01
Client Profile & Background
A large-scale automotive parts manufacturing company in Karawang, Indonesia, operates a 50,000 sqm facility with over 200,000 SKUs of raw materials, work-in-progress, and finished goods. The company supplies components to major OEMs and requires precise inventory accuracy to meet just-in-time delivery schedules. Their existing manual barcode scanning process involved 30 warehouse staff conducting daily cycle counts, yet inventory accuracy averaged only 85%. The company also managed 5,000 reusable containers and 2,000 specialized tools used across production lines, which were frequently misplaced or hoarded, causing production delays. With a target to achieve 99.5% inventory accuracy and reduce asset search time by 70%, the management sought a technology-driven solution. They evaluated several options and chose Intilogy for our expertise in IT infrastructure and IoT integration. The company’s existing IT environment included on-premise servers running Dell PowerEdge and VMware virtualization, with a networking backbone from Cisco. They required an RFID solution that could integrate with their SAP ERP system and scale to support future expansion to a second facility.
02
Technical Challenge
The primary technical challenge was achieving reliable RFID read rates in a dense metal and liquid environment. The plant floor contained metal racks, conveyor belts, and containers filled with metal parts and fluids, which cause RF signal reflection and absorption. The company’s initial pilot with a generic RFID system achieved only 60% read accuracy on metal containers and 40% on liquid-filled items. Additionally, the facility’s 15-meter-high ceilings and large open spaces required long-range readers with precise antenna configuration to avoid interference from overhead cranes and forklifts. The existing Wi-Fi network (based on enterprise WiFi) was congested, causing data transmission delays from handheld readers. The company also needed to track assets moving between indoor and outdoor areas (loading docks), requiring ruggedized tags with IP67 rating and temperature tolerance from -20°C to 70°C. Furthermore, the SAP integration required real-time updates for inventory transactions, with a latency of less than 2 seconds. The legacy barcode system had a 12-hour batch update cycle, causing inventory discrepancies. The company’s IT team lacked RFID expertise, so the solution had to include comprehensive training and remote monitoring capabilities. The budget was constrained at IDR 3 billion, requiring a cost-effective yet scalable design.
03
Implemented Solution
Intilogy designed a multi-zone RFID architecture using Impinj R700 readers and Alien Technology ALR-9680 antennas, strategically placed at 20 choke points (receiving, production line entrances, finished goods exits, and tool cribs). We selected Omni-ID Dura 1500 on-metal tags for metal containers and Confidex Survivor for liquid-filled drums. For tool tracking, we used Xerafy XS-series micro tags embedded in tool handles. The readers were connected via a dedicated networking VLAN to a Synology RS1221RP+ NAS running RFID middleware (Intilogy Asset Tracker) that filtered and aggregated tag reads. The middleware integrated with SAP ECC 6.0 via RFC calls, updating inventory in near real-time. To address Wi-Fi congestion, we deployed a private LoRaWAN network using Dragino LG01 gateways for handheld readers, ensuring low-latency data transmission. The solution also included a backup and disaster recovery plan using Veeam Backup & Replication to protect the RFID database. We installed a Fortinet FortiGate 60F firewall to segment the RFID network from the corporate LAN. The implementation took 12 weeks, including site survey, tag installation, reader calibration, and system integration. We provided 40 hours of training for warehouse staff and IT administrators.
04
Results & ROI
Post-implementation, the company achieved 99.2% inventory accuracy within the first month, surpassing the 99.5% target by quarter two. Asset search time for tools and containers dropped from an average of 15 minutes to under 2 minutes (87% reduction). Cycle count time decreased from 8 hours per day to 1 hour, freeing 25 staff for value-added tasks. The real-time SAP integration eliminated inventory discrepancies, reducing stockouts by 95% and improving on-time delivery to 99.8%. The company recovered IDR 500 million in lost assets (tools and containers) within six months. The total cost of ownership (TCO) was recouped in 14 months, with annual savings of IDR 2.1 billion from reduced labor, lower asset replacement costs, and improved production efficiency. The system also provided data analytics that identified underutilized assets, enabling the company to reduce container inventory by 15%. The solution’s scalability allowed the company to replicate the setup at their new facility in Cikarang with minimal additional investment. The project was recognized as a benchmark for RFID adoption in Indonesian manufacturing, leading to a partnership with HP for edge computing nodes in future expansions.
