Valtra automates material flows with RFID

Valtra has automated the material supply process and material buffer
management with RFID at its' Suolahti tractor manufacturing plant. The RFID
system implemented by Vilant Systems triggers replenishment orders based on
material consumption movements directly to the suppliers. Goods receiving is
automated with RFID enabled conveyors and RFID gates at the dock doors and
material stock levels are maintained in real time. The system improves
material handling efficiency and reduces manual errors. The real time
material inventory information and inbound shipment data enable prevention
of material shortages.

Vatra's system is based on RFID enabled forklifts that read material pallets
while transporting them from the material buffer to the consumption area and
trigger replenishment orders. The system is based on pallets that have
reusable RFID tags. Goods receiving dock doors and inbound conveyors are
equipped with RFID readers for automatic goods reception. Vilant's RFID
software controls the RFID readers and integrates the information to
Valtra's ERP system.

The Vilant Server 5 RFID software system presents real time inventory
information of the material buffer. For each material a target buffer amount
is set. For single materials the buffered quantity can be followed. The
buffered amount, pending replenishment orders and inbound shipments are
visible. The information is based on Valtra's RFID readers and readers
deployed to suppliers.

The material flow visibility provided by the RFID system can improve
material availability at the factory. Goods receiving automation saves labor
cost in the inbound process. Real time visibility of goods movements
enhances control and inventory information is more accurate. The real time
replenishment for material consumption improve inventory cycle time. In
total the RFID system improves many areas of material flow. Improving
material flow is one of the key components of modern Lean production
improvement methodology.

Valtra's Supply Chain Manager Timo Husso has expanded RFID development to
new areas already: "Thorough preparation work for this system implementation
was started already in 2003. We conducted an RFID pilot that gave us
satisfactory results and experience. New application areas emerged quickly,
too. We have implemented production traceability and internal material
movement automation with RFID already."

Valtra's RFID system is based on Vilant Server 5 RFID software and Vilant's
RFID hardware products. Prior to production use the system was piloted with
Valtra's supplier Metalpower. The IT systems were implemented in partnership
with Tieto and Liaison.

Contact details: Ville Kauppinen, Vilant Systems Oy, Tel.: +358 (0)50 328
8001, ville.kauppinen@...

Valtra Oy

Valtra Inc. develops, manufactures, markets and services Valtra tractors.
Valtra is the leading tractor manufacturer in the Nordic countries and the
second most popular brand in Latin America. The company has manufactured
tractors since 1951, but its historic roots reach back until 1832. Valtra
tractors are built in the most advanced factories in the industry at
Suolahti, Finland, and Mogi das Cruzes, Brazil. Valtra tractors are now sold
in over 75 countries worldwide. Valtra is a worldwide brand of the AGCO
Corporation, the third-largest manufacturer of agricultural equipment in the
world.
www.valtra.com

www.vilant.com

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