Why are connected silos a profitable investment?
In the agricultural environment, hours of work can quickly add up. Good organization is therefore essential. In order to optimize deliveries for silo filling, it is now possible to use sensor technology for connected silos.
Sensors therefore improve the supply chain of IBC tanks and other tanks. In addition to the undeniable time saving, the installation of these sensors for connected silos also represents a profitable investment from the first years of use. How much does the installation of sensors for connected silos cost? What are the financial advantages to opt for connected silos? How long does the initial investment take to pay for itself? Here are the answers to your questions.
Small presentation: what is a connected silo?
A connected silo is a silo that is connected when silo fill rate calculation equipment is installed on the silo. This equipment allows to communicate data concerning the filling rate of the silo. The sensor for connected silos is therefore a simple to install and non-intrusive solution with the installation of the sensor outside the silo.
Once the sensor is installed on the silo base, the silo will be able to communicate the data it has collected to the company installing the sensors via a secure communication network. This data will then be analyzed and retranscribed to be accessible via a mobile application that can be downloaded to a smartphone connected to the Internet. The mobile application allows to quickly consult the filling rate of the different connected silos to optimize the days of food delivery.
How much does a connected silo cost?
Taking advantage of the Internet of Things (IoT) technology to optimize the various tasks of everyday life becomes more and more attractive. But beyond the few connected everyday objects, investing in equipment to reduce working time is often a more considered cost-benefit calculation.
Can all agricultural professionals invest in a connected silo? What does the cost of installing a sensor for connected silos include? How does invoicing for a connected silo work? Let’s get to the heart of the matter.
An initial investment: the sensor
The installation of a sensor for connected silos is the preliminary step before using the mobile application to know in real time the filling rate of your connected silos.
From then on, depending on the number of silos you wish to connect you will have a fixed rate relative to the cost of the installation. Please note that the installation of a sensor only takes about fifteen minutes by an authorized professional and is done by screwing at the foot of the silo. Consequently, the cost of installing a sensor for connected silos will be much less than the cost of installing equipment inside the silo with all the necessary non-contamination measures.
A subscription to benefit from the communication service
To consult the supply level of its connected silos directly on its smartphone, a mobile application is available with a secure communication of the different data collected on the silos.
To benefit from all the IoT technology now developed for the benefit of agriculture, it is necessary to use the communication networks and interfaces available on a mobile application. This service is offered as an annual subscription. The subscription corresponds to the inherent operating costs:
- the use of the communication network for real-time retransmission of the data collected by the sensor;
- Artificial intelligence in order to anticipate with a low margin of error the filling level of the silos;
- the software to transcribe the data collected on the connected silos;
- the operation and secure access to the mobile application;
- to the after-sales service (SAV).
Each proposed solution concerning the connectivity of your silos is studied on a case-by-case basis, so you can receive an estimate of the monthly TCO that this investment represents.
TCO is an economic term meaning “Total Cost of Ownership”. Translated into French, this term corresponds to the total cost of ownership. In other words, it is an estimate of the total cost of a product throughout its life cycle. For a sensor of connected silos, the estimate of a monthly TCO is between 5 and 10 € per silo.
How long does a connected silo pay for itself?
An estimate is not necessarily enough to accurately estimate whether the investment is profitable. A study has therefore been carried out on the length of time required for the initial investment to be amortized and profitable.
Considering that the monthly TCO of a connected silo is between 5 and 10 €, the cost of a sensor for connected silos can be amortized in 5 years.
In terms of profitability, it is important to consider the time savings that can be achieved by stock management through the installation of these sensors for connected silos. For professionals in the food industry, statistics show that in a farm with an average of 8 silos, the time saved on stock management is around 30 minutes per week. Based on this assumption, the installation of sensors for connected silos allows a return on investment from the 3rd year of use.
What are the financial advantages of a connected silo?
Beyond the price of installation and subscription to benefit from all the technology of the connected silos, other non-quantitative financial advantages to the nearest euro are also to be taken into account.
Indeed, the use of a sensor for connected silos to check the silo’s feed rate allows :
- to avoid any risk of shortages that could lead to urgent deliveries;
- to optimize delivery days in order to reduce transport costs.
Therefore, with the connected silos it is now possible to anticipate shortages in order to schedule grouped delivery days. Ultimately, savings can also be made by avoiding rush orders and optimizing food deliveries according to the filling level of each silo.
We recommend these other pages:
- Who needs a connected silo?
- Operation of a connected silo
- Why monitor your silos with a sensor?
- What can be monitored via a connected silo?
- Connected Agriculture