RFID aids stock management at likitomi

The complicated procedures of manufacturing corrugated boxes and boards at Likitomi (Thailand)'s plant will soon become easier thanks to the company's plan to adopt radio frequency identification (RFID) technology in its production.

Likitomi (Thailand) managing director Mangkorn Dhanasarnsilp said the company is working with the Software Industry Promotion Agency and the Federation of Thai Industries to implement the RFID system at the company's plant.

The company plans to roll out the RFID system in its warehousing, inventory control, in-process control and management processes, as well as the production planning system in the near future.

The move is aimed at improving its production capability through better production planning. The complexity in the company's operation is added by its wide-ranging portfolio of more than 1,000 types of finished products - corrugated boxes and boards - which require more than 700 different types of raw materials.

"We have about 60 to 70 customers, including Lion, Sharp, Toshiba and President Foods. We produce corrugated boxes and boards customised for these companies' products, such as refrigerators, air conditioners, televisions and products under the Mama brand. We handle about 100 orders daily," Mangkorn said.

"We need technology and know-how to make our entire production line 'visible'. We have a lot of finished product types and use a lot of different types of raw material. The challenge is how to 'see' our raw materials throughout the process and how we can produce the finished products efficiently," he said.

The RFID system will help Likitomi (Thailand) locate raw materials easily and effectively. The system will help the company ascertain the exact location of each row of paper stored in the warehouse. An active RFID tag is embedded both inside the core of the paper row and on the pallets. The tag contains information such as product code, product type and the quantity, which is automatically communicated through the RFID reader and transferred to the company's database.

The quick identification of the exact location of the raw materials will help the company hasten production and improve production planning. The system will also help the company save on expenses through better inventory management and ultimately increase customer satisfaction. Not only will the company be able to produce finished products on time, the system will also provide just-in-time service to its customers as well.

The RFID system makes the entire inventory visible even it is not in the line-of-sight. Most importantly, the information can be communicated and transferred to the system easily. This information helps manage production and inventory better.

"Without RFID, we cannot ascertain the exact location of each paper row. Without it, we take more time to identify the location of the raw materials than our production does. Hence, we are, at times, unable to accomplish the orders for that day," Mangkorn said.

Using the system, the company can track all of its raw material in real time. It can know for sure where each paper type is located and what quantity is still in stock. Then, it can use this real-time information to aid its production planning.