ERP systems can achieve up to 50 percent higher return on investment when used with RFID mobile data capture systems

Citation

(2007), "ERP systems can achieve up to 50 percent higher return on investment when used with RFID mobile data capture systems", Assembly Automation, Vol. 27 No. 1. https://doi.org/10.1108/aa.2007.03327aaf.001

ERP systems can achieve up to 50 percent higher return on investment when used with RFID mobile data capture systems

ERP systems can achieve up to 50 percent higher return on investment when used with RFID mobile data capture systems

ERP systems are designed to improve the efficiency and effectiveness of generic business processes. They rely heavily on data from other systems as key inputs: in manufacturing the inputs are predominantly from production control systems, but can also come from manual data entry, as well as ERP systems themselves. The way in which these inputs are handled is crucial to achieving the objective of seamless integration of digital data between all aspects of a company's systems from customers to suppliers.

The question of effective integration affects not only the day-to-day efficiency of ERP systems, but also their ability to evolve in the light of new developments that can improve their efficiency. One such evolution issue is mobile data capture systems: radio frequency identification (RFID), wireless networking, and other technologies that provide real-time, accurate information. Recent research in the USA reveals that employing RFID with ERP systems can achieve up to 50 percent higher returns on investment. However, for companies wishing to take advantage of the new mobile technology, the integration with older ERP systems is often a daunting challenge.

Historically, ERP systems have been based upon large mainframe machines connected to dumb operator terminals. And while many users have recognised the need to upgrade their hardware to UNIX or PC based systems, the basic software architecture has often remained the same. As a result, many users, especially those with older ERP systems, view their systems as inflexible and expensive to modify, with changes having far reaching implications throughout their supply chains. The challenge, then, for RFID suppliers is how to overcome this problem and provide a proven and reliable method of integrating RFID into an existing IT structure.

Figure 1 Simplitrak™ provides an intermediate layer of control

IDC is providing an answer to this question with its Simplitrak™ software. Simplitrak™ provides a gateway or middleware between the RFID readers and the WMS or ERP system: an intermediate layer of control, which processes the streamed data from the readers and only passes on that which is essential; preventing overload on the existing IT network. In addition, the gateway also provides a toolset of applications to enable the business to benefit from the introduction of RFID quickly and easily (Figure 1).

The effectiveness of the Simplitrak gateway software is the result of a modular structure, which integrates several key generic applications:

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  The Task Manager application to introduce work flow practices or task management. For example, returned items or warranty issues can be identified, checked and validated, items approaching their expiry date can be flagged-up, or out of stock items can be automatically re-ordered. In addition, easy to use wizards are provided for decanting in situations where, for example, a box of tagged items has been incorrectly packed.

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  Portal Manager, which connects to a single or network of portals, tunnels and antenna. For example, in a typical retail application where multiple products are individually tagged and shipped in cartons, the Distribution Centre would require a conveyor mounted tunnel consisting of a number of antennas and associated readers. The RF field generated by each antenna reduces the effect of other energised antennas, care is taken, therefore, to ensure that antennas are not switched on simultaneously by the use of multiplexing (switching) techniques. The Portal Manager provides the ability to multiplex up to eight antennas and provides diagnostics that shows how each antenna is performing as the carton passes through the antenna array.

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  Database Query Client enables queries to be run on Oracle or MS SQL databases. The database connects to the Portal Manager using TCP/IP client/server sockets enabling the database to be located either on a local PC or remotely. The RFID data streamed from the portal is collated and stored in real time within the database. Database queries may be run and reports generated, dependent upon the user requirements.

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  Communications Manager enables files to be exported to the host WMS or ERP system; transfers are tracked and acknowledged with a variety of file types and methods including Microsoft.NET, XML, FTP, ODBC or text file transfer. For applications that require the ability to write to a tag, then the Communications Manager can be configured such that the operator can input data without detailed knowledge of the tag.

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  Control Manager provides remote control and monitoring of any automation requirements such as conveyor control, tracking photocells or barcode interfacing through fixed or handheld scanner with RS232/482 serial connections and local input/output boards. The application provides alarms, health monitoring and diagnostics for operators and maintenance staff.

The scope of the Simplitrak gateway software underlines the fact that its is more than a bolt-on peripheral to existing WMS or EPR systems. Rather, it provides a flexible low cost route for the migration of RFID technology for companies who require complete visibility of their supply chains. To aid this “migration” IDC provides an RFID starter pack, consisting of tunnel reader; 500 tags; a PC and Simplitrack software package, which is the ideal platform for companies who are considering pilot schemes and wanting to get a jump- start into RFID, without the need for major changes to their existing back office systems, and without the high cost of additional programming.

For further information contact: Kevin Buckley, IDC Ltd, Keynes House, Chester Park, Alfreton Road, Derby. DE21 4AS. Tel: +44 (0) 1332 604 030; Fax: +44 (0) 1332 604 031; E-mail: sales@idc.gb.com; web site: www.idc.gb.com