FLORAHOLLAND (15 September 2010) - ‘Operation Chip-it’, as the initiative from Container Centralen (CC) is called, involves fitting every Danish trolley with Radio-frequency identification (RFID) hardware, and it is causing resistance within the sector. The initiative’s opponents say it will be too expensive and too complicated for companies. They want FloraHolland to limit the consequences of this operation.
“FloraHolland remains a critical observer and partner,” says Rens Buchwaldt, Director of Logistics, Information Technology and Automation. “Something must happen to keep the pool of Danish trolleys useful and affordable for the chain.”
CC will be outfitting Danish trolleys with RFID hardware which can be read with a scanner. This will make it possible to determine if a trolley is legal and if the pool fee has been paid. Companies can use the RFID hardware to enable tracking and tracing within the chain. They will, however, need to purchase scanners and scanning adds more time to the process, and in the day trade for instance, there is already little time available. Therefore some parties are anxious about extra costs and work, and they doubt whether the RFID system will be water-tight.
Closed Pool
A water-tight pool of good logistic carriers is essential to the chain, but the quality of Danish trolleys has come under pressure in recent years; the pool is open; people are taking advantage of the system; illegal and qualitatively inferior trolleys are coming into circulation. If something is not done, trustworthy users of the pool will be made to suffer more and more. CC wants to close the pool with its RFID tag initiative. The introduction of its RFID plan is in January 2011 to give companies extra time to prepare. “I recommend that people take this chance to become familiar with scanners and scanning,” says Buchwaldt. “It is understandable that until this point many have been hesitant, but CC cannot wait any longer. FloraHolland, together with other chain partners, is negotiating with CC in their supporters’ name, but at the end of the day the decision lies with CC. FloraHolland feels that something has to happen.”
Unavoidable Costs
“Scanners cost money and scanning takes time”. Buchwaldt knows. “But more and more damaged Danish trolleys will cost businesses time and money too. These expenses are unavoidable if we want to keep this logistic chain system strong. I personally feel that the chain will quickly incorporate the possibilities for tracking and tracing made possible by RFID technology. That will increase the logistic chain efficiency.”
Own Processes Water-Tight
Buchwaldt emphasizes that CC is trying to listen to the chain. “The project has been delayed several months. The pool fee will be reduced in 2012 and 1013 by €0.50 each year. CC wants to repair twice as many trolleys in 2011. By intensifying the maintenance activities, a more reliable pool of Danish trolleys can be achieved faster.
FloraHolland will be implementing various scanning activities into its own processes to increase the reliability of the system. This will guarantee users that the Danish trolleys that we handle in our processes are genuine. This is true of trolleys from all of our Danish depots, of trolleys that are processed via the auction clock logistics, and those which come into use through our logistically processed direct flows. We value the reliability of this system highly.”