01
Client Profile & Background
A large-scale manufacturing company operating in Bekasi, West Java, with a 50,000 sqm warehouse facility. The company produces automotive components and exports to ASEAN and Middle Eastern markets. They manage over 20,000 SKUs with a daily throughput of 15,000 pallets. Their existing logistics operations relied on barcode scanning and manual data entry, which caused frequent bottlenecks during peak production cycles.
The company had invested in a modern ERP system (SAP S/4HANA) and a WMS from a leading vendor, but the lack of real-time data capture led to inventory discrepancies of up to 8% during quarterly audits. The logistics team consisted of 120 staff, with 40 dedicated to manual scanning and reconciliation tasks. The company was seeking a solution to automate data capture, reduce labor dependency, and improve shipment accuracy to maintain their competitive edge.
02
Technical Challenge
The primary challenge was the inability to achieve real-time inventory visibility across the warehouse. Barcode scanning required line-of-sight and manual handling, resulting in an average of 12-hour delays in updating inventory records. During peak seasons, the company experienced 15% shipment errors due to mis-picks and incorrect labeling, leading to customer penalties of up to $50,000 per incident. Additionally, the manual process required 40 staff working overtime, costing $120,000 annually in labor expenses.
Another critical issue was asset tracking for returnable containers (pallets and totes). The company lost approximately 5% of its container inventory each quarter, equivalent to $200,000 in replacement costs. The existing system could not track containers' location or status, leading to inefficiencies in container rotation and rental fees. The company needed a solution that could read multiple tags simultaneously in high-density environments, withstand metal and liquid interference, and integrate seamlessly with their SAP system.
03
Implemented Solution
Intilogy deployed a comprehensive RFID Logistics Hub featuring Lenovo edge servers running the RFID middleware, hyperconverged infrastructure for data processing, and Impinj UHF RFID readers (model xArray and xSpan) at all dock doors, conveyor belts, and storage aisles. Over 100,000 passive RFID tags were applied to pallets, cartons, and returnable containers. The middleware filtered duplicate reads and integrated with SAP EWM via REST APIs, enabling real-time inventory updates.
For asset tracking, active RFID tags from Zebra were attached to forklifts and containers, with readers installed at gateways and charging stations. The solution included a dashboard built on Microsoft Power BI for real-time visibility into inventory levels, asset utilization, and shipment status. Network connectivity was ensured by Cisco switches and enterprise WiFi access points, providing reliable coverage across the warehouse.
04
Results & ROI
Post-implementation, inventory accuracy improved from 92% to 99.5%, reducing annual write-offs by $300,000. The average time to update inventory records dropped from 12 hours to near real-time (less than 5 seconds). Shipment errors decreased by 90%, eliminating customer penalties and improving on-time delivery rates from 85% to 98%. Labor costs for manual scanning were reduced by 70%, saving $84,000 annually.
Container loss rates fell from 5% to 0.5% per quarter, saving $180,000 annually in replacement and rental costs. The company achieved a return on investment (ROI) within 8 months, with a total cost of ownership reduction of 35% over three years. The solution also enabled automated compliance reporting for customs, reducing documentation errors by 95%. For more details on how RFID integrates with backup and disaster recovery and cybersecurity, refer to our related solutions.
