The interconnectivity of technology and manufacturing equipment, known as the “Internet of Things” (IoT), has already been transformative across every step of the manufacturing process. Recently, the IoT has made its way into container management, changing the way we think about visibility and tracking products throughout the supply chain.

The Role of IoT in Container Management

Container management is always complex, especially when multiple containers are being sent between facilities all over the country (or the world). Effective container management means always knowing which parts are in which bins and on which trucks going to which plants, leaving a lot of margin for error!

When a container is not where it needs to be, this can result in costly production downtimes, especially if the container is lost and untraceable. Container management requires a thorough, robust system that uses both historical and real-time data to track containers throughout the supply chain.

How Container Management Works: RFID Labels

Container management typically utilizes RFID labels to track containers through the supply chain. These labels contain a chip and antenna to wirelessly transmit data using radio waves. These labels are passed through scanners that alert the logistics department of the container’s location. This traditional method has a more limited range, requiring the container to pass through a scanner at close proximity.

Thanks to IoT integration, container management has begun to shift toward a GPS-based tracker that has a 30-50 meter 360-degree range, greatly increasing proximity from container to scanner and providing real-time data on the containers, from location to what parts or products are in the container. While this new technology gives a leg-up on real-time manufacturing, it is still relatively new and has some kinks to work out.

Benefits of IoT for Supply Chain Optimization

Incorporating IoT into the supply chain is a powerful way to enhance visibility and transparency for businesses and their customers, ensuring personnel at each phase of the supply chain are confident in the location and status of the containers. IoT integration through methods like GPS tracking can provide:

  • Real-Time Tracking and Visibility for container location, condition, and status
  • Reliable Deliveries with a reduced risk of theft or lost containers
  • Reduced Labor Needs by cutting down significantly on manual checks
  • Greater Product Protection by alerting to unauthorized tampering with containers
  • Potential Integration with Other Technologies, such as using AI to predict trends based on IoT data and empower better demand forecasting

All of these benefits ultimately lead to decreased operating costs over the long term, but that doesn’t mean IoT integration in container management is the right move for every manufacturer at this stage.

Disadvantages of IoT in Container Management

While we are keeping a close eye on the power of IoT for container management, we have thus far held off on integrating this approach at American Manufacturing because it’s an all-in approach. The IT investment in IoT container management is significant, involving high costs for everything from setting up a vast network of scanners and readers to training personnel to use the new software and technology.

These new scanners and readers are also still rather limited in range. While that range may be greater than traditional scanners, it can be easy for a container to be missed because it is assumed to have passed close enough to the scanner, versus taking the time to intentionally scan each container manually or through a close-range scanner.

Informed Innovation at American Manufacturing

While we pride ourselves on innovation at American Manufacturing—constantly looking for the best new equipment, processes, and opportunities to improve customer outcomes—we also never make changes purely for innovation’s sake. When it comes to the IoT in container management, the implications for the future are exciting and something we are closely monitoring, but not yet seeing as a valuable tool for upscaling our processes.

When you work with American Manufacturing, you can trust that we are making changes and upgrades that enhance the customer experience and help reduce overhead, rather than rolling expenses into your bottom line. From our high-quality production services to containers built to support your manufacturing needs, we’re here to help! Contact us to learn more.