A new Boston Consulting Group study predicts wider adoption of IoT tech in the supply chain to automate inventory management processes.
According to a new RFID Journal article, “How the IoT is Providing Lessons for Supply Chain Innovation”, supply chain managers are embracing Internet of Things (IoT) tech, particularly in the area of inventory management.
A 2017 Boston Consulting Group (BCG) study points out that IoT market in discrete manufacturing will grow from $10 billion in 2015 to $40 billion in 2020, and automated inventory management is one of the top most important use cases.
Of those ten applications, automated inventory management is one of only three major IoT use cases that engage multiple industries – discrete manufacturing, process industry, and retail. Using a combination of sensors and RFID tags, IoT technology can eliminate manual inventory management. Workers can tag products or materials during inventory processes, providing real-time insight into stock location and supply.
According to the BCG report: “IoT can provide much greater insight into the status of inventory and the supply chain, allowing companies to track inventory location and condition (including, for example, temperature, humidity, and damage). The ability to monitor products across the supply chain allows companies to increase processing and response time, reduce stockouts and inventory pileups, and improve just-in-time production processes.”
Xerafy has provided similar automated inventory management solutions across different industries. Sichuan Airlines, for example, is using Xerafy’s Metal Skin labels and other technology to track stock movements and transfers in its warehouse management department. The solution has reduced inventory time by 80%.
Xerafy has also expanded its RAIN RFID line with Container Trak, Cargo Trak II and Versa Trak II tags that are designed for providing real-time logistics visibility in challenging environments across the supply chain.
A number of Xerafy’s technology partners and customers will be present at the upcoming RFID & Wireless IoT Tomorrow conference, which will also feature a supply chain-focused conference forum.
Join the discussion: What are the pain points you are facing in your company’s journey of supply chain automation?