DP WORLD Takes Port Management to the Next level (Page 389)



1. 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.

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

(1)DP World Sydney Regional Office Coordinator Victoria Rose said that by improving truck management and reducing queuing and congestion around the gate, by simplifying the procedure, we can reduce the number of trucks on public roads and improve the efficiency of doors.

(2)The RFID provides a higher precision of the inbound and outbound truck movement through the terminal to help enhance its security. For example, the system can automatically check whether a truck has a reservation and has the right to enter the port.

(3)It also helps to eliminate lengthy paper transactions and manual checks and reduce manual data input errors.

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

Supply chain execution (SCE) is moved through a distribution center / warehouse management product to ensure efficient delivery of the product. DP World implements SCE using radio frequency identification (RFID) in its supply chain system. DP World spent several months in the concept verification test involving many competing RFID vendors. After a lot of tests and evaluations, DP World chose Identec Solutions, the global leading enterprise as an active wireless tracking solution for RFID suppliers. Identec's RFID based solution enables DP World to successfully improve customer satisfaction. Container terminals through terminals are more smoothly, faster and more effective in improving the efficiency of customer supply chain. At the door, the optical character recognition (OCR) system tracks whether the container has been loaded, identifies the truck container ID and the truck license plate number as a backup logo. The system can also automatically determine whether the truck is on time, which is an important information for effective delivery and unloading containers.

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

(1)Management challenges:
High implementation costs may occur at the early stage of the RFID project deployment. RFID helps to eliminate some lengthy procedures, improve port productivity and improve customer satisfaction. Therefore, the improvement of shipping will increase. Since then, DP World has taken several months to carry out a conceptual verification test involving multiple competing RFID vendors. For many vendors, this is also a key challenge because 99.5% of the tags are successfully read because of the bad environment on the port.
(2)Organizational challenges:
The organization needs to train employees to use new systems, because they may be familiar with the old culture and system. Employee adaptation is very important to the success of the new system. If employees are unfamiliar with or unable to withstand the new system, this may be the main problem and challenge that the organization faces.
(3)Technical challenges:
For a company, it may be difficult and complex to adopt a new RFID technology, because it requires additional server space and capacity to support the new system. When the new technology is first implemented, it may not run smoothly because the current system has just started working with the new system. Errors may occur during the prediction. Due to the pressure of the server, the problem of the system crash may occur frequently in the early stages.

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