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Digitalisation of Logistics of Reusable Transport Packaging
Reusable transport packaging such as containers, barrels, pallets, crates and transport containers require a unique digital system landscape. The customers your products are rented to are not necessarily the ones who return them. You therefore encounter unique problems. How do you organize the logistics of products for which you are not sure when they will return and where they are? Just as important: who pays for the use? Various challenges As an owner of reusable means of transport, you face various challenges. This is how you want to: include a regular return flow in inventory management; where possible, map all flows within the logistics chain; register how long each party has used your products; tailor the billing process to usage; agreement within the logistics chain on products and quantities; exchange data digitally and cross-system with the parties involved; manage and administer activities to make the product suitable for rental again after return; coordinate transport planning both internally and externally. A continuous, positive return flow contributes to the circular economy Reusable transport packaging contributes to the circular economy. In essence, they form a continuous, positive return flow. Positive in the sense that, unlike defective items, for example, the goal is to have the packaging returned. In fact, the return flow is a critical business process. The faster you as the owner get your packaging back, the faster they can be rented out again, possibly after a cleaning process. The multitude of logistical movements requires that all parties involved communicate and administer properly. A complex rental process requires a corresponding invoicing process Invoicing is a complex rental process. A rental process because, despite all changes in the logistics chain, the transport packaging never changes ownership. Complex due to various factors including the multiple tenants per transaction and the deposit. Charging for the actual period of use per tenant requires additional administration and the registration of legally required deposits is also a challenge. The invoicing process must be set up taking these requirements into account. Asset management extends the lifespan of transport packaging To extend the lifespan of transport packaging, maintenance issues must be answered. The use of asset management can support this. Within this field, Emixa offers a solution that focuses on classic assets. By using this application in parallel with the support of reusable transport packaging, it is possible to further optimize the occupancy rate. Read here how BAM Infra Materiële, together with Emixa, has digitized its rental process and optimized asset management. Additional income with up- and cross sales such as VMI The purchase of transport packaging offers an excellent opportunity for up- and cross-sales. Additional information services are obvious. For example, it may be interesting for the renter of the transport packaging to obtain location and condition data from the lessor in order to monitor the contents. With a service like 'Vendor Managed Inventory' (VMI), you as a landlord can take a lot of work off the hands of your customers. A flexible link between internal and external transport planning is required Rental of reusable transport packaging requires coordination of the internal logistics planning with that of your customers. Buyers want the guarantee that transport packaging will be ready when the truck comes to pick them up. Conversely, as a landlord you need advance warning if returns are on their way to you. Even if only to reserve sufficient space in the warehouse. If pallets are also exchanged, additional administration will be required. All this requires a flexibly deployable digital link with which your own systems and those of the customer can communicate with each other. Digitalisation faces unique logistical challenges The rental of reusable means of transport is characterized by unique logistical challenges. Unlike regular sales, the product does not change ownership. This entails continuous return flows that are reminiscent of regular rental. But with reusable means of transport, both location and tenant are not always easy to trace. Emixa offers a digital solution that meets these challenges. We would be happy to tell you more about this. Contact us without obligation and we will talk to you! Get in touch Ready to make a business change? At Emixa, we'd be glad to share our comprehensive insights. Contact us to discover how our approach can help your organization thrive in the cloud era. Let's embark a journey towards enhanced efficiency and effectiveness together! Martijn van Dam Martijn van Dam is a senior consultant and has more than 20 years of experience in the field of Supply Chain Management and digitalization.
How do you Rent Reusable Transport Packaging within SAP
With regular rental, you register directly with the lending company when the assets are returned. Availability, invoicing and other processes can be covered with standard solutions. But what if the return flow is leading in the rental process and control must take place from logistics? Does SAP still offer a solution? Companies that rent moving boxes, crates, containers, barrels or other reusable packaging materials have their own unique challenges. Most tenants also want to arrange the transport of packaging materials at the same time. In addition, the reusable packaging is usually used for third parties. This can create a chain of 'subtenants'. In this chain, the exact return time is more difficult to determine, the deposit registration becomes more complex and the condition in which the rented property will be returned is more difficult to predict. When renting reusable packaging: manage return flows; the lead time must be high; extra attention to inspection and cleaning is required; an integrated approach keeps the process manageable. Renting out reusable packaging is all about logistics When renting reusable packaging, it is not the standard rental process that plays the leading role, but the logistics process. The lessor not only supplies packaging, but also ensures that it arrives on location. This requires the use of SAP's logistics modules. But they are not designed for the return of goods. Solution with customization? Preferably not Rental companies of reusable packaging often solve this problem by using custom solutions. This could be a complex series of Excel sheets, or an expensive proprietary application. Such solutions help initially, but quickly become impossible to manage. The link with invoicing and administration causes problems. Because customization must keep pace with updates to regular business software, costs increase over time. Setting up a logistics rental process within SAP It can also be done differently. SAP can set up its own process in which rental based on logistics is central. Planning and stock reservation are safely separated from current stock. This creates space to take the unique requirements of reusable packaging rental into account. These adjustments support the entire process within SAP. At the end of the rental, further processing (invoicing) can take place via the regular channels. Working within the SAP standard With this approach, the rental process works within the SAP standard. Goods movements are registered and invoiced based on sales orders. The same applies to the planning of inspections and the cleaning of the rented equipment. By providing returned packaging with a batch number, cleaning and inspection become a seamless part of the rental process. All data within one integrated dashboard Because all data remains within SAP, it can also be accessed integrally and used more effectively. This way, all data surrounding the rental process can be integrated into one dashboard. This makes management based on exceptions possible. A planner immediately sees what is in stock, what is on its way and what still needs to be checked. By filtering for deviations from the standard, problems can be responded to immediately. Management reports keep the process manageable The same data can also be used to reliably predict stock. In addition, other details can be recorded. This makes it possible to gain more insight into surrounding factors, such as working hours per shift, water consumption per order and wear per packaging. With such reports, management can focus on figures and better substantiate longer-term plans. No circular economy without reusable packaging The rental of reusable packaging is an important aspect of the circular economy. The sector that offers this is therefore growing steadily. Challenges in the field of registration and process management appear to be slowing down that growth. It is not necessary. Renting based on a logistics process can be easily integrated within SAP. This keeps the rental process manageable and improves the provision of information to customers. Get in touch Ready to make a business change? At Emixa, we'd be glad to share our comprehensive insights. Contact us to discover how our approach can help your organization thrive in the cloud era. Let's embark a journey towards enhanced efficiency and effectiveness together! Martijn van Dam Martijn van Dam is a senior consultant and has more than 20 years of experience in the field of Supply Chain Management and digitalization.