How Turning to the Internet of Things Can Save Your Company Money

Posted on 2nd June 2023

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Businesses have always been looking for ways to save money and earn more. By using technologies like the Internet of Things, they could collect more information that allows them to execute better business strategies. Studies show that the IoT will save businesses up to $1.2 trillion in the cost of productivity alone. As a result, more and more companies are turning to the IoT for data collection and insights. 

Here’s how turning to the Internet of Things can save your company money.

1. What is the Internet of Things? 

IoT or the Internet of Things refers to a system of computing devices and digital machines with unique identifiers and the ability to transfer data through a network without human or computer interactions.

Thanks to super-cheap computer chips and the availability of wireless networks, it is now possible to turn anything, from small things like pills to massive ones like an aeroplane, into a part of the IoT. Connecting different objects and integrating sensors provide digital intelligence to devices, allowing them to communicate real-time data without human intervention. The IoT has made it possible for the things around us to be more responsive, merging physical and digital universes.

Increasingly, more and more companies in numerous industries rely on IoT to operate more efficiently and gain a better understanding of their customers, allowing them to deliver enhanced customer service and improve decision-making to benefit the business.

The ecosystem of an IoT consists of web-enabled devices that rely on embedded systems like sensors, processors, and communication hardware to collect, send, and act on data they gather from their environments. 

IoT devices will send the data they collected to an IoT gateway or another edge device and send the data to the cloud that companies can analyse. Sometimes, the devices will communicate with other related devices and act on the data they have collected.

2. Industrial Inventory Management 

One of the many ways the Internet of Things can save companies money is through Industrial Inventory Management. IoT devices can assist businesses in tracking inventory through various locations worldwide using inventory sensors. With the help of IoT, they will always know how many inventory items they have and where these items are, resulting in improved efficiencies that help businesses save money in inventory management. 

IoT devices can use different technology to help with touchless data collection. They use GPS and other technologies like Radio Frequency ID (RFID) chips and mobile sensors in tracking and authenticating products and shipments. The massive amount of data from IoT devices offers real-time visibility into inventory.

Products with IoT devices can provide more efficient storage and distribution. Tracking inventory and planning routes with the help of IoT allow companies to identify any delays in the transit of goods, which helps with emergency planning and identifying alternative ways to hasten the supply chain.

IoT can be very useful for companies that use equipment and vehicle fleets. GPS technology can help with real-time tracking and collecting data on where the equipment or fleet of vehicles is, allowing organisations to better keep track of inventory and avoid losses.

3. Office Atmosphere 

One of the uses of IoT is to help create a comfortable and safe working environment, encouraging people to collaborate and be more productive. If you are recruiting for IoT, you should implement things to improve the office atmosphere if you want to attract the top talents in the industry. It can be challenging to create a smart office, but IoT technologies can help make things easier.

Studies show that productivity can significantly increase if the office environment is good. For instance, having a smart lighting system can help prevent employees from getting bored, allowing them to stay more focused, resulting in better productivity. In addition, having a smart working desk that alerts employees when it’s time to stand up helps them stay active instead of just sitting all day, which could affect their productivity.

Companies can integrate IoT devices into Artificial Intelligence (AI) to gain insights into the areas in the office with potential cost savings that they need to act upon. The device can tap into predictive analysis to prevent breakdowns that could otherwise result in downtime and costly repairs.

4. Smarter Shipping 

With the help of IoT, carriers can transmit location data and other information to clients. For instance, IoT tags can help lessen the number of lost packages while in transit and minimise damages to temperature-controlled items.

The Internet of Things makes it possible to determine the status of individual shipments using technologies like RFID or radio frequency identification. Such a technology has a chip, reader, and GPS systems linked to a cloud. Embedded radio chips allow IoT to send data to a company’s centralised monitoring system, resulting in smarter and more efficient shipping.

Through IoT, companies can automatically track shipments without scanning bar codes. In addition, the IoT can help minimise asset loss in supply chains due to its real-time tracking of goods. It can help detect any issues with the shipment early on and find the most suitable solution. Furthermore, IoT solutions such as fleet tracking can help to minimise fuel costs by optimising fleet routes according to traffic status.

5. Usage Intelligence for a Better Businesses 

Every company aims to provide only the best for their customers, regardless of their industry. Whether offering products or services, their main priority is the target audience. And it is for this reason that businesses want to know more about their customers, how they use their products, what they think about their brand, and any feedback to help them provide a better experience. The IoT can help with this by gathering actionable and real-time data-based insights.

The data that IoT can gather can help companies save money and generate more revenue. With the help of the insights that IoT can provide, they can establish plans to improve their products at every stage. For instance, during the development phase of their next model, they can make improvements according to the data that the IoT has gathered.