IoT in [the] retail industry relates to a whole host of opportunities brought by leveraging IoT technologies. A network of interconnected devices, from trackers to smart sensors, is reshaping how the retail industry operates, bringing new levels of efficiency, accuracy, and insight. The impact of IoT on the retail industry is significant, particularly in areas such as real-time tracking of goods and inventory management.
In a recent report published by Walmart, ‘Adaptive Retail Report 2024’ the major retailer commissioned 2000 US shoppers in order to understand key trends, with one main insight demonstrating that retailers who can predict customers’ needs, provide personalised suggestions and deliver at the right time will succeed. “Advancements in technologies like augmented reality and artificial intelligence are transforming how consumers engage with retailers,” said Richard Kowalski, Sr. Director, Business Intelligence at Consumer Technology Association at the time of the report announcement.
One example of how this was put into practice was provided by Lantronix who published a case study which referred to HY-Line Group’s smart shelf, a digital retail shelf signage solution that provides analytics on customer buying behaviours both online and in-person. Lantronix’s router, SIM connectivity services and IoT Edge solutions platform were all used for the development of the smart shelf solution.
“Lantronix’s proven IoT solutions enabled HY-LINE Group to create a digital retail signage solution that combines the best of online and in-person shopping while giving retail chains the ability to capture insightful analytics on customer behaviours,” said Mathi Gurusamy, Chief Strategy Officer for Lantronix in the press release.
Real-time tracking
One of the most significant advantages offered by IoT for the retail industry is the ability to track goods in real-time. IoT devices, such as GPS trackers, RFID tags, and smart sensors, offer continuous updates on the location and condition of products as they move through the supply chain. This real-time visibility allows retailers to monitor shipments closely.
Real-time tracking addresses several common supply chain challenges. For example, it reduces the risk of lost or stolen goods by providing precise location data. It also enhances the ability to respond promptly to delays or disruptions. If a shipment is delayed, retailers can quickly adjust their plans and communicate new delivery times to customers, thereby improving overall customer satisfaction.
Inventory management
Effective inventory management is crucial. Traditional inventory management methods often rely on periodic manual counts, which can be time-consuming and prone to errors. IoT devices automate this process, providing continuous and accurate inventory data.
Smart shelves equipped with weight sensors and RFID tags can detect when stock levels are low and automatically trigger reorders. This kind of automation ensures that products are always available when customers need them, which in turn reduces the risk of overstocking or understocking. Additionally, IoT-enabled inventory systems can analyse purchasing trends and predict future demand, allowing retailers to optimise stock levels and reduce carrying costs.
IoT also enables more efficient warehouse management. Automated guided vehicles (AGVs) and robotic systems can transport goods within warehouses, reducing the need for manual labour and increasing efficiency. These systems typically work together with IoT sensors that track the location of each item
Data analytics
The data generated by IoT devices provides retailers with valuable insights that can be used to optimise their operations further. Advanced analytics platforms such as these can process vast amounts of IoT data to identify patterns, trends, and anomalies. Alongside identifying buying behaviours, this information can also be used to improve forecasting accuracy, optimise route planning, and enhance overall supply chain efficiency.
For instance, by analysing data from IoT sensors, retailers can identify bottlenecks in their supply chain and implement measures to address them. They can also use this data to evaluate the performance of suppliers and logistics partners.
Conclusion
The integration of IoT into the retail industry has shown how real-time tracking and inventory management have become key advantages for retailers, as well as the data insights offered which enable them to understand trends and behaviours, and target their customers accordingly. By embracing IoT technologies, retailers can ensure their future success.
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