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Industries such as automotive, aerospace, and industrial engineering rely heavily on returnable containers and packaging—like stillages and roll cages—to transport components and finished products. However, the complexities of supply chains often lead to overspending on replacements, maintenance costs, and visibility issues. This is where location tracking solutions come into play, offering a transformative approach to managing your assets.
The Hidden Costs of Poor Visibility
When stillages go missing, the consequences can be more significant than anticipated. Poor visibility can lead to delays, customer dissatisfaction, and potential revenue loss. In fact, the costs associated with these inefficiencies typically fall into three categories: stillage ownership, supply chain inefficiency, and poor service delivery. By identifying these hidden costs, businesses can better understand the return on investment (ROI) of implementing a tracking solution.
Stillage Ownership Supply Chain Inefficiency Poor Service Delivery
The Benefits of Real-Time Tracking
Implementing a location tracking solution can drastically reduce a company’s typical 10% annual loss of stillages to just 1%. This shift can save businesses up to £45,000 yearly on replacements alone. Additionally, effective usage analysis can lead to a 10% reduction in the container fleet size, further cutting costs associated with maintenance and replacements.
Real-time tracking not only enhances accountability but also improves handling. Employees are more likely to treat assets with care when they know they are being monitored. This increased accountability can lead to a 10% reduction in maintenance costs, translating to annual savings of around £5,000.
Extending Asset Lifespan
Proper care and timely repairs can extend the lifespan of stillages by 20%, saving companies an additional £10,000 annually due to fewer new container purchases. By planning maintenance based on actual usage and condition, businesses can avoid unnecessary repairs and the costs associated with delayed maintenance.
Enhancing Supply Chain Efficiency
The data collected from tracking devices provides valuable insights for business decisions. By managing containers and packaging on a cloud-based platform, companies gain visibility, automated inventory control, and supply chain analytics. This not only helps in reducing inefficiencies but also enhances service delivery, ensuring that production lines run smoothly without interruptions.
Conclusion
In conclusion, the implementation of a location tracking solution for stillages, roll cages, and returnable packaging is not just a smart investment; it’s a necessary step towards optimizing your supply chain. By reducing hidden costs, improving asset management, and enhancing customer satisfaction, businesses can unlock significant savings and drive efficiency.
Don’t let poor visibility hold your business back. Embrace the power of location tracking and watch your operations transform!