The Customer Challenge

Lack of bread crate inventory management leads to loss

In the domain of inventory management and product distribution, efficiency is paramount. Homestyle Bake, a leading provider of baked goods, relies on the utilisation of reusable bread crates for its distribution operations.

Homestyle Bake encountered a significant challenge: the loss of considerable volumes of crates annually, approximately $218K. This loss not only incurs substantial replacement costs but also disrupts the company’s manufacturing process.

In response to this challenge, Homestyle Bake sought to implement an RFID solution to help ensure that bread crates being sent out with contract drivers were promptly returned.

Acknowledging the critical need to mitigate inventory loss, Homestyle Bake identified their business had:

• Lack of visibility and accountability regarding the whereabouts of crates.

• Inadequate monitoring mechanisms leading to difficulty in pinpointing loss points.

• Absence of a systematic approach to track and manage inventory items effectively.

The 4id Solution

A practical, low-cost solution to help minimise loss and waste

With a clear understanding of the challenges, Homestyle Bake envisioned a robust tracking system that could greatly improve its current inventory management processes. The vision included:

• Implementing RFID technology to enable a loan pool system of bread crate usage by contract delivery drivers.

• Developing a centralised database to store and analyse tracking data, facilitating informed decision-making.

• Enable an accounting method of charging contractors for the late return of crates.

After an initial conversation with Homestyle Bake to discuss the deliverables for the project, 4id engaged solutions provider Spotto to discuss implementation options for software and hardware to meet the project’s requirements.

Collaborating with Spotto to provide the tracking hardware and software platform, 4id custom designed and manufactured Homestyle Bake Bread Crate RFID labels sized 100mm x 32mm and a comprehensive tracking solution tailored to its specific needs. The solution encompassed:

• Selection of RFID tags compatible with Spotto’s existing inventory infrastructure.

• Exposure of API’s for seamless integration of tracking data into operations.

• Customisation of an Android application for handheld RFID readers to enable staff to easily & accurately check out bread crates out and back in again upon return.

100%

Reduction in monthly bread crate loss.

2500

Crate replacements avoided per month.

54 tonnes

Total plastics saved every year.

Testing

There were three testing phases to meet the objectives of the project.

• Primary: Test whether Dogbone RFID tags will enable 100% scan count of 100x loaded bread trays when loaded into a pantech truck.

• Secondary: Test for spill over reads outside the truck that would muddy assignment of pallets to specific contract drivers.

• Tertiary: If the primary objective could not be satisfied then identify other ways of achieving the objective such that the project can continue.

During the testing stage Homestyle Bake identified the original methodology for scanning crates was not viable, so they had to pivot to a different method. The method was pulling on the strings of the flexibility of the technology by utilising a closer scan (reduced signal strength) to scan crates out and a boosted signal strength to scan in. This allowed Homestyle Bake to ensure accuracy whilst not creating inefficiencies and eating into the ROI.

Following thorough testing and validation, Homestyle Bake initiated the deployment of the RFID tracking solution across its bakeries and distribution depots. Key deployment steps included:

• Application of custom RFID tags to bread crates.

• Deployment of handheld RFID readers

• Training sessions for staff to familiarise them with the new tracking system and procedures.

• Implementation of protocols for handling and maintaining RFID-tagged crates ensure data accuracy.

• Educating contract drivers on the new system, including late fee penalties for failure to return crates.

• Implementation of business side data ingestion, accounting, late fee calculation and charging methodology.

Proven Results

The implementation of the RFID tracking solution yielded positive results for Homestyle Bake:

• Significant reduction in inventory loss rates, leading to cost savings in replacement and operational expenses.

• Enhanced visibility and traceability of crates, enabling proactive management of inventory levels.

• Improved efficiency in distribution operations, with reduced disruptions.

• Increased accountability among contract drivers, fostering a culture of responsibility and ownership.

Homestyle Bake was able to address its inventory management challenges and pave the way for continued efficiency and sustainability in its distribution processes. Through this system, Homestyle Bake can hold its drivers accountable for the missing crates.

Value-add potential

The senior managers at Homestyle Bake were interested in extending the RFID tracking solution to the dolly’s that stacks of trays are moved around on.

Contact us today via projects@4idsolutions.com or call on +61243940333 for more information or to quote your needs for your business operations.