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Track and Trace and IoT—efficiency play in the Digital transformation

Manish Raj

The traceability of materials and end products is key to operational and process efficiency, which many manufacturers across industries are already pursuing as a part of digital transformation with RFID-, NFC-, GPS-, SigFox-, and LoRA-based tracking devices leveraging cloud-based solutions.

Better efficiency not only leads to savings but also helps manufacturers enhance customer experience, which is essential when the customer is at the center of all businesses. 

To put things in perspective, many domains directly benefit from new generation tracking solutions (plug and play, inexpensive chips and tracking devices, cheaper and faster data transfer, cloud-based) across sectors such as discrete industries, retail, aerospace and defense, and customer services.

Some compelling track-and-trace use case examples are:

  1. Production—Real time tracking and visualization of product and production tools/traceability of components
  2. Supply Chain & Logistics – Flow visibility of containers & products, Inventory Control & Optimization, Recalls & Reverse Logistics, Fork Lift management, cold chain
  3. Sales & Customer Experience – Antitheft, Product availability, Anti-counterfeiting, Enhanced Customer Experience, Connected products
  4. Maintenance & Spare part management – Inventory Control & Optimization, Traceability of Tools & Spare Parts

Track-and-trace solutions have already yielded concrete outcomes for leading customers in sectors like discrete industries, retail, aerospace and defense, and customer services:

  • Up to 25% reduction in material handling workload
  • 75% time saved on inventory control
  • 10 to 20% reverse logistics costs reduction
  • Scrap and rework reduction up to 20%
  • Up to 30% reduction of spare parts inventory
  • Reduced maintenance costs (5 to 10%)
  • 40% reduction in Out-of-stock
  • Up to 75% theft reduction and at least 3ME value counterfeit detected
  • And many more…..

With recent technological advances, the commoditization of hardware, and proven platforms and solutions, manufacturers should invest in this area and remain competitive in the market not only to lower costs but also to increase customer satisfaction. With API-enabled mash-up service capabilities on SAP Leonardo IoT platform combined with third party technological solution providers, a scalable and secure solution can be implemented—tightly integrated with digital core SAP S/4 HANA or any other business application. Having Big Data Analytics, Predictive Analytics, Blockchain, and Machine Learning available on a single platform ensures that the solution will be future-proof and provides the flexibility to extend the solution to other business areas as necessary.

Do you want to explore and experience the track-and-trace solution in “SAP IoT in a BOX” leveraging SAP Leonardo IoT platform integrated with technological partners, tracking devices from HidnSeek, network providers like SigFox, hardware providers like IFM, and integrated with digital core S/4 HANA?

Reach out to me—Manish Raj to experience and collaborate.

Learn more about FD4DI (FAST Digital 4 Discrete Industries)—a global joint initiative between Capgemini and SAP.