The sales and supplying company of SINOPEC Shanghai Petrochemical Co., Ltd is a comprehensive management department that purchases and supplies the goods and raw materials for the need of production and construction of Shanghai Petrochemical and stores and transports the products. Multiple business management departments in charge of chemical engineering, material, equipment, spare parts and supply scheduling are set for purchasing and supplying the company’s goods and materials. Focusing on the customers’ demand and satisfaction and utilizing elaborate management, the company is exerting itself to promote the systematic integration of logistics. Under the support of Shanghai Jinshan Petrochemical Co., Ltd, endeavor to carry on the construction of information system, optimize the flow of goods by means of information flow, increase the operating efficiency and then provide high-quality services for customers.

The first-phase logistics warehouse of Shanghai Jinshan Petrochemical Logistics Co., Ltd covers an area of about 8,000 square meters and there are totally eight entrances and exists, where almost 7,000t goods can be stored and incoming and outgoing goods reach hundreds of tons everyday. In order to better realize information management, the company has decided to apply RFID to increase the intelligent management level of the warehouse. Through cautious long-term technical research and evaluation, Shanghai Jinshan Petrochemical Logistics Co., Ltd finally decides to recognize the abilities of Shanghai RFID System Technology Co., Ltd. in terms of logistics business, technology and integration and unanimously thinks that the proposal put forward by RFID Company has the best cost performance and complies with the current demand of the company and the need of follow-up logistic and warehouse distribution management, so the company finally chooses RFID Company to execute the RFID intelligent management toward the warehouse.

Through two months’ implementation toward the RFID system, currently this system has been put into operation and has made the following achievements:
1) The system can rapidly recognize the warehouse entry and exit time, address, quantity and other information and automatically match the receipts for warehouse entry and exit;
2) Automatically recognize to reduce the manual intervention and error rate and guarantee the operator’s safety;
3) Acquire the strict position management and time information on the scene so as to guarantee the first-in first-out (FIFO) effectiveness;
3) Acquire the strict position management and time information on the scene so as to guarantee the first-in first-out (FIFO) effectiveness;
5) Increase the convenience and visibility of the warehouse’ management and operation through the intelligent handheld terminal;
6) The management of moving process ensures the transparency and presence for operation;
7) The reduction of physical count’s operation difficulty shortens the cycle;
8) The error alarm of warehouse entry, exit and stock inventory timely avoids the loss;
9) The RFID tag is convenient to be designed and installed and can be repeatedly used, for favor of standardized operation and reducing the comprehensive cost of system ownership;
10) Better guarantee the consistency of logistics and information flow in warehousing management;
11) The RFID applied in warehouse management can be extended to the dispatching section later on so as to correctly feedback the dispatching process and result.

The implementation of this project not only brings the updating of logistic management thought, the increase of the logistic efficiency, the reduction of labor cost and the optimization of operation for Petrochemical Logistics, but also plays a significant role in promoting the creditworthiness of the logistics company, establishing the overall professional logistic image of the group and the variation of core technical competitiveness, increasing the service level for the customers and customer satisfaction and attracting the high-end customers and has laid a solid foundation for setting up the leading place of Petrochemical Logistics in the industry.