If policy makers and businesses get it right, linking the physical and digital worlds could generate up to $11.1 trillion a year in economic value by 2025. ~ McKinsey Global Institute report
The Internet of Things (IoT), in a nutshell, is comprised of sensors and actuators embedded in physical objects and connected by networks to computing systems. According to an article in Supply Chain Quarterly, there are three things necessary for a device to be considered part of the IoT:
- Sensors to track and measure the activity that is taking place.
- Connectivity to the Internet is contained in the object itself, a connected hub, a smartphone, or a base station.
- Processors that enable the object to have at least some computing power. (Lee, K., 2015, How the Internet of Things will change your world)
In a June 2015 report, “The Internet of Things: Mapping the Value Beyond the Hype, the McKinsey Global Institute examined where and how IoT technology will be able to create significant economic impact. While most of the hype surrounding IoT concerns consumer products, the report asserts that B2B applications have greater potential economic value than B2C applications.
More and more, companies are applying IoT technology to their supply chain operations, and that includes that crucial link in the supply chain – warehouse operations. A Zebra Technologies survey noted that 7 out of 10 supply chain decision-makers plan to increase their use of technology to create smart warehouses by 2020. Smart warehouses benefit from reduced damage to product and equipment, fewer inaccuracies, smoother operations, and increased productivity. An article in Manufacturing Business Technology sums it up:
The IoT is the next tech revolution. It has game-changing potential for warehouses that implement highly intelligent materials handling equipment and sensors, allowing them to be more efficient, cost-effective and productive. Applying the IoT to warehouse operations involves monitoring the status of equipment, inventory, pallets and people in real time; measuring how these assets are performing; and applying analytics to the information to identify areas of improvement. Manual touches of inventory can be reduced. People and equipment can be optimized. Monitoring equipment and people to increase safety and predict equipment failures can improve asset utilization. (Castaldi, C., 2016, IoT In The Warehouse.)
Bottom line: As warehouse become smarter, the more efficient and profitable they will be. Is your business ready to take on the potential of IoT?
Next Level understands the impact of operational costs on any size business and is committed to helping you increase profitability through lower material expenditures and cost efficient design solutions. Connect with us here or call 800-230-8846 to request a material handling products quote or to inquire about our range of services offered nationwide.