To transform its traditional inventory control with radio frequency identification (RFID) technology, Clotex Labels Co. Ltd selected Intel® Solution Services as its overall RFID Technology Advisor and Supply Chain & Logistics Technology Ltd. (SCL) for warehouse management. To support its new system it needed a database that was high-performance, reliable, compatible, and cost-effective. Microsoft SQL Server 2005 (64-bit), together with Itanium-based HP Integrity Server was the ideal solution.

Designed and deployed in three months with the help of Intel® Solution Services and SCL, the new system has delivered real-time visibility of raw materials and finished goods inventory for enhanced operating efficiency, fewer production delays, and faster response to customer requests. Standard and ad hoc management reports are now more sophisticated and timelier. And enhanced business intelligence capabilities are expected to improve inventory forecasting and drive revenue through customer insight. An ROI of two to three years is anticipated.

Situation
"In the garment industry, the quality of the label reflects the value of the brand and is a mark of authenticity," says Miranda Kong, Managing Director, Clotex Labels Co. Ltd. "Our clients thus have very high quality requirements and also need us to work within the constraints of their supply chain, providing short lead-times, ondemand ordering, and the flexibility to change order quantities at short notice."

Clotex is South East Asia's largest label manufacturer and its production facilities are the most technologically advanced in the region. It has long used information technology solutions to improve back-office productivity but its underlying warehouse management processes had not changed since it was founded almost 30 years ago.

"Traditional manual-based warehouse management processes are inherently timeconsuming and inaccurate. Our managers could not get a real-time view of our finished goods or raw materials inventory, and our end-of-month reports were often delayed," Kong continues.

Clotex thus decided to transform its traditional inventory control with radio frequency identification (RFID) technology.

"This would improve inventory visibility for more efficient warehousing and give us RFID experience as we prepare to launch the nextgeneration of labelling products," she continues. With the advent of Smart Labels that can track individual high-value garments from the production floor to the retail outlet, RFID-based products will be a new revenue stream for Clotex.

Solution
Clotex worked with Intel® Solution Services and Supply Chain & Logistics Technology Ltd. (SCL) to design and implement its new Warehouse Management System. Based on SCL's avanti Integrated Warehouse Management System (avanti iWMS), it uses RFID equipment from Alien Technologies and HP server powered by Intel. The avanti iWMS application is hosted on an HP ProLiant DL140 Server with dual Intel Xeon Processors, while the database server takes advantage of dual Intel Itanium2 Processors to provide 2GB of memory on an HP Integrity rx1620 Server.

The backend database
Given the mission-critical nature of warehousing and the volume of data generated by RFID solutions, the choice of backend database was vital.

"While IBM, Oracle, and Microsoft all offer enterprise-class database servers, only Microsoft's solution is also ideal for mid-sized organizations as well. We looked critically at functionality as well as capital, maintenance and support costs. Microsoft SQL Server 2005 offered us the most cost-effective solution," says Kong.

Clotex thus deployed Microsoft SQL Server 2005 as its database server, running on Windows Server™ 2003. "Since our legacy system is Microsoft technology-centric, we were confident of easy interoperability and also had a positive experience of Microsoft's reliability and the quality of its supporting service," Kong adds.

From design to smooth implementation, the new warehouse system was up and running in three months.

"Intel sees great potential for RFID. Besides improving the price-performance of key RFIDenabled technologies, we are working with companies such as SCL and Clotex to deliver leading solutions that make use of the best technologies available today," comments Otto Chow, Consultant Manager, Intel Solution Services.

Benefits
Instant insight into inventory status Building on the strengths of SQL Server 2005, avanti iWMS provides an easy-to-use Web-based interface that gives Clotex insight into its real-time inventory status. All raw materials and finished goods passing through the Coltex warehouse are fitted with RFID tags and tracked via hand-held scanners and fixed RFID readers installed in doorways and storage areas.

"Since every inventory movement is captured by avanti iWMS and uploaded to the database in real time, we generate a huge volume of data. SQL Server 2005 delivers the ability to handle large data volumes with the assurance of high availability," says Kong. "We expect a 30% to 50% productivity gain in this area alone."

Giving accurate, up-to-the-minute data to Clotex management and key staff ensures:
• Timely production with fewer delays;
• Faster response to customer enquiries;
• Better planning and utilization of the production line and raw materials; and
• Enhanced operating efficiency with order management and inventory control as one automated process using SCL avanti iWMS and SQL Server 2005.

Sophisticated, timely reports
End-of-month inventory reports that used to reach managers 10 days into the new month are now automatically prepared and immediately distributed by avanti iWMS at the close of the reporting period. Additional reports can be easily prepared as needed.

"Leveraging SQL Server 2005's business intelligence (BI) capabilities and its new Report Builder in avanti iWMS, we have been able to give Clotex a range of reports that combine relational data and advanced analysis, as well as empower its people to easily and quickly generate ad hoc reports," says Tyrus Yeung, Assistant Project Manager, Supply Chain & Logistics Technology Ltd.

BI to drive revenue growth
As Clotex builds up its database over time it will take greater advantage of the BI functionality built in to SQL Server 2005. "We will be able to analyze customer and inventory data for more advanced forecasting and to help us maximize up-selling and cross-selling opportunities and, ultimately, expand revenue," says Kong.

Rapid ROI
"With any new technology, small or mediumsized firms need to consider performance, including compatibility, and investment, including total cost of ownership. Our RFID warehouse management solution meets all of our needs and lets us gain additional synergy by migrating our entire corporate database to SQL Server 2005. We expect to see a return on our investment in the RFID and database technologies in two to three years," Kong says.

Microsoft Windows Server System™

Microsoft Windows Server System is the comprehensive, integrated, and interoperable server infrastructure that helps reduce the complexity and costs of building, deploying, connecting, and operating agile business solutions. Windows Server System helps customers create new value for their business through the strategic use of their IT assets. With the Windows Server platform as the foundation, Windows Server System delivers dependable infrastructure for data management and analysis; enterprise integration; customer, partner, and employee portals; business process automation; communications and collaboration; and core IT operations including security, deployment, and systems management. For more information, go to: microsoft.com/windowsserversystem.

© 2005 Microsoft Corporation. All rights reserved. This case study is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY. Microsoft, SQL Server, Windows Server, Windows Server System and the Windows logo are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries. The names of actual companies and products mentioned herein may be the trademarks of their respective owners.