“IoT-driven inventory management refers to leveraging internet and IoT devices and sensors, RFID tags, BLE beacons, GPS tags, etc. to accurately collect data and track and trace inventory items for efficient inventory management.”
The year 2024 is the era of Industry 4.0 which means leveraging modern IoT and various AIDC technologies such as RFID, Barcode, BLE, UWB, etc. to not only eliminate manual methods of data collection and data entry on spreadsheets and paper but to completely digitize the same. IIoT (Industrial Internet of Things)-driven modern warehousing and inventory management successfully transforms the manufacturing and supply chain operations and brings automation to day-to-day processes. It is an instrument of change that is now globally implemented and adhered to.
The supply chain, logistics, and warehousing businesses can greatly benefit from IoT-driven operations, and automate inventory tracking and reporting. Having technological means to collect data at the item level and leveraging that data to unlock actionable insights and streamline inventory management is crucial to stay competitive globally. However, as per research, only 33% of businesses in manufacturing use Inventory Management systems. The rest 67% still depend on manual data entry and record keeping on Excel sheets and paper sheets. This leads to inaccuracy and human errors. Manual methods of data collection are also costly and time-consuming, consuming crucial resources that can be used somewhere else.
In 2021, Accenture conducted research on RFID utilization in retail operations and inventory management. It found that 93% of retailers in North America use RFID technology in varying capacities. Of all the retailers surveyed, only 5% weren’t considering RFID. The majority of retailers, 80%, said that the benefits of RFID technology cannot be replicated by any other technology.
So, what’s an IoT-driven Inventory Management?
First of all, let’s understand what constitutes IoT-driven inventory management. IoT-driven inventory management involves leveraging the Internet of Things (IoT) technology to enhance the tracking, monitoring, and optimization of inventories. This is achieved through the use of various technologies such as RFID, BLE, UWB, GPS, etc. These technologies play a crucial role in providing real-time visibility into inventory, improving operational efficiency, and enabling data-driven decision-making. The use of IoT in warehousing and inventory management completely transforms how we manage crucial operations, collect data, and ensure inventory visibility and order fulfillment.
Some Inventory Processes and relevant IoT devices are as follows:
1.Item tagging and identification- RFID tags, BLE beacons, Barcode labels
2. Gate entry/gate out- RFID tags, Barcode labels, RFID, and barcode scanners.
3. Putaway- RFID tags, RFID readers and antennas
4. Reshuffling- RFID tags, RFID readers, and antennas
5. Item-finding- RFID Readers, RFID labels on items
6. Indoor Tracking- RFID tags, BLE beacons, smartphones
7. Outdoor Tracking- GPS tags, UWB tags
8. Inventory controls, audits, and insights- Inventory Management System
In an IoT-driven inventory management solution based on Industrial IoT and RFID, individual inventory items are tagged with RFID tags, each containing a unique identification number (ID) with encoded digital data about the inventory item, such as model number and batch number.
The RFID-tagged items are scanned by RFID readers, which then transmit the tag IDs to the cloud for processing, enabling real-time tracking and monitoring of inventory. Thus RFID technology eliminates manual inventory control and audits. One can directly find inventory records and reports, order replenishment and manage lead time through the inventory management system itself.
RFID technology is particularly well-suited for warehouse inventory management systems, as it facilitates the wireless transfer of tag information to open-source hardware via a wireless link, contributing to improved inventory management.
Real-time locating systems (RTLS) incorporate identification, location, and timing, and utilize technologies such as WiFi, BLE, RFID, UWB, and GPS for indoor and outdoor tracking. Having this level of control is particularly helpful in ensuring an efficient supply chain and logistics. One can have constant visibility into the quantity, movement, real-time location, and ETA, and thus ensure order fulfillment. BLE beacons offer great tracking range and precision in indoor tracking operations and these beacons can be easily integrated with a mobile inventory management system, sharing inventory tracking information directly on user’s smartphone.
UWB-driven technology, such as Redundant Radio Localization and Tracking (RRLT), offers more precise RFID for RTLS applications, contributing to improved accuracy in tracking and locating inventory items. The use of UWB technology, along with other low-power indoor tracking and navigation technologies like BLE, contributes to the future-oriented IoT RTLS technology standard, providing enhanced performance for inventory management.
GPS technology is another crucial IoT technology that allows you to track shipments and inventory items on the move, all on a computer screen. Attaching a small GPS tag to consignments and integrating the same with the warehouse management system allows you to remotely track your consignments in real time. This level of inventory control prevents stockouts and enhances order fulfillment.
While GPS is primarily used for outdoor locating solutions, it is not as successful for indoor tracking as GPS signals don’t penetrate walls. However, it remains an important component for outdoor inventory tracking and monitoring.
GPS, combined with LTE, LoRa (Long Range), and WiFi technologies, is utilized for real-time monitoring of inventory, enabling companies to track and monitor their inventory in real-time and respond quickly to changes.
Finally, the integration of IoT technologies such as RFID, BLE, UWB, GPS, and RTLS in inventory management systems enables real-time tracking, monitoring, and optimization of inventories. RFID tags, BLE beacons, UWB tags, and GPS tags are some great tools that effectively streamline the way we collect item-level data, track consignment, and ensure order fulfillment and customer satisfaction. The use of IIoT in inventory management thus leads to improved operational efficiency and data-driven decision-making, boosting productivity in retail, healthcare, manufacturing, etc.
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