Jamison RFID/ Eskimo Cold Storage/ Datex RFID Implementation Case Study By Angela Cox
Jamison RFID - Eskimo Cold Storage RFID Implementation Case Study
Jan 15, 2015
Jamison RFID is an industry leading provider and installer of RFID portals and related technology. With the help of Datex and Jamison RFID, Eskimo Cold Storage was able to improve operations and increase facility profitability.
A lingering issue of lost and misplaced pallets was causing Eskimo hundreds of thousands of dollars per year in operating expenses such as increased labor and transportation costs, as well as chargebacks to customers for missed fulfillment opportunities.
With the implementation of RFID tags for two of their largest customers and RFID portals throughout their facility, tracking information was easily transferred into Datex FootPrint © WMS via a customer built middleware where users could easily view and track all activity associated to any given pallet or piece of inventory. This increase in inventory visibility allowed them to more easily locate misplaced inventory quickly and more effectively than ever before.
Jamison RFID calculated an estimated four month return on investment (ROI) period for Eskimo Cold Storage’s RFID implementation project. After this four month ROI period, Eskimo saw an increase in profits total over $200,000. While the making the decision to invest the initial amount was daunting, the bold decision paid off greatly.
About Jamison RFID: Jamison RFID is one of four divisions of the Jamison Door Company. The Jamison RFID Division produces a large variety of RFID portals, housing structures, components, and enclosures that can track RFID products through many types of processes. www.jamisonrfid.com.
To learn more about Datex or the solutions discussed in this presentation please contact me at [email protected], 800-933-2839 ext. 243 or visit our website www.datexcorp.com.
A lingering issue of lost and misplaced pallets was causing Eskimo hundreds of thousands of dollars per year in operating expenses such as increased labor and transportation costs, as well as chargebacks to customers for missed fulfillment opportunities.
With the implementation of RFID tags for two of their largest customers and RFID portals throughout their facility, tracking information was easily transferred into Datex FootPrint © WMS via a customer built middleware where users could easily view and track all activity associated to any given pallet or piece of inventory. This increase in inventory visibility allowed them to more easily locate misplaced inventory quickly and more effectively than ever before.
Jamison RFID calculated an estimated four month return on investment (ROI) period for Eskimo Cold Storage’s RFID implementation project. After this four month ROI period, Eskimo saw an increase in profits total over $200,000. While the making the decision to invest the initial amount was daunting, the bold decision paid off greatly.
About Jamison RFID: Jamison RFID is one of four divisions of the Jamison Door Company. The Jamison RFID Division produces a large variety of RFID portals, housing structures, components, and enclosures that can track RFID products through many types of processes. www.jamisonrfid.com.
To learn more about Datex or the solutions discussed in this presentation please contact me at [email protected], 800-933-2839 ext. 243 or visit our website www.datexcorp.com.
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Jamison RFID/ Eskimo Cold Storage/ Datex RFID Implementation Case Study
By Angela Cox
About Eskimo Cold Storage
In operation for seven years
• Located in Gainesville, GA
• Open 24 hours ,6 days a week
• Multi-temperature warehouse
• 32,000 pallet positions
• 550 to 600 pallet positions per aisle
Association Members
About Jamison RFID
In business for 107 years
• Four manufacturing plants in North America
• Supply over 5,600 cold chain customers
• Supply RFID portals
• Four company divisions: Jamison Door Company, Jamison/ HCR Inc.,
Jamison Latin America and Jamison RFID
About Datex
In business for over 35 years
• Offices in the US, Canada and Latin America
• Services customers in the US, Canada, Latin
America, Europe and the Middle East
• Provides supply chain software, mobility solutions,
professional services, and IT managed services
Why Did Eskimo Need RFID?
Operational Issues: Human Error
• Items put away in incorrect pallet position
• Missed inventory tracking activities
• Slow picking due to misplaced items
How Do These Issues Occur?
Inventory Putaway Process
1. Items are received into receiving locations
2. Insert spacers for blast freezing
3. Move into blast freezer
4. Removed from blast freezer
5. Spacers are removed
6. Inventory is put into warehouse storage
Mobile device scans are missed here -> inventory is lost
What Problems Did Lost Inventory Cause?
Profit Losses
• Chargebacks to customer
• Lost employee productivity
• Held back or merged shipments which significantly increased
shipping costs
• Equipment is out of service while used for searching for misplaced
inventory
• Loss of trust with customers
Cost of Lost/ Misplaced Pallets
Picking cost per pallet= $3.13
+
Average time to find pallet= 4 hours $40.00
(based on $10/hr employee wage)
=
$50 average
____________________________________________________________________________
On average 3% of pallets are mishandled 4176 pallets per year x $50
=
$208,800 + $25,000 chargeback fees
=
$233,800 lost per year
The Solution
RFID Implementation/ Integration
1. Chose two largest customers to test project
2. Apply RFID tags to all product owned by chosen customers
3. Install RFID portals and NEMA enclosures
4. Integrate RFID portals with Datex FootPrint® WMS
How RFID Works
RFID Tag
RFID Portal WMS
Portal reads RFID
tag
Portal transfers
data to WMS
Middleware
Benefits of RFID for Eskimo Cold Storage
Lost and misplaced pallets are reduced or even eliminated
• Discovery time is reduced to approximately 10 minutes from 4 hours
• Reduced chargeback costs
Fast Return on Investment (ROI) period
Cost of RFID Solution = (-) $100,000
+
Chargeback & Misplaced Pallet Costs = (+) $233,800
=
$133,800 saved in first year
(ROI period is estimated at 4 months)
Contact Us
800.933.2839
Online demonstration
Web chat
@Datexcorp
Datex Corporation
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