CASE STUDY: DP WORLD TAKES PORT MANAGEMENT TO THE NEXT LEVEL WITH RFID

How did Identec Solutions’ RFID-based technology help DP World increase the efficiency and effectiveness of its customers’ supply chains? 

• Identec Solutions’ RFID-based technology was helping DP World to improve customer’s supply chain. Identec Solutions’ RFID-based technology help DP World increase the efficiency and effectiveness of its customers’ supply by using automated gate system and RFID tracking system. Trucks that visit a port terminal are equipped with active RFID tags supplied by Identec Solution that are fixed on the rear chassis. As a truck moves towards the gate, its unique tag ID number is ready by an RFID reader, which is integrated with an automated gate system. By using the information supplied by the system, the driver will be guided to use the specific lane to load or unload container. By using this system, it helps to determine time of pick up and drop off of containers automatically. Hence, Customers are able to have their goods cleared and shipped at much faster speed. 

• Other than that, Identec Solutions’ RFID-based technology enable DP world to increase the productivity of container handoffs, speed the entry and exits of trucks through terminal gates, and increase fuel efficiency. RFID would improve gate efficiency through improve truck management, reducing queues and congestion around gates, and removing the number of trucks from public roads by streamlining procedures and eradicating a number of lengthy procedures. 

Describe two improvements that resulted from implementing the Identec RFID-based solution. 

• Victoria Rose, Regional Office project Coordinator at DP World Sydney stated that the RFID could improve gate efficiency through improved truck management, reduce queues and congestion around gates, remove the number of trucks from public roads by streamlining procedures. 

• RFID has helped it to tighten security by providing better accuracy on inbound and outbound truck movements through the terminals. For instance, the system can automatically check whether a truck has a booking and weather it is authorized to enter the port.

• It also helps the elimination of lengthy paper transaction and manual inspection at gates and the reduction in manual data input error. 

How does the concept of supply chain execution relate to this interactive session? 

• Supply Chain Execution (SCE) is the management of products movement through distribution centers/warehouses in ensuring products are delivered efficiently. DP World implemented SCE by using Radio Frequency Identification (RFID) in its supply chain system. 

• DP World spent several months performing proof-of-concept trials involving several competing RFID suppliers and after extensive testing and evaluation DP World selected Identec Solutions, a global leader in active wireless tracking solutions, as its RFID suppliers. Identec’s RFID-based solution has enabled DP World succeed in improving customer satisfaction enhancing the efficiency of customer’s supply chains through smoother, faster, and more effective of their containers at the terminal gates. At the gate, an Optical Character Recognition (OCR) system track whether the container is loaded, identify the truck container ID number and truck license plate number as a backup identification. The system can also automatically determine if the truck is on time which is essential information for the efficient pickup and drop off containers. 

What managerial, organizational, and technological challenges might DP World have faced in the early stages of the RFID project’s deployment? 

• High implementation cost might be occurred during the early stage of the RFID project’s deployment. The RFID help to eliminate a number of lengthy procedures, increasing productivity at the ports and improving customer satisfaction. So, the shipping good turn-around will increased. From that, DP World spent several months performing proof-of-concept trials involving several competing RFID suppliers. It also had key challenge for many vendors that are rugged environmental condition at the ports which is required 99.5% of all tags are read successfully. 

• Organizational Challenge: 
• The organization will need to train the employee to use the new system as they may only familiar with the old culture and system. Employee adaptation is very important for a new system to be success. If the employees are not familiar or resistant to learn the new system, it might be a major issue and challenge for the organization. 

• Technological Challenge: 
• Adopting new RFID technology can be difficult and complicated to a company as it requires additional server space and capacity to support the new system. When the new technology first implemented, it may not be able to run smoothly as the current system just started to work together with the new system. Errors may have occurred during the pre-test session. The problem of system break-down might be happening very often in the early stage due to server stress.