SchmidtRFID partners with Cogiscan to offer RFID solutions for electronics manufacturers in Asia

February 2, 2006. Schmidt Electronics Group, Hong Kong and Cogiscan, Bromont, Canada.
Schmidt Electronics Group and Cogiscan are pleased to announce the first step of a long-term strategic partnership. SchmidtRFID, a division of Schmidt Electronics Group, will offer the complete range of Cogiscan RFID solutions in Asia.

Matthew Man, Director – Business Development & Strategic Marketing: “This partnership with Cogiscan represents the cornerstone of the SchmidtRFID technology and market development roadmap. Over the past 6 years Cogiscan has developed a complete range of RFID solutions uniquely adapted for the electronics manufacturing industry. Their award-winning technology is well proven in the field but Cogiscan was lacking the strong local presence and critical mass to sell and support this product on a large scale in Asia. SchmidtRFID has the experience and the resources to bring this unique technology to large manufacturers in greater China and other countries in Asia.

With this new addition to our product line we now have the ability to offer end-to-end RFID solutions, starting with closed-loop factory automation and later expanding into global supply chain applications. The first phase of RFID implementation includes the ability to track, trace and control all materials and tools on the shop floor. This will significantly accelerate the deployment and the ROI for our customers, while providing a roadmap to extend RFID applications from the production floor to the warehouse and the supply chain.

There are two strong market drivers for RFID in the China electronics manufacturing industry. The first and most significant is the ongoing pressure for cost-reduction. Despite the low cost of labor in China, it is important to remember that 80 to 90% of the cost of a finished electronic product is the sum of its electronic components. As a result the ROI for improving material control by achieving real-time visibility and eliminating human errors on the production floor is extremely short. The cost of the RFID tags is not even critical when you keep re-using the same tags inside the four walls of a factory.

The second driver for material control and RFID in our industry is the need to improve product quality and ensure compliance with an increasing number of customer requirements and environmental legislations. This always goes back to how well you track, trace and control your materials on the shop floors. As these control requirements increase the transactional overhead, the risk of human errors also increases, even with barcode technology because you always rely on a human being to scan the proper label at the proper time. RFID technology, like the Cogiscan RFID Smart Feeder system for example, replaces this barcode scanning process with a fully automated and error-proof system.”

Francois Monette, Vice-President Sales and Marketing for Cogiscan: “This is a very important and strategic partnership for Cogiscan. We know that there is a strong need for our technology in this market but we also recognize that the large manufacturers in Asia prefer to buy this type of system from a large and well-established local system provider. Considering their long history of success in selling assembly equipment and data acquisition systems in this market, SchmidtRFID is clearly the best partner to accelerate our revenue growth in Asia.”