{"id":23368,"date":"2021-06-02T15:47:21","date_gmt":"2021-06-02T13:47:21","guid":{"rendered":"https:\/\/wp.test-leogistics.com\/?p=23368"},"modified":"2021-06-03T11:14:22","modified_gmt":"2021-06-03T09:14:22","slug":"container-management-do-you-still-have-all-containers-in-stock","status":"publish","type":"post","link":"https:\/\/leogistics.com\/en\/blog-en\/container-management-do-you-still-have-all-containers-in-stock\/","title":{"rendered":"Container management: Do you still have all containers in stock?"},"content":{"rendered":"\t\t
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On how efficient container management enables cost savings <\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Whether solid, liquid or in bulk – without the right containers for solid or liquid goods, hardly anything works in logistics. Nonetheless, it happens time and again that pallets, big bags and others fall by the wayside somewhere along the supply chain. About 20 percent of all reusable containers are lost because customers retain them for their own\u00a0use,\u00a0or third parties remove them for their use (Thoroe, 2009)! When it comes down to it, where goods are usually accounted for as accurately as possible, there is often a lack of consistent tracking via the containers. This can cause unnecessary additional costs, because where containers are missing, they first have to be found, collected separately – or in the worst case even purchased. Efficient container management can remedy this situation. Read on to find out what you need to watch out for.<\/span><\/b>\u00a0<\/span><\/p>

In recent decades, value chains have undergone lasting change. Companies are concentrating more and more on their core area of competence, with the result that the breadth and depth of manufacturing are decreasing in many sectors. This in turn increases the degree of networking between companies and thus also supply relationships within the value chains – as those who do not manufacture them themselves have to source parts elsewhere.<\/span>\u00a0<\/span><\/p>

The trend towards downsizing means that ever decreasing quantities are being handled more and more frequently. In this context, containers are the central link of logistics functions<\/a> and enable a seamless flow of materials when optimally adapted to the general conditions. In a survey conducted by Aberdeen Group (2009), half of the respondents indicated that the cost of managing logistics assets accounts for as much as 5 percent or more of company revenue. Controlling such a large item and avoiding inefficiencies and additional costs is worthwhile for any company.<\/span>\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Container management - a closed book? <\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Efficient container management thus plays a decisive role in the safe but above all economical handling of goods movements. This is understood to entail the systematic planning, control and monitoring of container flows. However, the effective management of container flows is subject to a variety of challenges.<\/span>\u00a0<\/span><\/p>

Reusable containers are routinely misplaced or lost and are rarely tracked in information systems. Major problems include shrinkage due to theft, undocumented damage, or customer neglect to return empty containers. Lack of communication among supply chain partners about containers received means that returns are hard to account for, damage to containers is not recorded, and no one can be held liable for losses. The latter in particular is a significant concern, as there is often no contractual obligation between supply chain partners to return containers in circulation.<\/span>\u00a0<\/span><\/p>

All this not only causes frustration, but sometimes also imposes enormous extra costs, as many containers have to be reordered\u00a0and, in some cases,\u00a0high safety stocks tie up large amounts of capital throughout the overall network. Still, the desired security of supply is often not achieved in this method: the containers are often not in the right place at the right time and their throughput times are too slow. This leads to even more containers being pushed into the system, tying up more and more capital.<\/span>\u00a0<\/span><\/p>

The core problem is the systems mapping of container inventories and their movements. Containers often cannot be pinpointed and tracked completely within the supply chain because there is no IT infrastructure for container management. But for seamless tracking, clear identification of the containers and real-time communication with all players within the value chain are\u00a0absolutely essential.<\/span>\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Container management should meet these requirements <\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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In order to get to grips with\u00a0these myriads of problems, it is first necessary to answer a whole series of questions: How far does the current container inventory extend to, and how can the actual demand be calculated? How can container movements be accurately recorded for\u00a0cycle control? What resources must be available for this? Which identification technology for recording container movements and coding covers the needs? How is it integrated into the existing IT architecture? How can the performance of the container management be evaluated?\u00a0And how\u00a0are\u00a0the container- and\u00a0cycle-related\u00a0costs\u00a0to be calculated?<\/span>\u00a0<\/span><\/p>

Once these questions have been answered, the following logistical and operational requirements arise, all of which an efficient container management solution should cover as much as possible:<\/span>\u00a0<\/span><\/p>