“Whether you drive down the street or fly at 40,000 feet, IoT has reshaped the transportation industry. “
Right from the scenario where manufactured goods are kept in the warehouse to shipping them to the individual consumer, IoT has use cases and advantages across the supply chain. Impact of IoT on supply chain is such that it has brought end-to-end visibility in the competitive scenario.
By 2020, Gartner estimates that more than half of new systems and business processes will incorporate some element of IoT. McKinsey predicts that by 2025 the IoT will have a total potential economic impact from $3.9 trillion to $11.1 trillion a year. And out of this 70% of the value will be captured by B2B (business-to-business) applications.
Modification in the Supply chain comes from the fact that the production of any product is dependent on numerous connections. If any of these connections are weaken whether through traditional machines, delay in transportation, operational errors, one end up with a poor supply chain which leads to high cost and low-profit margins.
IoT in supply chain has put the maximum impact on the minute processes that span them and the supply chain seems to be the biggest beneficiary. Sensors are embedded throughout the warehouses and factories that help in tracking the trucks, fleets, assets and other vehicles. With the help of sensors, IoT provides a much-needed network flow between the physical world and the data information in the supply chain system. This raw data is then transmitted via the internet, analyzed using intelligent analytical gadgets to drive better and quick decisions.
Five Benefits of IoT in Supply Chains
- More Transparency:
Earlier people were more confused about choosing products as they were not as transparent as now. IoT in supply chain has brought more visibility into the processes, thus functioning more smoothly. Using a variety of sensor equipped devices and machines across the supply chain, information flows much more freely thus delivering supply chain transparency. According to the Food and Agriculture Organizations of the United Nations, up to 1/3 of food perishes every year. But IoT enabled sensors have reduced such wastage. Less wastage also leads to more sustainability throughout the business processes.
- Improved Last Mile Delivery:
The Last Mile Delivery is undoubtedly an important phase of the supply chain journey of a product from manufacturer to the end user or customer. Most of the organizations are looking to implement last mile delivery solution to improve their last mile delivery. Information gathered from the sensors is used to optimize last mile delivery by providing optimized route, auto delivery systems and many more. User can get alerts about whether the product has been delivered properly or not which keeps the end customer in continuous communication.
3. Predictive Maintenance:
Predictive Maintenance in simple words means that fixing problems before they occur. This feature helps in accessing the multiple data sources in real-time so as to predict asset failure well before time. Knowing the failure before time reduces maintenance costs, avoids costly downtime and improves operational efficiency. With the help of this feature, even the minor anomalies get detected and hence the greatest risk of failure can be avoided. It has become mainstream in the supply chain management process and thus making intelligent business strategies.
- Operational Efficiency:
IoT devices keep track of the inventories much more efficiently than a human could have ever done that. This transparent inventory tracking helps to achieve the desired goals much more quickly and efficiently, thus making the most out of the emerging opportunities. Further, the data being collected is analyzed and used to further optimize the operations. This type of inventory tracking is not only more efficient than human inventory but also leads to a few errors.
- Real-time Tracking:
Perishable goods are complex to manage. The probability of a perishable product reaching to the end customer in the same way as it was depends on a lot of factors. Just a few degrees too cold or hot can spoil the quality of the product. But implementation of IoT has solved this problem and saves the product from getting spoiled. Preventive measures are taken to save the product before it spoils. Critical parameters of the perishable items such as humidity, temperature, air quality etc. are tracked. As soon as there is temperature deviation, an alert is sent with the location information.
Increasing advancement in technologies has brought a new platform of opportunities in transportation industry. The introduction of IoT in transportation has taken the industry beyond horizons. Connected devices and IoT has brought exclusive solutions thus serving as a turning point for the organizations to reap more business benefits. The cutting-edge technology has really made a difference in transportation and logistics industry thus eradicating more and more challenges in the industry.
Undoubtedly, the final element needed to create an ideal supply chain is a constant improvement. It helps in addressing the problems very quickly and correcting them before they become severe. Smart Supply Chain Solutions allow companies to improve their supply chain networks with a high level of accuracy. The massive amount of data about warehouse delays, transportation routes, and other parameters gives companies a deluge of data that they need to analyze and repair the inefficiencies accordingly.
Sanjeev is the Chief Executive Officer (CEO) of Biz4Intellia, responsible for leading Biz4Intellia’s global business strategy and operations. Being an Internet of Things (IoT) enthusiastic from the beginning of its professional career, Sanjeev loves to read and write blog/articles related to the disruptive technologies that are trending.