Can “Droptags” reduce damage processing costs ?

An article in the SupplyChainDigest(http://www.scdigest.com/ontarget/13-02-13-1.php?cid=672) describes a Droptag – a device developed by Cambridge Consultants consisting of a battery, bluetooth transmitter, accelerometer and memory chip to monitor whether packages have been dropped or mishandled. Upon delivery, the customer could detect if the package was subject to significant G-forces by getting a binary read using a bluetooth device. The hope is that refusing delivery will reduce damage processing costs and identify the reason for the damage as well as provide the appropriate data. Should such droptags be included by parcel handling companies to protect their liability during transportation ? How should pay the suggested $2.50 per tag for the trip, and could reuseable droptags make these costs affordable by spreading their costs over multiple trips ? Will such devices reduce the insurance costs for large items, such as furniture, which have high damage rates ?

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About aviyer2010

Professor
This entry was posted in Operations Management, Service Operations, Supply Chain Issues and tagged , , , , , . Bookmark the permalink.

One Response to Can “Droptags” reduce damage processing costs ?

  1. Rudy says:

    Some of the space-time stamps could provide PDFs of damaged route corridors and provide governments and DOTs real time data for prompt damage/repair jobs … In fact the literature on network space-time stats has geographic measures that take into account network topologies (both manifolds and n0n-manifold networks) to address the complex nature of defective routes… Coupled with network optimization rerouting of fleets is possible…

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