18.02.2025

Challenges in Industry & Logistics: How Real-Time Location Tracking Cuts Time and Costs

challenge_herausforderung industrie_logistics

Many industrial companies face challenges which slow them down: labor shortages, rising costs, and inefficient processes just to name a few. At first glance, searching for assets might seem like a minor inconvenience, and investing in a Real-Time Location System (RTLS) may not feel like a priority. But think again When you take a closer look, an RTLS not only reduces search times – it boosts efficiency, reduces costs, and eases the workload for your team. In short, it directly addresses the very challenges that slow businesses down.

 

#1 Cut Search Times – gain back valuable working hours every day

The Challenge: Every day, industrial and logistics workers waste valuable time searching for tools, semi-finished products, vehicles, pallets, or even colleagues. Let’s put it into perspective: At 30 minutes search time per shift and employee, this adds up to around 6,540 minutes or around 14 working days (8 hours each) per employee per year spent searching for assets.

The Solution: With an RTLS, your team localises assets instantly. Bluetooth (BLE) tags / beacons attached to tools, forklifts, containers, or components provide real-time location data on a digital map — along with status updates.

This saves your employees hundreds of hours of working time, which can be used for more important tasks. The time saved leads directly to cost reductions – initial savings are often measurable within a few months.

Pro tip: Evaluate how much time your team spends searching every day. We will be happy to show you when an RTLS will start to amortise for you.

 

#2 Avoid Bottlenecks – Identify Production & Logistics Delays Early

The Challenge: Production delays often stem from bottlenecks that are recognised too late. Common causes include:

  • Materials not arriving at workstations on time
  • Inefficient use of forklifts or transport vehicles
  • Overloaded workstations while others sit idle
  • Poorly timed maintenance or setup changes causing unnecessary delays

Bottlenecks like these cause additional costs, postpone delivery dates and, in the worst case, jeopardise customer orders and business relationships.

The Solution: By tracking components, workstations, and vehicles, you gain real-time insights into production flow. If a part stays too long in one area, it could signal understaffing — allowing managers to redistribute resources proactively. Maintenance schedules can be optimized to avoid disruptions, and heavily used equipment can be identified for load balancing.

Pro tip: Once you’ve spotted inefficiencies with RTLS, plan targeted test phases for the changes. The effect of the measures can be easily tracked with RTLS.

 

#3 Smart Geofencing – Keep Assets Where They Belong

The Challenge: In many industries, it is essential that machines, tools and specialised equipment remain exactly where they are supposed to be. If they’re moved unexpectedly, it can lead to production disruptions, quality issues, or even safety risks. The result? Financial losses and potential damage to your company’s reputation.

The Solution: With smart geofencing, you can create security zones for your most critical assets. If an asset leaves a defined area, automatic alerts are triggered. The BLE tags emit visual, acoustic or vibrating signals, while notifications are sent via SMS, email, MS Teams or to third-party systems. The right automation tool for this is already included in our modular RTLS Suite in the form of the Favendo Robot.

Pro tip: Identify which areas and assets are most critical in your operations. Our team can advise on the best way to secure them. Bonus: Geofencing can also be used for access control, preventing unauthorized entry into restricted zones.

 

#4 Prevent Theft & Loss – Protect Assets in the Supply Chain

The Challenge: Lost or stolen assets cost companies millions every year. High-risk items include:

  • Small, high-value equipment (e.g., medical devices) that can be easily misplaced or stolen
  • Expensive components that get stored or shipped incorrectly
  • Perishable goods that become unusable due to improper handling

Companies often don’t even know when and where an item has disappeared. And without data, preventing future losses is nearly impossible.

The Solution: Your RTLS system monitors all critical goods in real time.  BLE beacons transmit location data via ceiling-mounted gateways. This allows you to check at every station in your supply chain whether the items are in the right place at the right time. As soon as an item leaves a defined zone, the system automatically triggers an alarm. If an asset disappears, historical location data helps track when and where it went missing.

Pro tip: Evaluate which critical assets in your business require protection. Our team can help pinpoint the best tracking points for maximum security.

 

#5 Paperless Production – Improve Processes with Real-Time Data

The Challenge: Many companies still rely on paper-based checklists, work orders, or manual documentation. This can lead to:

  • Lost or misplaced documents
  • Misinterpretation of handwritten notes
  • Time-consuming investigations when quality issues arise
  • Compliance risks (think supply chain laws and audits)

In short: the error rate increases, it costs time that could be used more productively, and traceability (keyword: supply chain law) is impaired.

The Solution: RTLS is more than just dots on a map. When integrated with an MES, ERP, or logistics system, RTLS can track when components passed through which station and which processing steps took place. Digital dashboards display all relevant data, allowing full traceability. Errors can be pinpointed instantly — with timestamps linking them to the exact machine and operator.

Pro tip: Go paperless step by step. Start by tracking key assets with RTLS to familiarize your workforce with digital workflows.

 

Leverage Real-Time Data for Smarter, More Resilient Workflows

An RTLS is more than just a technology investment—it’s a strategic move to boost efficiency and transparency across your operations. Whether it’s reducing search times, identifying bottlenecks, or ensuring inventory availability, RTLS gives you the data to make smarter decisions. By gradually transitioning to digital workflows, you’ll lay the foundation for future-proof production and logistics.