RF tags are a wonder for Woolworths

Savi Technology has been selected to build an automated information system for real-time management and security of shipments between Woolworths UK's distribution and retail outlets.

Savi Technology has been selected to build an automated information system for real-time management and security of shipments between Woolworths UK's distribution and retail outlets.

Savi is partnering with Microlise, a leading UK-based systems integrator for the logistics industry, to fulfill the contract with Woolworths, one of the United Kingdom's largest retailers with 800 stores and $2.3 billion pounds in annual sales.

The real-time information network will help improve management of dollies, roll cages, and totes and the security of consumer products they transport within Woolworth's supply chain network.

Through the deployment of Savi's web-based SmartChain software platform that's uniquely linked with wireless tracking systems, the information network will reduce inventory shrinkage while improving operational efficiency, inventory management and customer service.

Rollout of the project, which initially involves distribution between Woolworths' National Distribution Centre and a selection of its retail outlets, begins in May and extends into early next year, when results will be assessed for further system wide implementations.

"We're pleased to have been chosen to work with one of Europe's most respected retailers, and to be partnering with a leading systems integrator such as Microlise", said Mark McGlade, Savi's managing director for Europe, the Middle East and Africa (EMEA).

"Savi Technology is eager to demonstrate the value of our unique real-time solution to help Woolworths gain better control and security of its supply chain assets while improving its operational efficiency, processes, visibility, and service.

By adopting this proven technology, Woolworths exemplifies why Europe and the rest of the EMEA region is leading the commercial adoption of real-time supply chain solutions that integrate automated data collection technologies and web-based software".

The Savi solution, offered to both the public and private sectors, is based on a dozen years of battle-tested experience helping to build and operate the world's largest real-time visibility management system for the US Department of Defense, which tracks 250,000 conveyances at 350 locations in more than 30 countries.

The US General Accounting Office found that DoD would have saved more than $2 billion in wasted costs if Savi's system had been deployed to monitor the logistics of supplies during the Gulf War's Desert Storm operations a dozen years ago.

Since then, Savi's automated information technology (AIT) for the DoD has grown into what's called a total asset visibility (TAV) network that has been used in managing supplies into recent conflicts in Bosnia and Afghanistan.

"This project, funded in part by the UK Government's prestigious 'Chipping of Goods Initiative', is a significant opportunity to demonstrate to the business community and the RFID industry the potential of RFID in crime prevention, business process improvement and cost reduction", said Geoff O'Neill, Head of Woolworths Central Logistics for New Sales Channels.

"Woolworths has chosen Savi, Microlise and IPI as its partner because of their expertise in the areas of supply chain tracking and systems integration.

This exciting application will provide Woolworths with real-time visibility of the whereabouts of its stock, improve operational efficiency and prevent crime within the supply chain by providing an audit trail of who picked merchandise, its current location, its destination, and everyone who handled it along the supply chain".

"We are very excited to partner with Savi Technology on this project", said Nadeem Raza, technical director, Microlise.

"This gives us another opportunity to show how key identification and communication technologies can be used to realise significant business benefits.

The combination of Savi's real-time solutions and Microlise's integration experience is a very powerful one and ideally suited to this kind of project".

To maximise real-time security, visibility and management of its supply chain assets and their contents, Woolworths will deploy a full complement of Savi's products and services.

These solutions include the Savi Asset Management System software application for Reusable Transportation Containers (RTCs), and the Savi SmartChain platform, which transforms raw data into actionable information and drives automated alerts; EchoPoint Series 600 tag and reader hardware components that automatically collect and transmit data; and the universal data appliance protocol (UDAP), Savi's openly licensable protocol linking data from different wireless tracking systems to the Savi SmartChain software platform.

The project initially involves the installation of the SmartChain software platform at Woolworth's key distribution centre in Swindon and a number of its stores.

Some 16,500 EchoPoint Series 600 active tags will be affixed to Woolworths conveyances moving back and forth between distribution facilities and retail stores.

These smart tags are affixed to assets and tracked by the radio frequency identification (RFID) system in real time, while automatically transmitting event-related Alerts and other key data to Savi's robust SmartChain software platform, from which the assets can be managed via a computer screen.

Real-time visibility and management of Woolworths conveyances is achieved through the interoperability of two leading-edge technologies.

First, RFID smart tags affixed to supply chain assets assign each dolly, roll cage and tote a unique identification code.

Savi's EchoPoint Reader and SignPost system captures the conveyance's identification, location, status and other stored information whenever they pass by, and then transmits the data to the Savi SmartChain platform, which reports on the status of the system and assets.

From there, users get instant alerts and other key data on a personal computer screen through the Savi Asset Management software, which provides comprehensive features to manage the full life cycle of an asset, including acquisition, finance, security, maintenance, management and disposal.

Savi's solution also will be integrated with Woolworths existing DPS data base system for booking, tracking and sequencing of their supply chain assets.

The integrated solution is aimed at individually identifying and controlling the loading of conveyances to stores and back to the warehouse, checking on store deliveries and shortages, real-time status, location and collection of returned products, such as CDs and DVDs, and reports about error rates, picking-to-loading times and asset usage.

An important feature of the Savi solution is the real-time event engine, which automatically sends alerts in both the physical supply chain and over the Internet whenever there are deviations from plans or schedules.

For example, if a dock worker were loading dollies onto the wrong truck, an alarm would sound while an exception alert would be sent to the manager's PC as a backup.

This pre-emptive management alone can save tremendous costs that can incur from trying to correct the situation after-the-fact.

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