The Financial Impact of Tracking Returnable Transport Items (RTIs)

Returnable Transport Items (RTIs) are indispensable in today’s supply chains, facilitating the safe and efficient transport of high-value, delicate, or regulated goods. RTIs such as pallets, baskets, crates, reusable containers, and cylinders offer economic and environmental benefits. However, without effective tracking, these assets can become a financial liability.

This blog explores the financial setbacks of untracked RTIs and how comprehensive tracking solutions can safeguard a company’s bottom line, reduce operational inefficiencies, and enhance overall supply chain management.

Common Financial Setbacks

The failure to track and manage RTIs has significant financial consequences for businesses. Many organizations overlook the hidden costs of RTI mismanagement, which include the financial burden of replacing lost or damaged items, increased labor, and inventory shrinkage. On average, RTI shrinkage rates range from 10 to 25 percent annually due to loss, damage, or theft. This shrinkage forces companies to purchase or maintain an unnecessary “safety stock” of RTIs, often at considerable expense, to mitigate these losses.

This situation is compounded by the value of the RTIs themselves. RTI costs can range between $10 and $5,000 per item, depending on the industry and application. To calculate the total cost of RTI shrinkage, organizations must account for replacement costs and the additional expenses of cleaning, maintenance, storage, and tracking. When companies can’t accurately determine the whereabouts of their RTIs, they incur repeated costs for replacements and expedited deliveries—direct hits to the bottom line.

Labor Costs and Time Lost in Manual RTIs Tracking

Labor costs associated with manual RTI tracking add another layer of unnecessary expense. Manual processes, such as using spreadsheets, making phone calls, and tracking items through emails, are time-consuming and prone to error. Relying on these outdated methods exponentially increases the complexity of managing a large fleet of RTIs, especially in industries that require real-time visibility for high-value goods.

Customer service representatives sometimes spend valuable hours contacting customers and suppliers for updates on RTI status instead of focusing on core business functions. This scenario results in a drain on productivity and the erosion of customer relationships. For example, in the chemical industry, where RTIs are often used to transport hazardous materials, one company reported that tracking was a full-time responsibility for customer service staff without an automated solution. Implementing a comprehensive RTI tracking system saved these staff hours, redirected their focus to more profitable activities, and improved customer relations by providing accurate, real-time asset visibility.

Profit Margins

Inadequate RTI management also directly impacts profit margins through missed shipments, scheduling conflicts, and increased costs for maintaining safety stock. When companies cannot accurately track their RTIs, they face higher risks of missed or delayed shipments due to unavailable or misplaced assets. The ripple effect is far-reaching: production schedules are disrupted, delivery deadlines slip, and customers may turn to competitors who can reliably meet their needs on time.

Additionally, businesses without real-time visibility into RTI inventory often overcompensate by purchasing excess RTIs to ensure availability, which further strains budgets. The excess inventory incurs additional costs, including maintenance, cleaning, and storage. This reactive approach not only inflates operational costs but also increases waste and inefficiency in the supply chain. For example, a manufacturing company might hold excess stock of RTIs to cover potential losses, leading to inflated capital expenditures without generating additional returns.

Tracking Solutions that Transform RTI Management

To combat these issues, many companies are adopting real-time asset-tracking solutions designed to improve RTI management and streamline supply chain operations. Solutions like Returnable Asset Management enable organizations to track RTIs using technologies such as barcodes, RFID, or IoT sensors, providing immediate visibility into the location and status of each asset. This automated system ensures that companies know the exact position and condition of each RTI at all times, dramatically reducing shrinkage, labor costs, and misplacement incidents.

With an advanced tracking system, companies can monitor RTI uhttps://www.geeksforgeeks.org/difference-between-rfid-and-barcode/sage, location, and condition remotely, automating tasks like maintenance scheduling and repair alerts. This optimizes RTI utilization and extends the lifespan of assets by enabling proactive maintenance and ensuring compliance with regulatory standards. Returnable Asset Management automates notifications and provides real-time insights into RTI availability, enabling companies to eliminate costly rush orders and avoid customer delays.

Real-time RTI tracking also improves accountability within the supply chain. By tracking assets throughout their journey, companies can hold customers and supply chain partners accountable for returning RTIs on time, ensuring that assets are cycled back into use promptly and reducing the need for replacement purchases.

Why Partner with Antares Vision Group

Antares Vision Group offers a reliable, state-of-the-art solution in RTI tracking. With over 30 years of expertise in supply chain visibility, we provide companies with the tools to streamline RTI management and reduce unnecessary costs. Our solution delivers end-to-end RTI lifecycle visibility, optimizing utilization and reducing operational overhead by automating asset tracking, maintenance scheduling, and compliance monitoring.

By partnering with Antares Vision Group, companies access an advanced RTI management system to boost efficiency, protect assets, and ensure customer satisfaction. Returnable Asset Management reduces shrinkage and labor costs. It empowers organizations with the data they need to make smarter, faster decisions that protect the bottom line and sustain growth in today’s competitive landscape.