Agenda
The Future What is RFID
What about Bar Code
The Goal
Becoming Proactive - Yard Management
Put the Pieces Together - Inventory Variances
Tracking Unsecured Inventory
Na, we will
account for it
when we return.
Shouldn’t we let
the Warehouse
know we are
taking this?
Accountants Don’t Make Good
Electricians Either
The Future What is RFID
What about Bar Code
The Goal
Becoming Proactive - Yard Management
Research
Put the Pieces Together - Inventory Variances
Operational Help with Discrepancies
Do you remember which one we put in last month?
Poles are PRETTY. NOPE
The job called for a steel pole.
The Future What is RFID
What about Bar Code
The Goal
Becoming Proactive - Yard Management
Research
Where We Were - Tracking Unsecured Inventory Put the Pieces Together - Inventory Variances
Track Items as They Leave the Yard
When barcodes and RFID are used in the business process,procedures are automated to increase productivity and reduce human error.
The Future
What is RFID
What about Bar Code
The Goal
Becoming Proactive - Yard Management
Research
Where We Were - Tracking Unsecured Inventory Put the Pieces Together - Inventory Variances
This is Exciting
E th e rn e t RFID ReaderWhat is RFID (Radio Frequency
Identification)
– Direct line of sight is not required, tags
can be embedded or hidden.
– Tags are applicable in harsh
environments.
– Read rate of forty or more tags per
second; Bar Codes take half a second or
more per bar code.
– Read distances up to 300 feet; Bar
Codes no more than 15 feet.
The Future What is RFID
What about Bar Code
The Goal
Becoming Proactive - Yard Management
Research
Where We Were - Tracking Unsecured Inventory Put the Pieces Together - Inventory Variances
Four Reasons for A Barcode System
• Error reduction – No More transcription and recognition
errors. Manual entry via a keyboard, for example, generates ten errors for every one thousand keystrokes.
• Productivity Improvement – Barcode systems reduce
personnel overhead and lessen training time.
• Asset Management – Barcodes are the heart of any robust
asset management and theft deterrence system.
• Business Intelligence – The humble barcode data, brought
into the realm of decision support and planning systems, provides management with the increased awareness of
product availability needed for sound decisions and strategic planning.
Barcode Benefits (AICPA)
• AICPA – American Institute of Certified Public Accountants’ “The single biggest benefit of utilizing bar code technology is the reduction of operator errors. Bar code readers are
exceptionally accurate and can eliminate the entry of
incorrect or transposed codes that is bound to occur from manual data entry.”
“Bar Coding is a technology
that is critical to success of
any data collection process.”
AccountingTools.com
• An excellent solution to the inventory error problem is to record inventory transactions with bar codes.
The Future What is RFID
What about Bar Code
The Goal
Becoming Proactive - Yard Management
Research
Where We Were - Tracking Unsecured Inventory Put the Pieces Together - Inventory Variances
Impressive
The average person can identify and document
450 twelve digit numbers per hour.
If you adjust for errors, 1 per every 300
characters, so 18 of the 450 numbers were
incorrect.
432 per hour.
The average barcode can be scanned in 2
seconds.
1800 per hour.
Barcode will yield an 8-10 fold increase in
productivity.
Case Studies
• Wal-Mart
NES Proof of Concept
• 2011
• 2013
Wal-Mart
• RFID Trial shows cut product
stock-outs by 30%
• RFID Trial shows 62% increase in
efficiency
NES
Barcode/RFID Proof of Concept
• Padmount, Network and Substation equipment.
$10,000,000 in inventory value at 26 different locations.
• The manual inventory counts were conducted by nine
employees for ten hours, all on overtime.
• The Materials Management Supervisor input the hand
written inventory count into an Excel spreadsheet and
calculates the variances.
• This was an expense of $25,000 annually.
• NES worked with two organizations in barcoding and
RFID, to conduct inventory counts above.
• RFID proved to be best at monitoring materials leaving
a storage location and that the quickest and most
effective tool for conducting an inventory stock count.
• This technology reduced the amount labor 84%.
NES POC
RFID on three poles
Place poles on trailer
Drive past RFID reader and
antenna at 15mph
The Future What is RFID
What about Bar Code
Our Plan
Becoming Proactive - Yard Management
Research
Where We Were - Tracking Unsecured Inventory Put the Pieces Together - Inventory Variances
Bar Code
• Weekly Cycle Counts –
64-84%
• Issue Materials –
47%
• Return Materials –
47%
• Transfer Materials (Multiple
Locations) –
47%
• Purchase Order Receipts–
47%
RFID
• Cycle Counts (Poles and
Transformers) –
84%
• Asset Tracking (Monitoring
the Yards) –
100%
RFID & Barcode Deployment Pack
RFID Fixed Readers Mobile handheld devices &
OS2 software
Durable printers for RFID/barcode labels
The Future
What is RFID
What about Bar Code
Our Plan
Becoming Proactive - Yard Management
Research
Where We Were - Tracking Unsecured Inventory Put the Pieces Together - Inventory Variances
Security
• Cards for access to secure areas. Not only verifies identity but checks if certain requirements to enter have been met.
PPE – Personal Protective
Equipment
Later On
Gregg Bolinger
Materials Management
Supervisor
O 615-747-3734
C 615-364-7216
References
• http://www.werc.org/ • http://www.datasourcemobility.com/ • http://www.epcglobalinc.com/ • http://www.rfidjournal.com/ • http://rfidprivacy.com/ • http://www.rfidinc.com/ • http://www.buyrfid.com/NES $34,000,000 in Inventory -$34,000 $300,000 11% Labor - $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$