Read the Case Study and Answer the Following Question:

How did the Identec Solutions RFID-based technology help DP World increase the efficiency and effectiveness of its customers' supply chain?

(answer should be 200 words)

Chapter 8 Achieving Operational Excellence and Customer Intimacy: Enterprise Applications 315 INTERACTIVE SESSION: ORGANIZATIONS DUBAI PORTS WORLD TAKES PORT MANAGEMENT TO THE NEXT LEVEL WITH RFID Dubai Ports (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 the 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 terminals 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 30,000 people to serve customers in some of the for many vendors. After extensive testing and evalu- most dynamic economies in the world. ation, 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- How does the RFID tracking system work? tively 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 Identec Solutions that structures, technologies, and people to best serve are fixed on the rear chassis. As a truck moves customers. 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 conges. 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 tions include the electronic customs release of cargo, if the truck is on 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 'e-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 DP 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 ductivity of container handoffs, speed the entry and principles to improve container turnaround. It exit of 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 saw 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 Dubai and Australia. According to Mohammed of trucks from public roads by streamlining truck- Al Muallem, managing director of DP World U.A.E., processing procedures." "By introducing the automated gate system, we Identec'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 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 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. Sources: Dave Predlos, RFID Boosts DP World's Productivity in Australia," RFID Journal, July 27, 2009 (www.rtidjournal.com/ article/view/5086, accessed October 20, 2010): Rhea Wessel. "DP World Ramps Up Its Dubai Deployment, RFID Journal, August 13, 2009 (www.rfidjournal.com/article/view/5130, accessed October 20, 2016)*DP World UAE Implements Automated Gate System at Jebel Ali Port, The Zone, May-June 2008 (www jatra.ae/media files/2008/10/23/20081023_Issue-11 pdf, accessed October 20, 2010), p. 11; DP World (www.dpworld.com, accessed October 20, 2010); Identec Solutions (www.identecsolutions.com, accessed October 20, 2010)