Shipment Tracking for Raw Materials

Material transparency called for Sandvik to introduce an automated inbound processes with RFID

The finish engineering group Sandvik is known for virtually any construction industry application encompassing such diverse businesses as tunneling, excavation, as surface rock quarrying, demolition, recycling, road building and civil engineering. The product range includes drilling rigs, rock tools, bulk-materials handling, breakers, crushing and screening machinery. 

Sandvik relies on tens of raw material suppliers around the country to manufacture these products. The company wanted to have control and good visibility over their inbound processes including purchase orders and shipments from the suppliers.

Your Benefits

  • Real time visibility of items in ERP system
  • Time saving as manual typing and barcode scanning was erased
  • Fewer production breaks 
  • Cost-saving as solutions allows for lower buffer stock level

  • Sandvik integrates suppliers into his logistics and thus takes a look into the future

  • Thanks to seamless incoming goods, Sandvik always has a precise overview of all supplier parts

They needed to know in real-time what shipments are on stock already and which are late. Prior to the RFID installation shipment status was, in many cases, gathered reactively and often after a shipment was already late. In addition the slow manual  inbound processes caused errors and were challenging to keep track of.

Direct RFID to ERP integration for real-time inbound visibility 

Turck VilantÔÇÖs RFID solution was integrated into V10, SandvikÔÇÖs ERP system. For every purchase order that a supplier receives, the system directly creates an RFID shipment label that is issued via an RFID printer at the supplier's site and attached prior to shipment. Like that every shipment can be automatically registered as soon as it enters SandvikÔÇÖs factory. The pallets and other containers pass through an RFID gate that reads the RFID label information and automatically send it to the ERP system via VilantÔÇÖs RFID server software. In real-time, the order is completed with 100% accuracy. As the system got rid of manual typing and barcode reading it resulted in fewer production breaks and instantly accurate stock levels allowing for lower buffer stock level.

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