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24 June 2005
Oracle and YCH Deliver Ground-Breaking RFID Project for Bonded Warehousing - New solution improves visibility and efficiency of automated goods movement in a stringent environment
A bonded warehouse is an area approved by customs authorities to store controlled items such as cigarettes or alcohol for re-export or for local consumption. Operators of such warehouses need to follow stringent guidelines to ensure necessary duties are paid for those goods meant for local
consumption, and proof of re-export documentation is processed and secured for those items marked for overseas re-distribution.Failure to comply with these guidelines could result in the loss of bonded warehouse license.
For YCH, the challenge was two-fold: to ensure 100% adherence to strict customs guidelines, and ensuring the integrity and security of data at any given time. After careful study of the requirements, Y3 developed a unique 'One-Touch' strategy using RFID technology.
At the core of this One-Touch strategy is Oracle 10g infrastructure software to manage information essential to business decision-making. The Oracle software ensures that data is clean and error-free at the point of collection and that data integrity is maintained seamlessly thereafter (hence, 'one-touch'). Another component crucial to ensuring high data integrity is the Oracle Sensor Edge Server, part of Oracle Application Server 10g, which ensures that the data filtered at the source is accurate.
"Our 'One-Touch' strategy will help YCH automate and track their high-value goods in this bonded warehouse environment with minimal human intervention," said James Loo, chief operating officer, Y3 Technologies. "Using Oracle solutions, we are able to capture the right data at the source, and manage this data through its lifecycle. 'One-Touch' ensures that despite multiple modifications, enhancements and process flows, the core set of data is kept secure and intact. Data remains accurate and available for appropriate users in the value chain."
For YCH, besides improving efficiency and accuracy in the levels of stocks, using RFID will create identifiable value in terms of cutting down on excess manpower, input errors and redundancy in data entry. RFID also allows better end-to-end visibility of stocks as they pass through the entire supply chain, thereby raising customer satisfaction. Where customs and duties are concerned, RFID technology makes it easier for government officials to conduct spot checks on the bonded warehouse, without having to physically climb on the crates to do so.
The US$727,000 (S$1.2 million) project was led by Y3 Technologies, working closely with Oracle’s development teams worldwide. Y3 helped to scope out the project requirements clearly and provide constructive feedback to the Oracle team on the solution deployed.
"This solution will help YCH realize the benefits of improved supply chain planning, better business process and visibility into their business. Oracle was able to tap the expertise of our colleagues in APAC and US for critical stages for this project. Moving forward, we see significant advantage for customers to leverage the integrated capabilities of Oracle Applications and Oracle10g infrastructure software and move towards a real-time enterprise," said Stuart Fenwick, Director, Oracle Application Server - Product Operations, Oracle Asia Pacific.
This close collaboration between the various Oracle development teams and Y3 also resulted in rolling in several enhancements to a mobile version of Oracle Edge Server. This software is deployed in the mobile RFID and barcode reader used in this project, and was instrumental in speeding up the project by easing the addition of RFID specific extensions to YCH’s warehouse management solution.
"Setting standards and delivering valuable world-class solutions to our customers is important to Oracle," said Allyson Fryhoff, vice president, Global Strategic Business Development, Oracle. "We collaborated with Y3 Technologies on this project from its inception to successful go 'live'. Throughout the implementation process, we looked at how the key learnings could be applied to our product development efforts. We are now raising the bar on software to drive more effective business process optimization for customers planning to incorporate RFID into their IT strategy. Oracle’s experience in helping customers manage information over the last 26 years puts us in the lead to deliver innovative solutions that address information challenges."
The One-Touch solution provided by Y3 Technologies includes:
- Oracle Application Server
- Oracle Sensor Edge Server
- Oracle Portal and Oracle Discoverer
- Devices such as fixed RFID readers, handheld RFID readers and LED display boards from a variety of hardware vendors
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