Intelligent packaging is based on the idea that packaging is more than a container, it can also be a highly effective communication medium, carrying information on material flows and logistics (via truck, train, ship, etc), and it can transmit information visually (via indicators, graphics, etc.) or electronically (via a barcode or the Internet) throughout every phase of the supply chain.

Intelligent packaging encompasses:

1. Decision-support systems – data layers, data processing, information flow
2. Smart package device – mostly inexpensive labels or tags attached to primary packaging (e.g. pouches, trays, bottles), or more often onto secondary packaging (e.g. shipping containers), to facilitate communication throughout the supply chain

There are two basic types of smart package devices:

• Data carriers, such as barcode labels and radio frequency identification (RFID) tags, used to store and transmit data
• Package indicators, such as time-temperature indicators, gas indicators and biosensors, used to monitor the external environment and, when appropriate, issue warnings

Decision-support systems and smart package devices work together to monitor changes in the internal and external environment of a food package, and to communicate the conditions of the product. The result is that faster decisions can be made regarding the best handling of the product and appropriate actions can be taken.