How Connected Packaging Powers the Circular Supply Chain
Connected packaging is revolutionizing supply chains, boosting efficiency, and driving sustainability. John Dwyer, Vice President of Digital Innovation at Smurfit WestRock, highlighted the transformative potential of Born-Digital packaging during a guest session hosted by Levata. Barcodes, Inc. is a Levata company.
By combining cutting-edge technologies like traceability, automation, and circular economy principles, Smurfit WestRock is redefining the role of packaging in modern business. Below is an overview of Dwyer’s insights and the impact of Born-Digital packaging on sustainability and supply chain efficiency.
Transforming Supply Chains with Connected Packaging
Traditional supply chains often face inefficiencies, including waste from overstocking. The pandemic exposed these vulnerabilities, emphasizing the need for smarter, connected solutions.
Smurfit WestRock’s Born-Digital packaging integrates advanced technologies like RFID, Bluetooth Low Energy (BLE), NFC, and serialized QR codes into packaging, creating digital identities for products. These innovations enable real-time tracking, improve inventory visibility, reduce waste, and optimize delivery timelines.
For instance, Smurfit WestRock collaborated with a quick-service restaurant chain to track fresh beef throughout its supply chain. By incorporating RFID technology into refrigerated packaging, the company ensured precise, scalable solutions for transitioning from frozen to fresh beef—an essential step for maintaining quality and meeting demand.
Driving Recycling and Sustainability
Sustainability is at the core of Smurfit WestRock’s operations. The company operates 32 recovery facilities in North America, collecting two-thirds of Walmart’s packaging waste and transforming it into new materials. This closed-loop system supports retailers’ ESG goals while reducing waste.
A standout example is Smurfit WestRock’s leadership in the pizza box market, producing approximately 3 billion boxes annually, covering 55% of the U.S. market. Domino’s has introduced QR codes on its boxes to educate customers about local recycling guidelines. Research conducted by Smurfit WestRock confirms that pizza boxes are recyclable, even with food residue, further reducing environmental impact.
Key Trends Shaping Born-Digital Packaging
Several key trends are driving the adoption of connected packaging:
- Real-Time Data Demand: Businesses require instant access to data for better decision-making, particularly in retail and logistics. Connected packaging improves inventory accuracy and supply chain visibility.
- Enhanced Connectivity: Innovations like Wi-Fi 6E and 5G ensure seamless data transfer in harsh environments.
- Circular Economy Integration: Businesses are prioritizing recyclable materials and digital traceability to minimize environmental footprints and meet regulatory standards.
Smurfit WestRock is leading the charge with advanced solutions like light-sensitive sensors that detect unauthorized package openings, enhancing security and trust. By creating scalable, end-to-end systems in partnership with companies like Barcodes, Inc. and SLS, the company ensures seamless integration of sensors, readers, and gateways to address complex supply chain challenges.
Maximizing ROI with Smart Packaging
Connected packaging offers businesses significant returns on investment, often within 12 months. Automating processes like cycle counting allows organizations to redeploy labor to higher-value tasks, reducing costs and improving efficiency.
For instance, smart packaging helps retailers avoid costly penalties for incomplete or late shipments by providing electronic proof of delivery.
A Vision for a Sustainable Future
John Dwyer concluded his presentation by reaffirming Smurfit WestRock’s dedication to the circular economy. Approximately 30% of old corrugated containers in the U.S. are recycled into new packaging, showcasing the company’s commitment to sustainability. As regulations like FSMA and EPR evolve, Smurfit WestRock’s ability to track and recycle packaging will remain a vital tool for achieving compliance and advancing sustainability.
Discover the Future of Packaging
By combining innovation, sustainability, and strategic partnerships, Smurfit WestRock is revolutionizing packaging and creating a smarter, more connected supply chain. Learn how your business can leverage connected technologies, recycling innovations, and sustainable practices to transform your operations and meet evolving market demands.
Contact us today to explore the power of Born-Digital packaging in driving a sustainable, circular economy.
