Smart technology is becoming essential for supply chains, enhancing product security and authenticity. This article explains how the Internet of Packaging (IoP) improves efficiency and accuracy.
Smart technology is becoming a fundamental necessity for supply chains, as it helps provide security and authenticity for products moving from point A to B. Through cloud connectivity, important data about merchandise can be monitored digitally, so that deliveries are more accurate and speedier than in the past. Here's a look at the advantages of this emerging process known as the "Internet of Packaging (IoP)."
QR Codes
The idea of assigning unique codes called "quick response" or "QR codes" to products has helped companies reduce losses and damages during deliveries. Each item can be tracked with a mobile device or scanner in real time. Ultimately, it automates inventory counts, leading to more accurate results. QR codes are able to encode product details such as customer, price and date of purchase.
One of the innovative advantages to QR codes is that they can digitally verify product authenticity. Managers can use them to make sure the right items get delivered to the right places at the right times. By using unique security codes for each individual product, owners can track exactly where the item travels throughout the supply chain. It greatly reduces the chance of products getting lost or stolen in this process.
The combination of QR codes and cloud computing allow Indonesian startup Langgeng Sukses Abadi Technology to identify counterfeit products in the system with their QTRUST tracking system. Through a web portal and mobile app, both owners and supply chain partners can easily monitor the status of any given product. Not only can they access product information, they can track shop locations and transaction history.
QR codes can also be used to track down empty packages so that they can be reused to promote sustainability. This smart packaging concept is now being deployed by Italian startup ReInPack for reorders. After the packages are recovered, they are sanitized then used multiple times before recycling, which makes last-mile deliveries more sustainable.
RFID
Modern supply chain operators must understand the differences between QR codes and RFID, which are two separate technologies. While QR uses two-dimensional barcodes, RFID (which stands for "radio-frequency identification") uses radio waves for wireless tracking of physical objects embedded with digital tags.
The three main components of RFID technology are tags, readers and a data processing system. The RFID tag houses a microchip and antenna. This tag is transmitted to an RFID reader within propagation range through a wireless communication platform. The advantages to RFID over QR are that it can store more data and be accessed more quickly to help supply chain managers have tighter control of inventory. Some of the risks of RFID, however, include unauthorized data access and high investment costs.
NFC
Another emerging technology in the Internet of Packaging is NFC, which stands for near-field communication. It's a passive form of RFID for monitoring items within close proximity. It allows for an NFC-enabled smartphone to read digital tags embedded in products. The tags are physically small and can be customized to display a QR code, barcode, logo or other design on a physical object. These codes are particularly useful to retail chains that manufacture and distribute their own products. They are also useful for stores that offer a wide variety of products.
Augmented Reality (AR)
Augmented reality is yet another form of smart packaging that is transforming supply chain management. AR merges physical and digital worlds, allowing for unique experiences for shoppers to interact with products before they purchase them. This dynamic can create an emotional bond between the customer and product through scanning the package with a smartphone. The customer can learn quickly about product details without opening the package.
Another advantage to AR in smart packaging is that it can speed up learning curves for retail sales teams. It can further be used for manufacturers and vendors to collect valuable data on customer behavior related to where the product is physically positioned in a store. This interactivity can help brands refine their products and create new prototypes more quickly.
Closer Connection to Consumers
Supply chains are becoming much more efficient than in the past when it comes to meeting market expectations if they adopt the Internet of Packaging. It gives them more control over inventory, as well as better projections on customer response.
Brands that employ smart packaging can greatly benefit because it creates closer connections with their customers. Traditional labels on packaging can tell shoppers only so much about the product, while the rest is left up to the imagination. But the use of smart packaging creates interactive experiences that allow customers to get a better sense of whether the product matches their goals and values.
