IoT in packaging: a game changer for supply chains

he Internet of Things (IoT) is transforming packaging supply chains by enhancing traceability, improving inventory management, and optimising logistics. Credit: August Phunitiphat / Shutterstock

T​​​​​​​he Internet of Things (IoT) is revolutionising packaging supply chains by enhancing traceability, improving inventory management, and boosting logistics efficiency.  

By integrating smart sensors, RFID tags, and real-time tracking technologies, businesses can achieve greater transparency and reduce losses throughout the supply chain. 

Traceability is crucial in ensuring product authenticity and safety. Traditional methods often rely on manual record-keeping, which can be prone to errors and fraud.  

IoT-enabled packaging addresses these challenges by embedding technologies such as RFID (Radio Frequency Identification) and NFC (Near Field Communication) chips into products. These chips provide each item with a unique identifier, allowing for real-time tracking from production to the consumer. 

For instance, Pragmatic Semiconductor has developed ultra-thin RFID/NFC chips that can be integrated into packaging, ensuring authenticity and helping to combat counterfeiting. These chips enable near real-time traceability, providing transparency and building trust with consumers.  

In the pharmaceutical industry, where counterfeiting poses significant risks, IoT technologies play a vital role.  

By incorporating smart sensors and blockchain technology, companies can create immutable records of a product's journey through the supply chain, ensuring that only genuine products reach consumers.  

Maintaining the integrity of perishable goods during transportation is a significant challenge. IoT-enabled packaging offers solutions by providing real-time monitoring of environmental conditions such as temperature and humidity 

Smart labels equipped with sensors can continuously track these parameters, sending data to a centralised system accessible to stakeholders.

For example, in cold chain logistics, smart packaging solutions with embedded sensors monitor environmental conditions from the point of origin to the final destination. These sensors track temperature fluctuations, humidity levels, and exposure to light, sending data to a centralised system that stakeholders can access in real-time.

This instant access to information allows logistics managers to respond proactively to potential issues, such as re-routing shipments or adjusting storage conditions to prevent spoilage.

This level of monitoring ensures that perishable goods remain within required conditions, reducing spoilage and waste. It also provides verifiable records for compliance with safety standards, which is essential in industries like food and pharmaceuticals.

IoT technologies enhance inventory management by providing real-time visibility into stock levels and product locations. 

 Smart sensors and RFID tags enable automated tracking, reducing manual errors and labour costs. This real-time data allows businesses to optimise stock rotation, ensuring that older products are distributed first, thereby minimising waste. 

In logistics, real-time tracking devices that emit signals using cellular networks, Bluetooth, and RFID technology provide precise monitoring of packages in transit. This advancement addresses the limitations of traditional barcode scanning, which often fails to reflect a package’s real-time location.  

Companies like Royal Mail and UPS have adopted these technologies to enhance operational visibility and reduce errors in their delivery networks.  

Furthermore, integrating IoT with artificial intelligence (AI) can optimise routes and inventory management. For example, French shipping and logistics company CMA CGM has partnered with Google's Alphabet to enhance its global operations through AI solutions, aiming to boost efficiency and reduce costs and emissions by optimising routes and inventory management.  

The integration of IoT in packaging supply chains is transforming how businesses manage traceability, inventory, and logistics. By adopting these technologies, companies can enhance transparency, combat counterfeiting, ensure regulatory compliance, and optimise the handling of perishable goods.  

As IoT continues to evolve, its role in creating more efficient and secure supply chains will undoubtedly expand, benefiting both businesses and consumers alike.