IIoT and RFID in Asset Management

In the fast-paced environment of industrial operations, monitoring goods and assets is an essential means of process improvement and ensuring everything remains in working order. If IIoT and RFID in Asset Management are put together, they provide a very powerful solution for problems that come with traditional tracking methods. Now that they have put these tools together, they can streamline and improve their work like never before. This would allow companies to change their supply chain, become more efficient, and eventually reach new levels of productivity through the use of RFID and Industrial IoT for smartly handling their assets.

This blog talks about how Asset Management with IIoT and RFID can work together to change the way that industrial settings track inventory and assets.

Key Stats for IIoT and RFID in Asset Management

• The global IIoT market is projected to reach $1.11 trillion by 2030, with a CAGR of 22.8%
• The RFID market is expected to grow to $25 billion by 2030, with a CAGR of 9.6%​
• Over 60% of manufacturers globally have integrated IIoT solutions, including RFID, into their operations to enhance tracking, reporting, and predictive maintenance

Understanding IIoT and RFID

IoT services are used by businesses to keep track of their assets because Industrial IoT and RFID are the major players in smart asset management. Let’s get a deeper understanding of both the technologies:

What is RFID?

RFID in Asset Management is one of the main things that is making this change possible. RFID tags are small electronic devices that send data through radio waves. They can be put on people, things, or even properties. Businesses can track and handle their assets in real-time thanks to the unique identification information on these tags. Asset Management with RFID enables companies to see their goods and assets more clearly than ever. This makes tracking more accurate and efficient.

RFID tags

Any surface can have an RFID tag attached to it, from raw materials and parts to hand tools and big, mobile machines. Each tag has an ID that holds information about the thing it is connected to. In industry, inactive tags—those that don’t have their power source—are mostly used. These tags don’t cost much, but they need to be read by a reader to send data.

RFID antennas

An RFID receiver picks up radio waves from the reader and sends them to the tags to “feed” them with energy. The tags then send back to the readers the radio signal they produced.

RFID readers

Radio waves are used by RFID readers, whether they are handheld or set, to read and write to tags. They can read from a number of tags at the same time from far away. The IDs of the tags are picked up by a reader, which sends them to the cloud along with information about where the reader is and what time the reading happened.

What is IIoT?

IoT in Asset Management takes the information that RFID readers collect and turns it into useful information about where assets are, their statuses, their movements, and so on. It then sends this information to software users who are following assets.

For instance, an IIoT system can suggest the best time to service a long-lasting piece of equipment and give you an idea of how much the work and parts will cost. To do this, an IIoT solution takes all the data about how often each piece of durable equipment is worked on and adds it to the data about the repair that has been done on the asset. Then, analytics tools are used to analyze the whole set of data.

Asset management with IIoT can produce different kinds of output. For example, it can let users know if an inventory item or durable asset is missing, set up upkeep for a durable piece of equipment even if it’s not being used to its full potential, and so on.

It is also possible to connect IIoT products to other systems, such as ERP. The info can be sent both ways, which makes it easier for everyone in the company to see what’s going on. For example, an IIoT in an Asset Management system can give the accounting department information about assets so that they don’t pay too much in taxes and insurance on things that have been lost or thrown away. It can also give the maintenance department information about maintenance schedules, and so on.

Benefits of IIoT and RFID in Asset Management

Using IIoT and RFID in Asset Management to improve industry logistics and asset management has many benefits. In the first place, these tools make it easier to see where assets are and how they are moving. Companies with asset management with RFID can keep track of where their assets are at all times by putting RFID tags on them. This way, things don’t get lost or misplaced while being moved or stored. With this much awareness, theft is less likely to happen, inventory is more accurate, and tracking tasks don’t have to be done by hand as often.

Asset Management with IIoT and RFID makes it possible to keep an eye on assets and handle inventory. This makes it possible to improve industrial processes and the way businesses run. Businesses can run more easily because of the following:

Automated Tracking and Reporting of Assets

Tracking and reporting on assets can be done automatically. The items are passively marked and scanned as they move through important areas within or between sites. In turn, this gives workers more time to work on things that are important to the business.

Real-Time Status and Movement Insights

Constant information about the statuses and moves of the assets. The Internet of Things powers asset-tracking software that gives users precise information about the movement of raw materials, parts, work-in-progress, finished goods, and long-lasting assets. This software tells users when a certain item enters or leaves a certain area.

Optimizing Inventory Management for Efficiency

The process of getting the most out of your goods is called inventory optimization. Inventory managers can fine-tune their methods based on how much inventory they have and where it is located. This way, they can keep inventory levels as low as possible while still meeting the needs of end users or consumers.

Identifying and Addressing Industrial Process Inefficiencies

Using the data from the tags, manufacturers can find machinery that isn’t being used, is being abused, or isn’t being used enough and fix it. Using information about the number and location of individual inventory items, workers can notice that some items are piling up in front of a machine, guess that the machine isn’t working at full capacity, and plan for repair.

Use Cases of Industrial IoT and RFID in Asset Management

IIoT and RFID in Asset Management give businesses in a wide range of fields better visibility and performance in real-time. Here are some convincing cases from real life where using IoT to track assets has made businesses run more smoothly overall.

Amazon

With IIoT in Asset Management, the e-commerce giant can keep an eye on its warehouses and delivery services. Amazon keeps an eye on how its goods move through its huge network of warehouses by using RFID tags and sensors.

• Asset Management with IIoT and RFID systems helps improve speed, find the best delivery routes, cut down on delivery times, and keep things from getting lost or misplaced.
• On top of that, it lets Amazon give customers exact tracking updates.

Walmart

Following Amazon’s lead, Walmart has also started using IIoT and RFID in Asset Management.

• Walmart uses IoT sensors and RFID tags to keep track of its goods, customers, and how they use its stores. The data-driven method lets you set targeted prices, make the most money, and improve the customer experience by giving them the right discounts.
• This e-commerce giant also uses IoT asset tracking to keep an eye on how much energy is being used, keep track of when products go bad, and handle product lifecycles well.

DHL

The global shipping and logistics company uses IoT to track assets and make its services and processes better. When shipping pharmaceuticals and perishables, DHL uses IoT tracking sensors to quickly fix temperature problems:

• Another way that IoT helps DHL is with predictive repair. Sensors keep an eye on the health of the engine, the condition of the tires, and the fuel economy. This lets you do preventative repair and avoid downtime.
• IoT asset tracking lets DHL geo-fence sensitive and high-value shipments, so they know right away when items arrive or depart.
• DHL keeps an eye on its effect on the earth by keeping track of warehouse energy, fuel, and emissions. This helps the company become more sustainable.

Key Components for Implementation

These components collectively create a powerful system of Asset Management with IIoT and RFID that enhances asset management, driving efficiency, accuracy, and productivity. Let’s take a look at some of them-

Sensors and RFID Tags

Asset Management with RFID tags and sensors form the foundation of an effective asset management system. RFID tags are small electronic devices attached to assets, enabling wireless identification and tracking. These tags store crucial information such as asset ID, location, and status, which can be accessed remotely. Sensors complement RFID tags by monitoring environmental conditions like temperature, humidity, or vibration and tracking asset performance. Together, these devices provide real-time data that improves visibility, reduces manual intervention, and enhances decision-making.

IIoT Platforms for Data Integration and Analysis

Asset Management with IIoT platforms acts as a centralized system for collecting, processing, and analyzing data from RFID tags and sensors. They integrate asset information into a unified dashboard, offering a comprehensive view of asset location, condition, and usage patterns. These platforms also support advanced analytics, enabling businesses to make data-driven decisions, streamline operations, and anticipate potential issues like maintenance needs or supply shortages.

Connectivity Infrastructure (Wi-Fi, Bluetooth, 5G)

Guaranteeing the transfer of data from sensors and RFID tags to IIoT platforms is reliable connectivity. Wi-Fi offers stable communication in indoor setups such as factories or warehouses. For data transferring between devices, Bluetooth is an efficient short-range solution. The adoption of 5G technology for large-scale operations as well as in remote locations ensures high-speed and low-latency connectivity. Therefore, the potential arises for businesses to access real-time data irrespective of their location.

Analytics and Reporting Tools

Analytics and reporting tools process the vast amounts of data collected by IIoT platforms, transforming them into actionable insights. These tools enable predictive analytics for maintenance scheduling, trend analysis for inventory optimization, and detailed reporting to identify inefficiencies or track performance. By leveraging these insights, businesses can optimize asset usage, prevent downtime, and make informed decisions to improve operational efficiency.

Challenges and Solutions

It takes more than putting up tags and readers and getting them to talk to the cloud to roll out an asset-tracking system. IIoT and RFID in Asset Management may not be easy to put into place because of the following problems:

• When makers put a tag on a blank, for example, they have to think about all the steps the part will take so that the tag doesn’t get in the way of those steps.
• RFID readers might not be able to read metal or liquids easily. To avoid this, manufacturers need to work with a vendor to pick the right type of tag for tracking things.
• RFID tags cost anywhere from 5 cents to 10 dollars each. Based on the type of reader, the price of an RFID reader can range from $3,000 to $20,000, which includes setup and installation. Because of this, the items should cost a lot so that the tags and users can cover their costs.

Future Trends in Asset Management

Technology is growing at a speed that has never been seen before. This is opening up new ways to make decisions based on correct data. Instead of second-guessing yourself, use actionable insights to connect, analyze, and attract people. Here are the newest trends in asset management that will be big in 2025 and beyond.

Predictive Analytics for Proactive Management

Another trend that is changing the future is predictive analytics. Companies can use predictive analytics to guess how well assets will work, find problems before they happen, and make the best use of maintenance plans. To get the results you want, use RFID for tracking and managing supplies. 

By 2025, predictive analytics will be vital for smart asset management. UHF RFID enables proactive maintenance by tracking assets and anticipating needs. You can make the best use of your resources, which will cut down on downtime and boost total efficiency.

Integration of IoT and AI

For keeping up with new technologies, the Internet of Things and Artificial Intelligence are the best places to start. In 2025, there will be a lot more systems that use IoT to keep track of assets. With their built-in sensors, these devices can collect real-time information about where assets are, how they’re doing, and how they’re being used.

AI systems will make tracking marketing assets even better by looking at data from IoT devices and giving us useful information. For example, companies can guess when they’ll need to do repairs, find patterns in how assets are used, and find the best way to divide up their assets based on current demand. Asset Management with IIoT and AI working together will change the tracking system, making it faster and smarter.

Blockchain for Secure Asset Tracking

Blockchain technology is becoming more popular because it can improve security, openness, and tracking. We think that more people will use blockchain-based tools for tracking assets in 2025, especially in logistics and supply chain management.

Blockchain can keep an unchangeable record of all deals involving assets. This makes it easier to find out where assets came from and make sure they are real. This is especially important in fields where fraud is a big problem. Businesses can build trust with customers and business partners and make tracking easier by using blockchain.

Sustainability and Eco-friendly Tracking Solutions

Asset tracking will, therefore, be a means by which businesses can promote eco-friendly actions as the former makes sustainability a goal worldwide. In 2025, there will likely be more tools that help businesses keep track of their environmental effects, like the carbon emissions that come from using assets.

More and more organizations will use tracking systems to make the best use of their resources, reduce waste, and enhance efforts to be environmentally friendly. Keeping watch over how much energy they consume and how much pollution they pump into the air helps businesses make decisions to reach their corporate social responsibility goals.

Enhanced Mobile Tracking Solutions

Mobile technology is still very crucial in gadgets that track assets. Businesses will likely begin utilizing mobile apps by 2025, allowing workers to track their respective assets from their phones or computers. These apps will allow teams to handle their assets on the go because of scan barcodes, GPS tracking, and alerts in real-time.

Proper tracking of mobile assets will make things run more smoothly, reduce mistakes, and give employees the power to make quicker decisions with data. As more employees work from home, their workplaces are going to need mobile asset tracking systems to keep pace with work and make sure that assets are managed correctly.

Conclusion

IIoT and RFID in Asset Management are transforming the sector by providing unparalleled visibility, efficiency, and control. These technologies enable organizations from precise inventory tracking and predictive maintenance to streamlined operations, cost reductions, and increased productivity. Advanced analytics and seamless connectivity can always inform decisions and adapt swiftly to shift the changing demands.

As industries continue to evolve, adopting innovative solutions like IIoT and RFID in Asset Management will not just be an advantage but a necessity to stay competitive. Whether it’s reducing downtime, optimizing resources, or achieving sustainability goals, the combination of Asset Management with IIoT and RFID sets the stage for smarter, more efficient asset management. Embracing these advancements today ensures a future-ready approach to industrial operations, driving success in an increasingly data-driven world.

FAQs

What role does IIoT play in asset management?

The Industrial Internet of Things is the asset management enabler with direct real-time information about the condition of assets, their usage, and their locations. It will help track operations, identify inefficiencies, and utilize data-driven decisions. IIoT also supports predictive maintenance to ensure optimal asset operation, reduce downtime, and increase productivity.

How does RFID technology work while tracking assets?

The RFID technology basis is to attach tags containing data emitting via radio waves on the assets, which are read by RFID readers and captured as information of asset unique ID, location, and status. It does away with tracking errors and ensures accuracy in inventory control as it provides real-time visibility into the movement of assets.

What does IIoT-Enabled RFID mean for asset management?

The seamless integration of IIoT and RFID provides unparalleled asset visibility and tracking capabilities. It enables full automation, less human error, and increased productivity within a business setting. Businesses can optimize their inventory management, predict maintenance needs, and optimize supply chain operations. They can do this while cutting operational costs and enhancing customer satisfaction.

Manufacturing, logistics, healthcare, retail, and e-commerce can take significant advantage of this. Manufacturing plants can optimize production and reduce downtime. Logistics companies can reduce lost shipments and streamline supply chains. Retailers can improve their accuracy in inventory, while healthcare organizations can track their medical equipment and supplies effectively.

How do IIoT platforms integrate with other business systems?

IIoT platforms seamlessly integrate with enterprise systems such as ERP (Enterprise Resource Planning) and CRM (Customer Relationship Management), ensuring that data flows unidirectionally from one department to another, facilitating higher degrees of transparency and collaboration industries benefit from IIoT and RFID asset management. For example, real-time updating of an enterprise’s inventory system by an ERP would allow for better stock management and cost control. This data will be based on inventory data collected through IIoT.

Can IIoT and RFID technologies contribute to sustainability?

Yes, IIoT and RFID significantly enhance business sustainability by monitoring resource consumption, optimizing energy use, and improving equipment efficiency to reduce waste and minimize environmental impact. These technologies also stop overproduction and make efforts to reduce carbon footprints through improved supply chain efficiency.

What is the future of asset management with IIoT and RFID?

It is about future asset management, moving toward advanced technologies, predictive analytics, AI integration, and blockchain. Predictive analytics will help businesses manage issues before their occurrence. AI will enable deeper insights into asset performance, while blockchain will ensure safe, clear tracking of assets. Eco-friendly solutions will be the bonus to make asset management more sustainable.