How RFID technology dramatically improves efficiency & Return of Investment (ROI) for Returnable Transport Items - RTI loss reduction can be up to50% to 90%

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Returnable Transport Items circulate constantly between factories, warehouses, suppliers, and customers. Companies often lose 10–25% of RTIs each year due to lack of visibility—representing hidden costs, supply-chain disruption, and unnecessary capital spending.

 

 

 

RFID directly increases ROI and operational efficiency by addressing the biggest pain points:

1. Eliminates Loss, Shrinkage, and Misplacement

Where ROI comes from
    RFID provides real-time visibility of each RTI’s movements and location.
    Automated gate readers detect RTIs at dispatch, receiving, loading bays, and yard portals.
    Reduces loss rates dramatically (often 50–90% reduction).
    Cuts annual replacement costs.

Operational improvements
    No more time wasted searching for missing pallets or containers.
    Better control over asset pools shared with suppliers or customers.

2. Increases Circulation Speed and Asset Utilisation - Without visibility, companies buy more RTIs than they need.

RFID impact
    Shows exactly how many RTIs are in circulation and where bottlenecks occur.
    Reduces turnaround time (days or hours saved per cycle).
    Enables better pool sizing—often reducing inventory by 10–30%.

ROI benefit
    Fewer assets needed to maintain service levels.
    Faster throughput = higher supply-chain productivity.

3. Automates Check-In/Check-Out Processes - Manual tracking (paper, barcode scanning) is slow and error-prone.

RFID automation
    RTIs are automatically recorded when entering/leaving facilities.
    Bulk reading captures hundreds of items instantly.
    No line-of-sight scanning required.

ROI benefit
    Labour savings.
    Significant reduction in data-entry errors.
    Real-time process control.

4. Enables Predictive Maintenance & Longer Asset Life - RFID tags store unique ID and condition data.

Operational improvements
    Track lifetime usage (cycles, mileage, environments).
    Identify items needing repair before failure.
    Remove damaged RTIs proactively.

ROI benefit
    Extends RTI life span.
    Reduces product damage during transport.

5. Enhances Customer Trust & Service Levels - RFID creates audit trails showing:
    When a container left
    When it arrived
    How long it stayed at customer sites

This enables: 
    Accurate billing
    Deposit/return schemes
    Dispute elimination
    ROI rises when customer disputes and unreturned assets drop sharply.

6. Data-Driven Insights Improve Operational Decisions - RFID provides actionable visibility:
    Cycle time analytics
    Asset dwell-time reports
    Bottleneck heatmaps
    Customer-by-customer asset retention KPIs

This drives:
    Process optimisation
    Vendor accountability
    Reduced asset pool expansion costs

Practical Strategies for Deploying RFID Across Returnable Assets - Below is a step-by-step roadmap your business (or your customers) can use for a successful RFID deployment.

1. Choose the Right Tags for Each RTI Type - Selecting the correct tag dramatically impacts performance and ROI.

Consider:
    Material (plastic, metal, fabric)
    Environmental conditions (wash cycles, heat, chemicals)
    Read distance needed
    Mounting method (embedding, rivet, adhesive, weldable)

Examples:
    Plastic crates → embedded UHF hard tags
    Metal roll cages → on-metal UHF tags
    Kegs & cylinders → metal-mount rugged tags
    Pallets → embedded or riveted tags

2. Build Automated Read Points - Key locations:
    Warehouse doors
    Production line exits
    Conveyor or tunnel readers
    Dock doors and marshalling areas
    Vehicle loading bays

Benefits:
    Zero manual scanning
    Reliable flows
    High-read accuracy

3. Integrate RFID with Your WMS/ERP - Value multiplies when RFID feeds transactional systems.

Examples:
    Auto-confirm dispatch
    Auto-receive goods
    Automatic RTI pool reconciliation
    Real-time customer dashboards

Integration ensures:
    Less manual work
    Fewer errors
    Real-time inventory updates

4. Combine RTI Tracking with Product Tracking (Optional) - A leading practice for maximum ROI:
    Use RFID to track both the RTI and the goods inside it.
    Enables full-chain visibility and automated shipment verification.

5. Implement RTI Performance Metrics - Align the RFID project with business KPIs such as:
    Turnaround time per asset
    % of RTIs returned on time
    Loss/shrinkage rate
    Asset utilisation rate
    Maintenance frequency
    This ensures clear ROI demonstration.

6. Start with a Pilot in a High-Loss or High-Volume Area - Best pilot areas:
    RTI pools shared with external partners
    High-value RTIs
    High-loss customers or routes

Pilot benefits:
    Quantifiable ROI
    Stakeholder buy-in
    Proof of scalability
    Expected ROI Outcomes from RFID on RTIs

Based on typical industry results:

Benefit Area                                 Typical Improvement
RTI loss reduction                        50–90%
Asset utilisation                            +15–30%
Labour savings                             20–40%
Manual errors                              -70–95%
Cycle time                                    10–40% faster
Working capital tied in RTIs      10–25% reduction