IoT solutions are providing the retail industry with powerful tools to navigate the challenges of modern commerce.
We caught up with Wayne Vandekraak, SVP of Strategic Partnerships at OptConnect, to hear more about how the IoT – combined with real-time data analytics and AI – is reducing waste, improving operational efficiency, and helping retailers to achieve sustainability targets.
Tracking expiration with precision
Inventory management has long been a critical yet challenging aspect of retail. In particular, the ability to track expiration dates across large inventories is essential to minimise waste. We asked how the IoT can aid in this endeavour.
“Great question,” Vandekraak responded. “IoT sensors and real-time data analytics always work hand in hand. Today, we see sensors embedded in products, shelves, and storage units that notify retailers about product conditions and availability, helping them monitor shelf life with greater precision and implement FIFO strategies on a daily basis.
“Additionally, store managers are using cloud-based dashboards to help visualise stock turnover. Anything approaching expiration can be quickly marked down or promoted to help reduce waste.”
By incorporating IoT sensors and data analytics, retailers gain the capability to adopt first-in, first-out (FIFO) approaches, ensuring products with shorter shelf lives are sold first. Simultaneously, cloud-based systems provide actionable insights to help streamline operations and meet sustainability goals.
Enhancing cold chain monitoring with retail IoT solutions
For businesses dealing with perishable goods, cold chain logistics is a vital operational component. IoT sensors, combined with other technologies, are making the monitoring of cold storage during transportation and storage more efficient than ever before.
“IoT helps track changes in temperature, humidity, and location through all stages of the supply chain,” Vandekraak explained. “Every day, refrigerated storage facilities and transportation units use connected sensors to continuously monitor conditions.
“When temperature fluctuations occur, sensors trigger instant alerts so logistic teams can take corrective measures and avoid product spoilage.”
Unsurprisingly, AI is also playing an increasing role.
“AI data can help businesses optimise their storage strategies, equipment maintenance, and route planning—all in an effort to prevent future food waste,” explains Vandekraak.
By identifying and addressing recurring issues such as temperature irregularities, retailers can ensure that perishable food stays fresh until it reaches store shelves.
Smart shelves are becoming indispensable
IoT-enabled “smart shelves” are proving indispensable for retailers looking to optimise inventory management and minimise spoilage due to mishandling or improper storage.
“There’s a good reason why smart shelves are important to food retailers,” said Vandekraak. “Those RFID tags and weight sensors help streamline inventory management in real time while simplifying the restocking process.
“Essentially, if a store is running low on a certain product or specific items are unsold for a prolonged period of time, there’s no guesswork.”
Vandekraak noted that IoT and AI facilitate dynamic adjustments to restocking schedules to prevent over-ordering and prioritise perishable goods. Additionally, in cases where items are misplaced on shelves, smart systems can immediately alert store staff to address the issue.
“Smart shelving can be the ultimate fail-safe solution,” Vandekraak summarised.
Retail IoT solutions enable accurate demand forecasting
Aligned supply chains hinge upon accurate demand forecasting. The inclusion of IoT-generated data, processed via AI, is enabling retailers to refine procurement strategies and improve their responsiveness to market trends.
“Today’s retail environment lives by the accuracy of its demand forecasting,” Vandekraak explained. “By processing IoT-generated data with AI models, retailers are now able to predict future demand with greater precision.”
Factors such as historical trends, consumer behaviour, seasonal changes, and even weather conditions can all be considered through the IoT-AI synergy.
Vandekraak also pointed out the additional benefits of this enhanced forecasting: “It helps staff improve coordination with suppliers, minimise overstocking, and control waste.”
The result? Better inventory alignment with customer demand, lowering the likelihood of wasted inventory.
Real-time customer engagement
To help reduce food waste, retailers are leveraging IoT platforms to inform customers of real-time deals on products nearing expiration. IoT, paired with AI, helps to devise personalised promotions and sustainability-focused marketing strategies.
“IoT platforms help make dynamic pricing and promotions easier and less given to chance,” Vandekraak noted. “Savvy retailers are also using mobile apps, digital signage, and automated notifications to drive sales of expiring products.”
AI-powered recommendation engines allow retailers to tailor offers to customers based on their shopping habits and sustainability preferences.
Additionally, blockchain-enabled IoT systems enhance transparency – particularly regarding freshness guarantees – to further boost consumer trust.
“All these tactics help build greater consumer trust in food safety and quality,” Vandekraak remarked.
Supporting transparency and sustainability goals
Sustainability continues to be a key priority for many retailers. By utilising IoT to monitor and report on food waste reductions, companies can demonstrate their commitment to environmental responsibility—a move with added consumer and branding benefits.
“If retailers are committed to reducing food waste, IoT data can help by providing concrete metrics that quantify food waste reductions,” Vandekraak explained.
Through smart systems, companies not only track discarded food but also analyse its causes and suggest operational improvements.
“By prioritising transparency about food waste, retailers reinforce their own commitment to environmental responsibility, enhance consumer trust, strengthen brand loyalty, and even attract new, environmentally-conscious consumers,” Vandekraak emphasised.
IoT solutions, supported by AI and other innovations, are proving to be a game-changer for retail. As retailers further embed IoT into their systems, the benefits will multiply—for businesses, consumers, and the environment alike. That’s a win-win-win.
(Photo by Raghavendra Mithare)
See also: GSMA fund boosts IoT and AI innovations in developing regions
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