Logistics Management
How Does IoT Inventory Management Improve the Supply Chain?
According to a recent survey,
over 45% of manufacturers and supply chain companies still rely on
spreadsheet-based methods for their inventory management. These businesses
invest more than half of their working hours organizing these sheets and
updating the latest inventory details every month. They have to employ an
additional workforce and long hours to write data on papers and enter
information about each product in the spreadsheet. The problem is not just
restricted to labor-intensiveness and no productive hours but the serious
concern is that above 80% of these sheets contain errors and manual mistakes.
Logistics and
supply chain software development tackles these fundamental problems,
overcoming all the issues bound to manual methods. Inventory management powered
by IoT has revolutionized everything from manufacturing and storing to tracking
and supplying products as they move from factory to warehouse and further. The
automated inventory management system processes re-orders within the stipulated
time so that replenishment of inventory can be done before the item runs out of
stock. Needless to say that this ensures maximum productivity as enough
products are available in the inventory while avoiding an overstocking
situation. The way inventory management has replaced old-fashioned and outdated
spreadsheet counts is just exceptional.
IoT-driven inventory
management has laid a strong foundation for supply chain and logistics companies
and today we are going to discuss some of these transformations in detail. Have
a look:
Automation of Inventory Tracking
IoT
inventory management enables managers and supervisors to track the products
in hand order for new stock before the existing depletes. Of course, when they
are using manual techniques or lengthy spreadsheets for the task, updating
inventory numbers is quite difficult and challenging. Also, the time required
is so much longer than the automated tracking system that gives updated reports
within a few seconds. IoT takes inventory and asset tracking up a notch by
providing real-time location information for each and every item in the supply
chain. Now, business owners or inventory managers need not spend their whole
day in manual tracking and reporting. The system will keep a tab on each item,
record the data, and send the report to the warehouse in a blink of an eye. The
companies can check inventory levels, eliminate product shortage, and avoid
losses due to theft while saving up to 15-18 hours a month.
Precise Location Monitoring
Considering the technological
advancements, knowing the real-time location and status of each item of
inventory is a new standard. The IoT-based shipping
and logistics solutions have revolutionized the supply chain by allowing
precise visibility into the movement and flow of raw materials, final products,
work-in-progress, and more. The managers get updated and the latest data about
the status and location of items, so they can see when an individual product
enters or leaves the warehouse. Also, delivery services are enhanced with this
advanced system as each package that is sent is scanned by the management
system, tracked while it is in transit, and also recorded once delivered. As a
company adopts IoT capabilities combined with 5G data transmission, it can get
access to micro-tracking. Inventory management takes care of everything
throughout warehousing, processing until the products are manufactured, sold,
and written off as a loss. Being a cost-effective and economical solution, IoT increases
the number of items that can be tracked by trillions.
Supply Chain Transparency
The major concern for most
businesses is transparency so they can keep their consumers updated about the
updated location and exact delivery schedule. However, hardly any system can
address this issue efficiently. Our supply chain
software service makes it possible through a one-stop solution. Now,
consumers can make environmentally friendly choices and keep an eye on the
movement of the product and where it is coming from. As per a survey, more than
65% of shoppers are ready to pay more for products if they are assured that the
companies are committed to environmental changes and a transparent supply
chain. Apart from maintaining the eco-conscious approach, supply chain
transparency also eliminates disruptions and obstacles that often put the
entire process at risk. The IoT inventory management brings transparency that
identifies any issue instantly with suppliers and gathers all the significant
information in one place as soon as a problem arises.
Artificial Intelligence Algorithms
Yes, you may employ the most skilled and proficient human resources to manage inventory and keep track of the supply chain. However, the results can never be precise and accurate as in the case of algorithms developed using artificial intelligence technology. The system performs better than any human counterpart and also assures the correct outcomes without any error. The AI algorithm scans the entire database and determines patterns that are not visible to the human eye. This smart system enhances logistics and supply chain management processes and also helps in making informed decisions. You can also use AI alone to change system functions, such as replacing inventory ordering or can combine it with human supervision to discover important and key patterns.
Prevention of Downtime
Have you heard of the maintenance
schedule? We are sure that you must have used it in your maintenance strategy.
If not, then here is a brief insight. Here, warehouses and supply chains take
equipment offline according to the set schedule to review and inspect them for
any flaw. They are repaired immediately so they can be used when needed the
most. However, the strategy is not the best way to prevent downtime despite
being the most common one. According to a study, only 18% of equipment failures
are due to age rest occur because of random reasons. Hence, IoT technology
solutions provide a more reliable and result-oriented strategy by removing
preventive maintenance. The companies do not have to predict when equipment
might be needed to maintain it. The IoT inventory management has sensors that
review the health of every machine and update data in the software. This alerts
supervisors and maintenance teams so they can take the equipment offline,
repair it, and prevent any costly downtime.
Summing It Up!
The use of IoT solutions is
prominent in almost every industry and the supply chain is no exception to it.
Embracing technology for inventory management is undoubtedly a wise and
profitable decision for all organizations. You can expect it to grow
exponentially, bringing major transformations in the industry. Moreover, you
also cannot deny the fact that it is a cost-effective and efficient
solution.
As you have finally decided to
implement IoT inventory management in your company, it’s time for you to
connect with our IT
consultants who will guide you throughout the process and help you identify
the right software for you. Give us a call or drop us an email and we will
reach you back at the earliest.
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