Leveraging Returnable Assets For Supply Chain Management
Supply chain management has seen significant advancements with the emergence of new technology. However, one area that is ready for further innovation is the use of returnable assets. Each year, fifteen to thirty percent of returnable assets are lost, stolen, damaged, or misplaced. By incorporating returnable assets into current track and trace systems, businesses can gain real-time visibility and streamline their processes. In this blog, we will discuss the importance of uniquely identifying and tracking returnable assets throughout their lifecycle, and how adding contextual data to these assets can optimize supply chain operations.
Transform Track and Trace with Returnable Assets
Returnable assets are packaging materials that can be used multiple times in the supply chain, such as trays, baskets, pallets, containers, cylinders, and totes. These items are crucial to the supply chain but are often underutilized beyond their basic function of transporting goods. By improving the tracking and tracing of returnable assets, companies can create a more resilient and efficient supply chain. Here are the three main reasons to incorporate returnable assets management into your supply chain process:
Unique Identification and Tracking
The first step in optimizing returnable assets is to assign them unique identification. Technologies like barcodes and RFID can be used to tag these assets. Using multiple technologies ensures compatibility across different systems within the supply chain.
Assigning a unique identifier to each asset allows for precise tracking from the moment it is filled, through shipping, return, and reuse. This continuous tracking provides visibility into the asset’s location and status, significantly reducing the likelihood of loss and ensuring timely availability.
Incorporating Contextual Data
While tracking is important, the real value lies in the contextual data associated with each returnable asset. Contextual data includes details about the asset’s contents, shipment dates, handling information, and compliance status. By embedding this information into the asset’s tracking system, businesses can gain deeper insights into their supply chain operations.
For example, knowing a product’s expiration date within a container can prevent spoilage, and understanding which customer last used a specific asset can streamline returns. This rich dataset enables companies to monitor exceptions and optimize the entire process flow.
Integration with Backend Systems
For effective returnable asset management, seamless integration with backend business systems, such as ERP (Enterprise Resource Planning) systems, is crucial. This deep integration allows real-time data synchronization and provides a comprehensive view of asset movements across the supply chain.
By linking returnable assets to production schedules, businesses can predict potential shortages or surpluses and adjust accordingly. This proactive approach minimizes production delays and costs.
Who Benefits from Returnable Asset Management
- Plant Managers:
Plant managers benefit from real-time visibility into the location and status of returnable assets. This helps them manage inventory levels, ensure asset availability, and reduce time spent searching for misplaced items. Detailed tracking also enables them to monitor asset conditions and schedule maintenance or inspections as needed.
- Production Supervisors:
Production supervisors can integrate asset availability with production planning, ensuring that there are enough assets to meet production demands. This integration prevents disruptions in production schedules and reduces the need for emergency measures such as rush orders or asset relocations.
- Fleet and QA Managers:
Fleet and QA managers gain insights into the lifecycle and compliance status of returnable assets. They can proactively schedule maintenance and inspections, ensuring that all assets are in optimal condition for use. This reduces the risk of non-compliance and associated fines, particularly in regulated industries.
Enhancing Business Efficiency and Sustainability
Optimizing Asset Utilization:
An optimized asset management system can reveal inefficiencies within the supply chain. For example, if assets are not returned promptly from customers, the system can trigger alerts for follow-up actions. This proactive management reduces the need for excess inventory and helps maintain a balanced supply network.
Enhancing ESG Compliance:
Moreover, tracking returnable assets contributes to environmental, social, and governance (ESG) goals by promoting sustainability. Efficient asset management reduces waste and the need for manufacturing new assets, aligning with broader corporate sustainability initiatives.
Partnering With Acsis
Incorporating returnable assets into your supply chain strategy involves more than just keeping track of containers and pallets. It’s about transforming how you manage and utilize every component of your logistics network.
Partnering with ACSIS, a member of the Antares Vision Group, grants you access to DIAMIND Supply Chain Solutions. We provide comprehensive returnable asset management through custom RFID tags and barcodes integrated with our cloud platform, ensuring 24/7 visibility. This system aids businesses in maximizing ROI by tracking returnable transport items (RTIs) throughout the supply chain, cutting operating costs through reuse, and promoting sustainability. For more information, visit DIAMIND Supply Chain Solutions to book your free assessment today!