William Craig, CPA – Senior Manager Market Research - Digital Transformation
RFID’s, GPS, sensors and other IoT devices can be now be embedded or associated with inventory, shipments, raw materials, equipment, containers, warehouses, vehicles, drivers, assembly lines, and more; providing a wealth of useful information and insight which was never previously available.
These IoT devices can detect things like location, environmental factors (temperature, humidity, etc.), usage, performance, motion, speed, altitude, weight, pressure, vibrations, light, sound, smoke, moisture, and other conditions associated with the resource.
In some cases, the device can either make an autonomous decision, or it will communicate these key data points to another device, system or person, which can analyze the information and make a decision (i.e. order more inventory, create an equipment service ticket, send an alert, reroute a truck due to accident, etc.)
Let discuss some major use cases for IoT in the supply chain.
RFID tags allow for the tracking of the exact location of raw materials, work-in progress and finished goods, eliminating the need for manual asset tracking and reporting. Enabled with this information, manufacturers and distributors can reduce lead times, increase equipment utilization, reduce inventory loss, improve productivity, reduce warehousing costs, improve customer service, increase asset velocity, improve safety, and the list goes on!
For perishable items (i.e. fruit, ice cream, meats, pharmaceutical items, etc.) that have an expiration date and must be kept at certain temperatures, monitoring environmental conditions is critical. Armed with information delivered from IoT, items can be efficiently shipped to minimize spoilage based on expiration dates. Also, alerts can be sent if the temperature thresholds are exceeded. In fact, sensors on the refrigeration equipment, can signal a potential future problem before it happens! Take it one step further with preventative maintenance leveraging data points delivered through IoT, equipment is serviced during normally scheduled service windows and the problem never happens.
A truck can be alerted of a traffic accident and automatically rerouted to ensure on-time delivery. A train carrying chemicals can monitor for safety related issues – leaks, temperature, vibrations, rail issues, etc. A ship carrying crude oil can be rerouted when a major storm is approaching. A truck carrying fresh produce, can monitor temperature, humidity, etc. in the trailer and alert the driver of any possible issues. Based on historical information, vehicles can be routed the most cost effective and time efficient way, including optimal speed recommendations. Companies can be advised when drivers are coming up on the maximum allowable driver hours.
With preventative maintenance, being able to monitor miles driven, hours of service, etc. through IoT, allows capital to be maintained on scheduled intervals and extends the lifespan of the equipment. With predictive maintenance, IoT can monitor key readings for tires, brakes, fluids, engine, etc. and schedule the asset for maintenance when certain tolerances are exceeded, long before it is sidelined with unexpected issues. The possibilities are limitless. A truck can self-diagnosis a potential engine problem before failure, order the associated part, and schedule maintenance avoiding costly downtime without any human intervention. Historical information gathered with the continuous flow of data from assets, also helps to optimize scheduled maintenance.
GSI’s Advisory Services can provide the expertise to help you create and implement your Internet of Things (IoT) strategy. As part of our comprehensive services, GSI can assist with the following:
Until next month!
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