The Importance of Tracking Returnable Packaging: Enhancing Efficiency and Reducing Costs
- bensturgess1
- Nov 25, 2024
- 3 min read
Businesses are increasingly turning to Returnable Transport Packaging (RTP) as a sustainable and cost-effective solution for their transport & logistics needs. However, the benefits of RTP can only be fully realised when companies implement effective tracking systems. Asset tracking, GPS tracking, and other innovative technologies play a crucial role in managing RTP efficiently.
In this blog post, we will explore why tracking returnable packaging is essential for businesses and how it can lead to improved operational efficiency and reduced costs.
Understanding Returnable Transport Packaging (RTP)
Returnable Transport Packaging (RTP) refers to reusable containers, pallets, and other packaging materials designed for multiple trips in the supply chain. Unlike single-use packaging, RTP is environmentally friendly and can significantly reduce waste. However, the effectiveness of RTP hinges on proper management and tracking.
Types of Returnable Packaging
Why Tracking RTP is Crucial
1. Asset Tracking for Better Inventory Management
Effective asset tracking allows businesses to monitor the location and status of their RTP throughout the supply chain. By implementing RFID (Radio Frequency Identification) or GPS tracking systems, companies can gain real-time visibility into their packaging assets. This visibility helps prevent loss, theft, or misplacement of RTP, ensuring that the right amount of packaging is available when needed.
2. Cost Reduction through Improved Efficiency
Tracking RTP can lead to significant cost savings. By knowing the exact location of returnable packaging, companies can optimize their logistics operations. This includes reducing transportation costs by minimizing empty returns and ensuring that RTP is used efficiently. Additionally, tracking helps identify bottlenecks in the supply chain, allowing businesses to streamline processes and reduce handling costs.
3. Enhanced Sustainability Efforts
As consumers become more environmentally conscious, businesses must demonstrate their commitment to sustainability. By tracking RTP, companies can provide data on their packaging usage and recycling efforts. This transparency not only enhances brand reputation but also helps organizations meet regulatory requirements and sustainability goals.
4. Improved Customer Satisfaction
Timely delivery of products is crucial for customer satisfaction. By tracking RTP, businesses can ensure that their packaging is available when and where it is needed. This reliability leads to faster turnaround times and improved service levels, ultimately enhancing customer loyalty.
5. Data-Driven Decision Making
Implementing tracking systems for RTP generates valuable data that can inform strategic decisions. Companies can analyse usage patterns, identify trends, and make data-driven choices regarding packaging design, inventory levels, and logistics strategies. This analytical approach can lead to continuous improvement and innovation in packaging management.
Conclusion
Tracking returnable packaging is essential for businesses looking to enhance efficiency, reduce costs, and improve sustainability efforts. By leveraging asset tracking and GPS tracking technologies, companies can gain real-time visibility into their RTP, leading to better inventory management, cost savings, and improved customer satisfaction. As the demand for sustainable practices continues to grow, effective tracking of RTP will become increasingly important for businesses across various industries.
References
Taschner, A. (2023). Returnable Transport Packaging as a Company Value Driver. Benchmarking: An International Journal, 30(1), 196-214. DOI: 10.1108/BIJ-06-2021-0311.
Mollenkopf, D., Closs, D., Twede, D., Lee, S., & Burgess, G. (2005). Assessing the viability of reusable packaging: a relative cost approach. Journal of Business Logistics, 26(1), 169-197.
Palsson, H. (2018). Packaging Logistics: Understanding and Managing the Economic and Environmental Impacts of Packaging in Supply Chains. Kogan Page Publishers.
Bretzke, W.-R., & Barkawi, A. (2013). Closed-loop supply chains: A review of the literature. International Journal of Production Research, 51(1), 149-165.
