IBM > Case Studies > Container Centralen AS Counterfeit solving RFID solution improves supply chain efficiency

Container Centralen AS Counterfeit solving RFID solution improves supply chain efficiency

IBM Logo
Customer Company Size
Large Corporate
Region
  • Europe
Country
  • Denmark
Product
  • IBM® Global Business Services® Application Management Services
  • IBM Global Business Services Application Innovation Services
  • IBM WebSphere® Sensor Events
  • IBM Global Financing: Payables and IT Financing
Tech Stack
  • RFID control system
  • Application interfaces
Implementation Scale
  • Enterprise-wide Deployment
Impact Metrics
  • Cost Savings
  • Productivity Improvements
Technology Category
  • Sensors - RFID Readers
  • Application Infrastructure & Middleware - Data Exchange & Integration
Applicable Functions
  • Logistics & Transportation
Use Cases
  • Track & Trace of Assets
  • Supply Chain Visibility
Services
  • System Integration
  • Software Design & Engineering Services
About The Customer
Container Centralen is a company that owns and manages a system of returnable containers in the European Green Sector supply chain infrastructure. The system is used by several stakeholders in the sector including growers, auction houses, transporters, exporters etc. and is operated across 22 countries. The company provides reusable plant and flower shipping containers in Europe and maintains over 3.5 million containers in its inventory. These containers circulate through 60 depots spread across Europe.
The Challenge
Container Centralen, a provider of reusable plant and flower shipping containers in Europe, maintains over 3.5 million containers in its inventory, which circulates through 60 depots spread across Europe. For years, the company has faced a significant challenge: counterfeiting. Up to 20 percent of the container pool is counterfeit, creating a twofold challenge to CC. First, because the reusable containers belong to CC, it is responsible for their cleaning, maintenance, repair and replacement. Second, since customers are using more containers than they are paying for, CC is losing lease revenue while being responsible for containers it does not own.
The Solution
By implementing a custom RFID control system, Container Centralen has created a way for the supply chain to transform itself, without having to take on the cost of creating it. The solution — the first of its kind in the industry — aims to eliminate the problem of counterfeit containers once and for all. An elegant aspect of CC’s approach is that it does not matter whether a tag is attached to a counterfeit container or a genuine one, what matters is the total number of tagged containers in circulation. Implementing the solution also benefits CC’s customers, since information associated with each tag can also provide unprecedented insight into the supply chain. For example, the ability to tell exactly what is in each container without physically inspecting it enables customers to proactively manage their product shipments to maximize efficiency. To facilitate this industry transformation, CC is providing the necessary application interfaces free to any customer who wishes to develop the capability.
Operational Impact
  • Provides up to 30 percent savings in container processing costs
  • Enables significant customer price reductions, with a commitment of 12 percent over two years
  • Establishes the infrastructure foundation for sophisticated customer track-and-trace systems, enabling the creation of a more efficient supply chain
Quantitative Benefit
  • 30% savings in container processing costs
  • 12% customer price reductions over two years

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