According to the company, the aim of the scheme is to illustrate how RFID can be swiftly integrated with legacy systems and operational practices to enhance productivity and efficiency.
The Asian RFID project involves the tagging and tracing of wafer cases and carton packages for flows of goods between its manufacturing facility in Kaoshiung, Taiwan and its Asia Pacific distribution center in Hong Kong.
By attempting to improve the business processes within the manufacturing and distribution supply chain, the implementation is expected to provide increased inventory turns, improved stacked lead time, enhanced delivery reliability and warehouse efficiency and improved customer service.
Hau Lee of Stanford University, an academic in supply chain management, believes the operation 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.
The project was developed in collaboration with software giant IBM, who provided consulting and the overall system integration, as well as Smartag and Tagsys, who will deliver tags, and Zebra, who will provide printers.
Philips is considering implementing the program across its five semiconductor manufacturing facilities and three distribution centers in Asia Pacific, Europe and the US. The company also plans to support customer integration of RFID in their supply chain management processes.
