Streamlining Supply Chain Operations with IoT-Enabled Tracking
Customer Case Study: Enhancing Supply Chain Efficiency with Griffin IoT Cloud
A global retail leader, known for its expansive supply chain and focus on operational efficiency, faced significant challenges in managing its large fleet of goods carriers, specifically the trolleys used to transport materials. The company struggled with a 10% annual loss of goods carriers, inefficiencies in fleet utilization, and a lack of traceability that necessitated emergency purchases equivalent to 2–5% of the fleet size. Additionally, manual handling and searching consumed 10% of operational time, while operational disturbances reduced output by 0.5–5% per year. These inefficiencies led to substantial costs and disruptions, threatening the company’s ability to maintain its streamlined logistics operations.
To overcome these challenges, the company implemented the Griffin IoT Cloud, a powerful platform designed to provide real-time tracking and management capabilities through IoT-enabled sensors. By equipping a fleet of 1,000 trolleys with IoT sensors and integrating them with the Griffin IoT Cloud, the company gained comprehensive visibility into its assets, leading to significant cost savings and operational improvements. The estimated Return on Investment (RoI) for this initiative was calculated at over 5 million Swedish Krona (MSEK) annually, a conservative estimate that highlights the potential for even greater benefits.
First, the 10% annual loss of goods carriers
The Griffin IoT Cloud delivered a transformative impact across multiple areas. First, it significantly reduced the 10% annual loss of goods carriers—equivalent to 100 trolleys out of 1,000. With each trolley valued at approximately 5 MSEK, this reduction in losses saved around 0.8 MSEK per year by addressing costs associated with misplaced trolleys. Second, the optimized use of the fleet, which improved by approximately 20%, resulted in savings of 0.4 MSEK. This optimization allowed the company to reduce the space required for 1,000 trolleys from 5,000 m² to 4,000 m², freeing up valuable warehouse space for other purposes. Third, the solution decreased manual handling and searching time by 10%, saving 0.3 MSEK annually by reducing labor costs tied to searching for misplaced trolleys. Additionally, reduced damage costs increased capacity, saving 0.6 MSEK, as 20% of the 5 MSEK damage cost for 100 trolleys was avoided. Finally, the most substantial saving came from reduced lead times to operational materials, contributing 1.0 MSEK by ensuring materials were available when needed, minimizing downtime, and boosting productivity.
Beyond these direct financial benefits,
the Griffin IoT Cloud reduced operational disturbances, increasing output by 0.5–5% per year, and enabled further supply chain enhancements, such as automated ERP transactions and process optimization. These improvements not only delivered cost savings but also enhanced the company’s operational agility, ensuring it could maintain a competitive edge in a fast-paced retail environment.