How Managing RTIs In Logistics Is Made Easier With RFID
Many modern industries today with logistical operations leverage returnable transport items (RTI) like pallets, containers, barrels, crates, and so on in varying capacities. Unlike various other solutions for storing and transporting products safely and efficiently, RTIs are made to be reused numerous times, hence the need to manage them effectively.
Of course, there are several other reasons why it is worth staying on top of these logistical elements. First, they often incur a significant investment and should, therefore, be kept safe from damage and theft. Second, inadequate management and control of RTIs can directly lead to disruptions and reduced efficiency in everyday logistical workflows. With that said, we explore the difficulties involved in keeping tabs on RTIs and how using RFID can help address them.
Common Difficulties in RTI Management
One of the biggest challenges in managing RTIs is tracking and visibility. RTIs are often used across multiple locations and handled by different stakeholders, making it difficult to monitor their whereabouts in real time. Without a robust tracking system, businesses risk misplacing these assets. If these losses are not addressed quickly, they will gradually add up and negatively impact the organisation’s finances.
An issue closely related to the one mentioned above is loss and theft. When there is no clear ownership or accountability system in place, RTIs inevitably get stolen every now and then. This loss of reusable assets forces companies to replace RTIs more frequently than planned, driving up operational costs and reducing the sustainability benefits of using reusable items, making it essential for businesses to implement measures that fight off theft.
Next, maintenance and cleaning also come with their own unique difficulties. RTIs require regular upkeep to ensure they meet safety and quality standards. Improperly maintained items can affect product integrity during transportation, resulting in damaged goods and customer dissatisfaction. Coordinating the cleaning, repair, and rotation of RTIs across various locations adds complexity to the management process.
Furthermore, inefficient reverse logistics can hinder the timely return of RTIs to their original location. If the reverse flow of these items isn’t well-coordinated, it can result in supply shortages, delays in shipment, and increased transportation costs.
How RFID Helps Solve These Issues
Just like many of the items they handle, RTIs could benefit from having their own radio frequency identification (RFID) inventory management. With its implementation, organisations can better monitor the movement of their RTIs throughout the supply chain in real time. Unlike manual tracking or barcoding, RFID doesn’t require direct line-of-sight scanning, making it more efficient and less prone to human error. Moreover, RFID’s ability to store information regarding its attached item means it can record each RTI’s movement.
For instance, the system could be programmed to automatically log the status and location of RTIs whenever they pass through a checkpoint equipped with RFID readers. This level of traceability helps prevent theft and misplacement, as stakeholders are held accountable for the RTIs in their possession. Additionally, RFID data can help identify problem areas in the supply chain where assets are frequently lost or delayed, allowing companies to take corrective action.
This data storage also comes in handy when it comes to maintenance by making an RFID asset tracking system automatically flag RTIs that require inspection, cleaning, or repair. Businesses can set up maintenance schedules based on the usage history of each RTI, ensuring items are regularly serviced and preventing the use of damaged or unsafe containers. RFID technology also makes it easier to manage the rotation of RTIs, ensuring that clean and repaired items are sent back into circulation quickly.
In terms of reverse logistics, RFID’s ability to provide visibility into the reverse flow of RTIs is invaluable. It helps companies manage the timely return of empty containers, crates, and pallets, reducing delays and ensuring a steady supply of reusable transport items. This efficiency in return logistics minimises shortages and cuts down on unnecessary transportation costs associated with retrieving lost or delayed RTIs.
Conclusion
Managing RTIs in logistics becomes significantly more efficient and streamlined with the implementation of RFID technology. By offering real-time tracking, improved visibility, and automated data collection, RFID helps reduce losses, prevent theft, enhance accountability throughout the supply chain, and much more. With the ability to track and manage a wide range of reusable assets seamlessly, RFID does more than just simplify RTI management; it also reduces operational costs and improves overall supply chain efficiency, making it an essential tool for modern logistics operations.
