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 The way inventory management has replaced old-fashioned and outdated spreadsheet counts is just exceptional.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.