How is IoT Changing Inventory Management

How is IoT Changing Inventory Management

Inventory management solves the basic business need. Nowadays inventory management eliminates the dependency on spreadsheets and physical counts. Currently, cloud-based inventory systems are enabled to trace items in real time.

Normally products have either an RFID tag or barcode label so they can be scanned and easily identified by the system. Right now, this is how systems are able to supply visibility into inventory levels, item location, expiration dates, forecast demand, and more.

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The ability to utilize the IoT to enhance inventory management now creates the possibility for businesses of all sizes to analyze inventory in real-time. Data transmission will increase remarkably over the next years with the deployment of 5G Network Technology.

Here are a few ways that IoT improves inventory management:

Real-time Communication:

One of the basic advantages of deploying an inventory management system using IoT is that communication is increased. Everything, which is a wisely-sized unit of value in the inventory management chain, is allowed with communication abilities.

Precise, Detailed, Location Monitoring:

Knowing the status of every item of inventory in real-time is the new standard. Delivery services already do this excellently with packages. A package that is being sent is examined into the system, tracked while in transmission, and then the delivery is recorded.

With the expanding IoT abilities, interfaced with 5G wireless data transmission, this will allow micro-tracking. Inventory management systems will be capable to improve in roughness to not only track a package but also be able to track the individual items inside.

Micro-tracking is restricted to items that can include a physical RFID chip or have a barcode marked on them or their packaging. To be cost-efficient, the items must have an individual value that is properly high enough to be worth using inventory tracking methods to account for them. However, with IoT, the number of specific inventory items that will be traced will increase by the trillions.

A touch less Data Collection:

The best uses for an inventory management system using IoT are to have as little human involvement as possible.

Data collection of the inventory items should be highly-automated so that when each item proceeds through a scanner; its presence in inventory is tracked and recorded.

When the item is utilized or sold, physically moving it out of the warehouse through another scanner (or at another checkpoint in the supply chain) minimizes the inventory count for that item.

Artificial Intelligence Algorithms:

Algorithms evolved using computer-learning AI systems may be capable to track and analyze inventory better than a human equivalent.  By scanning IoT data, the AI system may notice patterns that a human being may not find. This process may enhance inventory management decisions.

AI may be used on its own to improve system functions such as substitution inventory ordering, or it may be interfaced with human supervision and human decision-making about note-worthy data patterns found through the AI algorithms.

Warehouse Management:

Using technology that is enabled by the IoT along with the coming enhancements provided by 5G wireless technology increases the logistics of warehouse management.

Warehouse management is about the systematic use of the space and the activity that exists in that space.

Space in a warehouse is better assigned after considering the utilization pattern. More often used items can be stored more closely to the access points to enhance warehouse efficiency.

IoT in inventory management involves the use of smart shelves and storage bins that can interface how long things have been detained in those places and how full they are.

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Fleet Inventory Management:

If an organization’s catalog involves equipment and vehicle fleets, then the IoT is very helpful. Tracking mechanisms utilize GPS locations to gather data about where the equipment or fleet vehicles are always. This data assists in analyzing the usage of the tracked items and helps prevent loss or unofficial use.

Integration with Robotics:

Inventory management using IoT systems allows the easier combination with robotics that is used in coincidence with inventory processes.

For example, many online retailers have a remarkable amount of work required to do in picking items to fill a customer’s order. Robotics can do this work more effectively in conjunction with IoT-connected inventory items and systems.

Accepting IoT for inventory management is, in general, an intelligent decision for most organizations. However, there are issues with IoT execution that requires to be considered as well.

They are the standards, and investment costs that help devices communicate with each other. Certainly, all those concerns must be addressed to make a successful inventory management system using IoT.

Cloud Computing Increases the impact on IoT Systems:

Cloud computing offers remarkable computational processing required to create the benefits of using IoT systems for inventory management. This cloud-computing processing power allows data mining of large sets of data by relating sophisticated analytics, in order to make correct predictions.

Optimizing resources will enable you to dispense products — from ordering to pick-up and delivery — from any channel. This is truly increasing the return on resources.

In spite of these concerns, the cost of the IoT Ecosystem continues to decrease and the deployment of IoT for inventory management resumes advancing.

For many organizations, this is quickly becoming a cost-efficient and effective Industrial IoT Solution for inventory management.