The Internet of Things (IOT) refers to the network of physical objects that are connected through the internet, either directly or indirectly. These function with the help of an embedded technology to communicate and send signals (with internal states or the external environment).
Also, the supply chain is the system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer.
IOT can be used to improve efficiency and productivity in supply chains by collecting real-time data on items in transit.
The Internet of Things (IOT) has revolutionized supply chain management.
Here are the top 5 ways IOT continues to impact supply chain operations:
1 IOT enables real-time data collection, analysis, and action:
Sensors attached to devices collect data in real-time on all aspects of the supply chain process, from shipping to storage and everything in between. This enables businesses to react quickly to changes and optimize processes by identifying weaknesses and making necessary changes proactively.
2 IOT improves efficiency
Because sensors attached to devices can monitor a host of variables, from temperature in storage units to fuel levels in transport vehicles, managers have an unprecedented level of insight into their operations on a granular level that helps them save time and money by eliminating bottlenecks or other inefficiencies that cost businesses thousands of dollars every year and impact customer satisfaction with delays in service delivery.
3 Supply chain visibility:
IOT sensors can be used to track temperature and location, which are critical components in the transport of food and medicine. IOT devices can also help identify problems with a shipment, which can save time and money by allowing companies to correct problems before they have a chance to escalate.
4 Automation:
Picking and packing processes are common in warehouses. The use of robotics and other automation tools can increase the efficiency of these processes, allowing them to be completed more quickly with fewer errors.
5 Global manufacturing:
The IOT allows global manufacturers to collect data from thousands of different suppliers and production sites around the world. This data can be used for predictive analysis and planning—for example, identifying areas where production is likely to fall behind or where supplies might run short—and it can help companies locate producers who align well with their needs.
To Summarize
The IOT is improving the supply chain in a number of ways.
- Easier, quicker maintenance and repairs. Since sensors in vehicles and machinery can report back to the manufacturer on their status, it’s easier for manufacturers to be proactive about keeping their machinery in good working order.
- Less downtime, which is incredibly helpful for supply chains that have tight timelines and little room for error when it comes to shipping goods.
- More streamlined inventory management. With RFID tags and smart shelves—which keep track of inventory and are connected to a network—it’s easier than ever to manage inventory.
- Manufacturing companies no longer have to rely on manual checks of inventory levels; they simply have to check the data sent by their sensors instead.