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Chapter 8 Achieving Operational Excellence and Customer Intimacy: Enterprise Applications 315 INTERACTIVE SESSION: ORGANIZATIONS 30,000 people ation, DP HOW tively its customers conges. DUBAI PORTS WORLD TAKES PORT MANAGEMENT TO THE NEXT LEVEL WITH RFID Dubai Porta (DP) World has reason to be proud of Prior to the RFID deployment, DP World spent its accomplishment of becoming one of the leading several months performing proof-of-concept terminal operators in the world. Today, DP World als involving several competing RFID suppliers has 50 terminals in 31 countries, and 11 new Because of the rugged environmental conditions at rminals are under development. The firm employs the ports, DP World required that 99.5 percent of all an international professional team of more than tags be read successfully, which was a key challenge to serve customers in some of the for many vendors. After exterisive testing and evalu- most dynamic economies in the world. DP World selected Identec Solutions, a global DP World has adopted a customer-centric leader in active wireless tracking solutions, as its approach to enhancing its customers' supply chains RFID supplier by providing quality, innovative services to effec- does the RFID tracking system work? manage container, bulk, and other terminal Trucks that visit a port terminal are equipped with cargo. The firm invests heavily in terminal infra- active RFID tags supplied by Idente Solutions that structures, technologies, and people to best serve are fixed on the rear chassis. As a truck moves towards the gate, its unique tag ID number is read Like other global port and terminal operators, by an RFID reader, which is integrated with an auto- DP World helps shippers around the world address mated gate system. At the gate, an optical character the often complex and costly challenges of manag- recognition (OCR) system determines if the truck is ing the supply chain. One of the typical problems loaded with a container, identifies the ID number encountered in container terminal operations is of the truck's container, and reads the truck license traffic congestion at port entry points. This plate number as a backup identification. The system tion is often due to delays introduced by lengthy uses the supplied information to automatically issue procedures and paper-based logistics. In response, a ticket to the driver that specifies the lane the truck DP World has introduced many IT-based solutions should proceed to in order to load or unload the con- to enhance terminal capacity utilization. These solu- tainer, The system can also automatically determine include the electronic customs release of cargo, if the truck is on son time, which is essential informa- electronic data interchange (EDI) reporting, two- tion for the efficient pick-up and drop-off of contain way digital radio communications, and the 'o-token ers. As the truck leaves the gate, the RFID tag is advance booking system read once again, and the driver receives a receipt for World management wanted to take things a the completed transaction step further and decided to make the loading and RFID has enabled DP World to increase the pro- unloading of containers operate on just-in-time of container handoffs, speed the entry and principles to improve container turnaround. It tof trucks through terminal gates, and increase found that radio frequency identification (RFID) fuel efficiency, Victoria Rose, regional office project technology was an effective way of increasing the coordinator at DP World Sydney stated. We efficiency of truck movements through port access that RFID could improve gate efficiency through gates. Today, DP World uses RFID-enabled auto- improved truck management, reduce queues and matic gate systems at the port terminals it operates congestion around gates, and remove the number in Dubat and Australia. According to Mohammed of trucks from public roads by streamlining truck Al Muallem, managing director of DP World UAE, processing procedures. "By introducing the automated gate system, we Idented's RFID-based solution has also enabled are not only eliminating traffic congestion but DP World to improve customer satisfaction by also eradicating a number of lengthy procedures, enhancing the efficiency of customers' supply increasing productivity at our ports, and improv chains through smoother, faster, and more effec- ing customer satisfaction. Our customers will now tive delivery of their containers at terminal gates be able to have their goods cleared and shipped at The elimination of lengthy paper transactions and much faster speed." manual inspections at gates and the reduction in tions DP ductivity exit of saw 316 Part Three Key System Applications for the Digital Age manual data input errors demonstrate DP World's customer-centric approach to delivering a superior level of f 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 auto- matically check whether a truck has a booking and whether it is authorized to enter the port. As a next step, DP World will consider expand- ing its use of RFID-enabled scanning and tracking technology to further optimize supply chain flow. "Investigation around its use within the yard, and how the data captured can be used, will be the focus of the coming months, Rose added, Source Dave Predlos RFID Boost DP World Productivity in Australia, RFID Journal, July 27, 2009 (www.idjournal.com article/view/5086, accessed October 20, 2010). Rhea Wessel, DP World Ramps Up la Dubai Deployment RFID curl August 13, 2009 (www.rfidjoumal.com/article/view/5130, accessed October 20, 2010). "DP World UAE Implements Automated Gate System at Jebel Ali Pont, The Zone, May June 2008 (www jafran media tiles 2008/10/23/20081023_Issue-11 pdf, accessed October 20, 2010), p ; DP World (www.dpworld.com, accessed October 20, 2010): Idente Solutions (www.ident solutions.com, accessed October 20, 2010) CASE STUDY QUESTIONS MIS IN ACTION 1. How did the Identec Solutions RFID-based tech- Visit the Identec Solutions website (www. nology help DP World increase the efficiency and identecsolutions.com) and learn about some of the effectiveness of its customers' supply chains? other companies that have used its tracking services 2. Describe two improvements that resulted from to increase supply chain efficiency. Pick one of these implementing the Identec RFID-based solution companies and then answer the following questions 3. How does the concept of supply chain execution 1. What problems did the company solve through relate to this interactive session? the use of Identec Solutions tracking technology? 4. What managerial, organizational, and technologi- 2. Why did the company select Identec Solutions to cal challenges might DP World have faced in the be its tracking-solution vendor? early stages of the RFID project's deployment? 3. What benefits did the company realize as a result of implementing the tracking solution? Case contributed by Faouzi Kamoun, The University of Dubai partners because the systems of suppliers, distributors, or logistics providers were based on incompatible technology platforms and standards. Enterprise systems supply some integration of internal supply chain processes but they are not designed to deal with external supply chain processes. Some supply chain integration is supplied inexpensively using internet technology. Firms use intranets to improve coordination among their internal supply chain processes ioure 3-4upply chain pro- and they use extranets to coordinates cesses shared with their business partners (see using intranets and extranets, all members of the supply chain are instantly able to communicate with each other, using up-to-date information to adjust purchasing logistics, manufacturing, packaging, and schedules. A manager will use a web interface to tap into suppliers' systems to determine whether inven- tory and production capabilities match demand for the firm's products and to keep up-to-date information posted to the suppliers for managing demand levels. Business partners will use web-based supply chain management tools to collabo rate online on forecasts. Sales representatives will access suppliers' production schedules and logistics information to monitor customers' order status Global Supply Chain Issues More and more companies are entering international markets, outsourcing manu- facturing operations and obtaining supplies from other countries as well as selling