In all sections of the global economy, the Internet of Things (IoT) is at the heart of rapid development. Supply chain management and warehousing sector are no exception to this new trend. IoT's prevalence has already begun to change the image for the better. Nevertheless, adopting this technology moves at the pace of the snail. Warehouse executives need to realize why standards and IoT usage changes are needed and how smart warehouses can fulfill today's and tomorrow's demands. A company can be swift and efficient by modernizing warehouse processes; it understands exactly what's in stock and just when it is delivered to the home of a customer.
By introducing IoT-connected sensors, RFID tags, wearables, and other technologies, and by driving AI data analytics from those connected items, companies can shine a spotlight on every inch of each warehouse and accurately maintain supply chain logistics. As per SupplyChainBrain, warehouse technologies capturing data can boost inventory accuracy by up to 95 percent. Knowing what's on hand in one warehouse, or even hundreds of warehouses prevent businesses from blindly overcrowding goods in case of increased demand. The inventory of a connected warehouse allows companies to order and store only what is essential when connected to the supply chain.
Inventories of warehouses that reflect true supply and demand, not only save money but also affect the early stages of production. With companies placing exact product orders, manufacturers can only create what is needed and reduce overall waste. Therefore, companies can help curb the gloom of unsold merchandise that finds its way into landfills. These efforts might also halt food waste. Every year, 1.6 billion tons of food worth about $1.2 trillion is wasted worldwide annually, but supply chain efficiencies could decrease that loss by $150 billion annually, as per Boston Consulting Group.
In the supply chain and warehouse, slapping IoT and smart technologies does not guarantee insight and intelligence. First, the company needs to assess which smart technologies are best suited to their processes and where they would be helping. It is expected that Smart Warehouse will be fully integrated, fully transparent and fully capable of giving their inventory information to their customers and stakeholders. The ethical standards of any Smart Warehouse are Visibility and Real Time.
Warehouses are not dumb without advanced technology. But by introducing logistics technology, businesses can cleverly respond to customers' real-time, on-demand needs and ensure that a package arrives when promised.