The Use of Internet of Things (IoT) in Supply Chain Process

iot in supply chain

Brief description of IoT

The Internet of Things (IoT) is a system of physical devices around the world connected to the internet. This system has the ability to collect, share and transfer data over the network without human interaction. IoT can connect different objects using sensors to make them smarter or more responsive.

One of the earliest IoT applications was RFID tags that helped track equipment location. Today in the industrial field, IoT is used for various purposes – from predictive maintenance to making the supply chain work automatically with less human involvement.

Application of IoT in supply chain management

The use of IoT in the supply chain can contribute to the company’s success because of its capability to monitor, assess and optimize data, continuously and in real-time.

  • Asset tracking
    Supply chain management is transformed by IoT’s ability to track asset locations. IoT provides a stream of data in real-time regarding locations, movements, and even lifecycles – enabling users to determine the best delivery routes and avoid bottlenecks. This will improve supply chain efficiency.
  • Fleet Management
    When built in a truck, IoT sensors can collect various types of data about the vehicle – the speed, emission, usage, and more. These sensors can even provide detailed information of the tires, engines, and other parts for predictive maintenance purposes. This will help operators to make informed decisions and avoid undetected safety issues. This enables users to have a more accurate estimation of delivery schedules to improve supply chain efficiency.

IoT in supply chain

  • Warehouse Management
    While it is common to track inventory manually, you can make warehouse management more effective using IoT. Not only that IoT reduce human errors, but the system also helps to speed up each process with less human interruption. Each sensor placed in storage, shelves, and containers can track movements and prevent unwanted scenarios, like downtime or stock loss.
  • Cold chain monitoring
    IoT system makes cargo smart. It monitors, locates, and identifies potential errors in real-time. Sensors that enable you to track humidity, temperatures, and air quality can maintain the quality of the goods. This is especially important for temperature-sensitive goods such as vaccines, foods, or other objects that require special handling. IoT in the supply chain can prompt users immediately whenever there is any breach.

IoT improves supply chain efficiency by automating repeated tasks, shipments, and other processes in the workflow. IoT has presented a huge opportunity for supply chain management to improve efficiency using scalable measures and interconnected systems that help reduce time and errors, and make informed decisions, while also bringing more transparency to the process.

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