CASE STUDY CHAPTER 9: INTERACTIVE MANAGEMENT

DP World Takes Port Management  to the Next Level with RFID

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CASE STUDY CHAPTER 2: BUSINESS PROBLEM-SOLVING CASE

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CASE STUDY CHAPTER 9: INTERACTIVE MANAGEMENT

DP World Takes Port Management  to the Next Level with RFID

DP (Dubai Port)World has reason to be proud of its accomplishment of the becoming one of the leading terminal operaors in the world. Today, DP, World has60 terminals across 6 continents, and 11 new terminals are under development. The firm employs an international proffesional team of more than 30000 people to serve customers in some of the most dynamic  economies in the world.

DP World has adopted a customer-centric approach to enhancing its customers’ supply chains by providing quality, bulk, and other terminal cargo. The firm invests heavily in terminal infrastructures, technologies, and people to the best serve its customers.

Like other global port and terminal operators, DP World helps shippers around the world address the often complex and costly challenges of managing the supply chain. One of the typical problems encountered in container terminal operations is traffic congestion at port entry  points. This congestion is often due to delays introduced by lengthy procedures and paper-based logistics. In response, DP World has introduced many IT-based solutions to enhance terminal capacity utilisation. These solutions include the electronic custom release of cargo ,Electronic Data Interchange (EDI) reporting, two way digital radio communications, and”e-token” advanced booking system.

DP World management wanted to take things a step further and decided to make the loading and unloading of containers operate on “just in time” principles to improve container turnaround. It found that Radio Frequency Identification(RFID) technology was an effective way to increasing the efficiency of truck movement through port access gates. Today, DP World uses RFID- enabled automatic gate systems at the port terminals it operates in Dubai and Australia. According to Mohammed Al Muallem, managing director of DP World UAE,  the introduction of an automated gate system would not only eliminate traffic congestion but would also help to eliminate a number of the lengthy procedures, increasing productivity at the port, and improving customer satisfaction. This will in turn, increase the turn around of shipping goods.

            Prior to the RFID deployment, DP World spend several months performing proof-of-concept trials involving several competing RFID suppliers. Because of the rugged environmental conditions at the ports, DP World required that 99.5 percent of all tags be read successfully, which was a key challenge for many vendors. After extensive testing and evaluation, DP World selected Identec Solutions, a global leader in active wireless tracking solutions, as its RFID supplier.

How does the RFID tracking system work? Trucks that visit a port terminal are equipped with active RFID tags supplied by Identec Solution that are fixed on the rear chassis. As a truck moves towards the gate, its unique tag ID number is ready by an RFID reader, which is integrated with an automated gate system. at the gate, an optical character recognition (OCR) SYSTEM determines if the truck is loaded with a container, identifies the ID number of the truck’container, and reads the truck license plate number as a backup identification. The system uses the supplied information to automatically issue a ticked to the driver that specifies the lane the truck should proceed to in order to load or unload the container. The system can also automatically determine if the truck is on time, which is essential information for the efficient pickup and drop off of containers. As the truck leaves the gate, the RFID tag is read once again, and the driver receives a receipt for the completed transaction.

RFID has enabled DP World to increase the productivity of container handoffs, speed the entry and exit of trucks through terminal gates, and increase fuel efficiency. Victoria Rose, regional office project co-ordinator at DP World Sydney maintained that RFID would improve gate efficiency through improve truck management, reducing queues and congestion around gates, and removing the number of trucks from public roads by streamlining procedures.

Identec’s RFID-based solution has also enabled DP World to improved customer satisfaction by enhancing the efficiency of customers’ supply chains through smoother, faster, and more efficiency delivery of their containers at terminal gates. The elimination of lengthy paper transactions and manual inspections at gates and the reduction in manual data input errors demonstrate DP World's customer-centric approach to delivering a superior level of service. The technology also allows transport companies to save time, increase revenues, and reduce costs.

DP World’s use of RFID has also helped it to tighten security by providing better accuracy on inbound and outbound truck movements through the terminals. For instance, the system can automatically check whether a truck has a booking and whether it is authorised to enter the port.

As a next step, DP World will consider expanding its use of RFID-enabled scanning and tracking technology to further optimise supply chain flow. In the future, Rose hopes DP World will focus on investigating its use within the yard, and how data captured can be used.

Question 1.     How did Identec Solutions’ RFID-based technology help DP World increase the efficiency and effectiveness of its customers’ supply chains?

Identec Solutions’ RFID-based technology was helping DP World to improve customer’s supply chain. Identec Solutions’ RFID-based technology help DP World increase the efficiency and effectiveness of its customers’ supply by using automated gate system and RFID tracking system. Trucks that visit a port terminal are equipped with active RFID tags supplied by Identec Solution that are fixed on the rear chassis. As a truck moves towards the gate, its unique tag ID number is ready by an RFID reader, which is integrated with an automated gate system. The driver must use the specific lane to load or unload container which is using the information supplied by the system. By using this system, it does can also determine time of pick up and drop off of containers automatically. Hence, Customers are able to have their goods cleared and shipped at much faster speed.

Other than that, Identec Solutions’ RFID-based technology enable DP world to increase the productivity of container handoffs, speed the entry and exits of trucks through terminal gates, and increase fuel efficiency. RFID would improve gate efficiency through improve truck management, reducing queues and congestion around gates, and removing the number of trucks from public roads by streamlining procedures.

By using Identec Solutions’ RFID-based technology, it also makes every single task in port terminal become smoother and faster to improve customer satisfaction. Besides that, Identec Solutions’ RFID-based technology makes the delivery of their containers at the terminal gate become more effective. It’s also able to eliminate traffic congestion and eradicating a number of lengthy procedures.

 Question 2.     Describe two improvements that resulted from implementing the I dentec  RFID- based solution.

Victoria Rose (Regional Office project Coordinator at DP World    Sydney) stated that the RFID could improve gate efficiency through improved truck management, reduce queues and congestion around gates, remove the number of trucks from public roads by   streamlining procedures. 

Second,  improvement Customer Satisfaction by Enhancing the efficiency of customers, supply chains through smoother, faster, and more effective delivery of their containers at terminal gates. Elimination of lengthy paper transactions and manual inspections at gates and the reduction in manual data input errors.

 Question 3.     How does the concept of supply chain execution relate to this interactive session?

Supply Chain Execution (SCE) is the management of products movement through distribution centers/warehouses in ensuring products are delivered efficiently. DP World implemented SCE by using Radio Frequency Identification (RFID) in its supply chain. DP World spent several months performing proof-of-concept trials involving several competing RFID suppliers and after extensive testing and evaluation DP World selected Identec Solutions, a global leader in active wireless tracking solutions, as it’s RFID suppliers. Identec’s RFID-based solution has enabled DP World succeed in improving customer satisfaction enhancing the efficiency of customer’s supply chains through smoother, faster, and more effective of their containers at the terminal gates. At the gate, an Optical Character Recognition (OCR) system track whether the container is loaded, identify the truck container ID number and truck license plate number as a backup identification. The system can also automatically determine if the truck is on time which is essential information for the efficient pickup and drop off containers.

Question 4. What managerial, organizational, and technological challenges might DP World have faced in the early stages of the RFID project’s deployment?

          The RFID help to eliminate a number of lengthy procedures, increasing productivity at the ports and improving customer satisfaction. So, the shipping good turn-around will increased. From that, DP World spent several months performing proof-of-concept trials involving several competing RFID suppliers. It also had key challenge for many vendors that are rugged environmental condition at the ports which is required 99.5% of all tags are read successfully. Besides, regional office project coordinator at DP World Sydney maintained that RFID would improve gate efficiency through improved truck management reducing queues and congestion around gates and removing the number of trucks from public roads by streamlining procedures.