This document will detail the three biggest mistakes these companies can make in reusable container management.

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2 From the Fortune 100 to boutique asset leasing companies, managers who start reusable container programs can run into the same issues and go through the same growing pains. To gain control of their program and maximize return on investment, they attempt to track their containers, manage their processes, and automate as many as they can. Opportunities to improve processes and optimize the solution can appear over time. Unfortunately, many companies miss these opportunities, or choose to ignore them not out of foolishness, but out of inexperience. This document will detail the three biggest mistakes these companies can make in reusable container management. page 2

3 Mismatched Infrastructure TRACKING Every location s work culture, physical layout, and the specific data requirements of a solution are unique. Many managers make the mistake of choosing a tracking technology based on flashy advertising or buzzwords, and don t consider what would actually make the most sense for their situation. Assuming that one tracking solution is applicable across all use cases can not only lead to an inefficient use of expensive hardware, but might even require additional user training to implement. Bulk vs. Serialized Tracking Aggregate tracking, or tracking in bulk, can provide a general view of shipments and while it s certainly much better than nothing, data granularity is often lost in the process. Serialization allows for the tracking of individual containers, which is the basis of a broad range of performance benchmarks from cycle and dwell times, to how efficiently each asset is being used. Even a practice as simple as giving each container a unique barcode ID provides myriad tracking benefits over bulk tracking. page 3

4 Barcode vs. RFID Serializing containers with barcodes may be a sufficient tracking technology - but it can be inflexible when your solution is ready to grow. RFID tags can enable true hands-free data capture and up-to-the-second data accuracy... but such improvements do come with a cost of hardware and additional maintenance requirements. Passive vs. Active RFID When RFID can benefit a solution, the question remains of whether to use passive RFID or active RFID. Both solutions involve tags that use built-in antennas to receive and transmit signals, which send radio waves to readers that translate the waves into data. However, passive RFID is typically deployed to track larger volumes of lower-value assets, while active RFID is more suited to tracking a low volume of high-value assets. When done right, tracking infrastructure can provide much-needed visibility as your containers move or fail to move within your supply chain. Doing it right means designing a data collection system that will provide the visibility you need at the least cost. How this visibility is attained in your solution can be accomplished in a variety of ways, and the best-value system should be based on the following factors: page 4

5 Minimizing the steps required collects only the data related to the processes to be improved. Sometimes, limits are imposed upon a system by a customer who can t - or won t - integrate with the new data collection process. Limitations can be worked around using automation and best guess placeholders. Choosing the best data collection method, based on a location s work culture, layout, and what data needs to be collected. This can range from scanners or app-enabled mobile devices, to RFID tags and scanning portals - or even active RFID sensor emplacements. Process standardization establishes best practices for the processes used throughout the solution, which helps benchmark performance and gives users the opportunity to determine where more efficiencies can be implemented. Cost-minimizations can be realized through system configurations, weighed against the needs of a client. Labor costs can be minimized with the strategic deployment of technology, such as automated RFID capture of container presence, including arrival and departure. Hardware costs can be minimized, by deploying devices such as scanners or portals efficiently, or by switching to lower-cost alternatives such as an app-enabled mobile phone to replace a handheld scanner. Increasing data accuracy ensures that the analytics generated allow for the most informed decision-making. page 5

6 Incorrect Quantities MANAGING Some companies start reusable container management initiatives, only to stop after improving their container visibility. This can leave behind as much as 80% of the possible savings - savings that can be realized through accountability, proper utilization, and optimization. Too Much On Hand Some managers keep a quantity of safety stock on hand to avoid the possibility of running out. Unfortunately, this extra stock occupies valuable storage space, or necessitates the purchase or rental of external storage. If this extra stock is not used, you ve invested in it for no reason. Poor Planning Running out of containers can have a variety of consequences - all bad - ranging from mildly inconvenient to potentially catastrophic. Having to rely on alternate packaging (like cardboard) comes at a cost. However, when running out can mean a manufacturing line is down, the impact of accurate information cannot be overstated. page 6

7 Planning, monitoring, and coordination requires a great deal of manual effort. Increasing the accuracy of the collected data ensures that analytics allow for the most informed decision-making, from new container purchases to driving down storage expenditures and enabling more lean practices. Determining whether a container has arrived full or empty, or simply associating an inventory item or items with a container, allows for the optimization of inventory records; empty containers are ready for continued use almost immediately. Real-time demand-based planning allows managers to plan orders based on what a location will need, so they have exactly what they need exactly when it s needed. This allows them to avoid costly shortfalls or overages. Additionally, when deemed appropriate, a location s orders can be automatically limited based on their historical demand. Advanced analysis can be run on top of a company s database to comb the data to discover trends and patterns, and machine-learning techniques are deployed to proactively build solutions to challenges before they manifest. Effectively managing reusable containers maximizes total savings, by ensuring the right containers are at the right location at the right time for the minimal cost. page 7

8 Poor Integration AUTOMATION Increased visibility and comprehensive management can improve performance and cost-savings but some challenges remain, brought about by a large amount of people having to perform slow, manual tasks and manage a complex web of interdependent parts. Knowing what already works can be just as important as knowing what needs improvement. Before beginning a more technologically-driven reusable container management initiative, a supplier may have existing methods of generating orders, capturing transactions, or transmitting data. Integrating with these methods can greatly accelerate the onboarding process and ease the transition to a new system. Associating inventory with containers allows for rapid generation of picking tickets used to build trailers. These picking tickets can be built and pushed to mobile users in real time. page 8

9 The manual scanning of barcoded containers is a labor-intensive effort, requiring employee resources and the potential for human error that accompanies it. Deploying RFID to replace the manual scanning can increase the speed and accuracy of data capture, especially when high-volumes of tagged assets must be tracked. Integration with current processes, and automation of simple or repetitive processes, has the potential to realize the greatest cost savings in a reusable container management initiative. Proper integration with existing methods and management can have a profound impact on the success of a solution. Each reusable container management solution is at its best when driven by the core of reusables tracking, shaped by the touch of involved management efforts, and automated to optimized efficiency. Minimize the mistakes, and ensure you can succeed, in both the short term and the long term Perhaps the biggest mistake a company can make is trying to make up the answers as they go. We ve given some of the most trusted brands in the world a powerful way to manage their reusable container program. Let us know what you need. page 9