Blog Post
Returnable Assets in Supply chain
Adapt Ideations • Jan 13, 2019
In the world of logistics and supply chains, chances are almost everything that’s transported is moved on or in shipping assets
In the world of logistics and supply chains , chances are almost everything that’s transported is moved on or in shipping assets such as trays, pallets, crates, tubs, bins or containers. Whether you eat it, wear it, sit on it, ride it or live under it, most of the things around you have been carted on a shipping asset at some stage in its supply chain.
Returnable and reusable supply chain assets(RSAs) are specialised, durable packaging containers which consist of pallets, bins, tubs and totes. Whether you own or rent this equipment, you are carrying the cost of asset inventory. These assets are at risk for misplacement, theft or loss as they are moved between and around customer’s facilities and your company’s locations. According to the logistics bureau, each year, anywhere between 10% - 40% of the supply chain assets out in the wild vanish, seemingly without a trace. They break down, get lost, get stolen or sometimes, just sit idle somewhere because they’ve been forgotten. This is an especially serious issue for what the industry considers ‘reusable’ supply chain assets. Returnable supply chain assets don’t come cheap either, some single use RSAs can cost as little as $20 but most reusable supply chain assets cost between $200 - $5000 per unit, depending on the industry, use and customisation. Some may argue who cares about a $20 pallet when it holds $200,000 worth of inventory.
Dozens of industries are switching over from expendable, one way packaging to reusable packaging options and here’s why. Returnable packaging reduces overall supply chain packaging costs, reduces waste making supply chains greener, improves efficiency and productivity through better shipment handling, lowers processing and labour costs, better product protection therefore reduced product damage, greater shipment shelf-life and storage resilience.
If your business depends on a supply chain then the importance of tracking and monitoring is vital. It can be a time consuming and expensive activity, so how do you protect your valuable assets and consignments? Adapt Ideations IoT smart device - LISA empowers businesses to track and manage assets and freight anytime and anywhere by developing a digital eco system. Creating an always connected supply chain environment, LISA implements geo fence and other mapping tools to generate alerts and notifications. It can currently track several data elements such as alarms, order status, heat maps, volume, locations, data patterns and temperature. Take charge of your supply chain with LISAto maintain and track the movement of perpetual inventory.
Supply Chain Management
Companies around the world are using LISA to improve production flow,
optimise their supply chain, manage assets and increase inventory accuracy. By tagging assets and returnable transport items like pallets, trolleys, containers, etc. companies have been able to obtain the visibility they need into their logistics processes. The result of it is production flow tracking in real time and thereby identify bottlenecks so they can improve cycle times.
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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