Across every industry, sustainable and responsible resource management has become vital. Companies today seek innovative solutions that cause less harm to the planet while fostering transparency with customers. An innovation companies are widely implementing is reusable packaging, a market predicted to reach $186 billion by 2033.
Adopting reusable and returnable packaging, also known as returnable transport items (RTIs), is a simple, approachable first step to a more sustainable operation. However, tracking these returnable transport items through their long life in the supply chain can be challenging.
The use of radio-frequency identification (RFID) technology poses a solution to this traceability challenge. To learn about RFID-based traceability for returnable transport items, consider these advantages.
1. Real-Time Visibility
RFID-based traceability allows real-time visibility into returnable transport assets throughout their lifecycle.
Here’s how it works:
- An RFID tag is attached to every packaging item
- Each item is then tracked by readers at strategic locations throughout the supply chain
- The RFID tag reads crucial data—RTI movement, usage, condition, and more—and automatically delivers it to companies in real-time.
Valid routing data of reusable containers and packages is mission-critical in supply chain management. Detailed visibility lets companies view item-level information at every moment, helping them gain accurate insights and mitigate key risks. If an item is delayed, lost, or compromised along its route, RFID data signals this status to transporters so they can address issues right away.
As opposed to traditional (often manual) track-and-trace methods, radio-frequency identification traceability streamlines the logistical process. Manufacturers, suppliers, and wholesalers prevent transportation expenses and delays, improving overall efficiency. When there’s a logistical bottleneck along the supply chain, RFID-tracking data reveal inefficiencies that need to be addressed.
2. Simplified Asset Management
Tracking inventories and large shipments of RTIs involves a lot of logistical management.
Because RTIs are reusable, they must cycle through additional processes after delivery, including sanitization and inspection. This leaves more room for error and potential loss of resources especially without adequate tracking.
RFID traceability streamlines asset management and monitoring, aiding continuous flow from one step to the next.
With it, companies can see accurate inventory data, allocate items across steps, and initiate item replacements when necessary. The simplified process saves costs, improves efficiency, and informs supply chain managers of enhancement opportunities.
3. More Sustainable Business Practices
RFID-based traceability leans into the long-term goal of supply chain optimization: sustainability. Companies that use RFID-tracked RTIs enable the total circulation of their containers and packaging materials, causing less harm to the planet and their bottom line.
Also in the realm of sustainability, proper RTI tracking results in less misplacement and loss of items in transit. Not only do these solutions conserve production resources but they also encourage less disposal and waste.
4. Better Quality Control
Real-time, item-level visibility of reusable transport items improves quality control. From the initial product shipment to the container’s arrival at the wash center, RFID tags deliver information about the state each RTI is in.
Businesses can now monitor product-reliant factors such as temperature, humidity, and “shock” instances along the supply chain, getting a full picture of their products’ condition—not just location.
For example, shipments that contain sensitive goods such as food or advanced manufacturing chemicals must be in optimal condition at every stage of the supply chain. RFID-based tracking data informs workers about at-risk shipments, preventing spoilage, damage, and safety concerns.
5. Easier Compliance and Reporting
Many industries operate under strict regulations. Thorough reports of sourcing, handling, and transportation are required to stay compliant and prevent legal penalties.
RTI and product RFID traceability make compliance easier, more accurate, and more effective since there’s less room for human error. This is especially useful during audits, company relocations, and major industry changes.
6. Encouraging Customer Trust
Customers also benefit from RFID-equipped traceability of reusable packaging.
Businesses that implement sustainable efforts gain customer trust. Today’s eco-conscious customers want to buy from companies that can prove ethical practices. Companies with high levels of consumer trust outperform competitors by up to 400%, according to a study by Harvard Business Review.
The ability to know how a product was sourced, produced, stored, and what it took to reach its destination (including labor practices) confirms its authenticity and safety. Openly providing this information nurtures customer trust, which contributes to a brand’s positive reputation and customer retention.
RFID Technology Solutions for Returnable and Reusable Transport Packaging
As the demand for sustainable business operations rises, reliable supply chain transport should be top of mind for companies determined to achieve long-term growth..
Reusable transport packaging is the leading option for sustainability in supply chain strategies. RFID-based traceability ensures these items deliver—in form, function, and most importantly, furthering the sustainability mission.
Real-time visibility, quality control, asset management, and compliance can empower your company to sustain its growth in today’s competitive market.
Maggie Williams Dryden is a vice-president at Mojix, a leader in real-time, item-level visibility solutions and human capital management for nearshoring IT development services that provide end-to-end business intelligence for supply chains around the globe.