Real-Time Location Systems (RTLS) in Supply Chain Management

Asset tracking plays a central role in modern supply chain management, providing accurate insight into asset status while also boosting efficiency and facilitating real-time decision-making. There are many excellent strategies available, but increasingly, leaders rely on real-time location systems (RTLS) to keep facilities running smoothly.

Real-time location systems take several forms and can be difficult to define partially because they are so versatile. In general, they are categorized as indoor positioning systems capable of determining the exact location of any given item or individual. They use leading radio frequency technologies while also leveraging wireless devices and other cutting-edge technological capabilities.

Today, the question is no longer if RTLS will be adopted in supply chain operations but how. With so many options available, it can be difficult to determine which solutions are most effective in any given situation. We’ll break down the core RTLS technologies and show you how to match them to your facility’s needs.

What Is RTLS?

Real-time location systems (RTLS) represent an umbrella concept rather than any single tool or technology. The goal of RTLS is to accurately track physical items as they move about large facilities—warehouses, manufacturing floors, distribution centers, and the like. RTLS blends many advanced hardware (for example, active RFID tags), software, and wireless solutions to obtain immediate location insights, along with other relevant data. This helps drive decision-making and can have a huge impact on efficiency.

How Does RTLS Work?

RTLS functionality can vary dramatically from one location to the next and depends on the specific use cases and the types of hardware or software selected. In general, RTLS aims to leverage networks and technologies to track objects or people within a defined, but sizable space.

Typically, this means utilizing radio-frequency technologies (such as Wi-Fi or Bluetooth) to ensure that wireless communication is possible. This communication takes place between a series of transmitting and receiving devices.

In most RTLS setups, devices such as tags or smartphones are tasked with sending encoded transmissions. Receivers are placed in fixed positions and are used to interpret transmissions, with relevant data then passed on to high-level software.

Technology & Core Components

RTLS systems rely on many devices and high-tech solutions to ensure that transmissions are properly sent, received, and interpreted. Some elements include:

Bluetooth low energy. Similar to well-known Bluetooth technology, Bluetooth low energy strives to run applications effectively while reducing consumption. Typically, this means that a sleep mode is maintained until connections are initiated, with these sometimes lasting only a few short seconds so that location information and other data can be transmitted.
GPS. The Global Positioning System delivers reliable coverage spanning a wide area in an open environment, but is unreliable indoors. While this means it is not always precise enough for RTLS operations, assets can be tagged and locations can be verified based on global coordinates.
Active vs passive RFID tags.
- Active RFID – Battery-powered tags that broadcast a signal at set intervals. They support real-time location (RTLS) use cases such as zone-based alerts and continuous tracking.
- Passive RFID – No onboard power; tags are powered by a nearby reader. These are Ideal for point-in-time inventory checks, but not continuous real-time tracking.

These location technologies can serve a wide array of functions within the broad scope of RTLS, but most systems require a few basics: some sort of RTLS tags to determine location and transmit data, plus a software system that can make sense of this information and drive strategic decision-making.

Beyond this, differences may relate to the angle of arrival (AOA) or time difference of arrival (TDOA). AOA determines the line of bearing to reveal device directions, while TDOA verifies time differences between signal arrivals. TDOA is highly scalable, but AOA is known for its accuracy.

RTLS Technology in the Supply Chain

RTLS has a huge impact on the supply chain. These days, RTLS is heavily utilized across many industries, ranging from healthcare to manufacturing, transportation, and more.

Fleet Management

Emphasizing route optimization and proactive maintenance, RTLS can address many of the greatest expenses and headaches associated with modern fleet management. These systems make it easier to identify and respond to potentially costly transportation concerns. Potential benefits include:

Monitoring and ultimately reducing fuel consumption.
Avoiding risky driver behavior via speed monitoring.
Limiting idle time and other common causes of inefficiency.

Warehouse & Distribution

In the modern warehouse environment, tracking a constant influx of items can quickly get complicated. RTLS streamlines this through the power of tagging, with transmitted data instantly revealing asset location, status, condition, and even environmental details.

This can be a powerful strategy for tracking major shipments and avoiding potential losses or thefts. RTLS can also expedite picking and packing by optimizing routes and removing bottlenecks.

Asset Tracking & Management

Across industries, asset tracking is a must for verifying and protecting high-value assets. These are vulnerable not only to loss and damage, but also, can suffer if they are not properly maintained. RTLS can provide valuable insight into the status of these assets, making it clear where they are, how they’re used, and whether they require maintenance or repairs.

Inventory Management

A lack of real-time insights can make enterprises vulnerable to various inventory issues, especially given the fast pace at which inventory enters and exits modern facilities. RTLS plays into cutting-edge analytics solutions which are capable of forecasting demands and updating inventory accordingly.

This data-driven approach to inventory management ensures that popular SKUs get the attention they deserve while also limiting the potential for stockouts, overstock, and other costly problems.

Personnel and Workflow Optimization

Today’s hardworking employees rely on tech-oriented solutions to help them make the most of every moment on the job. RTLS helps with this by providing data-driven guidance so that workers can dedicate their attention and effort where it’s needed most.

RTLS paves the path for optimized workflows, which include detailed and easy-to-understand instructions that help workers seamlessly navigate facilities and carry out essential tasks. These systems also ensure that necessary equipment is available when workers need it.

Use Cases

The inherent versatility of RTLS makes it a great fit across many industries and within a variety of facilities. We’ve identified a few RTLS applications below:

Manufacturing and warehousing. Among the biggest adopters of RTLS, warehousing operations rely on real-time insights to optimize everything from asset tracking to inventory management. These systems improve efficiency for picking and packing, while IoT can be paired with RTLS to reduce waste.
Transportation and logistics. As we’ve mentioned, RTLS is heavily relied upon in the context of fleet management. Increasingly, RTLS also plays into mass transit, offering improved communication so that concerns involving delays or parking can easily be resolved. Key advantages include improvements in driver safety, vehicle maintenance, and general efficiency.
Healthcare. In today’s dynamic and fast-paced healthcare facilities, there is a strong need for advanced solutions that can quickly reveal the location and status of medical equipment and personnel. RTLS solutions have the power to dramatically improve the quality of care and health outcomes by ensuring that patients’ needs are promptly and consistently met.

Advantages of Real-Time Location Systems

RTLS has a lot to offer in today’s competitive market and can address many of today’s greatest supply chain challenges, including:

Overcoming bottlenecks. Through consistent tracking, RTLS can determine where bottlenecks typically occur and how processes can be adjusted to prevent these. This can dramatically improve productivity and efficiency.

Enhanced visibility. From location data to details gathered via IoT, RTLS promotes a degree of visibility once thought out of reach. This real-time visibility promotes better decision-making, as leaders are consistently aware of current challenges and opportunities.
Cost savings and ROI. The benefits cited above combine to create one central advantage: considerable cost savings. While upfront costs can be expected, the long-term return on investment could be impressive. Today, there are many low-cost RTLS solutions available, so implementation may not be as big of a barrier as some assume.

Find the Right RTLS System

As you examine RTLS solutions and other warehousing and logistics opportunities, aim for a customized strategy that fits into your existing operations and workflows. Our experts at Peak Technologies can help you determine how RTLS might fit into your enterprise. We are also pleased to offer cutting-edge RFID solutions, which may play into your overarching RTLS strategy. Reach out today to learn more.