Blog Post
Creating a greater sustainable supply chain with the use of returnable assets
Adapt Ideations • Sep 22, 2019
Whether you wish to simply keep track of your RSAs or your valuable products in transit, smart asset tracking is becoming a necessity more than you think.
Everyone that has worked in a role related to a supply chain will know what returnable assets are. Many I’m sure would consider them a pain point within warehouses where at times they may sit in a corner untouched until they need to be used or returned. Returnable assets and reusable supply chain assets (RSAs) are assets that can be used time and time again assisting companies in transporting their goods. RSAs include anything from reusable boxes, containers, and pallets. In fact, the term has been around for quite some time. RSAs were previously used to reduce damage of products and increase operational efficiency. Companies are beginning to realise the real benefits around the use of RSAs as the environmental impact and sustainability of companies are increasingly becoming a hot topic for many consumers and clients across the globe.
A significant challenge of using RSAs however is the returnable assets will remain unused for any period of time between one week to a few months depending on the reverse logistics processes of companies and agreements they have in place with various clients. Reverse logistics as it suggests is the process by which products can be successfully returned to any previous element in a supply chain.
What is the underlying problem?
The real challenge for most companies is the visibility of these assets. Many companies in fact have returnable assets in place but do not have a secure plan to keep track of these assets in their supply chain highlighting a significant challenge. A reusable asset with a low cost may not seem like an issue to many, however it does become a problem when warehouses don’t know the exact number of returnable assets in circulation. Therefore, the cost associated with these potential lost assets could be costing the company thousands depending on the number of these assets and their value. As mentioned in a research study undertaken by Telsyte for Telstra
it’s believed companies alone in Australia lose an average of 4.3 billion in assets each year. This brings me to the importance of visibility and transparency of these reusable assets. Without these two elements how must companies be able to account for their RSAs and transform themselves into a greater sustainable company.
It is no longer simply about companies’ internal processes. Consumers are more empowered than ever as they have become highly connected and informed consumers through the increasing availability of information. More than ever consumers and businesses are looking towards purchasing from companies which are sustainable and incorporate environmentally friendly practices. Through the use of RSAs and asset tracking practices, companies alike can transform their processes ultimately helping them to get closer to reaching their bottom line while also decreasing unnecessary waste.
Without a doubt many companies use RFID technology to keep track of these RSAs within the supply chain however the technology can be challenging to implement particularly for larger companies and supply chains operating across multiple sites whether this this is nationally or globally. What makes Adapt Ideations
different is the use of the most advanced technology to successfully create an always connected supply chain for companies. In essence Adapt Ideations transforms and assists in digitalising your supply chain. Whether you wish to simply keep track of your RSAs or your valuable products in transit, smart asset tracking is becoming a necessity more than you think. This is increasingly linked to the alarming statistic highlighted in a white paper published by IBM
that 15-20% of RSAs are in fact lost. Consider how much the total cost would amount to!
Why is this becoming a challenge now?
We live in an era where consumers have become more eco-conscious than ever due to the highly evolving digital world around us that allows individuals instantaneously to attain information at their fingertips. Consumers, governments and companies alike are pushing brands to adopt more sustainable practices through this heightened pressure to become increasingly more sustainable. Many companies have in turn established the use of RSAs to become more sustainable by reducing waste of packaging and material used in the transport of their products. Tellape
highlights the whopping total for plastic pallets and container loss between 800 million to 1.5 billion annually in the US alone. It’s no wonder companies are feeling the pressure.
It’s one thing to implement RSAs into a company’s supply chain process but to further this, IoT and further related technology is assisting companies to step up to the next level ensuring visibility and transparency at every stage of the supply chain in turn streamlining their processes and the tracking of RSAs. The benefits go well above simply reducing waste. As such companies can reduce loss of their products, establish where inefficiencies within the supply chain are occurring, improve operational efficiency, and even accomplish end-to-end visibility of their supply chain essentially adding value for their clients and customers. As emerging technology continues to evolve including IoT, AI, and blockchain, almost every industry will look to incorporate these to transform how they do business.
Opportunities for achieving supply chain visibility with Adapt Ideations
Adapt Ideations
specialises in innovative end-to-end customisable solutions using the most advanced technology. Here at Adapt Ideations we have an array of solutions available that can be applied to almost every industry. Our smartest asset tracker KELVIN
is specifically designed for the bio-pharmaceutical, food & beverage industry assists companies with temperature sensitive products. KELVIN allows greater transparency to be developed in turn assisting companies to ensure the quality of their products. Core benefits include near real-time tracking of location, light, and shock.
Another smart asset tracker LISA
is aimed at companies transporting a range of products. Core benefits includes near real-time tracking, temperature, and geo-fencing capabilities. LISA can be used to enhance visibility and transparency for companies in a wide range of industries. With essential and easy reporting measures incorporated into our portal, insights can be established allowing companies to increase their operational efficiency and transform their every day data into operational intelligence.
Contact us at enquiries@adaptideations.com
for further information and discover how smart asset tracking could enhance your operations.
Powerful and reliable, asset tracking and monitoring solutions.
Innovative monitoring solutions for high-value & temperature-sensitive assets.
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Related Articles.
Temperature-controlled logistics is a crucial aspect of global supply chains, particularly in the pharmaceutical industry. Maintaining the correct temperature during transportation is not just a logistical issue but also a critical factor in ensuring the safety and efficacy of life-saving vaccines and other temperature-sensitive products. As the demand for temperature-sensitive products like vaccines and biologics continues to surge, ensuring their safe transportation is paramount. Any deviation in temperature during transit can compromise the efficacy of these products, leading to significant financial losses and potential health risks. This blog delves into the evolution of temperature-controlled logistics, critical challenges faced in this sector, and groundbreaking innovations that address these challenges. With a focus on real-time monitoring through IoT solutions, we aim to showcase the advancements that contribute to the efficiency and compliance of global pharmaceutical supply chains. Evolution of Temperature-Controlled Logistics Temperature control has undergone a remarkable transformation in the last two decades. Stringent global regulations, customer demand for new temperature ranges, emerging markets with extreme temperatures, and the growing value of drugs like biologics have been essential driving forces. These factors have spurred the evolution of temperature-controlled logistics to meet the demands of a rapidly changing world. The landscape of temperature-controlled logistics is evolving, thanks to technological advancements. Trends include the growing availability of prequalified shippers simplifying the validation process, sophisticated supply chain services, a rising interest in reusable packaging, and advances in temperature-monitoring technology. These innovations contribute to the industry's ability to adapt and thrive in a dynamic environment. Temperature-controlled logistics involves managing the flow of products through a cold chain. Divided into food and pharmaceutical sectors, the global market size of cold chain logistics is projected to grow significantly. From USD 242.39 billion in 2021 to USD 647.47 billion by 2028, exhibiting a CAGR of 15.1%, the industry is expanding rapidly, reflecting its critical role in modern commerce. 3 Key Challenges in Temperature-Controlled Logistics Compliance Issues Stringent Regulatory Standards: Global temperature-controlled logistics operates within a framework of strict regulations set by health and safety authorities. Meeting diverse regulatory requirements across international borders poses a significant challenge for companies in this sector. Documentation & Reporting: Compliance involves meticulous documentation and reporting of temperature-sensitive shipments. Keeping up with the evolving documentation standards requires streamlined processes and robust systems. Validation & Qualification: Ensuring the validation and qualification of equipment and processes according to regulatory standards is an ongoing challenge. The need for continuous validation adds complexity and time constraints to logistics operations. Risks of Temperature Deviations Product Integrity: Temperature-sensitive products, especially pharmaceuticals and biologics, are highly susceptible to temperature deviations. Even brief exposure to temperature breaches during transit can compromise the integrity and efficacy of these products. Financial Implications: Temperature deviations can lead to significant financial losses for companies. Replacing or disposing of compromised products and potential legal repercussions contribute to financial challenges. Supply Chain Disruptions: Temperature deviations can disrupt the entire supply chain, leading to delays in product availability. This not only affects businesses but can have critical implications for healthcare providers and patients relying on timely access to medications. Security & Theft Concerns Value of Cargo: Temperature-sensitive cargo, such as pharmaceuticals, vaccines, and high-value perishable goods, can become a target for theft. The significant value of these products heightens security concerns throughout the supply chain. Vulnerability During Transit: The vulnerability of cargo during transit, particularly in unsecured areas, poses a constant risk. The potential for theft during transportation adds complexity to securing temperature-controlled shipments. Need for Tracking & Monitoring: Ensuring the security of temperature-sensitive cargo requires robust tracking and monitoring systems. Integrating security features, such as real-time location tracking and tamper-evident technologies, is essential to mitigate theft risks. In navigating the intricate landscape of temperature-controlled logistics, companies must address these multifaceted challenges to uphold compliance, safeguard product integrity, and ensure the security of valuable shipments. Innovative solutions, such as advanced monitoring technologies and comprehensive security measures, are crucial in overcoming these challenges and fostering a resilient and efficient supply chain.
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