Against the backdrop of the intelligent transformation in the manufacturing and logistics industries, the efficiency bottlenecks of traditional warehousing models are becoming increasingly prominent. A heavy equipment manufacturing enterprise has constructed a highly efficient and accurate intelligent warehousing management system by integrating automated shelf handling systems with RFID technology. This system achieves fully automated control of materials from inbound to outbound processes, providing a typical example for the digital upgrade of the industry.
I. Project Background: The Urgency of Transforming Traditional Warehousing
The company specializes in the production of heavy machinery components, with its distribution center managing thousands of types of raw materials, work-in-progress, and finished goods. The traditional manual warehousing model suffered from several pain points:
Insufficient Space Utilization: A flat shelf layout led to idle vertical space. As material types proliferated, the available storage area became increasingly strained.
Low Operational Efficiency: Manual handling and picking relied heavily on physical labor. The daily material throughput struggled to meet production pace, leading to severe cargo backlogs, especially during peak order periods.
Lack of Traceability: Material flow was solely recorded in manual ledgers. When quality issues arose, it was impossible to quickly trace the item's storage history and status, significantly increasing troubleshooting costs.
To overcome these bottlenecks, the company decided to introduce an automated shelf handling system (including automated vertical racking and AGVs) and implement an intelligent upgrade of the warehousing system by integrating RFID technology.
II. Technical Architecture: The Collaborative Application of Automated Shelving and RFID
(I) Hardware Deployment: Building an Intelligent Sensing Network
RFID Tags: Customized, metal-resistant, and wear-resistant RFID tags were applied to each material type. These tags store core information such as specifications, batch number, production date, and supplier, ensuring stable operation in complex workshop environments (metal shelving, oil, dust).
RFID Reading/Writing Equipment: Fixed RFID readers were deployed at key nodes within the warehouse (as shown in the diagram, connected via green cables to the system for automatic tag identification). Handheld terminals were also provided for tasks like inventory counting and exception checks. The AGVs and storage locations within the automated racking system were integrated with RFID reading modules, enabling automatic information capture during material handling and storage.
Automated Shelving System: The automated vertical racking maximized vertical space, increasing storage density by 50%. AGVs, following system commands, automatically transported materials between storage zones, replacing manual handling and reducing labor requirements.
(II) Software System: End-to-End Digital Control
Inbound Management: Upon arrival, materials pass through an RFID inbound gateway where tag information is automatically read. The system validates the purchase order and completes the inbound process. An AGV then transports the material to a designated location in the vertical racks. A reader at the location confirms the material information again, updating inventory data in real-time—all without manual intervention.
Inventory Management: RFID technology enables real-time inventory visualization. The system can instantly query the location, quantity, and storage duration of any material. It automatically triggers replenishment alerts when stock falls below safety thresholds. For materials requiring prioritized handling (e.g., custom parts), the system automatically flags them and schedules AGVs for priority movement.
Picking and Outbound Management: Based on production orders, the system automatically generates picking tasks. AGVs retrieve materials from the vertical racks and deliver them to picking stations. RFID readers at the stations automatically verify the material information against the order. During outbound shipping, materials pass through an RFID outbound gateway for automatic verification. Upon confirmation, the outbound process is completed, and inventory levels are updated in real-time.
III. Application Results: Dual Improvement in Efficiency and Value
(I) Significant Optimization of Operational Efficiency
Space Utilization: Automated vertical racking increased warehouse space utilization by 50%, doubling storage capacity within the same footprint.
Operational Efficiency: Replacing manual labor with AGVs improved material handling efficiency by 80% and increased daily material throughput by 60%.
Inventory Counting Efficiency: RFID technology reduced inventory counting time from 3 days to 4 hours, with accuracy reaching 100%.
(II) Effective Control of Costs and Risks
Labor Costs: Reduced staffing in handling and picking roles by 30%, saving over one million RMB annually in labor costs.
Inventory Costs: Reduced inventory turnover days from 40 to 20, lowering capital carrying costs by 40%.
Error Costs: Decreased the rate of incorrect or missed shipments from 5% to below 0.1%, reducing production delay losses caused by inventory errors by 90%.
(III) Extension of Digital Value
Using the material flow data collected via RFID, the enterprise built a digital model of material circulation. This model can simulate material requirements under different production plans to optimize inventory strategies. Furthermore, based on full lifecycle material data, the company can swiftly trace the root cause of quality issues, enhancing product quality management and strengthening customer trust.
IV. Case Insights: Future Trends in Intelligent Warehousing
This case demonstrates that the integration of automated shelf handling and RFID technology is a core pathway to warehousing intelligence. Automated shelving addresses physical space and handling efficiency, while RFID technology solves information accuracy and process transparency. Their synergy achieves a dual upgrade of "hardware automation + information digitization."
Looking ahead, with the deeper application of 5G and AI technologies, intelligent warehousing will evolve towards "predictive operations": analyzing historical RFID data to forecast material demand and automatically adjust storage and AGV scheduling strategies; using digital twin technology to simulate warehousing scenarios and pre-optimize resource allocation. For manufacturing and logistics enterprises, deploying an intelligent warehousing system based on "automated shelving + RFID" is both a necessary choice to address current efficiency competition and a crucial step in embracing the future of Industry 4.0.
FYJ is a technology company dedicated to providing integrated RFID solutions. We warmly welcome your inquiries and are committed to delivering customized, exclusive RFID strategies tailored to your needs.
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