Two of the most significant challenges to achieving the dual goals of adding value for the consumer and making production more efficient and cost-effective are optimising inventory and reducing downtime – ergo, efficient asset management and timely delivery.
Here we present you with some emerging technologies that can help meet these challenges. Before diving in, we should first consider the specific challenges that Supply Chain Management (SCM) and logistics professionals face.
The Visibility Challenge
Visibility is the new buzzword in the SCM arena and the missing link in the logistics and asset management space. Real-time data about the location and health of assets is important for predictive decision-making, maintenance, and management of the supply chain.
Visibility is an important KPI because customers, whether they are end-users or businesses, demand real-time information. Logistic and SCM service providers alike strive to provide this not only to add value but also to reduce costs. After mobile phones became ubiquitous, the practice of calling truck drivers at regular intervals took hold, only to fade out in the face of poor signals and evolving asset management trends.
The question of whether stakeholders prioritise visibility is moot. A Gartner survey cited by Project44 found that investment in visibility technology ranks among the top three priority investments in SCM.
End-to-end visibility, including real-time visibility of assets in transit, enables proactive decision-making, which in turn helps reduce downtime, prevent supply chain disruption, and cut costs.The benefits of real-time end-to-end visibility are many. The question, therefore, is, how can end-to-end visibility be achieved? The biggest challenge in achieving end-to-end visibility is tracking goods in transit. There are many emerging technologies that help achieve visibility and track goods as they travel from one destination to the next.
Let us look at some of them in more detail.
Barcodes and QR Codes
These are, by far, the cheapest and most frequently used asset identification and monitoring solution. Barcodes and QR codes help in monitoring and recording the location, status, and health of assets. Common use cases include leasing industry where codes are used to track which assets are leased to whom and construction where QR codes help keep track of which assets are deployed to which sites.
NFC
NFC (Near Field Communication) tags are used to identify assets and may be implemented in much the same way as QR codes. he advantage of NFC is that it enables high-speed scanning of a large number of assets even when the assets are packaged, and the tag is not visible. They are therefore helpful in processing a large volume of goods. NFC also records more information as compared to barcodes or QR codes.
RFID
RFID (Radio Frequency Identifier) is slightly costlier than the three above because of the need for special sensors. It enables 360-degree scanning using a remote sensor, which is a definite advantage over NFC. Typically, RFID is beneficial in situations that require voluminous inflow and outflow of goods, such as warehouses, and scanning can be automated.
BLE (Bluetooth Low Energy) Beacons
BLE beacons do not require special readers as they can be read by smartphones. This is perhaps the most significant advantage of BLE over RFID. However, BLE beacons require a line of sight to be read and will only indicate the distance of the asset from the current location. Beacons are typically used in warehouses for taking inventory, to locate and pick assets for loading, and a few other applications.
Cloud and POS Inventory
Cloud and POS inventory is an advanced method of inventory management that enables real-time updating of the cloud-based database. As goods are checked in or out, POS devices, which include all internet-enabled devices such as mobile phones, tablets, and computers, send real-time information to the cloud database. This can be extended to automate procurement and improve overall supply chain visibility as well as for predictive maintenance.
GPS (Global Positioning System)
Although some businesses tried to leverage GPS, its use did not take hold because of its limited use in locating the assets and its inability to track smaller movements. Moreover, it involves investment in specialised devices both at the tracking end and at the recording end, which makes it an expensive option. GPS, therefore, has limited application in tracking highly expensive assets or limiting their movement to a geographical area – such as within the research premises.
IoT and IIoT
Internet of Things (IoT) and Industrial IoT (IIoT) is a four-tier tracking solution consisting of a content layer, a device layer, a network layer, and a service layer. The first two layers are the devices and user-interfaces that users operate. The second is the connectivity between devices and services – the network – through which data travels. The final (the service layer) is what is known as Asset-as-a-Service, which collects, analyses, and presents data.
Drones
Drones are fast replacing humans for tracking and monitoring equipment and other assets. Drones can locate and inspect assets and send reports back to the server. High asset visibility, email alerts, and customised & regulated reporting are some of the applications of drones for asset tracking and monitoring. The full potential of this technology is yet to be seen.
In Summary
Industry 4.0 is here, and asset management technology is at the forefront driving efficient inventories, predictive asset management, and low-cost maintenance. A peek into the future shows perspective maintenance as the future of asset management. With proper implementation, end-to-end visibility can and will be achieved, driving customer satisfaction to new levels.
Joe Peters is a Baltimore-based freelance writer and an ultimate techie. When he is not working his magic as a marketing consultant, this incurable tech junkie devours the news on the latest gadgets and binge-watches his favourite