Device interconnection is no longer a new thing. With the decline in technology costs, more convenient interconnection, and changes in market expectations, the number of things connected is increasing dramatically. Under the tide of the Internet of Things, today’s warehouses are more than just facilities for storing inventory.
Given the ever-changing landscape of business and technology, warehouse management is becoming increasingly complex and critical. Now with the Internet of Things (IoT), we can optimize warehouse space utilization even more powerfully and efficiently. Consumer expectations continue to grow and are expected to drive continued investment in warehouse IT and operations functions in the coming years.
Leveraging the latest supply chain technology and the Internet of Things (IoT), “smart warehouses” can now serve as hubs for greater efficiency and speed throughout the supply chain. From worker wearables to sensors and smart devices, internet-enabled devices and technologies can profoundly transform logistics management.
Connected devices and sensors can help manage the right quantity of product at the right price, time and place. The goal is to manage the merchandise route (trip) from the pickup point to the end point, including pickup, receiving, quality control, reporting and forecasting, etc. In a warehouse management system, every square meter needs to be allocated efficiently to ensure that specific merchandise is easily retrieved, then processed, and delivered promptly. The integration of IoT with warehouse management systems (WMS) has led to the true development of pull-based supply chains (rather than push-based).
Taking perishable food as an example, some spoilage in the warehouse can be prevented by using sensors to capture the data transmitted by each pallet when it arrives from the inbound gateway and record parameters such as size, capacity, etc. and send the entire data to the WMS for processing.
During outbound deliveries, the outbound gateway can be used to track correct orders; stock levels can also be automatically updated in the WMS for accurate inventory control. Cameras can be connected to the gateway and the pallets can be scanned to detect damage. We can also monitor worker health and fatigue, track workers’ fixed process paths, and analyze where warehouse managers can improve walkways or change processes to make workers’ lives easier and safer.
Three ways supply chains will benefit from IoT:
- Smarter warehouses: Embracing the Internet of Things enables supply chains to run ultra-efficient, optimized warehouses. The result (and subsequent impact on the bottom line) is asset loss, temperature stability, and reduced warehouse inventory optimization and accuracy.
- A responsive, continuously improving supply chain: In an omnichannel market, organizations that increase their IoT utilization will enjoy a highly intelligent, transparent, and responsive supply chain that continuously improves itself. IoT platforms will allow supply chains to accurately locate, track and measure the movement of inventory through sensor technology, with the flexibility needed to speed up or slow down as customer demand dictates.
- Deeply Intelligent Supply Chains: Through enhanced connectivity, supply chains will feel the impact of intelligence in every area of their business, including finance, customer support, marketing, sales, and operations. By improving forecast accuracy and demand planning capabilities, organizations will be able to focus on the right tasks at the right time, resulting in significant cost and time savings.
With the right IoT and WMS solutions, enterprises can connect all devices across a centralized cloud network, capture and share their mission-critical data, thereby achieving real-time visibility into their operations. This enhanced business knowledge is available through a range of enabling technologies across asset management, cloud, mobile and big data.
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