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Success story

Sonoco Alcore

RFID solves availability issues at paper mills by introducing cost efficient and reliable Vendor Managed Inventory (VMI) system.

Sonoco Alcore places RFID tags in cores to guarantee availability, and to prevent production downtime.

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Petri Leppäaho

Industry Expert Pulp and Paper

Challenge

Preventing Costly Production Halts

Sonoco Alcore delivers paper cores to manufacturers operating continuous, day-and-night production processes. The fluctuating consumption of different core types, however, created a critical challenge. End customers had to manually monitor core warehouse levels and trigger replenishment orders. This manual process, often handled by office staff unavailable during night shifts and weekends, was prone to neglect. Such oversight could lead to severe consequences: either expensive overstocking for safety, or, in the worst case, running out of cores, causing high line stoppage costs at the paper manufacturing facility.

sonoco alcore logo

If the manual process ever gets neglected, there are no cores - and no paper can be produced. The RFID enabled VMI system automatically replenishes the stock - so the days of stoppage at manufacturing are over.

Benefits

Guaranteed Core Availability

Automated Inventory Management

Reduced Production Stoppages

Optimized Inventory Costs

Outcome

The RFID implementation provided Sonoco Alcore’s customers with a fully automated, reliable VMI solution. This eliminates manual monitoring and replenishment tasks, ensuring cores are always in stock. Production lines remain continuously supplied, eradicating costly stoppages and allowing manufacturers to avoid overstocking.

Solution

RFID-Enabled Vendor Managed Inventory

Sonoco implemented an RFID-based Vendor Managed Inventory (VMI) solution with Turck Vilant Systems. This enables Sonoco to offer paper core VMI as an automated service to its end customers.

  • RFID Core Tagging: Cores are equipped with RFID tags during Sonoco’s manufacturing process. These tags are registered in the VMI system upon shipment to customers.
  • Automated Core Consumption Tracking: RFID readers are installed at the paper machines in customer mills, automatically identifying which cores have been consumed.
  • Real-time Inventory Monitoring: The system continuously monitors core consumption providing real-time inventory levels.
  • Automated Replenishment Logic: Warehouse levels, delivery times, and reorder/alarm levels are individually configured in the RFID system to match each customer’s process requirements, enabling automated replenishment orders.
  • Centralized System Management: All RFID read points are controlled by Vilant Engine applications, with the entire VMI process managed by Vilant Visibility Manager Server, which also integrates the VMI process information for logistics and facilitates billing for consumed cores.

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