IOT Advancement in Supply Chain Management
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IoT Disruption in Supply Chain Management
IoT stands for Internet of Things and Supply chain management (SCM) includes all the activities from procurement of raw materials to delivery of finished goods to the customer. IoT in the supply chain will be the key focus of this blog. IoT innovation and IoT business solutions are a key part of the implementation and there are many IoT companies in the US and IoT services companies across the globe that implement IoT framework or provide IoT business solutions. Such companies also share details on the latest IoT trends like digital twin IoT, advantages of IoT, etc. It’s quintessential to understand IoT supply chain solutions and IoT trends to embark on the journey of supply chain IoT.
According to the authors, Oliver and Webber (1982). “Supply chain management (SCM)” is the process of planning, implementing, and controlling the operations of the supply chain with the purpose to satisfy customer requirements as efficiently as possible. As explained by Ellram and Cooper (1993), supply chain management is “an integrating philosophy to manage the total flow of a distribution channel from supplier to the ultimate customer”
Some of the challenges faced by the Supply Chain teams are as below:
- Unable to track the exact location of goods in the real-time
- Unaware of the condition of goods in the real-time
- Unable to analyze data in the real-time
- Lack of information for inventory management
These and many other challenges can now be tackled through Smart solutions or IoT development services. As evident these days, smartphones, smartwatches, smart TV enhance user experience and are very popular among consumers. Similarly, Smart Solutions such as the Internet of Things (IoT), Blockchain, Analytics, Machine Learning, Bots, etc. enhance the experience of Supply Chain teams. These smart solutions can help to get information on the location of goods, as well as the related information (condition of goods, etc.) to make informed decisions. Hence, it is quintessential to understand the impact of these on logistics and Supply Chain Management.
Read More : “Best IoT Development Company“
Supply chain teams shall venture into technologies that can be applied to supply chain management, including Internet of Things (IoT) data, machine learning (ML), and bots. IoT in supply chain management will equip the teams to manage the supply chain effectively and efficiently. Additionally, this would help organizations and NGOs integrate the suppliers and customers thus ensuring customer-centricity. These services can be provided by IoT development companies who generally hire or IoT developers to build IoT applications or IoT solutions or IoT technologies. All of this can be referred to as IoT supply chain solutions. There are many IoT solution providers in India who provide IoT application development services
What is IoT? Let us understand the Internet of Things (IoT)
Imagine you enter a meeting room at your workplace and the room temperature adjusts automatically depending on the number of people in the room, brightness of the light varies automatically, window slider falls as the presentation starts. Similarly, in a manufacturing set-up, a plant operator gets notifications about the replacement of spare parts in advance through the cloud – thus ensuring predictive maintenance! All of this is not just possible but a reality of the world we live in.
Let’s talk about Industry 4.0 to understand this better.
Industry 4.0 is a subset of the fourth industrial revolution. It encompasses automation in manufacturing set-up including concepts like Smart manufacturing and smart factory. It isn’t something new and McKinsey began publishing its research about this technology as early as 2010. In fact, as we speak, the technology is getting wider acceptance from industry stalwarts and finding its way through real-life applications.
IoT concept, when used in industries, is also termed as Industrial Internet of Things (IIoT) or Industrial IoT 4.0
Effectively, the Internet of Things (IoT) is a set of interconnected devices that are connected to each other on the internet for collecting and exchanging data. Thus, IoT enables remote monitoring and control along with real-time analytics. It provides an edge to the organizations, Institutes, and NGOs over competitors in terms of intelligent decision making through analytics. Internet of Things (IoT) application requires digitalization of all elements through the supply chain and helps in data collection accuracy. Firstly, it eliminates human errors in data collection and dependency on manual intervention. It automates the data collection process and saves man-hours spent on manual activities. Finally, it allows businesses to collect data that would be difficult or time-consuming to arrange manually.
Some of the benefits of the Internet of Things (IoT) in Supply Chain Management (SCM) are as below:
- Track location of goods in real-time
- Track condition of goods in real-time
- Capture and analyze data in real-time
Ensure the right products in the right place at the right time. Although the benefits of the Internet of Things (IoT) in supply chain management are more, one major challenge is related to data security. Every interconnected device is a potential liability from security point of view and businesses must factor this threat in advance. It goes without saying that there are multiple solutions available to ensure data security. However, it is very important to take proactive measures rather than predictive measures for the same. Online search on data security breach reveals that multiple organizations (MNCs) have faced this challenge as recently as November 2020. An effort to devise a strategy for dealing with data security breaches would prove beneficial in the long run.
Benefits of IoT – Importance in the current scenario
COVID 19 restrictions hit the logistics and supply chain across the globe. Owing to unforeseen circumstances and delays; Organizations, Institutes, and NGOs are relying more on the real-time update to understand the situation better and align their plan of action accordingly.
Implementation of new technologies would pave the way for Organizations, Institutes & NGOs to tackle the uncertainties in a better manner. Smart Solutions including IOT are disrupting the Supply Chain Management (SCM) and the need is more than ever before in the current scenario. The focus is required on technological expertise and skilled manpower (whether it is outsourced or managed in-house).
Benefits of IoT in the industry – Strategic Competitive Advantage through the Internet of Things (IoT)
The pertinent point here is to understand whether the Internet of Things (IoT) can create real economic value for the businesses that choose to invest in the technology for supply chain management. To do so, businesses should evaluate the options and make an informed choice.
Business Requirement Gathering
Understand the as-is business processes and identify use cases. Outline the road map keeping in mind the result which could be higher revenues, competitor management or simply embarking on the journey of innovation to stay ahead of the curve in disruptive scenarios. IoT innovation and IoT business solutions is a key part of this process.
Value addition for customers
What worth a technology would be if it does not have acceptance and adoption. Do a market study and understand the voice of customers for effective implementation. Additionally, analyze IoT in supply chain use cases and future IoT technology for relevance. Cost-benefit analysis
This is most critical for any business. Details on the same would make it easier for the decision-makers to plan the road map accordingly. IoT market growth rate is a key parameter and top IoT companies shall be evaluated who are aware of IoT business and the future of IoT.
To summarize, the Internet of Things (IoT), is a smart solution that is disrupting supply chain management in an effective and efficient manner. It is powering transformation for enterprises, consumers, and governments. However, it is important to understand its overall impact on the business and plan the technology implementation to suit business requirements. Opt for IoT development company experienced in IoT supply chain solutions for better results.
Read More : “Internet of Things (IoT): The Roadmap to a Smart Future“
Change management especially from technological adoption perspective can be difficult but can not be overlooked in the competitive world we are part of. To have a strategic competitive advantage, staying ahead of the curve can prove to be a game-changer, and what better than adopting to technological advancements and smart solutions like the Internet of Things (IoT).
Internet of Things (IoT) is picking up pace with the advancement of technology. In the article, the benefits of IoT are discussed in detail and the disruption through IoT in various sectors including the supply chain is expected to rise with time.