Optimizing Stock Sorting through IoT in

Inventory Management

Introduction to Modern Inventory Management with IoT

Chidananda B
 Challenges Overview

Current Challenges in Inventory Management

Addressing Key Obstacles in Inventory Handling

Inaccurate inventory counts Time-consuming processes

Inaccuracies in inventory counts result in stock shortages, Time-consuming inventory processes slow down operations,
overstocking, and hindered decision-making. impact productivity, and increase costs.

Manual stock sorting

Sorting stocks manually leads to errors, delays, and

inefficiencies in inventory management processes.

High labor costs Inefficiencies in stock placement

High labor costs associated with manual handling contribute Inefficient stock placement impacts accessibility, retrieval
to increased operational expenses and reduced profitability. times, and overall warehouse optimization.
 Technology Insights

What is IoT?
Exploring the World of IoT

Interconnected Devices
IoT involves linking computing devices embedded in everyday items to enable data
transmission.

01

Diverse Applications Data Exchange Capability

The applications of IoT span across industries, 05 02 Through IoT, these devices can send and receive data for
revolutionizing operations and services. various purposes.

Automation Potential Enhanced Connectivity

IoT technology empowers automation of tasks and processes through 04 03 IoT enhances connectivity by enabling seamless communication
smart devices. between devices.
 IoT Benefits for Inventory Management

Benefits of IoT in Inventory Management

Enhancing Operational Efficiency with IoT Solutions

01 02 03 04 05
Automated stock Improved efficiency
Real-time tracking Enhanced accuracy
updates Reduced labor costs and productivity
and monitoring in stock counts
Through IoT integration, stock By automating stock-related tasks, The implementation of IoT in
IoT enables continuous tracking levels are automatically updated IoT technology minimizes human IoT solutions help in reducing inventory management
and monitoring of inventory as items are added or removed, errors in stock counting processes, manual labor requirements, streamlines processes, enhancing
items, providing real-time insights ensuring accurate and up-to-date leading to improved accuracy in thereby cutting down operational overall efficiency and
into their locations and status. inventory records. inventory management. costs. productivity within the warehouse
or storage facilities.
 Stock Sorting Efficiency with IoT

How IoT Transforms Stock Sorting

Enhancing Inventory Sorting Process with IoT

Real-time Tracking Automated Sorting

Track stock movements instantly for Utilize IoT devices for automated sorting
efficient sorting. processes.

Data Analytics Predictive Maintenance

Analyze stock data to optimize sorting Implement IoT for predictive maintenance
strategies. of sorting equipment.

Enhanced Accuracy Cost Efficiency

Improve sorting accuracy through IoT- Reduce sorting costs with IoT-driven
enabled systems. inventory management.
 RFID Tags

Inventory Optimization 01 Utilize RFID tags for real-time tracking and identification of stock items,
enabling accurate sorting and inventory management.

IoT Devices for Stock

Sorting

Enhancing Inventory Management

Efficiency with IoT Solutions
Smart Shelves
02 Implement smart shelves equipped with IoT sensors to automate stock
sorting based on predefined criteria, reducing manual effort and errors.
 Automated Guided Vehicles (AGVs)

Inventory Optimization 03 Leverage AGVs for efficient movement of stock within the warehouse,
enabling seamless sorting processes and optimizing inventory flow.

IoT Devices for Stock

Sorting

Enhancing Inventory Management

Efficiency with IoT Solutions
Sensors and Scanners
04 Deploy sensors and scanners to collect real-time data on stock location and
quantity, facilitating accurate stock sorting and replenishment.
 Inventory Optimization

IoT Devices for Stock

IoT Platforms for Data Integration
Sorting
05 Integrate IoT platforms to consolidate data from various devices, enabling
centralized monitoring and analysis for streamlined stock sorting operations.

Enhancing Inventory Management

Efficiency with IoT Solutions
 Inventory Optimization
IoT Platforms for Data Integration

IoT Devices for Stock 05 Integrate IoT platforms to consolidate data from various devices, enabling
centralized monitoring and analysis for streamlined stock sorting operations.
Sorting

Enhancing Inventory Management

Efficiency with IoT Solutions
 Improved Inventory Accuracy
Streamlined Stock Sorting
Enhanced tracking and real-time
visibility of stock levels. Automated sorting processes leading
IoT Integration Benefits
to increased efficiency.

Case Study: Successful IoT

Implementation
Cost Reduction
Enhanced Customer
Decreased operational costs through
Satisfaction
Achieving Operational Excellence optimized inventory management.
through IoT Integration Fulfillment of orders accurately and

Enhanced Decision-making promptly due to improved inventory

accuracy.

Data-driven insights for better

inventory control and planning.
 Efficiency and Accuracy

Comparing Traditional vs. IoT-Enabled Stock Sorting

Enhancing Inventory Efficiency with IoT Technology

Sorting Method Resource Usage

Manual sorting Labor-intensive

Automated sorting Labor-efficient

 Inventory Data Flow Optimization

Data Flow in IoT-Enabled Inventory Management

Efficient Data Collection, Processing, and Utilization in IoT Inventory System

Real-time Monitoring

Integration with ERP

Systems

Automated Alerts

Data Utilization
Data Processing
Data Collection
 IoT Inventory SWOT

SWOT Analysis of IoT in Inventory Management

Enhancing Inventory Control with IoT Technology

Real-time data, Enhanced accuracy

High initial costs, Dependence on technology
Real-time data provided by IoT devices ensures that inventory
information is always up-to-date and accurate, improving overall Implementing IoT systems in inventory management incurs high

inventory management efficiency. initial setup costs, and reliance on technology can pose challenges

S W if systems fail.

Advanced analytics, Scalability

O T
Data security issues, Technological failures
Opportunities exist to utilize advanced analytics for predictive
Potential threats include data security vulnerabilities that could
maintenance and demand forecasting, while scalability allows for
compromise sensitive inventory information and risks associated
seamless expansion of IoT solutions.
with technological malfunctions.
 01 Planning Stage
Identifying inventory needs and selecting IoT solutions.

02 Implementation Preparation
Preparing infrastructure and selecting IoT devices.
Integration Journey

03 Integration Phase

IoT Integration Workflow Connecting IoT devices to inventory systems.

04 Testing and Optimization

Stages of Integrating IoT into Inventory Conducting trials, refining processes, and optimizing IoT
Management performance.

05 Full Deployment
Complete rollout of IoT in inventory management.

06 Continuous Monitoring

Maintaining and monitoring IoT systems for ongoing efficiency.

 01 Planning Stage
Identifying inventory needs and selecting IoT solutions.

02 Implementation Preparation
Preparing infrastructure and selecting IoT devices.

03 Integration Phase

Integration Journey Connecting IoT devices to inventory systems.

04 Testing and Optimization

IoT Integration Workflow Conducting trials, refining processes, and optimizing IoT
performance.

Stages of Integrating IoT into Inventory 05 Full Deployment

Management Complete rollout of IoT in inventory management.

06 Continuous Monitoring

Maintaining and monitoring IoT systems for ongoing efficiency.

 Inventory Performance Metrics

Key Metrics to Monitor

Enhancing Inventory Management Efficiency through IoT

Stock Out Rate Labor Efficiency

Inventory Turnover Rate Order Picking Accuracy Average Inventory Level
Percentage of times when items are Measure of workforce productivity
The rate at which inventory is sold not available when demanded, in handling inventory, affecting
Precision in fulfilling customer The mean amount of stock held
and replaced within a specific impacting customer experience and operational costs and order
orders, reflecting operational over a defined period, influencing
period, indicating operational sales. fulfillment speed.
effectiveness and customer working capital and storage costs.
efficiency.
satisfaction levels.
 IoT Cost and ROI Analysis

Investment and ROI Analysis

Exploring IoT Implementation Costs and Projected Returns

250,000
2.5L 220,000

180,000
2L

1.5L 120,000

1L

50K
Amount in USD
Initial Year 1 ROI Year 2 ROI Year 3 ROI
Investment
Time Period

Industry Research Report on IoT Implementation in Inventory Management

 Key Executives Overview

Key Stakeholders in IoT-

Enabled Inventory
Management

Introduction of Key Individuals in IoT

Solutions Implementation
John Smith Michael Lee
Emily
Johnson Warehouse
IoT Solutions
Inventory Operations
Manager
Analyst Lead
Next Steps: Implementing IoT in Your Inventory
Management
Leveraging IoT Solutions for Enhanced Efficiency