LHT Holdings Limited successful with the Manufacturing - Pallets trophy at the SBR National Business Awards

Its RFID Pallet Management System contributed to the Global Visibility in the Supply Chain.

LHT Holdings Limited received the Manufacturing - Pallets trophy at the SBR National Business Awards 2022. 

The company was recognised after the success of its Efficient Consumer Response (ECR) RFID Pallet Management System, which improved the tracking of shipped goods, contributing to the goal of an efficient, systematic, and transparent supply chain.

“LHT is the first company to host the Electronic Product Code Information Services (EPCIS) server in Singapore,” the company spokesperson said. “Thus, ECR RFID pallets can be traced globally based on its EPCIS - a step closer towards the global visibility in the supply chain,” said the company.

LHT explained that their system stemmed from necessity, as ECR required distributors and suppliers to focus jointly on the efficiency of the total grocery chain, rather than the efficiency of individual components.

The company added that the Fast Moving Consumer Goods (FMCG) industry relied on wooden pallets as they are primarily used in the transportation of goods, as well as in warehouse storage or distribution centres. Therefore, a systematic approach to tracking and monitoring had to be established to improve the processes in these facilities.

In order for the wooden pallet to be efficient in the FMCG supply chain, urgent adoption of standards for pallets has become a priority. The objectives of this initiative are to improve consumer choice, satisfaction and service by achieving a reduction of total costs, inventories, physical assets, and the removal of unnecessary costs from the distribution system, making it more responsive to consumer demand.

LHT’s success was not achieved overnight, as the company invested substantial time and effort in making sure their pallets’ design conformed to ISO 6780 specifications, which specified the principal dimensions and tolerances for flat pallets for intercontinental materials handling, and to SS 334:1998, Singapore Standard for Specification for Timber Pallets.

In 2009, LHT’s subsidiary Kim Hiap Lee Co Pte Ltd (KHL), collaborated with ASTAR SIMTech on an 18-month project: KHL Pallet Leasing & Tracking System based on Gen 2 RFID and EPCIS. During the RFID technology development, LHT has gained, learned and leveraged the sales of RFID pallets.

These valuable lessons were instrumental in the successful sales of their RFID pallets as KHL reported positive growth in its customer base since the implementation of the ECR RFID Pallet Management System.

According to the company, in the year 2016 up to 2018, LHT sold more than 60,000 Automatic Storage and Retrieval System (ASRS) RFID pallets to YCH RFID ASRS warehouse. Additionally, in the year 2020, about 20,000 ASRS RFID pallets had been sold. As for RFID labels, LHT has sold more than 200,000 pcs to our FMCG customers and on going.

Despite their success in the industry, LHT continues to improve its product and services and aims to work until their brand is synonymous with the RFID pallet system. The company aims to have every customer aspire for their pallets and the system they piloted.

Watch the interview below to know more about their winning project: