In a highly competitive business environment, the optimisation of the supply chain operation is a key consideration in its eventual success over the long term. Real-time Location System (or RTLS) have emerged as one of the powerful solutions revolutionising how businesses manage the supply chain.
RTLS gives companies real-time visibility to track assets, inventory, and personnel throughout the supply chain, enabling smarter decision-making and more efficient operations. But how, exactly does the real-time location system disrupt supply chains, and in what ways can they further increase a company’s ROI? This blog discusses the benefits of RTLS and how they can give power to your bottom line.
What is a Real-Time Location System (RTLS)?
A real-time location system is the technology that realises accurate and Real-time tracking of assets, vehicles, and even personnel across various environments. These systems use radio frequency identification, Bluetooth, GPS, or Wi-Fi as wireless technologies to track objects in real time. In turn, these sensors collect information that is then processed and surfaced on a digital interface where views and instant analysis are enabled.
Top 8 Ways RTLS Can Improve Your Business
The benefits of RTLS extend beyond simply knowing where things are. It empowers better decision making, enhances operational efficiency, and cuts costs to a greater extent. It also serves as a vital tool in the supply chain, whereby companies look to optimise it. Let’s discuss these benefits in detail.
1. Improving Inventory Management
Another significant way in which RTLS is changing the supply chain involves better inventory management. Conventional inventory systems are all based on a manual process such that they can have mistakes, delays, and inefficiency.
With RTLS, businesses can keep track of inventory in real time and thus have correct stock levels at every moment. This technology reduces the probability of overstocking or stockout that translates into lost sales and increases operational costs. This further leads to efficiency in the utilisation of resources, reducing holding costs and thereby increasing ROI.
2. Streamlining Warehouse Operations
RTLS technology can help smoothen warehouse operations by availing real-time data concerning the location of assets, equipment, and people. For instance, the forklift operator will locate the pallets, while staff will be assigned more efficiently according to their current location.
RTLS systems minimise labour costs by smoother workflow and reduce wasted time in searching for items or equipment, hence offering overall operational efficiency. This means not only higher productivity but also significant cost savings and an improved ROI.
3. Enhancing Fleet Management
Another area where RTLS makes quite an impact is fleet management. With the ability to track in real time, this would enable firms to trace the movement of goods and optimise the delivery routes. It provides correct data about location, speed, and condition of vehicles, hence helping businesses avoid any further delays or fuel consumption to facilitate the process of delivery.
The better management of the fleet would then mean an opportunity for economies of scale. Value addition in ROI is contributed by lower fuel consumption, fewer breakdowns, and quicker delivery. Besides, real-time data provides an opportunity for proactive maintenance, which has the vehicle always at its best, while reducing the risk of expensive breakdowns.
4. Reducing Asset Loss and Theft
The asset theft or misplacement may cause excessive financial loss for the company. RTLS systems can handle the continuous tracking of valuable assets. If an item gets misplaced or stolen, its current location could easily be traced with the help of real-time tracking.
It reduces loss and theft, saving companies from additional replacement costs, improving asset utilisation, and overall profitability. Capabilities in real time to protect the assets will mean a far more secure and efficient supply chain.
5. Optimising Cold Chain Management
Cold chain management entails transportation and storage of temperature-sensitive products at the right temperature always. RTLS can enable your enterprise to track, in real time, the location and condition of a perishable goods to ensure that they are being stored and moved at the right temperature. In case this technology detects an anomaly, such as a rise in temperature, it would trigger an alert to ensure immediate action is taken.
This capability is highly desirable within industries like pharmaceuticals and food and beverage, where the integrity of products is of utmost importance. By ensuring that goods reach their destination in optimal condition, a company can cut down on its wastage, adhere to regulations, and attract the trust of its consumers.
6. Improving Supply Chain Visibility
Supply chain visibility is one of the most important things one can have in order to improve operational efficiency and increase ROI. RTLS systems provide end-to-end visibility whereby businesses have insights into every stage of their supply chain in real time. This increased visibility allows companies to identify bottlenecks, route optimization, and rapidly respond to disruptions.
The enterprise gets empowered by full visibility of the supply chain and makes evidence-based decisions, which all sums up to ensure better performances at cheaper costs. This all-round insight enables the enterprise to enhance operations, maximise efficiency, and thereby enhance the return on investment.
7. Enhancing Safety and Compliance
Every supply chain activity will include safety and compliance. RTLS can improve safety through tracking the location of personnel and equipment to make sure that operations stay within safe conditions. For example, in work that is hazardous, RTLS can monitor the movement of workers and trigger alarms upon entry into an area that is restricted or a zone of danger.
RTLS systems also provide valuable data about asset movement and storage, ensuring that businesses operate within strict industry regulations. This ensures that companies remain compliant with regulations while minimising the chances of being fined or penalties arising due to non-compliance. Improved safety and compliance translate into efficiency and profitability in the supply chain, therefore enhancing ROI.
8. Data-Driven Decision Making
RTLS systems contribute a great deal to data mining, which may be extracted and utilised in enhancing the supply chain. The extracted data will also provide knowledge on asset utilisation, personnel productivity, and equipment performance. Your business will therefore locate inefficiencies and spots that should be changed.
With real-time data in hand, a company can then make more informed choices-choices which produce greater cost-savings performance. It is through data analytics that businesses are able to further revise operations on a persistent basis-yielding increased ROIs.
Transforming Supply Chain Efficiency with RTLS
Real-time location system offers an Innovative solution by availing real-time visibility, improvement in inventory management, prevention of loss, and reduction of theft during smooth processing of operations. These would further lead to considerable cost reductions and heightened customer satisfaction, making the RTLS system very rewarding for investment by any enterprise.
IoT-WorkS provides sophisticated solutions in the field of IoT inclusive of RTLS systems, among others, tailored to the peculiar needs of your business. If you want to know how our next-generation technology will change your supply chain by exponentially increasing your return on investment, reach out to us today.
FAQ
1. Which industries benefit most from Real-Time Location Systems?
RTLS finds broad applications in manufacturing, logistics, healthcare, retail, and cold chain management industries. Any business that requires asset tracking and supply chain optimization will be in a position to benefit from the RTLS technology.
2. How does RTLS improve efficiency along the supply chain?
RTLS improves efficiency throughout the supply chain by offering real-time asset, inventory, and personnel visibility. This is tantamount to facilitating enterprises to develop wiser decisions, optimise workflows, avoid delays, and decrease operational costs.
3. What is the return on investment from implementing RTLS?
The scale of the implementation determines the ROI of any RTLS system. However, improved operational efficiency, savings on loss and theft costs, better inventory management, and hence reduced delivery times, are the benefits that businesses often reap.