Build new products based on AI and IoT technologies.
Challenge:
The company operates in the wholesale marketing sector, specializing in the distribution of fresh fish. To meet their specific needs, several challenges must be addressed. First, the company seeks to implement an automated inventory control system for its warehouses that would minimize the need for human intervention. This would ensure efficient inventory management without relying on manual processes. Second, the company aims to have real-time visibility
and tracking of products in transit. Since the nature of goods is perishable, it is critical to monitor the location and condition of each item to maintain quality standards. All of this would enable the company to make informed decisions based on up-to-date information, resulting in increased revenues through optimization of sales strategies.
Other Requirements:
Due to the high number of devices (rfid tags for example) the cost of each one must be minimal.
Key Performance Indicators:
Implementing a real time monitoring and visualization of warehouse stocks allows to perform data analytics, to take data-driven decisions, and to increase revenues based on sales.
Industry Sector:
Wholesale marketing of fresh fish
Challenge classification:
Inventory Management and Material Flow Control based on IoT Technologies
Time for Project Completion:
6 months.
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Preliminary Analysis:
Leading requirements from the Company are about controlling stock in warehouses without human intervention and also monitoring the product during truck transportation. Regarding the RFID technology we can choose between HF and UHF solutions. In this case it’s better to opt for an UHF solution given the greater read range (up to 12 mt) and the lower cost compared to the HF. In this case the RFID gateway should be installed in the front part of the shelves and at the entrance of the truck body. Regarding the GPS tracker we can choose between OBD GPS, hardwired GPS tracking system and a battery powered tracking unit. The first type (OBD GPS) is the most integrated with the vehicle and can lead to additional information given by other parameters while the other two (hardwired and battery powered) were installed only where any OBD is available.
Regarding the RFID, it is better to opt for an UHF solution: it is cheaper and allows us to add some important measurements in tracking perishable products, for instance the temperature. Regarding the GPS tracking system, it depends on how the logistic chain is organized and what kind of truck is used. If the logistic chain is outsourced it’s not possible anymore to install the GPS onto the truck and the tracking system has to follow the basket with all the products in it; conversely, if the logistics is owned, the GPS system can be mounted on the truck together with a RFID gateway.
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Solution Summary:
Based on the analysis made in the previous two sections, the following solution is proposed:
The perishable products must be labeled before entering the depot in order to spot the transit. Once in the depot, the products should be placed on the shelves where an RFID antenna ensures real time stock traceability. Once the item leaves the shelves and then the depot, the traceability is provided by a GPS system on the truck or on the basket in which the item is contained.
Additional Benefits:
- Enhanced Supply Chain Efficiency: Real-time stock traceability and integrated data visualization offer opportunities to optimize inventory management and improve supply chain efficiency, reducing stockouts and waste.
- Quality Control and Customer Satisfaction: Incorporating temperature sensors for real-time monitoring ensures better quality control during transportation, leading to higher customer satisfaction and customer loyalty.
- Data-Driven Insights and Analytics: Comprehensive data from multiple sources enable data-driven insights and analytics, facilitating continuous process improvement, cost optimization, and revenue growth based on data-backed decision-making.
Possible Difficulties:
- Scalability and Deployment: Scaling the solution to accommodate larger warehouses or multiple depots may pose logistical challenges in terms of deploying and managing a larger number of devices across multiple locations.
- Data Security and Privacy: Protecting sensitive inventory and tracking data, implementing robust security measures, and complying with privacy regulations are essential to maintain data security and privacy.
- Data Accuracy: Ensuring accurate and reliable data from temperature measurement can be challenging, requiring precise calibration and quality control measures as well as validation mechanisms to address potential inconsistencies and errors.
Sources:
[1] Affia, I. and Aamer, A. (2022), “An internet of things-based smart warehouse infrastructure: design and application”, Journal of Science and Technology Policy Management, Vol. 13 No. 1, pp. 90-109.
[2] Zerynth. «Smart Warehousing». Accessed 21 July 2023. https://zerynth. com/customers/case-studies/smart-warehousing/