Norwegian Company Uses RFID to Track Logistics
Norsk Resirk is a non-profit Norwegian company that processes discarded plastic bottles and aluminum cans. It has completed the first phase of a plan to utilize UHF RFID tags and readers to improve its management of recyclable materials.
Initially, the firm is reading RFID labels attached to plastic bags containing the recyclables at one of its plants. Now, the company has a long-term goal: to have the tags read by bottle- and can-collection sites at the point at which the bags are filled, interrogated again by truck drivers transporting those bags, and finally read a third time at all three of Norsk Resirk’s plants.
In that way, the company will be able to know when and where empty bottles and cans are picked up and delivered, in addition to who may be responsible if the recyclables fail to reach their destination.
By reading RFID tags on those sacks as they arrive at the plant, the firm saves thousands of dollars by better knowing how many bags were received, and from whom, and then paying users accordingly.
Norsk Resirk’s logistics and operations controller, Martin Ludvigsen says, in the future, when Norsk Resirk installs RFID readers at all three plants, more data will be available to identify instances of incorrect goods deliveries. “This is important,” he explains, “because when bags are delivered to the wrong channel, they go right into the production facilities, and the articles will not be counted, leaving the deposit point (DP) without a correct payment.”
Besides, having the data, Norsk Resirk will also be able to conduct business analytics, such as comparing how bags of recyclable bottles and cans were received from which locations.
Ludvigsen predicts that the RFID solution—once it is installed at all three of its plants, as well as at the DPs—will save the company tens of millions of Norwegian kroner (about six kroner equals one U.S. dollar).”A single plant installation saves money in the chain of logistics regarding its area,” he notes, “but we need to install the solution at all plants and DPs to close any possibility of losing bags in any area.”