Multiple ROIs of a RTLS Solution from Zebra Technologies Delivers Notable Financial and Operation Benefits

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Zebra Technologies provides state-of-the-art real-time locating systems (RTLS). RTLS enables real-time asset tracking, improves material flows and offers multiple ROIs for companies.

Knowing the status and location of people and things within and between links in a supply chain is the first priority in managing them. That’s the role of Real Time Locating Systems (RTLS) .

RTLS enables real-time asset tracking and improves material and information flows. It can incorporate technologies like radio frequency identification, global positioning systems and temperature sensors and continuously feed supply chain information to warehouse management systems (WMS) and manufacturing execution systems (MES). By doing so, it helps boost the performance of those systems—therefore, their ROI.

According to VDC Research, which surveyed more than 350 companies that implemented RTLS:

  • More than 80% of implementing companies reached ROI within 18 months
  • More than half reached ROI in 12 months or less
  • All companies improved asset utilization by 20% or more
  • Nearly half improved asset utilization by 40% or more
  • All companies reduced operating costs by more than 9%
  • Half reduced operating costs by more than 30%.

A new whitepaper from Zebra Technologies, “Real-Time Locating Systems in Material Handling and Logistics,” details how these numbers are made possible across all major functional areas of an enterprise, including receiving, put-away, manufacturing replenishment, picking, order staging, shipping, yard management, WIP tracking, finished goods quality testing and returnable container tracking.

More specifically, the white paper analyzes improvements made possible by integrating an RTLS with a WMS. These include:

  • Operational labor savings
  • Incentivized performance gains
  • Inventory reductions
  • Space savings
  • Facility capacity/throughput gains
  • Asset utilization
  • Line stoppage reduction
  • Expedited service cost reductions
  • On-time procurement.

The white paper also makes the case that RTLS benefits continue to be shared throughout the supply chain once the manufacturer’s ROI is achieved. It presents the case of Android Industries and its relationship with automotive OEMs. RTLS helps Android deliver assemblies to OEMs at the right time (which can be just two hours from receiving an order) and in the right sequence for the OEM’s just-in-time operations.

To build on the informational foundation this white paper lays down, Zebra will present “Enhancing Material Handling and Logistics with Real-Time Visibility,” a webcast produced in conjunction with Android and Material Handling & Logistics (MH&L) Magazine. It will be offered November 13th at 2pm Eastern Time. All webcast registrants will receive a copy of the white paper.

“This is an exciting time for anyone involved in developing or using automatic identification and data collection technologies,” says Tom Andel, editor-in-chief of MH&L. “Over the next five years, the AIDC market is expected to expand at a compound annual growth rate of 7.5%, from almost $22 billion to a little over $31 billion by 2016. The growth of the ‘internet of things’ has a lot to do with that. As assets embedded with sensors and actuators continue to hit the market, their ability to communicate with each other and their owners will give those owners a clearer picture of the state of their supply chain.”

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Robb Kristopher
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