Why is returnable container management important? Shrinkage from returnable transport items increases costs if not given proper attention.
These returnable transport items are necessary when shipping finished goods. The fact they’re recycled makes them an asset with respectable value.
Every time a returnable transport item returns their value increases. So, losing one impacts the company in replacement costs. Also, lack of a container tracking system increases labor costs. First, it requires a time-intensive manual tracking process. Plus, you’ll pay to have a backup supply on hand to compensate for missing or late containers. If these RTIs are not currently listed in a tracking system, why not?
Thus, a system to track the return of RTIs produces significant cost-savings. Once a tracking system is in place, a decrease in shrinkage is within reach.
It may seem complicated to develop a system for returnable container management. But, technology can make the job easier. Treating your returnable transport items as assets can help with shrinkage control.
RFID is one possible solution to container tracking. An RFID tag consists of a tiny chip and antenna called an integrated circuit. This tag may also be part of a label attached to or inserted in containers such as bins & pallets.
Container tracking using RFID collects real-time data including location, status, condition and cost. Regular reporting can reveal any loss that’s not accounted for. Backed by data, companies can address the reasons for the shrinkage. For example, damage, loss or theft.
Discovering the cause becomes a much easier task, saving labor and inventory costs. Plus, it aids in preventing future losses by highlighting areas for improvement.