Alcoa Fastening Systems in Oakleigh have just completed stage 1 of a smart RFID project that has produced an immediate increase in customer service and return on investment.

Alcoa Fastening Systems manufactures a wide range of threaded inserts for various markets around the world. A large proportion of these products are combined with components from other local manufacturers to produce thread repair kits.

Alcoa receives some of their component products from their suppliers in returnable "Tote" plastic bins. When the products are used, the empty bins are returned to be re-filled by the supplier and used over again. Keeping track of how many Totes are empty and ready to be re-filled by the supplier on a daily basis is a major task and will stop production of the final product if the supplier can't keep enough full bins at Alcoa. The primary issue being real time visibility to the tote bins by both Alcoa and the suppliers.

Working with Peacock Bros. Alcoa have attached a Gen2 RFID tag to each Tote and integrated an Intermec IF5 RFID fixed reader at the delivery drop-off / receiving point. As the bins pass by the fixed reader they are automatically identified and recorded onto a purpose built inventory database that identifies the Totes as "Out" for re-filling or "In" full from a specific supplier. This simple application keeps track of the location of every bin and the status of product availability at Alcoa.

For more information on this solution or your own RFID requirements, please contact Peacock Bros

A web portal, accessible to both Alcoa and the suppliers, has been created displaying real-time Tote bins status enabling the supplier to simply look-up the data from their own office and determine how much more product Alcoa requires ensuring stock is always on hand. The portal also shows a usage history that helps in identifying accurate minimum stock levels and sales trends.

The system is so simple and reliable that an immediate return on investment was achieved with Alcoa always having enough stock on hand for quick customer delivery. The time required in the process of placing an order to the delivery being actioned has decreased from 1 day to 10 minutes - an incredible customer service achievement.

Alcoa Fastening Systems Materials and Logistics Manager, Geoff Pember, is very impressed with the end result and the improvements achieved. "The system works perfectly, removing the need for both Alcoa staff and suppliers to "Go-See" the number and status of Totes on hand" "RFID is a low cost technology with instant benefits when it's set up efficiently"

Stage 2 of this project is just about to commence which involves installing a fixed RFID reader at the customers site, automatically recording every few seconds the amount of stock on hand on the customers shelf. This information would be linked to a custom database accessible to Alcoa, immediately notifying if a product type is running low in stock. Currently the customer needs to wait until the regular visit from an Alcoa sales representatives to come to their facility and manually count the stock to see if they need to place an order. This whole process will be removed completely with the ordering automatically taking place as the products are sold via real-time data management.

Both stages of this totally automated solution are a practical example of how RFID technology can be implemented in Australia using technology readily available to produce immediate savings in operational costs and exceptional customer service.

Peacock Bros. have years of experience in supplying RFID solutions with dedicated staff specializing in this fast growing technology.