When companies search for IoT asset tracking systems, management always wants to know the risks involved. Have you ever thought about the risks you face by not using an asset tracking system? There are some costly risks associated with a lack of asset tracking, especially in manufacturing.

Lost Tools and Bottlenecks

Poor visibility increases the risk of lost tools within large facilities and creates bottlenecks. When tools are lost, stages of the production process cannot be completed. When stages of the production process cannot be completed, that process gets backed up until the bottleneck is fully remedied. Although it is especially important not to misplace high-value, specialized equipment that can be expensive to replace, misplacing everyday tools can create just as much setback in daily operations.


 

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Decrease in Predictive Ability

Without knowing the location and usage of assets, predictive production becomes dependent on historic data, meaning that issues leading to decreased process efficiency are often not addressed until later. These issues are often the result of inaccurate reporting, which ultimately leads to poor decision-making. These uninformed decisions ultimately cost money. Investing in an IoT asset tracking system increases the accuracy of asset location data, which can be reported in real-time. This real-time reporting allows for production issues to be addressed both in real-time and before large issues occur, leading to improved decision-making and improved outcomes.

Decrease in Productivity

Car manufacturing companies are a great example. Let’s say that supply chain shortages are halting the WIP of a car. This partially completed car is taken off assembly until that missing part comes in. Sounds simple, until you consider that hundreds of partially completed cars are pulled off the assembly line every day. So what do you do when that happens? How do you find 50 of the correct partially completed cars? It can take a long time, and that decreases productivity. With a real-time asset tracking system, partially completed goods can be completed efficiently and quickly.

Increase in Waste and Scrap

Waste and other forms of scrap are the natural product of the manufacturing process. However, there is typically an expected range that amounts of waste fall within. Without an asset tracking solution, it is difficult to identify increases in waste that might indicate that material is not being properly used, reused, or recycled. Not only does this result in wasted material, but it also has a negative impact on a company’s sustainability goals. Real-time asset tracking can help ensure proper waste management and enable an immediate response to unexpected increases in waste.

Bad Customer Service

Customer service is one of the top priorities for every company. Integrating the wrong asset tracking platform can hurt your ability to help customers. When you don’t track your materials as they go through the production process, unexpected delays may occur without your knowledge that prevent orders from being filled on time. This can upset customers who are expecting to receive those orders in a set timeframe, potentially driving them to competitors.

Want To Avoid These Risks?

Our AirFinder Solution is an end-to-end solution that provides real-time location information. Using a system like ours improves visibility, predictive ability, productivity, sustainability, customer service, and so much more. Learn how to avoid these risks by booking a demo with us!

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Jennifer Halstead

Written by Jennifer Halstead

Jennifer Halstead, MBA, CPA brings more than 20 years financial industry experience to Link Labs. She began her career in finance within the pharmaceutical industry and has continued in both public accounting and private companies. She passed the CPA exam with the 3rd highest score in the state and completed her MBA with an accounting concentration (summa cum laude). Jennifer has worked with several software companies and has led multiple venture financing, merger and acquisitions deals. She has helped companies expand internationally and has managed the finance department of a startup to 33 consecutive quarters of growth prior to acquisition. After the acquisition, she served as the Controller of Dell Software Group’s Data Protection Division where she managed a portfolio of multiple hardware and software products to scale and achieve over triple-digit growth worldwide in 18 months. Jennifer brings a depth of finance experience to the Link Labs team.

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