The semiconductor division of Royal Philips Electronics has deployed RFID technology in its supply chain in Asia. The contactless chip provider''s rollout was developed with solutions partner IBM using Philips'' own RFID chips.

     According to Philips, the speed of the project''s implementation demonstrates how RFID technology can indeed be swiftly integrated with legacy systems and operational practices to the benefit of both productivity and efficiency. 116.30.151.81 This article is copyright 2005 UsingRFID.com.

     The project covers the tagging and tracing of wafer cases and carton packages for flows of goods between Philips'' manufacturing facility in Kaoshiung, Taiwan, and its Asia-Pacific distribution centre (DC) in Hong Kong. As a result of improving the business processes within the manufacturing and distribution supply chain, the project provides increased inventory turns, improved stacked lead time, enhanced delivery reliability, warehouse efficiency and improved customer service.

     "Manufacturers and distributors worldwide are looking for proven business cases for RFID. Our decision to use RFID is based on evidence that the technology generates a positive business case for our supply chain," said Mathieu Clerkx, CIO and senior vice president of supply chain management for Philips Semiconductors.

     According to Professor Hau Lee of Stanford University, whose academic field of interest is supply chain management: "The scale of Philips'' operation using RFID dwarfs that of many other projects. It will act as an ideal reference case for the industry as a whole at a time when it is looking for proof that an RFID business case which matches their complexity and reach can be delivered today."

     Philips is considering implementing the RFID solution throughout its semiconductor division on a global scale, across its five semiconductor manufacturing facilities and three DCs in Asia-Pacific, Europe and the USA. The company also plans to support customer integration of RFID in their supply chain management processes.

     The project is clearly a benchmark for the adoption of RFID in the semiconductor supply chain, and the company''s willingness to embed the technology into its supply chain and business processes shows how business and technology can join to deliver real value to a company.

     "With the combination of leading-edge RFID technology from Philips, and IBM''s RFID WebSphere middleware, integration services and transformation capabilities, this implementation is one of the world''s first examples to demonstrate that the promise of RFID can be delivered on a large scale," explained Faye Holland, worldwide RFID leader for IBM.

     In addition to IBM, which provided consultancy and the overall system integration for the project, other vendors were also involved: the tags are being delivered by Smartag and Tagsys, the readers by Tagsys, and the printers by Zebra.

 

 

 

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