Applicability of RTLS in the Manufacturing Industry

Abstract

This study investigates the applicability, performance, and sustainability of Real-Time Locating Systems (RTLS) in production logistics, with a focus on the automotive industry. RTLS, as part of broader supply chain visibility and digitalization efforts, supports decision-making, risk management, agility, and inventory control. However, adoption challenges include budget constraints, electromagnetic interference, lack of standardization, and reluctance to share data. The paper specifically examines two RTLS technologies—Cargo Beacon (CB) and GEPS sensors—within a Scania production environment. An experimental research design, complemented by a systematic literature review, was employed. Quantitative data were collected through controlled and uncontrolled experiments to assess accuracy, precision, and lag time, while qualitative insights addressed sustainability and integration challenges. Performance analysis revealed that CB sensors, though precise (symmetrical distributions, low skewness), suffered from frequent sleep-mode interruptions, resulting in higher lag (average 43s) and significant RMSE in path tracking (4.02–4.61). In contrast, GEPS sensors demonstrated higher accuracy and reliability, with low RMSE (0.11–0.13) and better consistency despite being less precise. Both sensors lacked z-axis tracking and historical path data, limiting their utility in 3D inventory management. The study also identified critical gaps in system interconnectivity, especially regarding real-time responsiveness and integration with complementary technologies such as barcodes, blockchain, and visual recognition systems. Conclusions point to the need for tailored applications of RTLS based on technological constraints and context-specific logistics goals. For optimal impact, firms must define what assets to track, balance power consumption, cost, and data granularity, and complement RTLS with interoperable systems for holistic visibility. Despite limitations, RTLS remains a promising enabler of sustainable logistics when implemented with clarity, purpose, and technological alignment within Industry 4.0 frameworks.