First RFID system with UHF technology successfully in operation

July 19, 2005

Cinram, leader vendor of pre-recorded CDs and DVDs, and Siemens Automation and Drives (A&D) have jointly implemented an RFID (radio frequency identification) solution in the UHF (ultra high frequency) range. To optimize supply logistics, two loading doors at the incoming goods area of Cinram's central materials warehouse in Alsfeld near Cologne, Germany have been equipped with the new Simatic RF 600 RFID system from Siemens.

Selected Cinram suppliers equip their supply units with data carriers known as RFID tags. The supplied goods are recorded and analyzed automatically. The RFID gate reader, enclosed in a rugged housing, has been field-proven to withstand the harsh environmental conditions prevailing at the loading gate: Almost a hundred percent of the data carriers were correctly recorded. After successful completion of the pilot phase, the system is now in normal operation. Cinram intends gradually convincing its top suppliers to introduce RFID technology. Since the data carrier is still attached to the packaging after the goods have been placed in storage, the intention is to use RFID to optimize further steps in the logistics chain beyond inbound logistics.

In the current RFID solution, the data stored on the tag at delivery are compared with an electronic delivery notice transmitted in advance. If the delivery agrees with the advice, the system automatically enters the incoming goods into the SAP system. Previously, the incoming goods were recorded manually and then entered in SAP – a time-consuming process. The quality of the logistics chain has also been significantly improved using RFID because a mistaken delivery can be reliably detected before the goods are stored in the warehouse. Previously, there was no comparison of the delivered goods with the delivery advice, so a mistaken delivery was only detected further down the process. The SAP connection is based on a software module from Siemens and has been implemented jointly with Cinram.