By granting organizations greater visibility over materials and equipment, asset tracking systems that provide location tracking can lead to powerful benefits throughout the supply chain - such as improved inventory control, loss and theft prevention, enhanced customer service, greater operational efficiency, new service offerings, and much more depending on the use case and methods applied. Asset tracking systems allow businesses to track the location of high-value inventory, equipment, and any other device or asset as it moves around over the course of its use or throughout the supply chain. According to Report Linker, the logistics industry is using IoT to unlock higher levels of operational efficiency, from tracking millions of shipments in real-time, to using wearables, RFID and more to monitor processes within manufacturing plants and shops.
Asset tracking has quickly become an essential tool for the supply chain industry, but COVID-19 has shown us how fragile our supply chain actually is. An effective supply chain can make or break a company, and having reliable location on B2B asset trackers can ensure companies have full visibility into their supply chain. With COVID-19, truck routes have been blocked, borders have closed, numbers of workers allowed in warehouses were restricted, and there has been the ever-present risk of infection and spread. Just-in-time(JIT) production strategy has been the overall approach to supply chain, but this has backfired in light of a pandemic. The key to the success of JIT hinges on all pieces of a supply chain functioning smoothly and on time. The problem with this strategy is the lack of an inventory buffer, resulting in product delays and struggles for businesses when one element is not delivered or produced on time. China saw the massive impact of this in February 2020 when there was a supply deficit caused by the initial detection of the virus, which highlighted the global dependence on China for production. The virus may have long-lasting impacts on supply chains and could increase production on a national level instead of depending on other countries.
Want to learn more? Read the rest of our white paper on the state of location and where we see the asset tracking industry moving in the future.