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Press Release

Muratec and NEC Develop and start Validation Experiment of RFID based "Logistics Solutions”.

Murata Machinery, Ltd. (hereinafter Muratec), a leading provider of logistics and automation solutions with its Head Office at Kyoto, Japan and NEC corporation (hereinafter NEC), a leading provider of information, communication, and electronic systems and devices with its Head office at Tokyo have announced the development of a “Logistics Solution” applying RFID (Radio Frequency Identification IC tag) technology.  Validation experiments will commence at the Muratec plant in Inuyama city and there are plans to exhibit this at the “LOGIS-TECH TOKYO 2004” exhibition to be held from September 14th to 17th at Tokyo Big Site. 

Muratec and NEC have announced joint collaborative research on providing the next generation logistics solutions using RFID technology on May 6, 2004 as a part of the “Business partnership agreement in the field of Logistics Solutions” announced on March 18, 2003.  The development of the “Logistics Solution” is one of the results of our collaboration, and we will keep working together to execute the validation experiment with aim of starting product development in June 2005.  It is anticipated that the productivity of entire logistics operation will increase by 50% compared with conventional systems, since new AS/RS system equipped with this solution will facilitate automation of item inspection and visualization of the flow of total supply chain. 

RFID based Logisitc Solutions
Overview and Features:
RFID reader/writer is installed on the Muratec AS/RS, and RFID tag attached on each item in the bucket.  Confirmation that the items in the bucket are the specified items is done automatically through scanning the RFID tag by the RFID reader.  RFID reader/writer is also set on the conveyor line to check the type and quantity. of the item picked up by Robot.  This facilitates automation of item inspection after picking operation.  High efficiency is achieved by automation of items inspection especially in a warehouse or large distribution centers with large number of transactions.

Item data that is collected by RFID reader/writer in the ASRS system is sent to the information system such as SCEM (Note:1), ERP (Note:2) developed by NEC, etc.  Such data can be used for in-house logistics work such as issuing/acceptance of order, or monitoring of Inventory data in real time.  This also leads to efficiency in accounting.   

RFID is the general name of the device that consists of small type IC chip for memory together with small antenna. Unique ID no. is allocated to each RFID. When multiple IDs are read or written simultaneously from a distance each item data (position/quantity) etc. will be obtained correctly. This facilitates high efficiency of management including item checking, replenishment, etc. Also RFID can be used to track the transfer process of each item in detail, so it has much potential for use in security, and traceability management.

"Ubiquitous ID Center” has been established in Japan as an organization to standardize and popularize core technology for automatic recognition using IC tag application. Also it is estimated that the application of RFID technology will increase by 450% in the year 2005. (based on figures released by Evans Data, USA on March 24, 2004). This indicates that the ID tag momentum is at the implementation stage now. Further, it is expected that RFID will be applied regularly from about year 2006 in order to make in-house logistics work efficient, also to rationalize the logistics work by decreasing stocked items and lead time. (Note:3)

Muratec and NEC are working together continuously to strengthen "Next generation Logistics Solution” by organically linking Material handling system, IT/Network system, and Terminals at site etc. through RFID technology and applications.

(Note:1) SCEM: Supply Chain Event Management
SCEM is a concept for facilitating flexibility of the total supply-chain (from the supplier, material handling vendor to final customer) in reacting to various events such as generated/modified order, generated storage/retrieval command, stock shortage, etc that occur during the flow. NEC provides SCEM Solution in accordance with its partnership alliance with Viewlocicty, USA.

(Note 2) ERP: Enterprise Resource Planning
The concept of ERP is to manage centralized data such as accounting, sales, manufacturing, and to realize high efficiency and optimization of entire operation of the company.

(Note;3)
Calculated from data collected by various agencies such as Allied Business Intelligence etc.

Corporate Facts of Murata and NEC

Murata Machinery, Ltd.

·Head Office

: 136, Takeda-Mukaishiro-cho, Fushimi-ku, Kyoto Japan

·Representative

: President Daisuke Murata

·Established

: July 1935

·Employees

: Murata Machinery, Ltd. 2,200 (As of April 30, '04)
  Murata Machinery, Ltd. and Consolidated Subsidiaries 4,120 (As of April 30, '04)

·Capital

: JPY 900 million

·Net Sales

: Murata Machinery, Ltd. JPY 117.4 billion (As of May 2004)
  Murata Machinery, Ltd. and Consolidated Subsidiaries 149.7 billion yen (As of May 2004)

·Major Operations
of Muratec Group

: Logistics System, FA System, Clean Room Automation, Manufacturing and Sales of Textile Machinery, Machine Tools, Sheet Metal Fabricating Machine, Communication Equipment.


NEC Corporation

·Head Office

: 7-1, Shiba 5-chome, Minato-ku, Tokyo Japan

·Representative

: President Akinobu Kanasugi

·Established

: July, 1899

·Employees

: NEC Corporation 23,632 (As of Mar.31, '04)
  NEC Corporation and Consolidated Subsidiaries 143,393 (As of Mar.31, '04)

·Capital

: JPY 337.8 billion (As of Mar.31, '04)

·Net Sales

: NEC Corporation JPY 2,509.1 billion (Fiscal year ended Mar.31, '04)
  NEC Corporation and Consolidated Subsidiaries JPY 4,906.8 billion (As of Mar.31, '04)

·Major Operations
of Muratec Group

: IT Solution, Network Solutions, Electronics (Semi-conductor solutions and other devices solutions)

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