It is the smart age- smartphones, smart TVs, smart appliances- everything is powered by AI or automated technology. So why should supply chain management fall behind? Leveraging the expertise of advanced AI, supply chains can address multiple problems with one solution.
Consumers want accountability and traceability. On the other hand, industry standards have also made competition cut-throat. Companies also have to adhere to government regulations- local and international to meet quality and safety standards.
With so many checks and regulations in place, smart packaging or “connected packaging” might act as a middle ground. It will give businesses a point of leverage to meet customer demands while maintaining regulations and traceability.
Purpose of Smart Packaging
A smart package is anything that provides an “added value” beyond the mere containment of the product. These supplementary features may encompass extended shelf life, as well as displays and indicators for temperature, pH, moisture, and freshness, or even the inclusion of a tracking device.
In this context, smart packaging is intricately linked to other terms denoting innovative packaging solutions, including active packaging and intelligent packaging. A packaging “becomes” smart owing to several technologies that ensures product traceability and good condition throughout the phases of the supply chain. Let’s see the types of smart packaging in detail.
4 Types of Advanced Packaging Technologies
- RFID and NFC Tags
Near Field Communication (NFC) is a wireless technology gaining prominence in the Indian fleet (commercial vehicle) )industry. It enables short-range communication between devices, typically NFC tags and smartphones or tablets.
NFC tags, small chips incorporated into stickers or labels, store data, accessible within a four-inch range. NFC is user-driven, with a range of 0.1 metres, requiring user interaction for functions like payment or access.
Radio Frequency Identification (RFID) uniquely identifies items using radio waves. This contactless data transfer technology employs tags or cards to store data without needing power.
An RFID system consists of a tag, a reader, and an antenna. RFID uses radio waves for data transmission, aiding asset location and logistics improvements.
Find more about RFID tags here-RFID Tag Uses – The Complete guide, Benefits, and More in 2023 – QodeNext
NFC & RFID- Similarities and Differences
The key differences of NFC vs. RFID smart packaging lies in range, communication, and data storage. NFC offers a 0.1-meter range, requires user action, and stores complex data (up to 4KB) in various formats. In contrast, RFID scans multiple tags at once, works over hundreds of feet, offers one-way communication, and demands expensive readers for data extraction.
Modern smartphones support NFC, reducing implementation costs, enabling data exchange, and enhancing user interaction in access control, public transportation, and mobile payment.
Another smart packaging solution includes a small box at the back of all the products or boxes. You will see this small box at the back of every package or product or even in an e-product that you can scan. Yes, it is a QR code or barcode. Let’s see how it helps the supply chain.
- QR Codes and Barcodes
A packaging QR Code is a tool for engaging consumers by offering detailed product information throughout their buying journey. This extends to survey responses, providing a comprehensive user experience.
In contrast, barcodes, often 2D, serve a distinct purpose in the supply chain. These visual codes represent digital smart packaging. It helps in identifying information, like UPC (Universal Product Code) or SKU(Stock Keeping Unit). You can scan them with a barcode reader using laser technology.
Barcodes work best in individual product management and offer a cost-effective, permanent, and reliable way to track products from manufacturing to purchase by end customers.
Applications of QR Codes and Barcodes
Within logistics, barcodes have a broad range of applications. They help track products with the same SKUs or UPCs, facilitate intake and distribution, streamline picking and packing processes, aid in inventory counting, and provide valuable lifecycle data. Thanks to their individualised nature, barcodes ensure accuracy in tasks like inventory counting and order picking in a smart packaging system.
In essence, while packaging QR Codes enhance the consumer experience by offering product details, barcodes play a pivotal role in supply chain efficiency and product management.
Barcodes’ functions range from tracking and distribution to inventory control and lifecycle monitoring. These two technologies coexist, each serving a unique purpose in the world of smart packaging and logistics.
- IoT Sensors and Real-time Tracking
The “smart” factor of packaging also includes the ability of consumers and retailers to track the exact location of the packages. Consumers can see where the package is in transit in real-time.
This real-time tracking of smart packaging ideas is one of the profound advantages of IoT. sensors can track temperature, humidity, shock and related environmental factors that might affect product’s quality.
For instance, food items might need this technology to monitor freshness, so supply chains and associated companies can ensure top quality of the products when the consumers receive it.
IoT Solutions for Packaging
Similar to RFID, IoT also requires wireless communication. However, there are some differences in these two types of smart packaging ideas. See how IoT differs from RFID- here.
Real-time monitoring not only elevates the product’s worth but also furnishes manufacturers with invaluable data regarding their products’ performance in transit and storage. This data can aid in enhancing smart packaging materials, cutting down waste, and optimising supply chain logistics.
Talking about product performance and storage, certain products require some special packaging. Some of these are food products that need extra steps of care and prevention to ensure that it does not expire before they reach their destination. Find out more on such packaging solutions that mitigate damage.
- Active Packaging Solutions
Active packaging involves purposefully incorporating additional elements into packaging materials or headspace to safeguard and enhance the quality of packed products
Various active packaging options prolong the shelf life of products. Effective moisture control is vital to prevent moisture build-up that could compromise product quality and packaging integrity.
Inadequate moisture regulation can lead to issues like mould growth and food spoilage, especially in perishable items. Smart packaging protects products from temperature or humidity changes and alerts shipment facilities if the products are at a risk of damage due to the environment. It can send alerts and warning messages through smart configurations.
Prevent Damage
Furthermore, the metabolic breakdown of biomolecules in food generates water vapour, contributing to humidity within the packaging. In the absence of proper moisture control, this can lead to microbial growth, posing food safety risks and potential supply chain losses.
Collaborating with established supply chain solution providers, such as Qodenext, empowers packaging experts to devise tailored smart packaging solutions for their specific products, enhancing quality throughout the supply chain. In this manner, companies can benefit from the advanced packaging systems.
Therefore, at last, let’s analyse more benefits of “connected packaging” apart from real-time traceability and quality control.
3 Benefits of Smart Packaging in the Supply Chain
- Keeping Theft and Counterfeit in Check
The threats and chances of theft are more prevalent in cross-border trade. Manufacturers might end up being victims of theft or product substitution or counterfeit. In such cases, there is always a delay of information and extended reliance of human beings to know the status of products.
Manufacturers might find it hard to ascertain where the packages are- which is far from fixing the issues. Therefore, with smart packaging features like barcodes and QR codes or traceable technology, they can trace the packages’ locations.
- Enhance Customer Experience
Manufacturers depend on retailers to showcase their products, lacking direct consumer communication. Providing product status assurance could sway consumer choices, making it a crucial factor in purchase decisions.
Therefore, smart packaging can address these challenges by incorporating features like QR codes, RFID tags, or IoT sensors. These technologies allow manufacturers to provide real-time information to consumers, ensuring product authenticity and quality.
Consumers can access data on product origin, expiration dates, and handling instructions, increasing trust and confidence in their purchases. The built-in sensors and tracking assist manufacturers in real-time inventory monitoring, helping predict product depletion and streamline operations for both customers and companies.
- Product Usage and Predictive Planning
Manufacturers aim to predict customer product depletion to enhance proactive communication or automated reorders. Currently, customers must initiate this process, causing supply chain inefficiencies and suboptimal sales cycles.
Smart packaging, with built-in sensors and tracking, facilitates real-time inventory monitoring, empowering manufacturers to anticipate replenishment needs and streamline operations, benefiting both customers and companies.
FAQs:Smart Packaging: Pioneering the Future of the Supply Chain
Can smart packaging improve food supply chain?
Smart packaging enhances food supply chains by ensuring product freshness, traceability, and quality through real-time monitoring and information sharing.
How can smart packaging improve product traceability?
Smart packaging uses technologies like QR codes, RFID, and IoT sensors to provide real-time tracking, enhancing product traceability.
What are the challenges of smart packaging?
One of the main challenges of AI or tech-powered packaging is cost and complexity of technology. It requires the use of advanced materials, sensors, and software, which can increase the production and implementation costs.
What is the global smart packaging market value?
In 2021, this sector had a value of USD 237.29 billion. Projections say it will grow from USD 252 billion in 2022 to USD 383.95 billion by 2030, at a 6.2% annual rate between 2023 and 2030.
Can smart packaging make products tamper-proof?
Technology helps companies to input sensors and programs in packaging that can alert when the storage suffers damage. They also have tamper-evident seals, authentication labels, and anti-counterfeiting technologies like QR codes and RFID tags that ensure product safety and authenticity.
Conclusion
As per Smithers PIRA’s research findings, expenditure on smart packaging has projections to rise from $5.68 billion to $7.60 billion, with an average annual growth rate of 5.9% anticipated for the period spanning 2018 to 2023. Smart packaging options from experts like the ones at Qodenext offers best solution that works for your business. By leveraging its many benefits, businesses can unlock new opportunities for growth, reduce costs, and strengthen customers’ trust in them.
