Supply chain management and logistics, for example, which have long relied on human skills and input, have found a new hero in IoT. The addition of sensors, identity chips, and communication devices that are constantly connected to the cloud and to analytics engines has brought a new wave of business automation that provides constant feedback and enables better business decision making for organizations everywhere. the sizes. So what are those five ways the IoT has helped revolutionize supply chain management and logistics for global businesses? Let’s take a closer look.
What can IoT do for supply chain management?
In a connected world where consumers and companies have direct access to each other from the other side of the world, data becomes an extremely precious commodity and an integral variable in the growth of a company. Traditionally, this data has been difficult, if not impossible to collect. Once the data was collected, it had to be manually sorted and analyzed for it to have a real impact on the bottom line of the business.
For example, a vending machine that shares real-time feedback with the warehouse management system and informs it when inventory is running low and automatically places an order for those items, makes a payment to vendors, and generates a quick report for the maker. on sales figures. This can allow companies to better segment their target audience in a particular geographic location and focus their marketing efforts accordingly.
Such automation is no longer a piece of sci-fi fantasy. It is real and it is happening all around us. Another example can be seen at airports where RFID tags on luggage ensure the safe delivery of luggage to its intended destination. With a reduced number of lost baggage incidents, airlines can easily reduce the costs of having to compensate customers for such mishaps. When taken to the next level, the use of RFID tags in conjunction with GPS, weather and traffic, etc. in large cargo shipments can enable companies to track optimal delivery routes by land, air or sea, and improve overall supply chain efficiency. And all this in one day of work.
A responsive supply chain
Businesses are no longer confined to a single channel to reach consumers. As a result of this omnichannel marketplace where everything and everyone is connected, it becomes relevant for organizations to embrace IoT to enable a responsive supply chain that is constantly evolving at every stage. Real-time supply chain data collection and analysis can help companies accurately track and assess inventory movements with the help of sensors and thus be in a position to speed up or reduce supply of inventory based on consumer demand.
intelligent warehouse management
IoT-enabled supply chains can operate efficient warehouses with a visible impact on the bottom line. Asset losses, temperature fluctuations, order fulfillment, payment tracking, and other similar operational obstacles can be easily optimized for accuracy and efficiency. For example, if assets in a warehouse are connected to the internet via small GPS-enabled RFID tags that work like Google’s Android device manager to locate an Android phone, they can be easily tracked anywhere before they become in a problem. Such a system can not only ensure efficiency, but also protect against theft or damage to inventory.
Supply Chain Business Intelligence
The increased connectivity in the supply chain offers considerable business intelligence to the organization. It includes financial data, customer data relevant to marketing, sales, and operations, and enables greater accuracy in forecasting consumer demand. This in turn ensures better coordination between the different departments which allows considerable cost and time savings for the business. Not only that, supply chain forensic data ensures that things that went wrong during the delivery process can be identified and rectified before they become a bigger problem for the business.
consumer perceptions
IoT has proven to be a boon for 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 in the cloud. Companies can analyze this information and know the type of car we drive and whether or not we have children. And this analysis can help them transform their business in how they manage the creation, procurement, and delivery of products throughout their supply chain.
Fleet and fuel cost management
Everyone uses Google Maps to learn traffic conditions and optimize their trip. IoT, however, can help logistics go a step further and learn from 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 in vehicles can analyze historical data to ensure optimal routes and delivery times, and also closely monitor fleet maintenance and driver health at every stage.
Reduce transit damage
Nearly 30 percent of perishable items are destroyed during transit around the world. That’s a significant financial hit on the business. According to UNFAO, most of this damage is caused by unregulated temperatures and poor storage conditions. It sounds like an elementary and uncomplicated task. But just think about how difficult it can be to regulate and maintain a constant temperature inside a car while traveling cross-country on a highway, and you’ll get an idea of how difficult it is to do the same inside a fleet of trucks. Simply plugging this gap with IoT-monitored shipments can reduce this transit damage and ensure that more perishable goods can reach their destination unharmed and on time.
In conclusion
The evidence in favor of the Internet of Things is clear, and it is just about preparing to disrupt the supply chain and logistics sector from within. This change will not only ease the stress on the retail industry, but will also ensure that the best products and services reach consumers at the right time. While IoT has been viewed as a set of technology limited to consumer wearables and connected cars, it has emphatically proven itself as an integral part of the warehousing, factory, and supply chain segments. And companies that have been early adopters have already witnessed the potential that IoT holds for their businesses by making them more responsive to consumer needs.