Bangkok--Feb 15--DENSO International
The field trial is conducted in Thailand, Singapore, Malaysia, and Japan
DENSO International (Thailand) (DITH), sales company of DENSO Corporation in Samutprakarn, Thailand, started testing on-site verification of a returnable container delivery system using radio frequency identification (RFID) tags. This test is conducted with car dealer Borneo Motors Singapore Pte. Ltd., DENSO’s Malaysian supplier Kein Hing Industry Sdn. Bhd. and DENSO group companies in Thailand, Singapore, Malaysia and Japan using approximately 3,500 returnable containers with RFID tags.
“Our goal with this project is to reduce distribution costs in the region by developing an efficient returnable container delivery system for our supply chain,” said Yoshihiko Yamada, managing director of DITH.
An RFID tag stores data and contains an antenna, which enables it to receive and respond to radio-frequency signals from an RFID transceiver. Each of the participating companies will have an RFID transceiver, and each of the containers will have an RFID tag. The RFID transceivers will automatically retrieve data from the containers, and send it to a database during shipping and receiving. DENSO International Asia, DENSO’s ASEAN headquarters in Singapore, has the database and controls container inventories of all the participating companies so that approximately 3,500 containers can efficiently circulate among the companies. Further, by using this database, each company can automatically create accurate documents such as for customs.
”We are looking at ASEAN as a single region, and establishing a supply system where DENSO’s operations, which produce a variety of different products, complement each other with export and import,” said Yamada. “This returnable container delivery system will help us establish a competitive supply system in this region.”
This verification project is set up under the auspices of the Japanese Ministry of Economy, Trade and Industry (METI).
In this project, Japan Auto Parts Industries Association and 15 companies, including DENSO Corporation and seven DENSO group companies are participating. In addition to DENSO International (Thailand) and DENSO International Asia, other participating DENSO group companies include:
DENSO International Singapore Pte. Ltd., aftermarket products sales, in Singapore;
ENSO (Malaysia) Sdn. Bhd., automotive electronic components, air conditioners, and engine ECU manufacturer, Selangor, Malyasia;
DENSO (Thailand) Co. Ltd., electrical automotive components, air conditioners, and magnetos manufacturer, Samutprakarn, Thailand;
DENSO Wave Inc., manufacturer of industrial systems including RFID tags and transceivers, Kariya, Aichi, Japan;
DENSO SI Corporation, software development company, Anjyo, Aichi, Japan.
METI is providing financial assistance to this verification project, because they recognize the significance of RFID, and plan to develop new business models using RFID to help expand business opportunities for small and medium enterprises in Asian countries.
This initiative comes under the ambit of a recently concluded Memorandum of Understanding (MOU) for the promotion of RFID between Japan METI and the Singapore Ministry of Trade and Industry. Under the MOU, both countries have agreed to work towards a common RFID platform in Asia whilst taking into account existing international standards on RFID. This project will complement the Infocomm Development Authority of Singapore’s (IDA) effort to harmonize RFID frequency allocations and catalyze adoption in ASEAN.
DENSO Corporation, headquartered in Kariya, Aichi, Japan, is a leading global supplier of advanced technology, systems and components. Its customers include all the world's major carmakers. Worldwide, the company employs 104,000 people in 31 countries and regions, including Japan. Consolidated global sales for the fiscal year ended March 31, 2005 totaled US$26.2 billion. DENSO International (Thailand) Co. Ltd., established in 2002, currently employs nearly 300 people and sells automotive components.
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