December 9

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5 Advantages of Incorporating an IoT Approach in Inventory Management


The internet of things (IoT) can be referred to as an intelligent prevalent environment that is based on an ongoing proliferation of massive data centers, wireless sensors and intelligent networks.  The main objective is that virtually every large or small physical thing in this universe computer is linked to the internet.

Whereas, inventory management can be defined as a systematic approach to tracking down, saving and selling the stock. It incorporates both finished products and raw materials. In the business terminology, inventory management means that there is correct stock, at the correct levels, in the correct place, at the correct time and at the correct price and cost.

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Nowadays, all companies want to systematically manage their stock levels. This helps them in managing business functions efficiently and profitably without wasting time and resources. Therefore, companies tend to look for the best IoT solution providers to manage their inventory levels. IoT based inventory management provides an extremely solid base for digitalization of production ecosystems. It has numerous process and business benefits.

Keeping this scenario in mind, we are presenting to you the list of five advantages of incorporating the IoT approach in inventory management.

Automated Inventory Tracking And Reporting

The IIoT and RFID enable the inventory managers not to allocate time on manual tracking and reporting. Every item is traced and the data regarding this is recorded in a big data warehouse automatically. This process is called automated asset tracking and reporting. It enables the company to save up to 18 hours per month and also decreases the chances of human errors.

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 Constant Visibility of the Quantity of Inventory Items, Movements and Location

The IoT solution providers create best possible IoT based inventory management solutions that provide manufacturers accurate visibility into the raw material and components flow, work-in-progress and completed goods by offering present updates regarding the movements, location and status of items. As a result, inventory managers see the time when an inventory item enters and leaves a specific location.

Optimization of The Inventory

The enhanced knowledge of the inventory enables the managers to have correct items in the correct place, at the correct time. The real-time data regarding the location and quantity of the inventory items enables the managers to decrease the costs while fulfilling the requirements of the consumers at the end of the supply chain.

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See If There Are Bottlenecks In The Operations

Manufacturers can identify hurdles in the manufacturing process and identify machines with lesser utilization rates. This is attained with real-time data regarding the quantity and location of the inventory items. For example, if some parts of the stock tend to pile up in front of a machine, a manufacturer thinks that machine is not utilized properly and requires it to be checked properly.

Optimization of The Lead Time

This will enable you to provide inventory managers with the data regarding the quantity of inventory available and machine learning driven demand prediction. It provides solutions based on IIoT that enable manufacturers to decrease the costs and lead times. Let’s take an example of Zara; it has an RFID-based inventory management solution. This allows zara to capture garment design via the manufacturing process to a smart warehouse in only ten days.

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