Container Management

Efficient container management saves costs, reduces the container volume, increases the speed of material flows, and ensures the quality of logistics processes. Shipping errors are reduced and recipients receive the goods at the agreed time. Suppliers, in turn, gain in trust. However, implementing efficient container management is not quite as simple as this list of benefits makes it sound. In order to shed light on the topic of container management in detail, it makes sense to differentiate between the terms ‘container’ and ‘load carrier’.

In most cases, containers are closed boxes, small load carriers (SLCs), crates, barrels, or drums that transport goods or merchandise. Load carriers, on the other hand, are often open carrier units that are used to hold goods. These include, for example, pallets, trolleys, mesh boxes, or containers. Load carriers often also serve as transport carriers for containers. While the system for transporting containers is referred to as container management, the control of load carriers is referred to as load carrier management. Both types of transportation are components of logistics processes in container management. The terms ‘loading equipment’ or ‘loading equipment management’ are also used.

Even more important than differentiating between the transport containers is the question of whether the containers are in an open, semi-open, or closed container circuit. In most cases, these are reusable containers that can be part of a pool system. These containers protect the goods and are often weatherproof. In order to track containers in our digital world, and to control and monitor these containers in real time, shippers, freight forwarders or expeditors use container management.

Every container identification technology is based on a data carrier in the form of transponders, labels, LPWAN or BLE sensors, and GPS trackers. These data carriers send information to IoT devices. These can be read/write devices or gateways. Data carriers are also read by scanners, handhelds, or even smartphones. In most cases, both mobile and stationary readers are used. Numerous web-based solutions with intuitive devices are available on the market.

The more valuable the goods to be transported, the more security-relevant the digital identification of the container is. Sensors measure data such as temperature, humidity, acceleration, or vibrations, and send this data to IoT devices. This enables the condition monitoring of the container and the goods.

Cloud computing helps companies to monitor a very large volume of containers and to analyze the movements of these containers. By using data analysis techniques such as machine learning and AI in companies, predictive forecasts can be made about transportation risks. The transition at gates or at truck loading areas is often also equipped with industrial identification hardware to track the transportation of containers.

Containers come in all shapes and sizes and are crucial in many industries. According to a report by the data and business intelligence platform ‘Statista’, approximately 80 percent of all goods in world trade are shipped via the sea. Over a billion metric tons of cargo were globally shipped by sea in 2021. The market for shipping containers was valued at around 7 billion USD in 2021. This number is expected to grow to approximately 16 billion USD by 2028.

According to a report by the advisory firm for management strategy and market research ‘International Market Analysis Research and Consulting Group (IMARC Group)’, the global market for smart containers was valued at over 3 billion USD in 2023. This market is expected to grow to over 13 billion USD by 2032, as a result of the increasing demand for goods tracking and real-time monitoring.

The following success stories from real-world economy show which use cases are possible with wireless IoT technologies, for example in the logistics, smart city, and retail sectors. What are the benefits for companies and processes, and why did company management opt for this particular technology? The following solutions are based on real success stories.

Container management is a form of supply chain asset tracking. IoT and container management generates added value, as labeled containers can communicate automatically and without contact with gates or other IoT devices. With the help of IT-supported container management, complex container movements can be visualized along the entire supply chain. The data collected on the status, location, and movement of the containers can be evaluated and processed centrally. This ensures that the goods to be transported reach their destination as planned.

IoT also enables companies to monitor and control a large volume of containers, like an entire fleet of containers, for example. Based on the movement data, decisions can be made regarding the optimization of logistics processes. Real-time container monitoring increases the quality of the entire transport process. This benefits the entire digitalized supply chain. It is also possible to predict possible future risks using AI and data analysis.

Container management with RFID is a modern solution to the challenges of warehouse management. By using RFID containers and specialized software, companies can monitor their inventory in real time, improve the accuracy of inventory data and reduce costs. The introduction of such systems offers significant long-term benefits in terms of efficiency and profitability.

The implementation of RFID-based container management systems requires careful selection of RFID hardware and the integration of powerful inventory management software. Staff training and regular maintenance and monitoring of the system are also crucial to ensure maximum efficiency and accuracy.

For companies that have not yet integrated container management into their logistics processes, it is advisable to work with experts to determine the challenges for the introduction of container management. It is important to precisely define the goals and optimization for the transport processes and to analyze the transport containers in detail right from the start.

How large is the container pool? Should only an internal or also an external container cycle be mapped? Are all containers uniform? Are the containers already standardized? Should interoperability be established between different players in the supply chain? Does it make sense to introduce a pool system or return system? How many customers are supplied? Numerous questions are linked to the introduction of a new system. These include deciding on an identification technology and the associated hardware and software.

In most cases, the driving force behind the implementation of container management is mainly the lack of transparency about the location, amount, and the condition of the containers. However, container management could also simply reduce the number of trips or inefficient use. This requirement will represent additional complexity, but is certainly achievable. Regulatory requirements and compliance could also be a challenge. This applies in particular to the food and pharmaceutical industries. These industries have strict requirements for traceability, hygiene, and container security. However, the benefits of container management can also be seen in terms of container hygiene. The cleaning cycles can be documented for each individual container.