Leakages have always been an accepted part of operating a logistics supply chain. There are several reasons it can occur, from human error to misuse, bad luck and theft.
Considered individually, any leak may seem insignificant.
However, once you step back and review the numbers as a whole, businesses losing just 0.1% of their reusable packaging could account for £millions in the loss of assets and the time it takes to correct the errors.
Let’s run through some of the wider implications that asset loss can cause across your supply chain.
The financial impact
Upfront cost of assets
Simply put, the more assets you lose, the more assets you need to buy.
As you know, many assets used regularly in logistics are expensive, so repeatedly purchasing new stock will put a strain on your bottom line.
Indirect costs
It’s important to consider the Total Cost of Ownership (TCO) of whatever assets you use. As well as the direct cost of replacement, you must account for the maintenance and repair of the new assets you purchase.
Asset utilisation
If assets aren’t being appropriately allocated or are getting stuck in the supply chain, it’s easy for businesses to lose track and end up buying more than they actually need. This not only adds extra cost but also makes the operation less efficient overall.
The operational impact
Inventory
Asset leakages can contribute to inaccuracies in your inventory records, making it challenging to keep track of stock levels and manage orders.
Productivity
Leakages slow down processes and pose challenges to your team’s productivity. As well as operational, this has a direct financial implication, with Mainpac reporting that the logistics, aviation and energy markets report £millions in lost revenue per day.
Assetspire report that 80% of employees waste half an hour a day retrieving information.
This unnecessary idle time can be minimised by using an efficient tracking system that lets you determine the location of your assets in real time.
The environmental impact
Production
As well as your costs, purchasing new assets to replace missing ones creates supply and demand, meaning more assets are produced and, depending on the asset, CO2 emissions increase.
Disposal
When assets come to the end of their lives, they can often be recycled or repurposed. However, when assets are leaked, they could, inevitably, end up in landfill.
How Digipal’s asset tracking helped Asda toyou
Asda toyou, a UK parcel delivery and collection service provider, was looking for a smart and sustainable solution to help streamline and manage its logistics network.
The company had faced some challenges within its supply chain, with some wooden pallets going missing or breaking. This meant they were looking for a robust solution to keep them on track towards their performance and sustainability goals.
After implementing a bespoke asset tracking system, Asda toyou has experienced the following result:
100%
Visibility on all pallets: location and dwell time
10%
Reduction in CapEx for replacement of assets
100%
Compliance under GDPR
60%
Less vehicle space needed for recovery, more capacity, less trailers, less CO2, more mpg
7,800
Trees saved annually by transitioning to 3k pallets from 62k wooden pallets
60%
Reduction in internal/external storage space
How Digipal can help you…
Advancements in tracking capabilities mean you no longer need to accept leakages as part of your supply chain.
Through robust asset tracking systems, your business can mitigate all of the above implications, whether financial, operational and environmental.
With near real-time visibility across your supply chain, it’s easier to identify challenges and bottlenecks, and address them faster and more appropriately.
- Cost reduction: experience a 95% reduction in leakages and optimise asset utilisation
- Real-time visibility: gain a competitive edge and benefit from improved clarity on the status of your assets
- Customisable solutions: tailor our parent-child asset tracking to your unique needs
- Sustainability: decrease the environmental impact of your processes by enhancing efficiency
- Responsiveness: respond to supply chain issues swiftly, such as breakdowns, accidents, road closures or traffic
Our unique asset tracking system doesn’t rely on just one technology. By using a combination of solutions, we help logistics businesses optimise their supply chains and improve overall performance
These technologies include:
Technologies Digipal can use
GPS Trackers
RFID
Wiliot Battery-Free Bluetooth Label
Wi-Fi
Through our customisable DigiPortal dashboard, our customers can view accurate data on the history and condition of assets.
As an asset company ourselves, we understand the importance of clear visibility and robust reporting. We are always looking for new ways to improve our services and help our customers gain even greater clarity on the status of their assets.
Keen to introduce reusable plastic pallets into your supply chain?
Our Pallet Pooling option could be the answer. It operates as a controlled loop system, meaning you have access to the right number of pallets, whenever you need them.