The growth of the internet of things (IoT) has enabled significant advances in supply chain management—here are 4 of the most notable advantages it has afforded managers.
The world of supply chain management touches upon technological innovations and vice versa. As such, it’s no surprise that the internet of things is having such a notable impact upon supply chains. The growth in IoT has been nothing short of staggering and its applicability near-ubiquitous in terms of the multitude of fields it’s operative in. With that being the case, it really is hard to overstate the size of the market that IoT has and is set to have.
The following summation by Tech Jury of where IoT is headed over the coming year really highlights this,
Morgan Stanley predicts the industrial IoT market size to reach $110 billion by 2020. According to Accenture, IIoT could add $14.2 trillion to the global economy by 2030. The top drivers of IIoT growth include improved operational efficiency, improved productivity, creation of new business opportunities, reduction in downtime, and optimization of asset utilization.
With that in mind, this week’s article by Morai Logistics takes a look at the 4 most prominent ways in which the internet of things is benefitting supply chain management.
Makes Asset Monitoring Easier
One of the biggest things IoT allows for in supply chains is the monitoring of assets. By having monitoring devices like smart sensors that can be constantly connected to the internet, the state of a supply chain’s asset can be be continually checked upon. Specifically, these sensors can inform managers of the damage done to the packaging as well as the environment the asset is in—temperature, moisture level, etc. Such monitoring is critical to optimal supply chain management as it ensures the thing central to a chain—the product—is always being examined and thus is in good condition.
Improves Asset Tracking
Building upon asset monitoring is asset tracking. Using the same kinds of multipurpose IoT devices mentioned above, such as smart sensors, supply chain managers can not only track the condition of their assets but also see where they are. In turn, this means managers can overcome a number of obstacles they have. The most important of these being misplaced or lost assets. But more than that, it gives managers another view of their supply chain route. Consequently, these routes can be further optimized if needed.
Allows for Predictive Maintenance
Nothing hampers a supply chain quite like the breakdown of equipment. With just one cog in the supply chain out of order the whole things comes to a halt. With IoT such a circumstance can be avoided. Rather than reacting to equipment failure or running routine maintenance, managers can conduct maintenance with precision. With sensors on the equipment, they can know exactly when their machinery needs maintaining. As a result, managers can minimize inefficiencies and avoid supply chain collapse.
Boosts Supply Chain Transparency
The customer demand for transparency in supply chains is as high as its ever been. Nevertheless, given the complexity of supply chains, its not always easy to enact. However, this is where technology comes to the rescue. Namely, IoT. Managers can have the many links in their supply chains monitored, tracked, and examined. IoT devices like surveillance cameras and smart sensors can make following supply chains easier than ever. Consequently, IoT can help boost both customer satisfaction and supply chain integrity.