The art and science of inventory tracking has moved far beyond the days of manual inventory counting, data entry and periodic shelf checking, thanks to technology advancements such as radio-frequency identification (RFID), artificial intelligence (AI), edge computing and sophisticated, cloud-based software tools.
More distribution centers and warehouses across the globe are using innovative and emerging technologies to implement real-time inventory tracking systems that help them increase throughput and compete more effectively. And in the process, they’re discovering that today’s approach to network connectivity may not be right for tomorrow’s supply chain challenges.
Distribution centers and warehouses are extremely fast-moving environments in which process optimization and automation are imperative for success. Real-time inventory management has emerged as a “must-have” capability for an industry under pressure from ever-growing volumes and persistent labor shortages.
Put simply, real-time inventory management is the continuous monitoring and updating of inventory levels; it gives companies comprehensive insight into their stock levels, including information on product availability, location and movement.
With a high-speed, low-latency private wireless network, distribution companies can realize benefits on a number of fronts.
Improved order fulfillment: Real-time visibility allows for precise order fulfillment by reflecting the latest stock levels, reducing errors, backorders and split shipments. Also, knowing exactly what is and isn’t available helps speed up order picking, packing and shipping.
Optimized inventory management: Real-time tracking enables better demand forecasting, leading to optimized stock levels and more effective cost control. It also allows for proactive reordering and warehouse space optimization.
Enhanced operational efficiency: Real-time visibility empowers agile decision-making in areas such as labor allocation, warehouse layout optimization and transportation planning. It is also key to successfully leveraging automation technologies such as WMSs and helps facilitate better communication among a distribution center, its suppliers and other stakeholders.
Improved customer satisfaction: Precise inventory management capabilities help reduce the chances of order errors, delays and other issues that negatively impact the customer experience. Real-time tracking information provides customers with transparency and visibility into their order statuses, leading to higher customer satisfaction and brand loyalty.
By leveraging advanced technologies such as RFID tags and sensors, distribution centers and warehouses can achieve real-time visibility of their inventories. But achieving real-time inventory tracking demands a reliable network connectivity that works across the entire logistics facility—indoors and outdoors, over tens or even hundreds of thousands of square feet. That’s why private wireless networks are growing in popularity.
Legacy connectivity solutions have inherent limitations.
Wi-Fi is most effective for indoor office environments but typically encounters performance issues in harsh industrial enterprises. Poor coverage, unreliable quality of service, mobility hand-off issues between access points and the total cost of ownership of the network are just some of Wi-Fi’s limitations. The greater the need for more Wi-Fi access points, the higher the cost and complexity of installing, securing and managing those access points.
Public wireless often has spotty or no reception within the industrial structure of distribution centers and warehouses. This can interrupt connectivity to cloud-based warehouse management systems (WMSs) and to online platforms used by business partners and suppliers, grinding business to a halt.
Wired networks can be costly to expand and maintain, and the risk of devastating business interruption due to an accidental cable cut is very real at a bustling distribution facility.
A private wireless network can overcome these challenges, helping distribution companies achieve their current objectives while allowing them to imagine and evaluate future operational enhancements. A private wireless network is a customized solution, right-sized for each facility and its unique operational requirements and use cases. It provides consistent, predictable and highly secure coverage and bandwidth for business-critical applications.
Leveraging either public or licensed spectrum and either 4G LTE or 5G connectivity, a private wireless network enables the strategic orchestration of goods, people, vehicles, data and devices across the most sprawling of distribution centers or warehouses.