Intelligent packaging

RFID received a lot of hype 15 years ago, and struggled to live up to that. Stora Enso is a 10bn euro turnover packaging firm and its director of intelligent packaging Juha Maijala argues the technology has developed since then, and real opportunities to are here today.

He told the Gartner Supply Chain Conference in London: “We are talking about technology such as the Internet of Things and RFID. AI is also an opportunity, and for this you need more data that can be moved easily and quickly.

“But it all starts with the business case – improving top line sales and bottom line profit.”

Maijala referenced a survey of five big retailers who are using RFID carrie dots by consultancy Kurt Salmon.

It noted Improvements across a number of business areas:

• Inventory access 25%
• Out of stocks 40%
• Shrinkage 34%
• Profit margins 60%
• Average markdown 20%

“RFID chip are smaller and better performing now, and NFC enabled mobile phones are more common, along with UHF smart shelves and smart ceilings,” he explains.

White goods case study

Stora Enso carried out a pilot for a white goods supplier, providing intelligent packaging with RFID, which allowed the manufacturer to track products to the 3PL warehouse, on to dealers, and on to consumers.

“The Brand owner now has ability to move product between dealers according to demand, which can help keep inventory levels under control.”

The approach brings the opportunity to combine data end-to-end. Who monitoring products, both inbound and outbound, there is no need to read each barcode, therefore the interval from shipment arrival to availability for dealer is shorter; as well as the interval from dealer order to preparation and despatch.

Maijala adds: “The solution provides real time data availability and has led to lower need for temporary warehouses; better long term forecasting; warehouse planning savings of 30%; fewer production plan changes; lower logistic costs; and a reduction in capital tied up in stock.”

He adds the solution paid for itself with two years, but also said 100% readability was needed, as the system needed a robust data set to be useful.

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