3 Asset Tracking Case Studies that Small Businesses can Adopt
Asset Tracking and Equipment Management remains a critical avenue for most small and medium businesses to operate safely and maintain better margins. It is very common for most companies to use an asset tracking system and view it as just a means to track inventory, whereas used efficiently tracking systems can drive holistic outcomes
The four key realistic business outcomes that efficient asset tracking can deliver are;
1. Equipment Downtime can be Reduced by 4 – 18%
2. Employee Efficiency can be Increased by 9 – 20%
3. Inventory Demand Management can be Optimised by up to 27%
4. Asset Performance can be Improved by up to 4%
The above outcomes have been achieved by a number of companies. We look at three examples where asset, inventory and equipment tracking can provide a competitive advantage. The perspective and technology used by the leading companies in most cases can be adopted by small and medium businesses to impact their business outcomes.
Case Study No 1 : Amazon’s Inventory Management – Inventory is randomly organised to prioritise picking order and speed.
Technical Take Away: Random stow (or unorganised inventory) is efficient if your handheld devices can offer an efficient picking order. Knowing the location of assets (via asset tags) can be prioritised to clubbing assets together.
Business Take Away: Most inventory management experts suggest that closely related items should be placed together where as Amazon places its inventory randomly. Amazon has focussed on speed of delivery to customers over organised inventory. The key takeaway here is Asset Tracking should not be viewed just with operational perspective, taking a customer centric perspective to Asset Tracking can drive an impactful revenue outcome.
Case Study 2: Lufthansa Technik’s Equipment Management – Every ground equipment has a tracker so that any ground support staff can track any equipment.
Technical Takeaway:Access to asset location need not be via a specific handheld device, tracking apps on smartphone make it easier for employees to track equipments. Evaluating Barcode, RFID and NFC tagging options from a user adoption perspective is an effective approach.
Business Takeaway:Just like the above asset tracking innovation was first implemented in Hamburg before rolling out at Munich and Frankfurt. New and Innovative tracking mechanisms are best implemented in a phased manner.
Case Study 3: Stanley Black and Decker use Wi-Fi and RFID to improve employee productivity.
Technical Takeaway: Merging two technologies like RFID and Wifi can exponentially increase asset tracking capabilities.
Business Takeaway: Just like at Stanley Black and Decker, make it easier for employees to flag productivity issues and arrange assistance swiftly to improve production efficiency.