▶After being the first in the industry to use RFID in managing finished goods in 2013, Kumho now leverages the technology for semi-finished products as well.
▶The expanded system, which has been in place from early June, allows the company to control both finished and semi-finished goods from production to shipment and distribution.


An RFID tag, attached on all carriers for semi-finished goods at Kumho's factories, allows for end-to-end monitoring from tracking and inventory control to receipt and shipment. All product information including movement data is captured and delivered through the receivers installed eight meters from the ground in the factory.


The newly enhanced system enables Kumho to further improve its quality control by strictly applying its first-in-first-out policy and controlling production in real time. In addition, efficient management of its semi-finished goods helps the tire-maker avert customer complaints, resulting in greater customer confidence and satisfaction.


With global premium car manufactures like BMW requesting information on semi-finished products recently, Kumho expects the system will sharpen its competitiveness edge in the OE market for new cars. In fact, the new production system has been positively received by car manufacturers such as Mercedes-Benz, BMW and Chrysler.


"By adopting an innovative technology in production ahead of our competitors, we have enhanced efficiency of our production and inventory management as well as quality control," said Bong-Young Sohn, Executive Vice Presidentat Kumho Tire, "We will continue to leverage the system to systematically manage product information and to further improve on customer satisfaction and innovative production.


[Terminology]


1. RFID
Radio Frequency Identification (RFID) is a wireless recognition system that allows the user to view product information contained in an electronic tag. The information is captured by the antenna and delivered to the reader for identification. Leveraged in a variety of key industries including automobiles, airlines, healthcare, apparel and telecommunications, RFID is hailed as an advanced technology that has potential to make a difference in business and lifestyle.


Unlike barcodes with limited coverage and storage capacity, an RFID tag can be installed with a memory chip that enhances its capacity for storing a variety of high-volume data. Capable of reading tags over distances up to several meters, an RFID system enables the user to track goods attached with an electronic tag in real time - a feature that sets the technology apart from others.


Kumho worked with Asiana DIT in developing the RFID tags attached on its tires. During the building process, a small, thin RFID patch is put on the inner liner, the tire's innermost layer made of special rubber, for tracking purposes.


2. Internet of Things (IoT)
Internet of Things refers to a technology or environment that allows for real-time data communication by leveraging sensors attached on different objects. It enables the user to share information with others through a network in a variety of areas including home appliances and electronic devices.

Kumho Tire (CEO: Kim Chang-kyu) announced on Tuesday that it has built an Internet of Things(IoT)-based product management system for both finished and semi-finished goods which leverages the RFID technology throughout the cycle from production to distribution.In a bid to enhance the efficiency of its finished goods management, the company first adopted RFID in 2013 for handling tires produced in its factories for buses and trucks and expanded the system to tires for cars last year. With the technology covering semi-finished goods produced in its Korean factories as well starting from June, Kumho has now set itself further apart from its competitors at home and abroad, who use barcodes for product management.
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