Best Practices for Monitoring and Managing Assets and Inventory

Companies need to know where their products are in the supply chain to improve asset utilization and avoid stocking issues. The ability to monitor and manage the real-time movement of assets and inventory becomes more even important as supply chains globalize.

Yet many businesses don’t possess adequate visibility of their assets and inventory; according to research from SAP, 52% of business leaders believe their supply chain needs improvement. Analog and manual processes won’t suffice today, and organizations must adopt advanced technologies, such as the internet of things (IoT), real-time data analytics and artificial intelligence, to more effectively monitor and manage assets and inventory as they travel over oceans and across borders.

Common Asset and Inventory Challenges

Organizations face several asset and inventory management and monitoring challenges that affect their supply chain efficiency, including:

• Inability to collect timely data. Many companies can’t obtain real-time information on the location and status of their assets.
• Inaccurate data. The data that businesses collect can sometimes be outdated or incorrect, resulting in errors in inventory levels that can cause stockouts or overstock situations.
• Integration woes. Without the right expertise, network infrastructure and enterprise applications, it’s challenging to integrate IoT devices with existing systems.
• Inability to scale accordingly. As inventories become larger and more globalized, spanning multiple locations, countries and continents, it gets harder to monitor solutions at scale.
• Lack of or ineffective security measures. In a supply chain, there are two components to security: data and physical. Bad actors can physically steal assets or tamper with equipment. They can also hack into systems to steal sensitive data.

Businesses need to adopt a combination of advanced technologies to address these supply chain challenges.

The IoT is perhaps the most valuable technology for optimizing asset and inventory management and monitoring. By deploying IoT-enabled devices, sensors, thermostats, and cameras throughout the supply chain, companies can monitor and track assets remotely. For example, a successful IoT deployment will reveal insights into an asset’s location, status, temperature, humidity, flow level and degree of cybersecurity.

It’s not enough to purchase the latest IoT devices and sensors, however, if they can’t connect to existing systems to share and exchange data. As such, businesses must use advanced console servers that abide by standard communication protocols to ensure that new IoT devices integrate with existing IT infrastructure. Best-in-class console servers will also allow data to merge with enterprise resource planning and inventory management systems.

Asset and inventory management is impossible without cellular routers and gateways to support always-on connectivity for IoT devices, sensors and cameras. Ideally, cellular routers and gateways should have industrial-class capabilities, such as advanced security features, weatherproof exteriors and long-lasting batteries. Such technologies will enable applications in demanding outdoor environments, including flow, level and temperature monitoring and remote diagnostics.

An IoT deployment, if properly maintained, can last a long time. Nevertheless, to maximize the potential of a deployment, companies need a flexible IoT management solution that’s capable of remote reconfiguration and updates. It allows a deployment to scale according to business growth and market conditions. The technology further enables supply chain operators to update an IoT device’s firmware habitually and remotely.

Across the supply chain, and in particular the cold chain, condition monitoring is a key capability that provides immediate insights into temperature and other key metrics. Whether for grocery and convenience foods, pharmaceuticals or other temperature-sensitive items, sensors and gateways can provide round-the-clock monitoring in refrigeration trucks, cold cases and freezers, and food service areas to ensure accurate, real-time monitoring and reporting. 

IoT devices and sensors can collect an enormous amount of asset and inventory data, so much so that it is nigh-impossible for humans to analyze it in a timely manner. AI and machine learning algorithms and trained models can extract tiny details from mountains of asset and inventory data. They can also analyze historical sales data, market trends and external factors such as weather patterns and economic indicators to calculate demand, adjust inventory levels and place reorders.

Additional Benefits of a Tech Deployment

Once analyzed by AI and ML models, the data collected by IoT devices will provide logistics operators with real-time insights, enabling them to identify inefficiencies, optimize routes and enhance inventory management, ultimately improving quality control, reducing excess stock and minimizing stock-outs.

Regardless of how meticulous businesses are, something will always go wrong in the supply chain. Having IoT devices and sensors in place that can send automated notifications boosts agility, enabling companies to respond dynamically to the unexpected. For example, IoT-enabled temperature-monitoring devices can track the temperature inside a refrigerated truck transporting vaccines or food. Should the temperatures drop below a set threshold, the sensors will alert requisite personnel, ensuring compliance across the cold chain.

IoT-based asset-tracking can support predictive maintenance by monitoring equipment conditions. It watches for warning signs that indicate an imminent failure, then sends send notifications and automatically launches maintenance processes.

Because IoT deployments are edge devices, organizations must ensure that they’re secure. Businesses can strengthen the security of their edge devices by following these best practices:

• Disable unused services and change default settings. Modify default passwords, usernames and configurations.
• Implement role-based access controls and multi-factor authentication.
• Perform network segmentation. Separate edge devices from critical internal networks, limiting the blast radius of cybersecurity breaches.
• Encrypt and data during transmission and at rest.
• Monitor edge devices. Watch for strange activities or anomalies, and maintain audit logs to track and investigate suspicious behavior.
• Implement remote device management. The ability to access, maintain and update the firmware of devices in the field over their lifecycle is crucial to effective security.
• Educate employees. Often, cybersecurity vulnerabilities arise from insufficient training and an outdated incident-response plan.
• Deploy geofencing. This IoT-enabled technique can protect assets from physical theft.

Companies don’t have to tackle their asset and inventory monitoring and management challenges by themselves. By partnering with a veteran IoT supplier with advanced infrastructure-management tools, then can simplify complex technology integrations, protect goods in transit and keep operations running smoothly.

A business must always double-check that a prospective IoT supplier complies with industry standards. Likewise, organizations should prioritize an IoT supplier with consultation services, tailored solutions and 24/7 technical support.

Harald Remmert is chief technology officer, cellular solutions with Digi International.