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RFID Based Warehousing Solution

Background
Lotte Group is a well-known name in the retail industry in Korea, despite the fact that the company has limited operation in other countries. But listed in top 500 multinational companies in the world and also consider in top five groups in Korea. Lotte dominates the e-commerce market with its immense experience in logistics infrastructure. Since 1996, after launching the e-commerce website, Lotte has maintained the status and growth through prestige, branding, and long-time client relationships which resulted in 15 million members bases in Korea but Lotte was ultimately not immune to handle that much customers base effectively with the existing system. Thus, the company implemented an RFID based warehouse management system with Chinway’s C72 UHF mobile computer to effectively manage the warehouse operation.

Challenges
  • Management cannot meet the need for the fast delivery of orders as goods storage and inventory process is manual which take time in identification and dispatch of orders.
  • Consumer shopping experience and overall supply chain are badly affecting because of inefficient sorting process and higher error rate.
  • Customers want to track the delivery of their order and warehouse team want to know the update details of out of stock and overstocks in the inventory but both the requirement cannot be full fill in the absence of real-time data management.
  • Proper responsibility and authority cannot be assigned to workers because of the manual process. There is no automatic monitoring process in the whole supply chain.
Solution
As mention in the beginning, Lotte implemented an RFID based warehouse management system. The company trusted Chainway C72 UHF reader for this process. The device captured information from RFID tags attached with goods and complete the product updating dispatch and inventory management process in real-time. The captured data was stored in a central database of Lotte which could be accessed by authorized departments for real-time update and products forecast management.

Effects
  1. Operational efficiency of the company has been improved with better visibility of goods in inventory.
  2. The RFID technology has replaced the manual process into an automatic one. With the result, the company is achieving a 99% accuracy rate.
  3. Supervision of the worker is more effective now. The automatic process ensures the record data of all the employees worked on a specific position at a specific time. It helps the management to initiate a proper incentive scheme and monitoring of employee’s performance without any delay. The process also helps in improving the performance of employees by identifying the improvement area.
  4. Now all the national wide offices, warehouses and stores can be centrally managed in the company’s headquarter. The system stores the real-time data in the main database of the company.
  5. The company not only improve operational efficiency but also achieve customer satisfaction in the form of better buying experience.
  6. However, with the increase in network and more complex distribution channels, the company able to offer fast delivery of orders.
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