TECHNICAL AND BUSINESS WRITING

Proposal Cover Page

Business Proposal

WAREHOUSE MANAGEMENT
SYSTEM ON RFID
Table of contents

Title Page------------------------------------------------------------------------------------------------------------ 0
Proposal Cover Page----------------------------------------------------------------------------------------------- 1
Table of contents-------------------------------------------------------------------------------------------------- 2
1. Abstract------------------------------------------------------------------------------------------------------- 3
1.1. Project Goal------------------------------------------------------------------------------------------------
3
1.2. Problem---------------------------------------------------------------------------------------------------- 3
1.3. Solution---------------------------------------------------------------------------------------------------- 3
1.4. Benefits---------------------------------------------------------------------------------------------------- 4
2. Introduction-------------------------------------------------------------------------------------------------- 4
2.1. Warehouse Management System------------------------------------------------------------------------
4
2.2. Radio-Frequency Identification--------------------------------------------------------------------------
4
3. Discussion----------------------------------------------------------------------------------------------------- 5
3.1. Problem-------------------------------------------------------------------------------------------------- 5
3.2. Solution and its Benefits------------------------------------------------------------------------------- 5
3.3. Project budget & cost overview---------------------------------------------------------------------- 6
3.4. Project Selection And Ranking Criteria-------------------------------------------------------------6
3.4.1. Project Benefit and Category-------------------------------------------------------------------
6
3.4.2. Project Urgency----------------------------------------------------------------------------------
7
3.5. Proposal-------------------------------------------------------------------------------------------------- 7
3.5.1. What we have------------------------------------------------------------------------------------- 7
3.5.2. What challenges we are facing (major obstacles)--------------------------------------------7
3.5.3. What we require---------------------------------------------------------------------------------- 7
3.5.4. What we offer (Parameters of Proposal)-------------------------------------------------------8
3.5.5. RFID Implementation---------------------------------------------------------------------------- 8
4. Conclusion---------------------------------------------------------------------------------------------------- 9
1. Abstract
The main difference between an active and passive RFID inventory system is the way in
which the tags are powered during operation, but the basic workflow in a warehouse is
the same for both configurations. Before a shipment is sent to the warehouse it will have
had an RFID tag, or chip, attached to individual items or an entire pallet. This RFID tag
stores important information about the item. When the shipment arrives at the
destination, each RFID tag will transmit its information to readers installed within the
warehouse. These readers will have been placed in strategic locations within the
receiving and storage areas to pick up the best possible signal. The data is transmitted via
electromagnetic waves and is relayed from the readers to a central warehouse
management system. From there, information can be modified and sent back to the RFID
tags for later recall at any time. This gives warehouse operators the ability to perform
tasks such as real-time asset counts and advanced inventory transactions.
1.1. Project Goal:
The project goal is to create a Warehouse Management System and integrate an
RFID-based technology that can facilitate the automation of all manual processes
within the warehouse. With fixed RFID readers at ingress and egress points, mobile
RFID readers on warehouse automation equipment, and RFID asset and location
tags on waypoints and assets, the RFID Warehouse Management System will
provide greater levels of automation, error reductions, and decision support.

1.2. Problem:
The RFID implementation on WMS will certainly help the warehouseman to do
their work. It will modernize the current working process and increase productivity
in the warehouse. RFID technology is seen as the answer to the barcode
technology's weaknesses because barcodes can only be identified by bringing them
closer to a reader and the storage capacity of barcodes is very limited. In addition to
RFID technology, there are still other technologies that can be utilized in the
warehouse, maybe even better than that. However, the frequency of RFID may be
interrupted if there are other frequencies emitted by other equipment not intended
for RFID, so the chip will respond to that frequency. The problem is also in the
process of identifying the goods, RFID will be difficult to identify goods if LAN
network is not connected. An alternative is required to improve system
performance in the process of selecting goods such as using a conveyor belt to
transport goods.

1.3. Solution:
From a paper-based working where a warehouse personnel has to manually check
and encode products against the manifest, an automated and paperless tracking and
checking system will be in place. More importantly, from a tedious, time-
consuming, and fallible approach, a faster and more precise inventory control will
be rolled out. All of these will be made possible through the technology of radio
frequency (RF) communications embedded in the RFID tagging system.

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1.4. Benefits:
This Warehouse Management System is integrated with Radio Frequency
technology that has the ability to communicate with specialized tags that are
embedded in pallets, shelves and various locations within the warehouse.
The system will prove beneficial to the company as it aims to reduce paperwork,
eliminate human error and improve data accuracy, gain more control over the
warehouse, increase speed and labour utilization, as well as to provide instant
inventory and other types of pertinent reports.

2. Introduction
2.1. Warehouse Management System (WMS):
A warehouse management system, or WMS, is a key part of the supply chain and
primarily aims to control the movement and storage of materials within a
warehouse and process the associated transactions, including shipping, receiving,
put away and picking. The systems also direct and optimize stock put away based
on real-time information about the status of bin utilization. Warehouse
management systems often utilize Auto ID Data Capture (AIDC) technology, such
as barcode scanners, mobile computers, wireless LANs and Radio-frequency
identification (RFID) to efficiently monitor the flow of products. Once data has
been collected, there is either batch synchronization with, or a real-time wireless
transmission to a central database. The database can then provide useful reports
about the status of goods in the warehouse.
The objective of a warehouse management system is to provide a set of
computerized procedures to handle the receipt of stock and returns into a
warehouse facility, model and manage the logical representation of the physical
storage facilities (e.g. racking etc.), manage the stock within the facility and
enable a seamless link to order processing and logistics management in order to
pick, pack and ship product out of the facility.

2.2. Radio-Frequency Identification (RFID):

RFID stands for Radio-Frequency Identification. The acronym refers to small
electronic devices that consist of a small chip and an antenna. The chip typically is
capable of carrying 2,000 bytes of data or less.
The RFID device serves the same purpose as a bar code or a magnetic strip on the
back of a credit card or ATM card; it provides a unique identifier for that object.
And, just as a bar code or magnetic strip must be scanned to get the information,
the RFID device must be scanned to retrieve the identifying information.

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3. Discussion

3.1. Problem:
CSG Incorporated is a provider of warehouse and storage services. Located in Imus
Cavite, the company’s warehouse facility occupies a land area of almost 8,500
square meters. This immense product depot houses nearly 200,000 stocks of
various elements from blank product to blank product, which are delivered,
disposed and accounted every day. Over the years, CSG Incorporated has relied on
a paper-based and semi-automated system of inventory manned by over 65
personnel daily. This method of product tracking and classification has been seen as
ineffective and inefficient as it reflects a significant probability of errors and
inaccuracy. More so, the tedious process of manual inventory further narrowed the
bottleneck in the facility’s operations; thus affecting the entire production cycle.
Similar too many warehouse facilities, CSG Incorporated needs to streamline their
current warehouse operational procedures. An automated warehouse management
system (WMS) such as Radio Frequency Identification (RFID) is highly
recommended to eliminate the setbacks and improve productivity and control. In
this system, RFID tags are attached to products in the warehouse. These tags
wirelessly broadcast information about the product itself and its location; thus,
providing accurate and real-time product identification in the supply chain
management and warehouse operations.

3.2. Solution and its Benefits:

The proposed solution is to create a Warehouse Management System with an
integrated RFID-based technology that will improve the entire inventory handling
process by providing an automated, systematic and accurate warehouse
management cycle that is error-free, efficient and updated real-time.
The warehouse performs four basic functions:
(a) Receiving of goods and other materials from a source,
(b) Inspection, storage, cross-docking and protection of goods,
(c) Retrieval of goods according to customer requirements, and
(d) Preparation of goods for shipping and transportation.
To illustrate, pallets, cases, cartons and all other storage items in the warehouse will
be RFID tagged, plotting them in the system back-end. These tags are recognized
by readers installed in all the shelves, transporting equipment’s, and ingress and
egress points in the warehouse.
The RFID system will improve warehouse maintenance and increase warehouse
efficiency. This streamlining initiative will expedite mobility and categorization in

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 the warehouse while improving accuracy in numerical data. More so, this provision
can particularly reduce labour and logistic costs which have been identified as
levers that pull the company’s profit margins.

3.3. Project Budget & Cost Overview:

 Project Architecture 16,000 RS
 Database Design 16,000 RS
 RFID and Arduino 14,000 RS
 Project Implementation 20,000 RS
 Hardware Integration with System 18,000 RS
 Testing 16,000 RS
GRAND TOTAL 100,000 RS

3.4. Project Selection and Ranking Criteria:

The utilization of this system will result to higher efficiency, reduction of cost and
increase in revenue through the following:
3.4.1. Project Benefit Category:
Information Availability:
Status updates of receipts, manufacturing requests, and customer orders are made
available real-time. This gives warehouse management the responsiveness in
managing activities as they occur; hence, changing needs are immediately
addressed, labour is appropriately deployed, while space resources are
maximized.
Labour Pacing:
Communication between the system and the operator allows the system to pace
the operator from one assigned task to the next. The operator does not need to
return after each task to a central location to get the next instruction. The system
can select the next task for an operator based on metrics and instructions applied
(e.g. priority queue, capability of operator, schedule of tasks, etc.). The result is
workload management that maximizes task accomplishment and minimizes
labour idle time.
Material Tracking:
RFID allows verification of all transactions that affect materials location. This
verification updates status records used for future transactions, eliminates most
material location errors, and provides immediate instructions for resolving errors
that are identified. Real-time communication allows the warehouse to operate
more efficiently. Storage locations that are emptied are immediately marked in
the system and assigned to incoming loads and goods.
Security:

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 Shrinkage can be reduced with secure, item-level goods tracking, assuring that
items only leave the location when authorized.

3.4.2. Project Urgency:

The client is already in the process of acquiring a third-party provider for the needed
RFID devices. Consequently, the proposed system has to be put into place as soon as
possible to avoid impeding the utilization of these devices.

3.5. Proposal:
3.5.1. What we have:
We are customer-centric, and our scope of activities are driven by what our
customers need:
 Software solutions for key business functions like Accounting and
potentially Customer Relationship Management, Point-Of-Sale
 Helpdesk and support
 Consultancy and training on key business processes
 Taxation and bookkeeping
 Hardware solutions

3.5.2. What challenges we are facing (Major Obstacles):

The following are the challenges that are highly likely to be experienced related to
creating and implementing this system:
 The transition from a manual to an automated system will require extensive
preparation specifically on the operations-side. Flows and processes should be
thoroughly examined to ensure that the implementation of this wireless
technology does not hamper operations, supply-chain and warehouse management
in place.
 Alignment of the RFID WMS with the primary business software must be rolled-
out.
 Procurement of equipment such as RF/barcodes scanners, portable as well as
heavy duty printers, and the appropriate type of labels must be done after careful
selection from various options, taking into consideration the adaptability of
existing systems and software.

3.5.3. What we require:

To determine costs associated with RFID application, we developed an estimate of the
system acquisition and implementation costs using the data from our different sources.
Following is the detailed cost estimation of the required items:
Estimated RFID System Acquisition Costs

item Quantit Per Unit Total

y UI Estimated Cost Estimated
(Rs.) Cost (Rs.) /
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 require Item
Fixed Readers 150 each 15, 000 250,000
Handheld Readers 100 each 3,000 300,000
Printers 35 each 3,665 128,275
Software/Middleware 1 license 1,83000 183,000
Integration and implementation
1 128,000 128,000
Consulting
Internal Project Team 1 team 315,000 315,000
Tag and reader testing 1 test 80,000 80,000
Software annual
1 36,000 36,000
Maintenance
**Prices are subject Total Estimated
to change
Rs. 3,420,275
Cost

3.5.4. What we offer (Parameters of Proposal):

We offer this software based product, RFID in conjunction with a Warehouse
Management System is an excellent real-time business tool that helps better
manage supply chains, covers goods entry, picking, checking, delivery and many
other operation flows & increases profit, and decreases the cost by improving
visibility into Warehouse management system.
RFID in warehouse processes offers:
 visibility of accurate real-time information
 fast locating of products
 possibility to record losses
 ability to plan product locations strategically

3.5.5. RFID Implementation:

RFID Technology should be adopted in service operations only if one or more of
the following conditions are satisfied:
 It helps reduce the labour intensity in businesses characterized as mass
services.
 It helps reduce the number of errors caused by the large number of custom
work in service shops with the current levels of labour.
 It helps increase the perceived customization of professional services by
providing additional tools to existing labour.
 It adds new features (usually associated to theft prevention or personal
security) to service factories.

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4. Conclusion
Now it is the high time to make your investment in our software product warehouse
management system on RFID for its rapidly growing demand and make good profit. Our
warehouse management system (WMS) based on RFID can collect, transfer, check, and
update mass data on daily frequent goods entry and delivery, thus the labour intensity
will be decreased, errors like fault scanning, miss scanning, re-scanning in the repeating
manual operations can also be avoided. It improves the efficiency and accuracy. With
development of the RFID technology, reduction of costs, gradual unification of the
standards, decrease of the error rate, the effective combination of WMS and RFID will
become one of the key factors to improve the competitive power of enterprises and the
efficiency of the supply chain. We hope our product has inspired you enough to invest in
us.

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