WES driven radio frequency identification (RFID) project

Abstract

Kenco Logistic Services has operated the Mead Johnson Nutritional distribution center located in Mt. Vernon, IN since 2002. Kenco is responsible for ensuring operational excellence in all areas of the business, whether it is shipping and receiving products or providing other value added services. One such service that Kenco provides is Radio Frequency Identification (RFID) tagging on outgoing product for specific customers that require RFID. For years, Kenco utilized an older RFID system that had proven to be unreliable and too costly to continue to operate. In early 2008, Kenco proposed to Mead Johnson that they be allowed to add an RFID component to Kenco's own proprietary warehouse management system, known as the Warehouse Efficiency System (WES). Doing so would benefit Mead Johnson in several ways. Putting the component in WES would make RFID more stable and expandable within the warehouse. It would also save Mead Johnson thousands of dollars in support fees for an ailing system. Once approval was given by Mead Johnson, the Kenco management team in Mt. Vernon partnered with the information technology department of Kenco Management Services (KMS) to begin developing an RFID application within WES. The Mt. Vernon team set forth the requirements and specifications for the needed component and KMS was responsible for programming the component to fit those specifications. Once completed, the Mt. Vernon team was responsible for testing the program and training their associates on how to use the new software. After a few disruptions to the project in late 2008 and early 2009, the RFID system in WES was launched in April, 2009. Since the launch, there have been no major system problems that could have prevented orders from shipping without the correct customer requirements. The WES RFID system solved all of the problems presented by the legacy system while saving Mead Johnson over $15,000 in support fees. The project also allowed Kenco to explore RFID technology and learn more about how they can use it to meet customer's needs. The WES driven RFID project has been a success for both Kenco and Mead Johnson and is a good example of how Kenco strives to deliver the highest quality services to customers while keeping costs low.