Does your milkman have RFID tracking?
Part I in a series on how technology enables and enhances the reuse systems of today and tomorrow
In many ways, building a reuse economy is an effort to bring us back to a time before single-use packaging was the norm — the days when the milkman delivered milk in glass bottles that were returned, cleaned, and used again.
But — the milkman didn’t have an RFID tag on those milk bottles to know how many were falling out of use or how many times they had circulated. He didn’t have an app to measure impact data or a high-powered robotic dishwasher to wash and sanitize bottles en masse and to a high standard.
The reuse economy of today and tomorrow adopts an ages-old concept and maximizes its effectiveness with ever more innovative technology. We’ve entered a new age of reuse — new technologies are enabling efficiencies, insights, and data that simply weren’t available to businesses before.
Various tracking, payment, reverse logistics, and dishwashing technologies are proliferating in the reuse industry. The most sophisticated systems use QR codes, RFID tags, integration with POS (point of sale) systems, mobile apps, and more to eliminate the traditional friction of deposit management.
This is what robust, enduring, scaled reuse systems demand. And what sets this modern reuse era apart. The integration of technology in every step of a reusable container’s circular life cycle is what creates an experience that is seamless for the user and a system that is efficient and effective for the operator — providing an unprecedented opportunity to scale reuse.
The world of tech in reuse is vast and growing, warranting a breakdown over a series of articles. Where to start? The system that runs through the entire cycle: the tracking and inventory management that keeps a reuse system operating optimally.
Why It Matters
By transforming reusable containers into data-rich digital assets, advanced tracking tech is unlocking operational precision, corporate confidence, and multi-billion-dollar efficiencies needed to scale the reuse economy.
How well businesses can trace reusable containers throughout use cycles impacts their ability to keep operations efficient and costs low. By knowing exactly which items are returned and when, reuse operators can reduce waste — and therefore costs — from lost containers or extras that idle in the back of house. They can use those insights to become increasingly more efficient, and grow their business.
For example, knowing which return sites are getting the most — and least — traffic informs where new sites should go to increase return rates for the whole system. And knowing where most containers are borrowed and returned enables smart route planning for the trucks picking up containers to take them to the wash facility and deliver them back to businesses clean.
IoT (Internet of Things) sensor systems: physical objects that are embedded with sensors that connect and exchange data with other devices and systems over the Internet.
Managing reuse assets digitally creates an “opportunity pathway” for companies investing in sophisticated RFID integration, IoT sensor systems, and automation. Fact.MR puts these competitive advantages at a value of $28.5-$51.6 billion over the next decade. The precise information they gather allows these companies to make even small adjustments that could lead to big increases in efficiency.
Lost containers are a liability — returned containers are an asset. So tracking how many containers are lost or damaged each month allows businesses to do far more precise inventory and budget planning, which allows the whole reuse cycle to operate more fluidly. Thus, advanced capabilities like real-time location tracking, as well as predictive maintenance analytics, can help reuse entrepreneurs secure catalytic, transformative partnerships with large venues. Corporate stakeholders are more likely to sign onto a reuse project they’re confident will be well maintained and optimized because these systems lead to high return and circulation rates — which, in turn, lead to faster ROI.
What’s more, the intelligence enabled by digital tracking allows brands to incentivize returns via deposit schemes and engage directly with consumers. For example, the operators behind Blenheim Palace’s reuse program use RFID tags on their reusable cups to measure operational efficiency, visitor satisfaction, and return rates by location — allowing them to continually refine the system, leading to more investment in the program.
How It Happens
How does all this tracing and tracking happen? Generally through QR codes, RFID labels, a combination — or other specialized cloud-based systems.
QR Codes and RFID Labels
Reuse service providers (RSPs) tend toward QR codes and RFID for their relative simplicity, affordability and accessibility. Their systems follow a shorter and less complex loop than, say, international reusable transport packaging systems, which have been around for longer and leverage complex tracking technologies.
r.World, for one of many examples, tracks their cups and serveware in bulk. Rather than scan each cup, they include QR codes on the totes in which they deliver their containers. They count again when they collect items for washing and sanitizing. The scans feed into their proprietary software platform, r.Turn, which they use to create monthly inventory and return rate reports for their clients.
Muuse, in coordination with the wash hub Arrrise, works in an open-city system in both Banff, Alberta and Toronto, Ontario. Users scan a unique serialized QR code to borrow a cup for up to 30 days, and then return it to participating locations for washing and recirculation. The code both provides data to operators and helps to ensure returns, since it denotes that the cup is part of a system of reuse.
While many reuse service providers offer the full suite of services to operate a reuse system, some specialize in particular areas. Reuzzi, for instance, offers a “container-agnostic” QR (and in some cases, RFID) tracking technology for reusable containers, primarily implemented at university and college campuses. Dining service operators can choose what container works best for them and use Reuzzi’s technology to integrate into their POS system, track containers, and view impact metrics.
Full-service reuse provider Bold Reuse, in the meantime, launched a test run with Avery Dennison of RFID-enabled reusable cups at Portland sports venues, using digital tracking to make large-scale reuse more transparent and efficient. The RFID tag used in the pilot was tested to withstand 1,000 industrial wash cycles and created to integrate with both fixed RFID readers installed at the wash hub and handheld scanners used by venue staff. This setup allowed Bold Reuse to automatically collect data on return rates, dwell time, wash cycles, and the percentage of cups retired or damaged. Each RFID tag contains a unique identifier that eliminates the need for line-of-sight (e.g., individual) scanning — allowing cups to be read in bulk. The collected data gives Bold Reuse a sightline into back-of-house operations and where and how cups move through a venue, which they can use to inform process improvements.
Another potential benefit of RFID tracking? According to Tim Sykes of Avery Dennison, speaking on the Sustainability Perspectives Podcast:
“... in the washing facility, just replacing a QR code with an RFID label which allows for automated reading without scanning each vessel by itself, we can reduce the amount of people that we need in the washing facility by up to 50% — which is tremendous when you look at the cost of a reuse system.”
Of course, building a just reuse economy requires a delicate balancing of the economic benefits of providing safe, quality jobs and the economic benefits of tech-enabled efficiencies, particularly during a startup phase. Humans will always have a role in successful, scaled reuse systems.
Proprietary Systems
Reducing human labor may not be a priority for a small closed-loop system. But for reusable transport packaging, being hands-off is practically essential. The reusable foodware sector is burgeoning, especially in the US, but reusable transport packaging has been around for decades. And because it circulates through vast, complex global supply chains, advanced tracking technology makes for the most efficient and successful systems.
The list of technologies that can track, identify, or count goods or assets is impressive: RFID, barcode, cellular or LPWAN, bluetooth low-energy (BLE) or Wi-Fi, self organizing sensor area networks, low power mesh, digital watermarks, ultra-wide band (UWB) for RTLS (real-time location system), and even blockchain platforms.
If this list is Greek to you, that’s because these are sophisticated “hidden technologies” whose indicator of success is the seamless operation of global supply chains — designed precisely so that we don’t have to think about them. Each offers specific characteristics which make them suitable for targeted use cases, alone or in combination. As reuse systems for foodware and CPG scale, supply chains become more sophisticated, and infrastructure becomes interoperable, this vast array of technologies and proprietary systems will have their place.
Even now, many reuse service providers have developed their own proprietary systems that combine various tracking and data measurement tools to provide operators and customers with essential information.
Similar to r.World’s r.Turn system, Re:Dish developed DishTrack — inventory and impact software that integrates with tracking technology to follow every reusable unit. CLUBZERØdeploys “digital first reuse infrastructure” and to date has tracked 3 million reusable packaging rotations processed through AI-powered systems. Because CLUBZERØ operates in Europe where many municipalities and even entire countries have reusable packaging laws, their system also allows businesses to demonstrate regulatory compliance (a function soon to be necessary in the US, too!).
One company, 99Bridges, focuses solely on developing proprietary tracking software and hardware (think “smart” collection bins) that can integrate with pre-existing reuse systems — as well as into third-party platforms for inventory management, payments, and the like. They call their product, MOSAIC, an operating system built for scaling reusable asset tracking. It’s intended to make operations more effective, and thus, more scalable by being able to operate at a variety of levels of business development.
“The reusable packaging market is predicted to reach $258 billion by 2035. This is driven in large part by next-generation smart packaging technologies requiring sophisticated tracking and management systems. ”
Tracking Success
The reusable packaging market is predicted to reach $258 billion by 2035. This is driven in large part by next-generation smart packaging technologies requiring sophisticated tracking and management systems. Fact.MR forecasts a bit of an innovative tech snowball effect. Advancing technology for reuse systems creates a model of exponential market expansion, wherein further innovation in tracking technologies continually influences and improves product development.
While the milkman may be the 20th century’s most iconic imagery of a reuse system, today’s reuse sector is a high-tech ecosystem of innovation. From tracking technologies to sophisticated cleaning protocols, point-of-sale integrations, gamification for consumers, and more, tech is fueling the new reuse economy.
Part II will take a look at each step in a reusable container’s cycle and how technology is increasing efficiency, return rates, and consumer engagement — beyond what the milkman ever dreamed possible.
QR code, RFID… what??
QR codes and RFID tracking are both technologies used for inventory management and tracking.
RFID (Radio Frequency Identification): Uses radio waves to communicate with tags containing a microchip and an antenna. It enables contactless reading and can identify multiple tags at once.
How RFID Works in Inventory Management:
Items are tagged with RFID labels embedded with a unique identifier.
An RFID reader scans multiple items at once, even through packaging or from a distance.
The data is transmitted to an inventory management system in real-time.
QR Code: A two-dimensional barcode that stores data in a graphic pattern. Requires direct line of sight and a camera-equipped reader (such as a smartphone) to scan.1
How QR Codes Work in Inventory Management:2
Each item is labeled with a printed QR code containing product or tracking details.
A scanner or smartphone reads the QR code to update inventory records.
Information is stored and accessible in the inventory system.
Key differences between RFID and QR Codes:
Capacity and Durability
RFID: Can store significantly more data than a QR code. RFID tags are also more durable, resisting dust, dirt, and harsh environmental conditions.
QR code: Has limited storage capacity compared to RFID. More susceptible to physical damage, which can affect readability in adverse conditions.
Usage and Applications
RFID: Ideal for logistics and inventory management, access control, and automated processes where multiple objects must be identified quickly and efficiently, even when not visible.
QR code: More focused on marketing, sales, and customer interaction, such as restaurant menus, product information, or payments.
Ease of Use
RFID: Requires more resources to implement but can reduce long-term operational costs by automating processes.
QR Code: Easier to implement, requiring only a mobile device with a camera.
