3 Ways Manufacturers Can Automate Logistics With IoT
The Internet of Things (IoT) is a hot topic in business and manufacturing. This technology can change the way we do things by connecting everything from our homes, cars, appliances to one another wirelessly. It’s no surprise that manufacturers are looking for ways to use IoT in their operations and logistics. In this blog post, we will discuss 3 ways manufacturers can automate logistics with IoT.
Real-Time Shipment Tracking
Manufacturers have been using GPS technology for a long time now, but this has proved insufficient since it does not provide them with data on where precisely the shipments are at any given moment. With IoT, however, manufacturers can track their shipments every step of the way without relying upon third-party providers.
For example, they could use tags that communicate wirelessly with receivers placed throughout the supply chain (at each warehouse). The chips embedded into these tags would include an identifier code that links up all other tracking information.
These chips can also collect data on temperature, humidity, and shock levels. This information could be used to determine an item’s quality-if it gets exposed to extreme temperatures or if there was any impact during transit. It would then be possible for manufacturers to pinpoint whether the damage occurred at a certain point in their supply chain or from where exactly they should demand compensation from third-party providers such as trucking companies.
This chip-based system is handy when combined with smart logistics applications since it allows them to track items and automate delivery by telling trucks which route to take. In addition, these tags can communicate wirelessly with drones that pick up tagged shipments directly off conveyer belts without having human intervention (again saving money)
In addition to all of this, manufacturers can also improve their delivery methods by using robots fitted with sensors and programmed to follow designated routes. This allows them to reach warehouses faster than before since they do not have to rely on people or forklifts for access.
This system has the added benefit of being extremely flexible-the route followed by a robot could be adjusted depending upon where it needs to deliver next (e.g., if its inventory is running out). This way, shipments would never get delayed due to lack of space in any given warehouse.
Inventory Management
IoT also allows manufacturers to do more than track the location of shipments and automatically update inventory. We can use sensors on assembly lines or machines (in a manufacturing plant) to determine how much raw material is available, which would help them know when to re-order stock. Manufacturers can even combine smart logistics applications with an automated ordering system that works as follows:
The real-time data regarding orders placed by customers, capacity utilization, and level of inventories are fed into the application along with weather forecasts, news feeds, and other critical information.
The Smart Logistics Application will then analyze this data to suggest production schedules for each line based upon demand forecast and supply conditions.
This requires less workforce on their part since there are fewer employees involved in the decision-making process. The application can also send alerts when inventory levels are too low, or goods are due to expire.
Routing Optimization
Manufacturers can use innovative logistics applications to optimize their supply chain process by generating custom routes explicitly designed for the needs of a particular shipment.
IoT-enabled sensors send information about a product’s location and environmental factors like temperature or humidity levels so that they can be monitored remotely. Manufacturers may use this information to improve routing plans for transportation companies moving goods through warehouses, distribution centers, and retail stores typically using mobile devices such as smartphones or tablets.
This is important since it allows manufacturers to save costs by avoiding left turns (which generally charge higher rates) and taking alternate routes that cut down on delivery times while saving fuel at the same time.
Manufacturers could even set up rules regarding which kinds of cargo require specific routing methods (e.g., hazardous materials should always be delivered via back roads with low traffic). In addition, they can also program apps to automatically re-route when certain conditions arise, such as road blockages or accidents, to minimize delays caused by emergencies.
In conclusion, IoT has helped transform supply chains from just about tracking shipments into smart logistics applications that optimize delivery methods and help reduce costs for manufacturers.
Manufacturers can see a return on their investments in less than one year due to the savings realized by reducing unplanned downtime, reducing fuel consumption, and improving order fulfillment times, among other benefits.
If you are in the manufacturing industry, it is time to embrace IoT and improve your supply chains to stay ahead of the competition. Contact our team of NetSuite Partners today to learn more about how you can make your supply chain smarter with IoT.
