The Internet of Things in Retail: Redefining Brick and Mortar Stores
1.
INTRODUCTION
In this digital consumer economy, retailers are faced with constant pressure, ever-demanding
customers, increasing costs and increasing competition from online marketplaces. To add to this
complexity is the digital revolution which has resulted in the digital natives demanding increased
personalization and a superior shopping experience at competitive prices.
Although retailers have been working with RFID technologies extensively, the latest
advancements in sensors and digital technologies open up new opportunities. There are a variety
of sensors that help track the location, identity, activity and behavior of people. Solutions based
on these technologies can be seamlessly integrated with the existing store ecosystem of short
range wireless communication such as Wi-Fi networks and Near Field Communication (NFC).
Embedded sensors provide contextual intelligence in real time and also help improve operational
efficiencies by bringing transparency to existing processes.
The applications for Industrial Internet of things in Retail (IIoT-R) can be classified into two broad
categories – driving efficiencies across supply chain and store operations and improving customer
experience. This paper aims to highlight how IIoT-R can act as a disruptive differentiator for the
Retail industry by not only improving their bottom line through operational efficiencies, but also
impacting the top line by providing an immersive customer experience at the stores and opening
up new revenue streams for retailers.
2.
DRIVING EFFICIENCY ACROSS SUPPLY CHAIN AND STORE OPERATIONS
Sensor-based solutions bring in operational efficiencies through better supply chain
transparency, inventory management, remote asset management, security and loss prevention.
Supply chain: Efficiencies in supply chain are achieved through real time monitoring of vital
parameters of the fleet. The real time data is fed into Failure prediction models based on
historical data to generate early warning alerts for possible vehicle breakdown leading to
proactive maintenance. Further real time and remote monitoring of products as it moves from
source to destination brings in new data for proactive and predictive actions resulting in
efficiencies and resource preservation while in transit. As an example when transporting items
that need specific environment controls, real time data is gathered from the refrigeration
equipment, continuously monitoring the temperatures and the humidity levels of the goods in
transit which helps reduce wastage of fresh produce and other perishables while being energy
efficient. The Ministry of Food Processing Industries (MFPI) in India estimates losses of fruits,
- 20 -
June 2016