International Paper Incorporating RFID into Warehouse Tracking System

Inks deal with Matrics for radio frequency identification tags to improve inventory tracking, customer service

Columbia, MD — December 17, 2003 — International Paper (IP) has inked a deal for Matrics, a provider of radio frequency identification (RFID) technology, to supply RFID tags for use in tracking inventory as part of IP's new Warehouse Tracking System (WTS) designed to improve inventory tracking and customer service.

Developed by International Paper, with tag and reader technology from Matrics, the WTS operates at the company's Texarkana, Texas, mill and warehouse. Using proprietary technology developed by IP, the WTS is a fully functional warehouse management solution that covers all stocking, storage, movement and shipping within the facility.

The system is designed to ensure inventory certainty, eliminate lost product, reduce operating costs and decrease inventory by providing real-time inventory routing instructions and movement confirmation to forklift operators without the need for manual intervention. It utilizes the EPCglobal's electronic product code (EPC) standards, ensuring compatibility throughout the supply chain.

Under the terms of the two-year contract, Matrics will supply at least 10 million passive, non-battery UHF disposable tags for International Paper's expansion of its WTS technology. International Paper plans to install the new WTS using Matrics' RFID tags at most of its U.S. mills over the next several years.

"Matrics' tag and reader performance is a key element of the system's success," said Alan Clark, general manager for "smart packaging" at International Paper. "The tag contract with Matrics reflects our commitment to RFID supply chain solutions using the Warehouse Tracking System, by increasing the value internally and expanding the offering to our customers."

Matrics, based in Columbia, Md., is a provider of EPC-compliant RFID technology and visibility solutions for supply chain, asset management and security. The company is a corporate sponsor of the Auto-ID Center and developer of PICA, a new, high-speed RFID tag assembly system.

"We are extremely pleased to be incorporating our RFID solutions for increased visibility into International Paper's first-of-a-kind Warehouse Tracking System," said Piyush Sodha, chairman and CEO of Matrics. "Clearly, the combined efforts of International Paper and Matrics are demonstrating the value proposition for improving inventory management through IP's new and innovative system and RFID technology from Matrics."

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