According to CGI’s annual global study, companies are focusing their digital transformation efforts on activities that deliver the highest return on investment (ROI). It’s no longer about blindly digitizing as many processes as possible, but about profiting from digitization and using it as a competitive advantage. To meet this need, we have created the Favendo Essential Asset Tracking package. A cost effective tracking system that helps increase your company’s ROI without a large investment.
Get your RTLS project ready to go
The Essential package includes the Favendo Commander to manage your RTLS project, the Favendo Location Engine to calculate the location data of the assets, the hosting of the software setup and an open push/pull interface to feed the location data into existing third-party systems. In other words, everything you need for reliable indoor tracking. Assets and people are located using Bluetooth Low Energy (BLE) to an accuracy of 3-5m and in real time. This accuracy is more than sufficient for most use cases in Industry 4.0 or production environments. And if centimetre-precise tracking is ever required, the system can be expanded flexibly and seamlessly. The same applies to outdoor tracking, e.g. in loading yards. But how exactly does a tracking system in the smart factory help to achieve a higher ROI?
Increase ROI with a real-time tracking system for industry
In theory, there are 3 ways to increase a company’s ROI:
- Increase sales while keeping costs the same
- Reduce operating costs for the same level of sales
- Reduce capital investment, in the best case, while increasing sales.
A real-time tracking system addresses all 3 points at once. Let’s take a concrete example to see exactly how this works:
Imagine that in a manufacturing company, workpieces are tracked along the entire production line with an RTLS. As well as forklifts, pallets or tools. Using the Favendo Viewer, employees can view the location of workpieces or vehicles in real time. This eliminates the need for time-consuming searches for parts, pallets or vehicles, and allows process steps to merge seamlessly and without delay. In addition, workers are no longer tied up in unproductive activities and can use their free time to prepare for the next step. In this way, you increase throughput and produce more. This, in turn, translates into more revenue.
A similar point, or rather a side effect of the process optimisation through RTLS described above, is the reduction in operating costs. By eliminating search time, operating costs can be reduced through more efficient use of human resources. In addition, the tracking of expensive stock, machinery or tools protects against theft or loss and saves expensive, unnecessary investment.
Point 3 is only indirectly covered by an asset tracking system. By keeping track of the whereabouts of people and assets, and protecting against loss or theft, you are much less reliant on a ‘Plan B’. You don’t need to carry an expensive inventory overhang, and you can reduce inventory based on utilisation and usage data. This, of course, also reduces capital expenditure.
Start simple and go big
Real-time location can deliver a higher ROI for a manufacturing company at several levels. The prerequisite is always that the location data is actively used and integrated with existing systems. One possibility is to use it at the “shop floor level”. This means that workers on the shop floor use tools to locate and find things. The second option, which is even more important for increasing ROI, is to analyse the location data generated: How long do parts stay in a particular zone? What are the walking and driving distances and how can they be optimised? What is the utilisation of the machines? And so on… This data must be visualised in order to evaluate it. This can either be done using a tool such as Favendo Dashboard, which can be purchased as an add-on to the Favendo Essential package, or you can integrate the data directly into an existing ERP system. Which solution is the right one always depends on the use case. One thing is for sure: the Favendo Essential package is a wonderful basic solution that allows you to increase your ROI with only a small investment. The solution can then be gradually expanded to help you get the most out of your business.