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YCH Group


While the RFID (radio frequency identification) chip may be tiny, the benefit it brings to YCH Group is a zillion times bigger.

Last June, the Singapore-based logistics company implemented RFID technology to keep track of all goods that enter and leave one of its warehouses storing high-value luxury products.

Since then, the S$1.2 million (US$727,000) initiative has helped YCH streamline processes and enhance the efficiency of its operations. Most importantly, it has reduced the company's inventory handling time by nearly half, while improving worker productivity.

Industry
Logistics and supply chain management

Company
YCH Group provides integrated logistics services such as warehousing and inventory management, transportation and distribution management, and freight management services. Its customers include various multinational companies operating in the electronics, chemicals and consumer products industries.

Employees
1,500

IT staff
50

Annual IT Budget
S$5 million (US$3.1 million)

In addition, RFID has helped to eradicate input errors in stock-taking. The system has also made it convenient for customs officials and customers to carry out spot checks of goods within the warehouse. Central to the RFID system is an in-house developed logistics management application that manages YCH's warehouse and freight services.

The project wasn't without challenges. Besides the delicate task of piecing the systems together, YCH faced the crucial challenge of handling liquid products such as champagnes and wines. The liquid nature of those products, together with their metal storage racks, had affected the transmission of RFID signals.

The solution, YCH discovered, was to use Styrofoam buffers to enhance the readability of RFID signals. This contributed to the success of the project.

According to YCH, its RFID system underscores the benefits of the wireless technology to the logistics sector. The project is showcased by the Infocomm Development Authority (IDA) of Singapore as a technology case study.

Convinced of the benefits of RFID, YCH intends to extend its RFID implementation to its entire business. Its plans include enhancing security, and using it to track other assets or for use in areas like human resource and vendor management.


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