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Returnable Transport Items (RTI) or load carriers, such as crates, carts, trolleys, etc. are widely used in the logistics sector. Companies in the logistics sector can significantly reduce costs if they structurally pay attention to their RTIs instead of ad-hoc. Good management ensures less damage, higher availability and better insight. This is also substantiated in the literature, according to Johansson and Hellström (2007)[1] in a publication that the active management and insight of charge carriers can lead to cost reduction of 34%.
“Active management and insight into RTIs can lead to cost reduction of 34% ” – Johansson & Hellström
Johansson’s paper doesn’t give any specifications about how to manage the RTIs, however, the research by Ilie et al. (2009)[2] shows that savings occur when the flows become more visible, in addition the parties will become more responsible when the packaging flows transparent and transparent. If one party in the chain doesn’t deal with its RTIs in an accurate manner, this can lead to delays / costs for the entire chain. That is why every party in the chain has an interest in transparent flows.
The larger and more complex the chain, the more obvious that a cost saving can take place here.
Active Management
When an RTI management system is implemented, this can provide extra support for chain management, because different parts of the chain are supported by the software. An example of such a situation is that one has agreements about the delivery / collection of RTIs and the implementation of an RTI management system can contribute to insight, transparency and efficiency of the packaging flow. Of course, it must be mentioned the degree of maturity of an organization plays a major role in the costs of chain management. An organization that organizes it’s chain management as optimally and efficiently as possible will reap the benefits.
Start with cost reduction
Wondering how you can reduce costs by ‘actively managing’? Give one of our colleagues a call, they will show you demos, answer all your questions and / or help to make your RTI management transparent.
[1] Johansson, O., & Hellström, D. (2007). The effect of asset visibility on managing returnable transport items. International Journal of Physical Distribution & Logistics Management, 37 (10), 799-815.
[2] Ilie et al. (2009).The value for RFID for RTI management. Institute for information management, University of St. Gallen.
