Toll Today March 2011 - TOLL Group

IdeaLab’s Long-range rFID Technology –
FOCuS to Automate Store Management 24 by 7
Today, many companies are leveraging technology
to manage costs, boost efficiencies and enhance
customer service. Yet, many also report constraints
in the ability to operate the technologies effectively. Many
technologies require stringent processes and a disciplined
workforce to operate them.
In December 2010, Tan Tock Seng Hospital Rehabilitation
Center in Singapore renewed its contract with Toll Global
Logistics to manage its linen store with an average inventory
of 10,000 pieces. IdeaLab, a technology innovation unit
within Toll Global Logistics, replaced the existing system
with FOCUS, their newly developed long-range Radio
Frequency Identification (RFID) Inventory Management
Platform.
The FOCUS system has enabled IdeaLab to manage the
hospital’s linen store unmanned, 24 hours a day, seven
days a week, whilst keeping real time inventory visibility
and on-time replenishments in a timely manner.
Sim Teck Meh, Head of the hospital, said, “My nurses can
walk into the linen store anytime, pick up the required linen
and leave very quickly. It’s natural and efficient. Previously,
they had to sign-in to an inventory system to register the
picked linen before leaving the store”.
“We are definitely not going back to the old way,”
added Sim.
Chua Joo Chye, Operations Manager at Toll Global
Logistics, explained how FOCUS works at the hospital.
“An RFID reader portal is mounted at the doorway of the
store. Every piece of linen is embedded with a unique RFID
tag, while the nurses are issued with RFID staff badges. As
these pieces of linen are taken out of the store or returned
to the store through the portal, the RFID tags are read and
FOCUS will automatically decrease or increase inventory
counts accurately with detailed transactions recorded. The
transaction record will display real time data such as who
has taken what type of linen, when and where was it taken
and possibly why the linen was taken. This level of data
recording also enables us to automatically invoice for
services as provided.
“Now that the data is accurate, timely and complete, a daily
linen utilisation, inventory and movement report is easily
generated. Through simple data analysis, I can then decide
to keep the correct buffer stock for the correct linen types
on site, resulting in fewer and smarter replenishment runs
which includes more freed up store space. I have also
removed the cost of storekeepers too, plus I have a better
understanding of cycle turns”.
“Furthermore, cycle counting can be done within six
man hours, a 70 percent reduction compared to before,”
added Chua.
Prior to the FOCUS implementation, Toll Global Logistics
would occasionally miss service level targets due to stock
shortages in the store. This could occur when the nurses
failed to register out-going linen, especially during the early
hours of the morning. In the past, we had to hire storekeepers
to ensure the inventory system was updated correctly, whilst
cycle counting would take days to complete and reconcile.
With the newly deployed long-range RFID inventory
management solution, we are now able to track and trace
their linen movements more effectively, provide real-time
data on inventory availability and usage as items move from
storage to individual nurses, and ultimately to the patients
who use them. This accurate management of the hospital
supply chain – from scheduling through discharge – is
essential to improving workflow and charge capture.
As in the case of the Tan Tock Seng hospital, RFID
application can provide hospitals with an economical way
to measure a large number of parameters, streamline
workflows and introduce efficiencies and cost savings
across the entire healthcare inventory management chain.
Similarly, the same application can be duplicated in any
environment that requires such needs for example, the
hospitality industry.
IdeaLab will continue to improve FOCUS to be applicable
for any inventory or assets or equipment management,
and is keen for other business units across the Toll Group
to consider FOCUS in their own or their customers’
operations. For more information, contact James Chan
at ideaLab: james.chan@tollgroup.com n
an illustrative Diagram:
a Typical Linen Supply Chain work Flow
Hospital
Wards /
Patients
Replenish
Hospital
Warehouse Linen
Clean Laundry
Repair & Service Room
Clean
Global Logistics
Soiled
Toll Today March – May 2011 05