Logistics Case Study: KH Lloreda

May 25, 2012 Impinj

KH Lloreda Customer Success Story

 

KH Lloreda was faced with a manual shipping process that was labor intensive and error prone. KH Lloreda was in need of an automated solution that improved internal process while giving greater insight into overall shipping processes.

The RFID solution delivers:

  • Reduced labor costs
  • Fewer shipment errors
  • Real-time insights into shipping process
  • Efficient and strictly controlled inventory management

Challenge

KH Lloreda’s products traverse a five step process from the point of manufacture to the point of delivery. Boxes of products are first loaded onto pallets at the manufacturing site, then are transported to the distribution center, unloaded for storage, reassembled into pallets based on orders from customers, and finally loaded onto trucks for delivery. This process requires extensive manual labor at both the manufacturing site and the distribution center; and each point of transfer for the goods represents a potential for errors which could lead to an incorrect order being delivered to a customer. KH Lloreda wanted to automate the process and virtually remove the need for manual labor. To do this, they designed industrial robots to work with an RFID system that verifies the robots’ activities and detects errors. Impinj RFID technology provided by Saident RFID Soluciones delivers the reliability KH Lloreda depends on for a successful solution.

How It Works

Saident’s RFID solution enables an automated system for loading, unloading, and transporting KH Lloreda’s products from the manufacturing site to the distribution center and on to retailers.

At the manufacturing site, each box of cleaning products is affixed with a UPM DogBone tag containing an Impinj Monza chip. Boxes move along an automated line where an RFID printer-encoder encodes each tag to be applied to each box. Next to the printer there is an Impinj Speedway Revolution reader and Mini-Guardrail antenna which verify each of the boxes is affixed with the correct tag containing the necessary information.

A palletizer then stacks the boxes on a pallet which moves along an automated track to be read by another Speedway Revolution reader. The reader captures which boxes are loaded on the pallet and forwards the information to the SAP back-end system which changes the status of each box as they head to a loading dock. Each of the loading docks is equipped with a Speedway Revolution reader-equipped portal which registers when pallets are loaded onto the truck and communicates to the system that pallets are in transit to the distribution center.

Portals are also installed at distribution center loading docks to communicate the arrival of pallets from the manufacturing site to the SAP back-end system. As pallets arrive, software notifies the robots which cartons are needed to fulfill an order. A robot locates the needed boxes and load them onto a new pallet to be transported to the customer. The new pallets move along automated tracks to a shrink-wrapping station, where another Speedway Revolution reader verifies that each carton’s ID number matches the customer’s order. After shrink-wrapping, the pallets move to the loading dock, where a final portal verifies that pallets are loaded on the correct trucks in the correct order for optimal unloading at retail stores.

Benefits

The Saident RFID system and industrial robots have provided an automated system that virtually removes the need for manual labor in KH Lloreda’s loading and shipping processes. Multiple RFID-enabled checkpoints along the automated system provide real-time insights into the status of packages as they move through the shipping process, providing complete traceability of KH Lloreda’s products and supply chain-wide visibility.

At the manufacturing site, the RFID read points efficiently monitor all products as they leave for the warehouse, providing real-time control over production.

At the distribution center, RFID allows for strictly controlled inventory management and the amount of paperwork has been reduced because all shipping and receiving information is stored in the SAP back-end system. Additionally, with the automated system, the distribution center receives products and assembles orders faster and more accurately than with manual labor. Furthermore, RFID enables the system to detect errors before pallets are shipped to customers, greatly reducing the error rate of shipments and giving KH Lloreda real-time verification of outbound shipments.

KH Lloreda

KH Lloreda is a family business based in Barcelona, Spain, that manufactures and markets household and commercial cleaning products for several European countries. KH Lloreda holds 60% of the degreasers cleaning product market share in Spain, amounting to 25 million bottles sold annually.

In Collaboration With:

Saident Soluciones

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