Metsä Group’s high-quality products come mainly from renewable Nordic wood and wood fiber. The company has long traditions and strong know-how in all its core business areas and it is active in research and development in order to develop new products and to diversify the use of its current products. Furthermore, the Group tries to find new ways to use its wood raw material more efficiently. In this effort, Metsä Fibre – part of Metsä Group, was considering the implementation of RFID-based system. Through automation, this system would offer more efficient logistics’ processes and better customer service.

Challenge

Metsä Fibre has a capacity of 2,4 million tons of pulp and delivers several different pulp grades and qualities to its customers globally. For Metsä Fibre’s customers, on-time delivery of the correct pulp product is a mission critical activity for continuous production. To ensure uninterrupted production, even in case of shipping errors, Metsä Fibre’s customers have had to keep buffer stock. Hence, a lower amount of shipping errors means a lower buffer stock needed and a more efficient supply chain overall. Metsä Fibre needed to improve the traceability of pulp units throughout the supply chain and reduce shipping errors. By implementing Vilant’s RFID solution, Metsä Fibre wished to not only improve the accuracy of the shipments, but also allow customers to trace material flow on arrival to customer mill sites.

Solution

The RFID system includes passive RFID tags, RFID readers, and RFID software. Each tag has a unique identification number encoded in them. At the Metsä Fibre pulp mills, RFID tags are encoded and automatically applied inside every pulp unit between bales. This equals 1 tag per each ton of pulp produced. The RFID tag contains the pulp unit’s grade name and production lot number. When scanned, the RFID tag discloses information to the reader. Tags may be scanned with forklift readers, gate readers or handheld readers at any point in the logistics chain.

Metsä Fibre uses passive RFID technology. The tags do not contain batteries; they use only the energy from signal of an RFID reader. The tags’ label paper and water-soluble adhesive dissolve in fiber pulping. Additionally, the materials in the RFID tag’s antenna and microchip have no impact on the frequency of deposits, holes or defects in paper and board.

Metsä Fibre’s RFID tags have been developed specifically for identifying pulp. Since the tags are not removed at any time after application, they must fully comply with the dirt count specifications and end-uses of the final products.

Vilant software connects fixed, forklift and handheld RFID readers to Metsä Fibre’s back end system. It offers global control for its RFID based logistics process. An entire shipment of RFID tagged pulp can be identified quickly and easily at close to 100% accuracy. The RFID reading is logged in Metsä Fibre’s database. This information is available through our extensive reporting tools. At ports and terminals, operators can use RFID for tracking shipments and identifying bales correctly.

The system consists of the following software:

• Vilant Engine – an embedded control software inside the reader that enhances the software functionality of off-the shelf RFID readers
• Vilant Device Manager – controls all readers and gives real-time information to Metsä Fibre’s backend system.

After extensive testing during both, the pilot and full production scale implementation, it was confirmed that the RFID tags do not affect the quality of the end product or the ongoing papermaking process.

Today, Vilant has already deployed RFID solution at four Metsä Fibre mills.

Results and Benefits

• Effective & reliable way to track pulp units generates significant savings in material flow management
• Enables close to 100% accuracy of identification
• Simplifies stock management & helps to avoid costly errors
• Improves labor efficiency as there is less manual work
• In-time delivery control & real-time shipment visibility
• Improves production planning & customer service.

In achieving the ISO 9001 certification, Vilant has demonstrated a commitment to continuous improvement of quality and customer satisfaction. The company‘s quality policy and objectives are determined by the effectiveness of conforming to the requirements and creating competitive solutions that fulfill customers’ needs and enhance their processes.

Some of the positive findings by Inspecta were:

• The management model, starting from strategy and its implementation to action plans and their systematic and disciplined monitoring.
• Active, at all levels, development of the processes and employee participation.
• Awareness of the company’s strengths and competitive advantages, confirmed by analysis.
• Excellent analysis of product management phases with well-controlled and purposeful process including the customer as partner in product development.
• Tools to support real-time monitoring of projects and agile development well suitable for the project deliveries.
• Collaborative operations contributing to risk management and preventive measures.
• User-friendly internal management system platform, which in turn motivates employees.

View certificate: ISO9001

The RFID system needed to be accurate, resistant, reliable, and cost efficient. Vilant conducted surveys in different VR Group’s sites to identify how Vilant’s RFID solution for rail would be best implemented. Read case

• Vilant implements world’s first full scale application of the new Radio Frequency Identification (Gen2 RFID) in Rail Industry
• The system is deployed in 10 000 freight wagons of VR Transpoint as well as all the locomotives and passenger wagons of VR Group

HELSINKI, FINLAND (May 23, 2011) – VR Transpoint, the largest logistics group in Finland with operations in 9 European countries & Russia and Vilant Systems have implemented a modern logistics system, now in production use, based on second generation RFID. This is the world’s first full scale implementation in rail industry providing VR Transpoint with one of the fastest and most efficient logistics processes available.

RFID technology uses communication through the use of radio waves to exchange data between a reader and an electronic tag attached to an object, for the purpose of identification and tracking. Leading companies in other industries such as Nokia, Wal-Mart and Volvo are also using second generation RFID for improving their logistics processes through automation.

“This is a vast logistics implementation that brings major process changes in rail yards, defect management, asset inventory management, automation and more. We have now tagged all our 10 000 freight wagons with RFID tags and have in everyday usage over 300 handheld reading devices,” says development manager Ilari Niskanen at VR Transpoint.

The advantage of RFID tagging is that VR Transpoint personnel can now track wagons automatically and in distance through handheld devices. All information is automatically and instantly registered into the logistics system whereas before this involved a lot of manual work. Work instructions are also digitally delivered through the handheld devices for optimal timing. This all means real-time and error-free information flow and management of assets. In addition, RFID tags need no visual contact so they can be dirty or embedded while still functional. This is especially important in industrial asset tracking in harsh environments such as extreme weather conditions.

For VR Transpoint this is however just the start as the new logistics system gives rise for several additional beneficial applications. Vilant, one of Europe’s leading suppliers of supply chain and asset tracking RFID systems, offers a software platform that enables multiple applications utilizing RFID tags. In the rail industry, some of these applications include tracking of assets; integration with weighing of wagons; defect marking and tracking; as well as, several cargo customer services leading to a new level of services to VR Transpoint customers.

VR Group is a versatile, environmentally friendly and responsible corporate group of travel, logistics and infrastructure engineering services. VR Transpoint is Finland’s leading and most versatile transports & logistics service company. The company’s net sales in 2010 amounted to €580.6 M and its staff numbered 2600. VR Transpoint offers a wide range of high-quality and up-to-date rail, groupage, bulk goods and international transports & logistics services.

Vilant Systems is one of Europe’s leading suppliers of supply chain and asset tracking RFID systems. Since its foundation, in 2002, Vilant has been awarded with numerous growth and innovation awards and has delivered installations to 22 countries on five continents. Most of Vilant’s customers come from electronics, automotive or machinery manufacturing industry or operate in logistics. Vilant offers its customers turn-key RFID solutions that result in faster stock turnover, lower inventory level and more efficient supply chain process. Vilant’s offering includes own software, own or third party hardware supplied from a trusted partner network and services such as installation, integration, consultation and 24/7 support.

Press Contacts:

Heikki Ruuhijärvi, VR Transpoint
+358 40 862 3750
Heikki.ruuhijarvi@vrtranspoint.fi

Arlinda Sipilä, Vilant Systems
+358 50 362 3571
Arlinda.sipila@vilant.com