Combined RTLS and Passive RFID Technologies Create Unique Inventory Management Solution for Steel Plant

Convergence Systems Limited delivers custom inventory management system to speed up production and improve overall plant productivity for China Steel Structure Company

HONG KONG — July 31, 2013 — Today, Convergence Systems Limited (CSL), the only global provider of both passive RFID products and active RTLS equipment, announced the successful implementation of a high-performance RFID inventory management system for China Steel Structure Company, Ltd. CSL worked closely with solutions integrator Digitnexus of Shenzhen, China, to deliver a hybrid solution uniquely combining both passive and active RFID technology.

The China Steel Structure Company was in need of a cost-effective, reliable system to increase the speed and efficiency of inventory management in their steel manufacturing plant. Previously, personnel did not have a way to share inventory information throughout the plant, creating redundant work in each department. Furthermore, sorting products and materials on the construction job site was very time-consuming, because similarities in the materials makes it difficult to distinguish different products with the naked eye.

In order to streamline this labor-intensive process, CSL and Digitnexus delivered a custom RFID inventory management solution designed to work with thin sheets of metal, using both passive UHF tags and active 2.45 GHz RFID technology. Passive RFID metal tags offered a far more affordable and practical way to label materials than active RFID. Plant personnel are able to locate required items using CSL’s handheld CS101 RFID reader with a built-in “Geiger counter” type audible tag search and location function, offering excellent performance even in a highly reflective environment.

Additionally, the CS101 reader is coupled with the CS506 real-time location system (RTLS) plug-in to provide positioning information across the entire yard, allowing quick and easy location of the exact product needed with time of arrival (TOA) techniques.

“The versatile CSL product line includes both passive UHF and active RTLS technology, which means we can provide an affordable hardware solution with best-in-class performance,” said Jerry Garrett, managing director, Convergence Systems Limited. “Plant personnel now have comprehensive, real-time visibility in large, outdoor environments with RTLS system but with the greatly reduced tag costs of passive RFID.”

Digitnexus completed the RFID system integration, as well as developing a Web-based software application to allow information sharing between departments. Furthermore, Digitnexus created a custom software app for the CS101 handheld reader that seamlessly integrates the RFID solution with China Steel Structure Company’s business processes. This integrated system helps reduce project delays by streamlining customer inspections, and enables plant management to determine production costs more accurately.

Prior to adopting RFID technology, plant management had no way to track raw material use in real time, limiting their ability to calculate exact costs per project. Digitnexus designed the Digitnexus software platform for smooth integration with CSL’s hardware, delivering a tailored solution that lives up to China Steel Structure’s commitment to quality.

China Steel Structure Company’s new RFID tracking system and software application now handles inventory management, access and materials control, and finished product inspections. The solution can be integrated with third-party systems to facilitate expansion, and the plant is expected to extend RFID tracking to include contract and supply management, as well as installation.

About Convergence Systems Limited
Founded in 2000, Convergence Systems Limited is a leading design engineering company and provider of radio frequency ID (RFID) tags, readers, antennas, modules and custom RFID hardware. CSL is unique in providing both passive EPC Gen 2 RFID products, as well as a full line of active RTLS RFID products. CSL delivers a broad portfolio of RFID hardware for logistics management, supply chain, manufacturing, pharmaceutical, access control, transportation and retail industries around the world. A member of standards organization EPCglobal, CSL is headquartered in Hong Kong with a global distribution channel. For more information, visit

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