For a long time, Supply chain management and logistics relied on human inputs. The modern world has, however, found a new, easy and relatively highly accurate approach with IoT. The advent of devices such as sensors and chips, which are constantly connected has brought a new stream of automation in the industry. This has consequently enabled better decision making for businesses of all sizes.
Businesses are no longer confined to a single channel to reach out the consumers. As a result of this omnichannel market where everything and everyone is connected, it becomes pertinent for organizations to embrace IoT to enable a responsive supply chain that evolves constantly at every stage. Real-time supply chain data collection and analysis can help businesses to accurately track and assess
inventory movements with the help of sensors, and hence be in a position to accelerate or reduce the supply of inventory based on consumer demand.
IoT enabled supply chains can operate efficient warehouses with a visible impact on the bottom line. Asset losses, temperature variations, order fulfillment, payment tracking, and other such operational hurdles can easily be optimized for accuracy and efficiency. This types of systems can not only ensure efficiency but also protect against theft or damage to the inventory.
This will make it possible to identify where and who exactly is responsible for any incident. The potential losses in efficiency are cut out this way.
IoT has proven to be a boon for the supply chain managers in the retail sector. Every device, our cars, our phones and even satellite radios share a lot of valuable information about our habits and preferences on the cloud. Companies can analyze this information and find out the kind of car we drive and if we have kids or not. And this analysis can help them transform their business in the way they manage the creation, procurement, and delivery of products across their supply chain.
Everyone uses Google Maps to know about traffic conditions and optimize their commute. IoT, however, can help logistics go a step further and learn from the traffic patterns at specific times of the day, temperature, humidity, altitude etc. to maximize fleet and fuel cost management. GPS devices embedded in pallets or even deployed on the vehicles can analyze historical data to ensure optimal delivery routes and times, and also keep a close check on fleet maintenance and driver health at every stage.
Nearly 30 percent of perishable items are destroyed during transit across the globe. That is a significant financial hit on the business. According to UNFAO, most of this damage is caused by unregulated temperatures and poor storage conditions. IoT monitored consignments can reduce this transit damage and ensure that more perishables can reach their destination unharmed and on time.
The benefits that IoT brings to the Supply chain industry cannot be overstated. IoT not only eliminates the stress, it also ensures that consumers get the products and services of high quality on time. It has proven to be a worthwhile integration to warehouses, factories and supply chains. Companies that have adopted the technology are testimonies to the level of success that IoT brings for their businesses.