Kia Motors Kia Motors, whose President is Chung Eui-sun, has received the Presidential Grand Prize for its distinguished achievements in e-Business, specifically in the e-Logistics system. Recently it has enlarged the scope of RFID application to the manufacturing field for the first time in Korea. In 2003, Kia Motors introduced the Toyota's production method of Just In Time (JIT) to its company, but has successfully changed its system to an e-JIT production method, so that it may be more suitable and efficient for the domestic auto industry. Now, furthermore, it has newly developed an e-Logistics system, which is a much more advanced system than the e- JIT production method. As a result of these efforts, it has come to receive the e- Business grand prize. Three salient features of e-logistics system From the following three aspects, the e- Logistics System is showing many differences from other existing logistics systems. First, the new system gives information on the production performance by process on a real-time basis. The RFID tags are attached to the roof of cars, and so when the cars pass through each process that is installed with an antenna, they can transmit the information on cars and parts usage to the server. Secondly, RFID technology makes it possible to obtain and use the input and output information on the car parts. The RFID tag reader is installed both in the entrance gate of Kia Motors and the exit gate of its partner companies. Therefore when cargo trucks pass through those gates the information on the cargo is read and transmitted to the server. Thirdly, a large briefing board shows employees parts usage on a real-time basis and the inventory level of each production line in the assembly factory. Monitoring on a realtime basis enables the proper quantity of parts to be supplied. From daily basis to real-time basis inventory system By introducing the e-Logistics System, Kia Motors' daily-based inventory management system has been changed into a real-time basis system. Through this new system, the order precision ratio has greatly improved, that is, from 58% before the introduction of the new system to 99.8% under the new system. Consequently, a stable ordering system has been established. Concerning the monitoring of the production lines and inventory situation, until now the time and quantity of parts supply has depended upon the judgment of the manager in charge. But now through this new system, the inventory volume is always kept in the least level and most optimal condition. Order precision ratio revolution Over the years, Kia Motors has focused on improving its order precision ratio, trying hard to apply diverse technologies, and finally succeeded in the establishment of e- Logistics System. From the beginning of RFID application, the company has made intensive research on what impact its RFID application can have on the auto manufacturing process. At the same time it has tried to build this system to seek mutual benefit with its partner companies. All these efforts have cooperated to bring success. Through this e-Logistics System, Kia continues to reduce the inventory maintenance costs and losses coming from defective parts. People will want to see how Kia Motor continues to make efforts to develop a much more advanced system by strengthening this new system and manpower education.