IoT is Key to Cloud Inventory

Industry 4.0 is a system that combines informational and operational technology to make manufacturing more aware, predictive, and autonomous. Employees operating in a 4.0 environment are highly connected with a more complete view of their business ecosystem.

“Ultimately, you want to run autonomously in a closed-loop system where humans set parameters but the technology runs itself,” said Chris Hill, Technology Program Director at Iowa State University Center for Industrial Research and Service. “Sensors and software directly feed an Industry 4.0 environment. They replace physical processes and direct information to workers.”

Hill said he still sees employees manually measure material. They write data on paper and hand it to someone else, who will then enter it into a spreadsheet.

“People want to do meaningful work. It’s a high priority,” Hill said. “We can re-evaluate work with technology, taking it out of the physical realm and making it more value-added.”

Hill’s research center identifies opportunities through wearable sensors that track employee movement. Managers can pinpoint how long employees engage in extra activity—such as climbing ladders—throughout their shift.

Industry 4.0 By the Numbers

• According to Fortune Business Insights, globally, the Industry 4.0 market size was valued at $114.5 billion in 2021. That market is projected to grow to $377.3 billion by 2029, increasing by 16.3% during that period. The numbers were derived by looking at product offerings like sensors, software, robotics, PLC automation, control room solutions, motors, generators, and others.
• Product demand has strained bulk material markets—including global dry bulk—according to a 2021 global market report by Research and Markets.com. Growth is mainly due to companies recovering from COVID-19. The report showed global dry bulk materials market will grow from $306.5 billion in 2021 to $389.4 billion in 2025. That represents a 6.2% compound annual growth rate (CAGR).
• According to Yahoo Finance, supply chain disruptions are increasing due to consumer demand, labor shortage, and trucking and shipping capacity restraints. More than 70% of retailers said supply chain disruptions negatively impact business—a 42% increase from the previous year.
• About 36% of U.S. adults don’t have jobs and are not looking for work. The U.S. has 3 million fewer Americans participating in the labor force compared to February 2020, according to the US Chamber.
• Labor shortage is not unique to the U.S.; as of early 2022, Europe struggled to fill 1.2 million open job roles. Australia had 400,000 vacant positions. Singapore reported 163 jobs for every 100 available workers.

Baby Steps Toward Automation

Engineers utilize finite element analysis to break down engineering and mathematical modeling. Those implementing Industry 4.0 can do the same by breaking processes down into smaller steps and watching for automation opportunities along the way, Hill said.

He said supply chain analysis has shown the need for dynamic material ordering and storage. Decision makers often navigate long lead times to receive materials, but more and more are looking to identify substitutes.

Communication Between Locations

No matter where people are located, employees can share data via cloud-based reports. For example, sensors and software gather inventory data and prepare it for customer service, purchasing, compliance, production, and Enterprise Resource Planning (ERP).

“We’re finding that more and more large companies have centralized decision making processes, especially purchasing and operations,” said Mike Mossage, Vice President Sales - Eastern U.S. at BinMaster. “We’ve invested a lot of resources in BinCloud® software`s reporting capabilities.”

By sharing data, a team can identify bottlenecks, trends, and opportunities. Even maintenance can use data to facilitate predictive repairs, reducing downtime. History found on these cloud reports can help with predictive models and offer condition-based alerts. Sensor data is used to track equipment, improve work processes, streamline supply chains, increase safety, and boost overall efficiency.

“Customers today expect companies to bring bin, tank, and silo inventory to cell phones,” Mossage said. “People demand mobility. Inventory software releases new features at almost double the rate of Apple operating systems.”

"Inventory" of Things

Level sensors and software fit into the category of the Internet of Things (IoT).

• Provides insights for data-driven decisions; increases efficiency and drives down costs
• Shortens lead times for production
• Reduces carrying costs and last-minute purchases
• Reduces waste on bulk inventory that could spoil
• Accurate inventory data is fed into ERP systems
• Streamlines transportation and timely ordering

From a business standpoint, inventory management streamlines bulk material handling for inventory balancing, planning, and control. For balance, it’s important to have the right amount of inventory to fulfill production and free up spend tied to safety stock. Control refers to managing the physical and logistics of inventory.

Level sensors begin the process of real-time inventory measurements. Non-contact technologies, such as radar and laser, update quickly for continuous inventory monitoring. Cloud software organizes and presents data that supports key performance indicators (KPI) to meet business objectives.

“It’s essential to tailor sensor and software technology to each industry so that managers can maximize their decisions,” said Scott Hudson, President. “We realize that different materials require different sensors and software, which account for workplace conditions, company goals, and even the bulk density of the product.”