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Supply chains are the lifeline for industries and businesses. It is an intricate network of multiple stakeholders and processes that work tirelessly and in sync to ensure the seamless movement of goods and services. Through the years technology has been the stand-out contributor to the growth and success of supply chains from automation to data and insights to robotics and more. Different technologies have seamlessly integrated with the supply chains to help them achieve their objectives. Internet of Things or IoT is one such technology that is being used across the supply chains and enabling supply chains to become more efficient and resilient. This piece explores the impact of IoT on automation, analytics, and experience across supply chains.
IoT can be efficiently used by supply chains to complement their automation efforts by utilizing IoT’s sensors and radio frequency identification capabilities for real-time tracking and monitoring of goods and assets, predictive maintenance of machines and equipment, automated inventory management, and smart logistics operations. These sensors or RFID tags can track multiple factors such as location, temperature, and other relevant information in real-time, triggering automated suggestions that help optimize routes, reduce delivery time, and make inventory management more accurate. IoT also powers predictive maintenance that enables supply chains to predict breakdowns, reduce downtime, and enhance efficiencies through its automated feature. Integrating IoT into the inventory management systems enables warehouses to monitor inventory levels and raise automated notifications as and when the inventory levels deplete.
Power Data & Analytics
The Internet of Things (IoT) by collecting data through sensors can be a valuable source of real-time, high-quality data that can be used to generate insights and direct decisions. IoT-enabled devices collect data on various factors ranging from location, temperature, and performance of machinery within the supply chain. This data can then serve as the basis for analyzing and identifying patterns and trends and help set benchmarks to govern inventories, machinery, and deliveries. Real-time data emanating from the connected devices enable supply chains to become nimble in decision-making and agile in functioning.
Enhance experiences within the supply chain by providing real-time visibility and control over the movement of goods and assets. Companies utilizing IoT can effortlessly track the location of shipments, monitor the state of containers, and get real-time information regarding delays or other impediments impacting the movement or condition of goods in transit. This kind of transparency across the supply chain enables supply chain executives to be proactive in their actions to safeguard against challenges besides providing better visibility and transparency for the customers. IoT devices and the real-time data emanating from such devices also help supply chain professionals to deliver an enhanced and personalized experience to their customers driving increased customer satisfaction while building customer loyalty and differentiating from competitors.
Improving network capabilities in 5G and fast approaching 6G should act as accelerators for more IoT adoption and supply chains will look to take advantage of the same. The global supply chain IoT market is poised for healthy growth in the coming years. As per MarketsandMarkets research It is expected to grow from $18.95 billion in 2022 to $34.81 billion in 2027 at a CAGR of 12.7% further stressing the growing influence of IoT across the supply chain as a sector. Supply chain professionals are increasingly leveraging IoT-enabled devices to enhance efficiency, reduce downtime, and optimize inventories. The invaluable data generated by these systems is a boon for supply chains as it provides never-before insights and choices for supply chain operators. With digital transformation becoming integral to the growth and success of supply chains, IoT is sure to hold its space driving innovation and creating value across the supply chain.
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