Cummins Treats Packaging as Strategic Supply-Chain Asset with RFID Tracking

Cummins has redefined packaging as a supply chain asset by integrating RFID-tagged, returnable containers and digital tracking into its operations. This approach enhances visibility, reduces waste, and increases efficiency. Led by returnable packaging operations leader Robin Newing, the program incorporates packaging decisions early in product development, using modular, standardized containers tracked with passive RFID across supply chain nodes, including Container Management Centres (CMCs) and supplier locations. The system provides real-time tracking data to optimize fleet use, inventory management, and supplier collaboration, while supporting compliance with new EU regulations, such as the Packaging and Packaging Waste Regulation (PPWR)^{1Cummins is turning packaging into a managed supply chain asset}.

Background

Cummins previously used expendable packaging, including corrugated cardboard and wooden crates, throughout its inbound supply chain. To support its Planet 2050 sustainability strategy and cut packaging waste, the company launched a returnable packaging program. This initiative deployed RFID tracking across multiple North American sites with partner Surgere^{2Cummins Boosts Sustainability with RFID-enabled Returnable Packaging - RFID JOURNAL}. The program now manages more than 500,000 RFID-tagged reusable plastic and metal containers at several Container Management Centres^{32024-25 Cummins Sustainability Progress Report}.

Details

Cummins accelerated packaging engineering integration with design, purchasing, and logistics to promote standardization. Modular container designs were created to fit various engine parts, with a data-driven algorithm recommending container types based on dimensions, weight, and order frequency^{1Cummins is turning packaging into a managed supply chain asset}. This design approach enables containers to function across model changes, improving cube utilization and reducing obsolescence, while maintaining flexibility for unique needs^{1Cummins is turning packaging into a managed supply chain asset}.

RFID technology provides real-time visibility. Passive RFID tags on each container are scanned at plants, suppliers, and CMCs, producing a digital representation of packaging flows. Planners can monitor container locations, detect bottlenecks, prevent loss-historical shrink rates reached up to 30%-and proactively balance inventory^{1Cummins is turning packaging into a managed supply chain asset}. Automation boosted operational metrics: labor time per container fell from roughly 20 minutes to seconds, and tracking accuracy reached 99.9%^{2Cummins Boosts Sustainability with RFID-enabled Returnable Packaging - RFID JOURNAL}. The system is projected to eliminate 84 million pounds of expendable packaging annually^{4CASE STUDY: Cummins Achieves Sustainability Goals with}.

Outlook

Cummins aims to expand the returnable packaging and RFID system throughout North America and into Europe by 2026, supporting EU PPWR mandates for reusable and recyclable packaging^{32024-25 Cummins Sustainability Progress Report}. Embedding packaging planning in early product design and enhancing container management are poised to position packaging as a strategic, circular asset, moving it beyond a transactional cost center.