperature changes and condensation The computer should also minimize obstruction of the user’s view and should support advanced capabilities like speech recognition to give real-time feedback, for when while the user is off the forklift picking cases.

Productivity, accuracy, cost
Forklift RFID systems are a flexible and cost-effective way to support RFID operations. Provided the RFID equipment is purpose-built for forklift operations, it will provide longterm reliable performance and scalability to support increased volume and new applications.

When a reader is integrated with the forklift, every movement of RFID-tagged cases and pallets can create data that can be used to enhance existing business process applications. Combining read data with location information provided by the wireless LAN and/or a forklift location tracking application provides total, real-time visibility, creates accurate putaway location records, and builds an audit trail.

A forklift-based RFID infrastructure helps return on investment by holding down implementation expenses and provides a scalable, cost-effective migration path to meet expanded needs. Best of all, it will improve productivity and accuracy while reducing labor costs. [ ]

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