Real-Time Inventory Tracking System for Warehouse Management

Google converted GPS Location data of billions of mobile devices into Location intelligence to deliver precise ads, capturing significant market share from traditional competitors. Harnessing such real-time location insights from your operations will provide the same distinct advantage to your warehouse. But in Indoor GPS, it is crucial to Start Small & Scale Fast to advance from Location Data to Location Intelligence.

LocaXion’s RTLS practitioners have deployed over 100+ RTLS Location Intelligence projects in Manufacturing, Warehousing and Healthcare. With our 15+ years of RTLS expertise we design scalable solutions that meet your current asset tracking, efficiency, and operational performance needs, and scale for future use-cases.

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Top Use Cases of Real-Time Inventory Tracking in Warehouse Management

Real-Time Inventory Visibility for Accurate Warehouse Management

RTLS offers real-time tracking of inventory across the warehouse, eliminating manual searches and audits. It ensures accurate stock levels and precise location data, reducing overstocking and supports data-driven decision-making for inventory optimization​. This improves forecasting and operational efficiency.

Streamlined Picking and Placement with RTLS Technology

RTLS guides workers to exact inventory locations using real-time location data, optimizing picking and placement processes. This reduces picking errors, enhances productivity, and accelerates order fulfillment​.

Maximize Warehouse Space Efficiency Using RTLS Solutions

By tracking the movement and storage of inventory, RTLS helps maximize the utilization of warehouse floor space. Geofencing capabilities ensure assets are in their designated zones, supporting a streamlined workflow and reducing congestion in storage areas. Historical analysis of this data enables better storage layouts and optimal use of available space, leading to improved efficiency​.

Automated Warehouse Workflows with RTLS for Inventory Control

Integration of RTLS with systems like ERP or Warehouse Management Systems (WMS) automates inventory management tasks such as put-away, cycle counting, and shipping verification. This automation reduces manual effort, expedites operations, and supports lean inventory practices.

Secure Inventory Management with RTLS to Prevent Loss

RTLS enhances security by monitoring inventory movement. Alerts are triggered if items leave predefined areas or are accessed without authorization. This reduces risks of theft, loss, misplaced goods, and unauthorized handling​ ensuring better asset protection​.

Just-in-Time Inventory Tracking Powered by RTLS Systems

RTLS facilitates just-in-time (JIT) inventory practices by ensuring timely delivery of materials to production lines or dispatch areas. This minimizes storage costs or carrying costs, delays and aligns with lean manufacturing goals, and improves intralogistics efficiency

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Why Locaxion is the Right Partner for Your RTLS Journey

100+ Location Intelligence projects across Manufacturing & Warehousing 

With experience across over 100 location intelligence projects, LocaXion brings proven expertise to facilities across diverse industries. 

15+ years of experience in RTLS Smart Factory consulting alongside BIG 4 

Our team offers unmatched knowledge in RTLS solutions, digital twins, and smart factory initiatives, making LocaXion a trusted partner for businesses. 

Strong Network of Top RTLS and Digital Twin Providers

We work with industry-leading RTLS and digital twin providers to deliver tailored solutions, meeting each client’s specific needs.

Choosing the Right RTLS Technology for Real-Time Inventory Tracking

Choosing the right real-time location system (RTLS) technology is very important for accuracy and reliability of data generated to power automated warehouse management. RFID technology has been widely used for a long time, mainly with passive RFID tags for simple identification and tracking. However, active RFID tags offer better features for real-time location tracking. Other technologies used in real-time inventory tracking include Bluetooth Low Energy (BLE), Ultra-Wideband (UWB), and Wi-Fi. The choice of technology depends on different things, like how accurate the tracking needs to be, the size and layout of the space, and budget limits.

Infrastructure-Based RTLS (UWB, BLE)

Infrastructure-based RTLS offers a comprehensive “indoor GPS on steroids,” providing sub-meter accuracy and sub-second updates. These systems, typically powered by Ultra-Wideband (UWB) or BLE, are ideal for complex warehouse environments requiring constant visibility into inventory locations. With its high precision, UWB supports critical applications such as real-time inventory audits, stock replenishment, and automated cycle counting, which can’t be achieved with less granular systems like RFID.

Advantages:
God’s Eye View: The facility-wide grid of sensors offers unmatched visibility, enabling real-time tracking and alerting for inventory, even in remote storage zones.
Multi-Use Capability: This investment can power multiple RTLS use-cases, from inventory tracking and asset management to worker location monitoring.
Advanced Analytics & Digital Twin Potential: By generating high-fidelity data, infrastructure-based RTLS enables predictive models and Digital Twin simulations, providing valuable insights into stock levels and warehouse efficiency.

Considerations:
While initial infrastructure costs can be significant, combining multiple RTLS use cases (e.g., inventory, asset, and personnel tracking) under one system can enhance ROI. LocaXion can assist with a business case and ROI calculation for your warehouse.

Non-Infrastructure Ranging Systems (TWR)

Non-infrastructure, Two-Way Ranging (TWR) systems are simpler, line-of-sight solutions that require fewer components, making them easier to deploy. By using a combination of sensors placed on inventory items and fixed reference points, these systems offer basic location awareness and proximity alerts for inventory management.

Advantages:
Lower Setup Costs: Ideal for warehouses looking to avoid high upfront infrastructure costs.
Effective for Open Layouts: Works well in open layouts where inventory visibility isn’t obstructed by corners or walls.

Limitations:
Non-infrastructure TWR systems are less suitable for environments with obstructions or complex shelving, as they cannot track inventory around corners. For warehouses with heavy shelving or large stock areas, infrastructure-based RTLS may be more appropriate.

Vision-Based Tracking (Camera or LIDAR)

Vision-based RTLS, using AI-powered cameras or LIDAR, enables shape and object detection for advanced inventory tracking applications. Vision systems excel in identifying specific objects and can provide accurate distance measurements and alerts in real-time, especially when paired with SLAM (Simultaneous Localization and Mapping) technology.

Advantages:
Instant Alerts: Cameras can detect inventory movement or misplaced items, alerting managers instantly for corrective action.
Enhanced Object Detection: Vision systems “see” item types, making them ideal for identifying specific products, even in dense storage environments.

Considerations:
These systems may be affected by environmental conditions like dust, lighting, or obstruction. Vision-based tracking requires significant processing power, often necessitating on-board or cloud-based AI for effective real-time analysis.

Indoor-Outdoor Hybrid Tracking

Some warehouses require seamless inventory tracking both inside and outside the facility. Hybrid solutions, combining UWB/BLE for indoor environments and GPS/RTK for outdoor areas, provide comprehensive coverage across varied environments. For outdoor zones, LoRaWAN, GPS, or RTK can extend coverage for inventory management activities like yard management or raw material handling, though typically with lower accuracy compared to indoor systems.

Advantages:
End-to-End Coverage: Seamlessly track inventory across both indoor and outdoor spaces, ideal for large facilities or those with extended yard operations.
Flexible Technology Mix: Use the best-suited technology for each environment to balance cost, accuracy, and operational needs.

Limitations:
Outdoor tracking systems may have lower accuracy (within a few meters) and slower update rates compared to indoor RTLS. RTK offers higher accuracy but at a higher cost, while LoRaWAN is a cost-effective solution for general location monitoring with lower precision.

Evaluate the pros and cons of UWB, BLE, TWR, LiDAR, and hybrid solutions to select the ideal RTLS technology for your warehouse’s inventory tracking needs. The right choice will enhance real-time visibility, stock management, and overall operational efficiency.

With 15+ years of RTLS expertise, we’ve partnered with Top 3 RTLS and Digital Twin providers to build vendor-neutral solutions starting from design and deployment, to change management. 

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Top 3 Features Every Real-Time Inventory Tracking System Must Have

Real-time visibility with alerts for unauthorized entry, speed, and route deviations. 

Compatibility with OSHA checklists and access control to ensure compliance. 

Robust data integration with WMS, MES, and telematics for end-to-end visibility.

Guiding Questions to Choose the Best RTLS for Inventory Tracking in Warehouse Management

To ensure your Real-Time Location System (RTLS) aligns with your operational needs and long-term goals, consider the following:

What Are Your Primary Objectives?
Are you aiming to enhance inventory accuracy, streamline workflows, or reduce operational delays? Clearly defining your goals will help in selecting an RTLS that delivers measurable ROI and addresses your specific challenges.

Is Asset Tracking Just the Start?
Will the system extend beyond inventory to include forklifts, pallets, or other assets? If you plan to implement RTLS as part of a broader Smart Warehouse strategy, consider the scalability of the system. For instance, transitioning from inventory tracking to forklift tracking may require significant infrastructure changes, especially if integrating advanced safety features like collision warning systems or automatic speed reduction mechanisms.

What Is Your Facility Environment Like?
Assess site-specific conditions such as dust, metal obstructions, or extreme temperatures. In challenging environments, robust technologies like Ultra-Wideband (UWB) or hybrid RTLS solutions may be more effective than Bluetooth Low Energy (BLE) or RFID-based systems.

What Are Your Scalability Requirements?
Can the RTLS system grow with your operations? Choose a solution designed for seamless expansion to accommodate increasing inventory, larger facilities, or additional functionalities without significant downtime or cost.

How Important Is System Integration?
Ensure the RTLS can integrate with your existing Warehouse Management System (WMS), Enterprise Resource Planning (ERP), Manufacturing Execution System (MES), or telematics platforms. Seamless connectivity is essential for leveraging real-time data and maintaining cohesive, efficient operations.

What Are Your Inventory Characteristics?
Consider the following:
Inventory Size and Standardization: Are all pallets standardized in size, shape, and labeling?
Tagging Requirements: Do you need to tag every box inside a pallet? Are pallets deconstructed, or are they stored and dispatched directly?
Individual Item Tracking: If pallets are deconstructed, is each box or product individually labeled? What is the value of tracking at the individual box level—such as for high-value assets or compliance purposes?

Addressing these questions will help you select an RTLS system tailored to your warehouse’s current demands and future aspirations. 

LocaXion’s vendor-neutral approach eliminates trial-n-error.

Specific Questions?

Real-Life Examples of Real-Time Inventory Tracking in Action

Discover how RTLS is revolutionizing warehouse operations with smarter inventory tracking and workflow optimization, driving faster fulfillment, increased productivity, and data-driven decision-making.

Key Takeaways – Benefits of Real-Time Inventory Tracking

Real-time Visibility

Know exactly where your inventory is at all times, eliminating guesswork and manual errors.

Faster Operations

Streamline picking, placement, and order fulfillment to save time and boost productivity.

Better Space Utilization

Optimize storage layouts and reduce clutter by tracking inventory movement.

Enhanced Security

Prevent theft and loss with automated alerts for unauthorized inventory access.

Seamless Integration

Connect with WMS, ERP, and MES systems to automate workflows and improve data accuracy.

Scalability

Start small and scale as needed, from inventory tracking to forklift management and safety systems.
Cost Savings: Reduce labor, storage, and inventory costs with lean, efficient operations.

Cost Savings

Reduce labor, storage, and inventory costs with lean, efficient operations.

Frequently Asked Questions

How to keep track of inventory in real-time?

By utilizing advanced technologies like RFID or barcode scanning, real-time inventory tracking systems provide accurate data on stock levels and movements. Automated updates and alerts ensure timely inventory management, enhancing efficiency and minimizing errors. This ensures precise control and visibility over inventory in dynamic warehouse environments.

Why is real-time inventory management important?

Real-time Inventory Management is important for maintaining accuracy, optimizing efficiency, and enhancing visibility within warehouse operations. It enables real-time decision-making, minimizes stockouts, reduces excess inventory costs, enhances customer satisfaction, and improves overall operational productivity.

What are the most effective methods for monitoring inventory in real-time?

Implementing a robust real-time inventory tracking system coupled with RFID technology is the best way to keep track of inventory efficiently. This combination ensures accurate, up-to-date information on inventory levels and locations, streamlining warehouse operations seamlessly.

How is RFID used in inventory management?

RFID technology uses radio frequency signals to allow seamless tracking of inventory. Attaching RFID tags to products enables real-time inventory tracking as they move through the supply chain, improving accuracy and operational efficiency. This technology revolutionizes inventory control by instantly updating item locations and quantities.

How much do RFID tags cost?

RFID tag costs vary based on type and quantity. Generally, passive RFID tags range from a few cents to a couple of dollars per tag, while active RFID tags can cost several dollars each due to added functionality and battery requirements.

What are the benefits of using RFID in warehouse management?

RFID technology in warehouse management provides greater inventory visibility, improves accuracy, and optimizes operational efficiency. It enables real-time inventory tracking, reduces manual errors, speeds up processes, and enhances overall operational productivity. Implementing RFID can lead to cost savings, improved customer satisfaction, and streamlined supply chain management.

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