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Enhancing ERP System with RFID:
Logistic Process Integration and Exception Handling
Dickson K. W. CHIUSenior Member, IEEE
Eleanna KafezaAthens University of Economics
& Business
Tai Pui WongKai Pan Mark
Dept. of ComputingHong Kong Polytechnic
University
RFID-ERP - 1
RFID-ERP - 2
Introduction Traditional stand-alone ERP systems are
inadequate to handle the current requirements of logistics applications
Solution: integration of RFID and mobile technologies with Web-enabled applications
Enables management to utilize accurate information for analyzing business performance and quick decision
Help the integration of logistic processes and the handling of exceptions in key business processes
Dickson Chiu 2006 RFID-3
What is RFID?What is RFID? Radio Frequency Identification A generic term for technologies that use radio
waves to automatically identify people or objects
a technology that uses radio-frequency waves to transfer data between a reader and a movable item to identify, categorize, track...
There are several methods of identification but the most common is to store a serial number that identifies a person or object on a microchip that is attached to an antenna
The antenna enables the chip to transmit the identification information to a reader
The reader converts the radio waves reflected back from the RFID tag into digital information that can then be passed on to computer systems
Dickson Chiu 2006 RFID-5
TagInsert
Antenna Reader
Firmware
Customer’sMIS
Host
ApplicationSoftware API
TCP/IP
Power
~
Asset
Asset/Tag
RFID System ComponentsRFID System Components(block diagram)(block diagram)
Stakeholders
RFID-ERP - 6
ERP System
Roaming-Management
Warehouse’sStaff
Roaming UsersWarehouse’s Staff
RFID Server
Data Excha
nge
Internal GereralStaff
Salesman
Management
Internal
External
Roam Staff
IT Staff
Process integration conceptual model
RFID-ERP - 7
Process Request ERP TaskRFID Task
Warehouse Module
Object Identify Task
Stock Item
Object Registration Task Object Disposal Task
1 0..*
1
*
Web-enabled system with Mobile Users Infrastructure
RFID-ERP - 8
Users withSmart Mobile
Users withPDA/Pocket PC
ERP System
Internal Firewall
Roaming Users
Desktop PCs
Front-End Web Server
DMZ
External Firewall
Internet
Roaming UsersEg. Salesman
Desktop PCs
LAN
Roaming UsersWarehouse’s Staff Warehouse
Integration of RFID with ERP System
RFID-ERP - 9
ERP System
Internal FirewallFront-End Web Server
DMZ
External Firewall
Internet
LANRoaming UsersWarehouse’s Staff
Warehouse
RFID Server
Overall system integration
RFID-ERP - 10
Web Engine
Web Enabled System and RFID Integration
RFID Database
ERP System
RFID Engine
Process Execution
Module
Process Definition Module
System Workflow and Application
Logic
Incoming Request
Outgoing Response
User Identification
Incoming Request
Outgoing Response
ERP Database
Selected data integration scheme
RFID-ERP - 11
CO_HDR (Contract Header)
PK co_no
co_status co_date expect_delivery_date additional_discount co_net_amount customer_code customer_address_1 customer_address_2 customer_address_3 customer_address_4 contact_person
CO_DTL (Contract Details)
FK1 co_no item_description qty reserve_qty delivered_qty unit_price item_discount total_item_price
DN_HDR (Delivery Note Header)
PK dn_no
FK1 co_no delivery_date delivery_status dn_date customer_code customer_address_1 customer_address_2 customer_address_3 customer_address_4 contact_person
DN_DTL (Delivery Note Details)
FK1 dn_noFK2 item_code item_desc issue_qty reserved_qtyFK3 rfid_tag_no
CN_HDR (Collect Note Header)
PK cn_no
FK1 dn_no cn_date cn_status co_no customer_code customer_address_1 customer_address_2 customer_address_3 customer_address_4 contact_person
CN_HDR (Collect Note Details)
FK1 cn_noFK2 item_code item_desc return_qtyFK2 rfid_tag_no
Item Master
PK item_code
item_desc qty_on_hand total_reserved_qty unit_cost unit_priceFK1 rfid_tag_no
RFID Master
PK rfid_tag_no
rfid_tag_status rfid_tag_desc rfid_tag_info rfid_tag_registration_date rfid_tag_disposal_date
Receiving process with RFID
RFID-ERP - 12
StartReceive
ASNTruck
Arrives
Product Confirmed
against ASN
Put away order
created
Move into locations
Finish
Update Order’s Items
Delivery Status
Shipping process with RFID
RFID-ERP - 13
StartPicking with
RFID Enough Stock?
Re-schedule Delivery
Date
No
Move to Staging
AreaYes
Apply new Pallet Label
Onto TruckSend ASN upon confirmation of Truck departure
Finish
Reserve Stock
Exception Handling
PartialDelivery
Yes
No
Typical system flow
RFID-ERP - 14
User Login
Select appropriate Program Module
System Response
Create/Modify TransactionEnquiry
Create/Update/Cancel
Warehouse Module Other Modules
Update Transaction
RFID Validation
Example exceptions handlingScenarios/Events Exception Handling1. Order, delivery location or
schedule delivery date is confirmed, but amendment on order, delivery location, or schedule delivery date is needed.
As stocks are not checked out yet, only amendment of order is needed.
2. Stocks are checked out at Warehouse, but amendment on the order, delivery location or schedule delivery date (if not delivered) is needed.
As the stocks are reserved, the warehouse needs to release the order to go back to the normal situation so that Stock Administration Department can amend the order. During this release operation, the ERP Engine will update stock availability status and RFID tags information through the RFID Engine. After the order is confirmed again by the Stock Administration Department, if items are added or the quantity is changed, warehouse staff needs to run the operation again as shown in Figure 7.
3. Stocks are checked out at Warehouse, but order cancellation (if not delivered) is needed.
As the stocks are reserved, warehouse needs to release the order back to normal situation so that Stock Administration Department can cancel the order. During cancellation, the ERP Engine updates the Stock availability status, cancels the reserved quantity, and updates the RFID tags information through the RFID Engine.
RFID-ERP - 15
Example exceptions handling (2)
Scenarios/Events Exception Handling4. Stocks are checked out at
Warehouse, but amendment on the order, delivery location or schedule delivery date (if stocks are on the way) is needed.
Order status is updated as "Pending" by warehouse staff. During the "Pending" status, external warehouse staff is permitted to delay delivery of the goods to the customer location until further notice and the goods need to be sent back to warehouse for further actions.
5. Stocks are checked out at Warehouse, but cancellation of order (if stocks are on the way) is needed.
As the stocks are reserved, the warehouse needs to release the order back to the normal situation so that the Stock Administration Department can cancel the order. During cancellation, the ERP Engine updates the Stock available status, cancels the reserved quantity, and updates the RFID tags information through the RFID Engine.
RFID-ERP - 16
Example exceptions handling (3)
Scenarios/Events Exception Handling
6. Stocks are delivered; external warehouse staff has not updated the order status yet, but amendment /cancellation of order is needed.
External warehouse staff needs to update the order status to "Completed". No other action is carried out. For additional items or change in quantity, the Stock Administration Department needs to revise the contract and amend the related items quantity and create separate delivery order or collection note. For cancellation, refer to case (8).
7. Stocks are delivered; external warehouse staff has updated the order status already, but amendment/cancellation of order is needed.
The Stock Administration Department needs to revise the contract and amend the related items quantity and create a revised delivery order or collection note. For cancellation, refer to case (8).
8. Stocks are delivered, but order cancellation is needed.
The Stock Administration Department needs to create a collection note and send to the Warehouse. Warehouse staff then goes to the customer’s premise to collect the stock and then uses a RFID Reader/Scanner to scan the RFID tags for that package lot. While updating the collection note order status, the ERP Engine updates the quantity in the Warehouse and also the RFID tag's information through the RFID Engine.
RFID-ERP - 17
RFID-ERP - 18
Summary User benefits
Powerful and user friendly to perform their daily operations. Improved organizational interoperability and connectivity Anytime anywhere system and information access Overcome tedious and error-prone manual exception handling
Management’s benefits Costs against the benefits - productivity Customer service quality - consistent handling of the
exceptions IT Staff’s benefits
System development and maintenance efforts improved Systematic fine-grained requirements elicitation (of exceptions) Capturing requirements from domain specific knowledge (of
exceptions)
RFID-ERP - 19
Future Work
Performance measurement Other unexpected exceptions and events Artificial intelligence in handling the exception
events Agent-based assistance to internal staff and
external users Empirical measurements of the improvement of
staff performance and customer satisfaction
RFID-ERP - 20
Question and Answer
Thank you!Contact: dicksonchiu@ieee.org
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