How could your supply chain be transformed by RFID technology?

What role can RFID play in packaging?

Over the last few years you won’t have failed to notice the rise in new technologies being used within the packaging industry. RFID (Radio Frequency Identification) technology is a tag that contains stored information and according to a recent study conducted by Tetra Pak, it’s role is set to increase as the information it records is used to predict shopping behaviours and reveal the true impact packaging is having on the environment. Read on>>

What is RFID?
Twenty first century possibilities.

Well, for those of you less informed, RFID is Radio Frequency Identification that uses electromagnetic fields to identify and track objects or products. Tags or stickers are attached to items or pallets, containing a small chip and antenna, with the capacity for 2,000 bytes of data or less. There are Item-level RFID tags, that identify units and case-level RFID tags that identify cases, pallets and the numbers packed within. Typically, retailers other than the luxury item market, have resisted this technology, but with Tetra Pak’s Index 2018 report, that could all be set to change.

According to the Tetra Pak Index 2018, smart technology will create a dialogue between consumers, brands, environmental information and nutrition, to name but a few possibilities.
Plus, with consumers demanding more interaction and knowledge about their products, the personalisation that RFID offers in the consumer journey with become an important factor. Many Millenials are engaged with environmental issues and the plastics debate is not set to subside in the foreseeable future, therefore RFID could be a useful tool when talking about issues of sustainability. Consumers want to know whether their brands are ‘doing the right thing’.

How could RFID be used to protect the environment? Well, RFID tags are being used to prevent deforestation and overfishing which means environmentally savvy companies can now act responsibly when sourcing raw materials. Not only that, but some countries and cities have ‘bugged’ recycling bins to ensure that recycling rates are maintained or increased. People failing to recycle are then fined. It’s true to say that the potential for RFID technology to massively impact on sustainability is growing and consumers want to know what companies are doing to ensure they play their part. So, those unique digital codes that allow each product to be given a unique identifier can now be scanned into smartphones, delivering raw material and environmental information into the laps of consumers. Smart and effective!

Moving away from consumers, we now move onto the possibilities for RFID in warehousing. As RFID tags contain unique codes, scanners used in warehouses can now decrease the time it takes to complete stock inventories. Scanners can read 100 tagged items per second and a line of sight isn’t even required. Even boxes can be read and this has increased inventory accuracy by as much as 50%. Greater accuracy, means fewer deliver discrepancies, more satisfied customers and easier stock replenishment, plus with 10 minute deliveries being predicted by 2025, ensuring stock levels and logistical streamlining has never been more important.

With all the possibilities that RFID opens up, why wouldn’t you start considering embracing this technology? Research shows that sales can be increased by 5.5% when using RFID, which means you can reach more customers by improving their shopping experience, their connection to your brand and be safe in the knowledge that your stock is where is should be, at all times. At allpack® our team of packaging experts can support you in discovering just how useful RFID would be to your operation, whether it be at case-level or item-level….you choose.

Book a no-obligation consultation today and start a smart future with technology working for you!

‘Smart Packaging could use RFID for environmental information’: 5 July 2018, Adrienne Robins.
‘4 Ways RFID Technology can work for Environmental Conservation’: 21 Sept 2015, author unknown.