A desire for global business continuity spurs organizations to deploy radio frequency identification (RFID), Internet of Things (IoT) and mesh-network technologies—separately or together—not solely to elevate their supply chain efficiency but also to achieve greater agility, resilience and operational sustainability. Together, these technologies enable logistics teams to improve how they manage risk and reduce complexity to maintain their global networks and avoid costly interruptions.
Erik Kling
Inefficiency breeds waste, and without proper supply chain visibility, companies risk throwing away valuable resources by amassing excess inventory or energy costs. IoT sensors can report when lights are on in empty warehouses or when fuel trucks carry less than 100 percent capacity loads.
RFID and the IoT may seem like birds of different feathers—competing and complementary technologies. RFID requires tags affixed to items and the infrastructure to read them, while IoT sensors report their environmental status (and presence) via cellular, mesh or Wi-Fi networks. Yet, many compelling scenarios exist for combining IoT and RFID solutions to improve logistics teams’ supply chain management, operations and inventory control for high-value assets.
Take the example of a manufacturer tracking a shipment of jet engines. Nothing less than real-time cargo updates will do. Typically, a shipper may place a tracking device on a container, pallet or truck to know exactly where it’s been. But it’s also possible to set up a geofenced area to send an operations team real-time notifications via email, SMS or REST API each time an asset arrives at or departs a facility. Suppose a high-value object like a jet engine spends too long in a distribution facility, for instance. A missed deadline may trigger another notification, and an operations team can investigate why the asset is still there.
Embedded in Supply Chains
Time always matters in logistics, but so do temperature, humidity and movement. Lives may depend upon how a logistics team manages these conditions. A 20-centimeter-square IoT sensor with a SIM card and a zinc-carbon-printed battery can ensure that a medical kit with a human skin graft stays within the required ranges. With RFID in the mix, you can obtain more precise location and time data, trackable via IoT sensors from anywhere in the world.
A compelling reason for supply chain managers to pair IoT and RFID systems is to compensate for their technical limitations. IoT devices (the ones using GPS) are great at tracking assets outdoors but have difficulty reading precise locations inside a building. RFID solutions are great for indoor tracking but typically won’t work outdoors unless there is appropriate infrastructure (e.g., RFID readers and gateways).
As for cybersecurity, pairing IoT and RFID doesn’t, by its nature, weaken your posture, but there are three inviolable practices for every shipper and carrier to consider. First, carriers know that all shipment device data and communications must remain encrypted for high-value assets. Second, the carrier’s network from the device to the cloud must always remain secure and include two-factor authentication, among other security measures. Third, data management practices must conform to GDPR requirements.
Once data is secure, organizations know they can apply analytics to operational telemetries, such as ambient conditions and location, to help measure their delivery time and fine-tune their distribution routes. A real-time feedback loop can help organizations cut expenses and advance sustainability objectives.
The Case for Greater Precision
Supply chains never get simpler. Supply chain managers once solely focused on generating and monitoring accurate, real-time data are now being asked to deliver on sustainability goals, too. Precise outdoor-indoor tracking and enhanced inventory management—achieved by combining IoT and RFID solutions—can help serve both ends by reducing waste and emissions and generating better business outcomes.
Not every supply chain business case will require this investment. Yet, with these technologies, organizations that require more precision everywhere can advance their supply chain modernization, resilience and sustainability initiatives.
Erik Kling has more than 25 years of experience in the communication technology field covering hardware, software, services and solution elements of the industry. Erik has held senior sales and product management roles at Siemens Communications and wireless startup companies, along with over 15 years specifically in the IoT space. He joined Vodafone in September 2010 and is currently leading the company’s IoT business in the Americas as head of sales. Erik most recently held the position as VP of IoT new business development. His responsibilities include building and developing the IoT domestic team, including in the Latin America region, driving IoT solutions into Vodafone’s large multinational accounts, along with additional customers and markets, and defining, developing and nurturing the IoT ecosystem.