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RPCC launches field trial of RFID tags and reusable packaging

Corinne Kator, Modern Materials Handling -- Logistics Management, 12/18/2007

Mike Levans on this week in Logistics: Shippers seek ways to mitigate ocean carrier rate hikes, DHL to buy out remaining share of Sinotrans-Exel joint venture, STB puts NS-Watco endeavor to a halt, FMCSA retains current hours-of-service limits ; logistics; shippers; transportation trends; Truckers; Group Editorial Director Mike Levans tells us whats new in the latest issue of Logistics Management magazine. http://link.brightcove.com/services/link/bcpid1348280054http://www.brightcove.com/channel.jsp?channel=1244057710

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Combining an RFID tag and a returnable container may be the key to earning a positive return on both investments. That’s the idea behind a research project launched last year by the Returnable Pallet and Container Coalition (RPCC).

The RPCC-funded project began with laboratory tests that proved the durability of RFID tags through vibration, falls and repeated cleaning. The project is now moving into its second phase—an extensive field trial.
Field trial
RPCC says the six-month trial, which began Nov. 12, is the largest and most widely-supported industry field test of RFID technology ever conducted on reusable transport packaging.

Thousands of reusable containers with affixed RFID tags are being filled with produce in fields in Washington and California. The containers are then shipped to Wal-Mart distribution centers where they are subject to washing, further handling, refrigeration and storage before being sent to retail stores. They are later collapsed and sent back through the supply chain.

Each container will go through at least three cycles of use. At the end of each cycle, the RFID tags will be tested for viability and then re-encoded for the next cycle.

“Because perishables are shipped under the most demanding conditions,” says an RPCC statement, “a successful field test with perishables will provide convincing evidence of the feasibility of using RFID technology with transport packaging in a wide range of other industries.”
Economic analysis
Upon completion of the field trial, RPCC will use data gathered during the trial to develop an economic model for integrating RFID tags with reusable containers.

“Because the tags can be used multiple times and the cost of reusable containers themselves can be amortized over several years, it only makes economic sense that the cost will be significantly less than a one-way, throw-away tag being used on a one-way expendable container,” says Jeanie Johnson, executive director of the RPCC. “We anticipate the economic analysis will bear this out.”

Project participants
Growers/shippers of commodities being used: Tanimura and Antle; Stemilt Growers; and Frontera Produce

Laboratory testing facilities: Michigan State University School of Packaging; The Kennedy Group

RFID tag suppliers and technology service experts in tracking/tracing systems: Avery Dennison; Alien Technology; UPM Raflatac; and Impinj

Service providers/reusable transport poolers: IFCO Systems; Georgia-Pacific; and ORBIS

Retailer/end user: Wal-Mart

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