Calling all containers

By Staff -- Modern Materials Handling, 2/1/2006

Citing huge costs and even bigger waste concerns, the auto industry is taking steps to reduce the cost of lost reusable containers. According to research conducted by AMR, the auto industry spends more than $750 million annually on lost containers—or roughly 7% of the industry's total manufacturing budget.

The Automotive Industry Action Group is spearheading the effort to create a bar code or RFID based tracking system for containers in transit.

Morris Brown, a product manager for materials management for The Automotive Industry Action Group (AIAG), says visibility is the top benefit of the proposed program. "It's akin to having a portable database on each rack and pallet," he adds.

Currently, tote ownership is an issue at many auto manufacturing plants, since typical operations use hundreds of suppliers. "A tracking system could curb the instances of container confusion," says Brown.

Brown says AIAG is working to develop an RFID standard for reusable totes, based on the group's experience developing a similar standard for tires.

He says the initiative is also environmentally friendly. This is "taking a 'greener' approach to containers by diminishing cardboard," Brown says. "Realistically, cardboard will always be there, but we are really trying to diminish its use."