IBM (News - Alert) is announcing that it is implementing a Radio Frequency Identification (RFID)-based solution for Hindustan Petroleum Corporation Limited (HPCL) in India.

 

IBM will deploy an end-to-end tracking solution based on RFID technology at HPCL's Nashik plant.

 

The $2.2 million deal was signed in March 2008 and involves infrastructure services, business consulting services and middleware solutions from IBM.

 

Under this agreement, IBM will design, deploy and integrate the RFID solution for tracking LPG cylinders from the plant to the end-consumer. The solution will streamline the process of identification of LPG cylinders during bottling, distribution and supply chain, and will cover 500,000 cylinders in the initial phase.

 

In a release, HPCL said after evaluating the technology it may deploy the same in a phased manner to cover the entire supply chain from bottling plant, logistics, and distributors to the end-consumers.

 

Commenting on the project, G A Shirwaikar, executive director-LPG, HPCL, said, "This RFID-based cylinder tracking project is the first of its kind in India. Considering the magnitude of our operations, which continues to grow significantly, it has become imperative for us to bring greater efficiencies in our supply chain. We aim to achieve this with our new RFID-based tracking solution. We are happy to partner with IBM, as their global expertise in deploying such solutions would help HPCL strengthen its supply chain of LPG cylinders end-to-end, and finally result in significant operational benefits for the organization. We also expect to roll out this solution to other plants in India (an additional 42) besides extending it to dealers for an integrated supply chain."

 

"IBM is committed to build capabilities to address some very unique business challenges faced by Indian enterprises. We are very excited about the RFID implementation at HPCL and especially the fact that this solution covers the entire supply chain of HPCL's very significant LPG business. The energy sector is seeing a tremendous growth in India and we believe that a unique solution like this will help market leaders like HPCL improve their operational efficiencies while strengthening their competitive edge in the market," said Nipun Mehrotra, vice president and general manager, Global Technology Services, IBM India/South Asia.

Arun Satapathy is a contributing editor for TMCnet. To read more of Arun's articles, please visit his columnist page.

Edited by Eve Sullivan