The Internet of Things, abbreviated as IoT, is a collection of devices connected to the internet and to each other, capable of exchanging data with little to no human intervention. IoT has found its way into many industries and has revolutionized the way things are done. The supply chain industry is no exception, and IoT has significantly contributed to its improvement and efficiency.

IoT in Supply Chain Management

IoT’s application to supply chain management has been dubbed the “Internet of Supply Chain” and has impacted the industry in several ways. When supply chain managers incorporate IoT into their strategies, they achieve greater visibility and control over their operations. IoT devices, such as sensors, tags, and GPS systems, make it possible to get real-time data about goods, which is vital in any supply chain process.

6 Ways How IoT Boosts The Efficiency of Supply Chain

Below we are mentioning the 6 best ways that will showcase us how much IoT is contributing to the productivity and efficiency of supply chain.

Inventory management

Inventory management and tracking are key components of any supply chain process. IoT devices can automate inventory monitoring whereby the system tracks inventory levels in real-time. This enables suppliers and distributors to track inventory levels and know when to resupply. With this, inventory data generated by these devices can be easily integrated with organizational software for inventory planning.

Improved Delivery Time

Poor delivery time can be attributed to several factors, including mishandling of goods or inefficient routing of vehicles. IoT can improve delivery time by providing real-time data that tracks the movement of goods and vehicles. Sensors can monitor the conditions in which goods are stored and transported, ensuring that they meet quality standards. Improved tracking ensures that products are delivered to the right people at the appropriate time, thereby cutting on delivery time and increasing customer satisfaction.

Route Optimization

IoT’s integration into the supply chain has led to better route optimization. Real-time data generated by IoT devices can be used to optimize routes and ensure that drivers are taking the quickest and most efficient route. This also translates into better fuel management, and reducing the number of miles driven saves the company money on fuel costs.

More Easy Communication

With traditional supply chain processes, communication between parties can be slow and cumbersome. There may be delays in relaying information or, in some cases, incorrect information is passed on. IoT has improved communication between suppliers, manufacturers, distributors, and customers. IoT-enabled devices allow for the real-time collection and dissemination of critical data; any delays or issues can be quickly identified and addressed. With IoT, stakeholders in the supply chain can easily communicate with each other, leading to better coordination and transparency.

Predictive Maintenance

Another way IoT boosts supply chain efficiency is through predictive maintenance. Sensors can be installed in vehicles, machinery, and equipment to help prevent breakdowns and prolong the useful life of the assets. The sensors can monitor the condition of equipment and predict when a failure is imminent. This allows for preventive maintenance that can be scheduled during off-peak periods, reducing downtime and costs associated with repairs.

Improved Safety

Incorporating IoT devices into the supply chain can lead to improved safety. Sensors can monitor driver behavior, ensuring that they are following traffic laws and driving safely. On top of that, sensors can monitor the environment and road conditions, alerting drivers to hazards in real-time and improving overall road safety. IoT in supply chain management can also help ensure compliance with safety regulations, reducing the risk of accidents and injuries.

Advantages of Introduction IoT in Supply Chain

1. AI-Powered Predictive Analytics: IoT devices generate vast amounts of data that can be leveraged to make informed predictions and decisions. These insights can be further enhanced by using Artificial Intelligence (AI) and machine learning algorithms to identify trends and anomalies.
2. Smart Contracts: IoT-enabled smart contracts can automate complex supply chain processes, reducing manual efforts and human error. Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller being directly written into code.
3. LPWAN Technology: IoT devices rely on connectivity to transmit data. Low-Power, Wide-Area Network (LPWAN) technology provides a low-cost, long-range communication solution for IoT devices. LPWAN offers extended battery life and reduced maintenance costs, making it well suited for IoT applications across the supply chain, such as asset tracking, environmental monitoring, and predictive maintenance.
4. Digital Twin Technology: A digital twin is a virtual replica of physical assets and processes. With IoT devices, businesses can create digital twins of their supply chain network, enabling better visibility and control over their operations.
5. Real-Time Robotics: Robotics integrated with IoT can bring several benefits to the supply chain, such as improved order picking efficiency, reduced labor costs, and improved safety. Real-time robotics can be enabled by incorporating IoT sensors in robots, allowing for real-time data exchange and improved decision-making capabilities.

Conclusion

IoT has revolutionized supply chain management, providing greater visibility, control, and real-time data. As IoT continues to evolve, its integration into supply chains will only grow. To take the benefits of IoT in your supply chain, consider partnering with CloudStakes, a leading IoT solutions provider. Contact CloudStakes today to explore how our expertise can optimize your supply chain operations.