Radio location cuts distribution costs
Debra Young
Published: 07 Jan 2003 11:57 GMT
While radio location has exceeded expectations, getting the technology up and running proved more challenging than anticipated, with AFS learning some hard lessons along the way.
The first obstacle was mapping out the topology of the distribution centre yard. AFS needed an accurate CAD drawing of the facility to determine where to set up the array of antennas. It was important to have enough lines of sight to cover the entire area. Armed with a little measuring wheel, AFS employees measured every inch of the yard by hand.
"We spent weeks and weeks and weeks trying to configure the X-Y coordinates for every square inch of the yard," said Van de Merwe, "only to discover that even a minor error was going to cause major problems." To improve this for subsequent customers, WhereNet now flies over each site with a small plane, shoots the map, and it's done.
The second obstacle was the hardwiring. AFS set up 19 antennas every 400 to 500 feet. Trenching the 12-inch thick concrete tarmac to lay over five miles of cable from one of the facilities was a massive undertaking.
"We were able to piggyback some of the antenna cabling with the conduit used for electricity," explained Van de Merwe, " but we had to be creative in figuring out how to get the cabling in without exceeding the original budget." Installing the hardwire and setting up the antennas cost around $25,000. Again, experience and technology has improved on this -- today's WhereNet antennas are linked to the centre by radio.
The third obstacle was the interface. Getting the hardware and software systems to sync was crucial. But they came from two suppliers, and WhereNet was spread between Santa Clara and Tennessee, while OMI was stuck in the middle. Everyone tried to work out the problems long distance, without success.
"There's a lot that can be done in an implementation by remote," noted Van de Merwe, "but interface is not one of the them." After a lengthy struggle, AFS got developers from WhereNet and OMI to collabourate and write the necessary code.
"I would describe the process and the results we were looking for and this whizz kid from OMI would write the code as I would dictate," recalled Van de Merwe. "We spent a week together writing the interface that way before we were able to realise the full benefit of the technology."
Radio location can typically be up and running within 90 days but, due to the extraordinary challenges of interfacing the technology with OMI's yard system, the process at AFS took nearly a year.
Optimising the supply chain
Despite the lengthy implementation process, Van de Merwe cites significant cost savings in three key areas: asset usage, yard throughput, and spoilage and shrinkage:
- Improving asset usage: AFS always knows the exact location of its yard equipment. The company no longer underuses existing equipment, and no longer needs to lease additional trailers, tractors, and dollies to process daily shipments. Employees are more productive, since they no longer waste hours on lengthy manual searches for yard resources. With real-time visibility of all trailers, AFS runs an aggressive "drop and hook" program, compressing the turn time for independent drivers from several hours to minutes. The overall result is fewer capital equipment purchases and better use of labour.
- Increasing yard throughput: AFS has automated gate check-in and departure for all its fleet trucks. A device located at each gate causes the tag mounted on each truck or trailer to send a special "blink" when it comes into range. The system instantly displays the docks that are available to complete a quick transfer of goods from the inbound truck to the outbound AFS grocery shipment. "At the start of every day," said Van de Merwe, "we would have 10, 15, 20 trucks stacked up out the gate, down the street, all the way to the freeway exit. And then once they got into the yard, there was congestion as well. It was very slow moving and very difficult." There are now no bottlenecks and no stoppage. The quicker turnaround helps AFS earn lucrative incentives from manufacturers for meeting goals for processing their goods in time.
- Reducing spoilage: Initially, AFS equipped a few trailers with sensors to transmit status information about refrigerated trucks in the AFS yard to reduce spoilage. This status information included the respective temperatures of the frozen foods and produce compartments, the fuel levels of the refrigeration unit, and whether the trailer's door is open or closed at a dock. The system will send an alert if the trailer compartment temperatures exceed specifications or if the doors are open when they should be closed. But the sensors weren't in place long. "We quickly realised that the sensors were an unnecessary expense," explained Van de Merwe. "Because of the heightened visibility provided by WhereNet, we move our trailers so quickly through the distribution centre that food doesn't stay sitting on site in trailers long enough to have a chance to spoil."
Locating a growth opportunity
The distribution benefits are piling up, and the new technology has also boosted the company's overall business.
"The efficiencies we've realised at our new distribution centre have actually exceeded our expectations," said Paul Jones, general manager of Associated Foods' Farr West facility. "By improving processes, reallocating labour, and better utilising our fleet, we've opened the door to take on greater volume."
This is timely since AFS recently picked up another $110 million in new business and by April 2003 will experience another significant bump in business in Idaho through consolidation of the division.
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