Haisan Resources Bhd says it will upgrade its temperature-controlled logistics facility to help improve services and cut costs. Haisan is using radio frequency identification and a warehouse management system.

Incorporating the distribution and transportation management module, the new system will be implemented in stages starting from the third quarter this year in Malaysia, followed by its operations in the Philippines and China by the second half of 2006.

Managing director Ong Chin Yet said the need for an effective and efficient cold-chain logistics management across the region has intensified with the increasing focus on cost competitiveness, product leadership and customer intimacy.

He said the implementation of these new systems will give greater flexibility and control towards planning, management and distribution of goods.

The combination of both cross-docking and RFID allows greater accuracy in sales and production forecast as such a system provides timely and accurate information and improve inventory management.

The enhanced warehouse management system and the introduction of Vendor Managed Inventory will allow Haisan and its customers more optimum control and tracking of merchandise flow and product movement.