Without question, supply chain management is at the heart of every successful business.
Today, most businesses and industries like healthcare, retail, manufacturing, agriculture, transportation, food, and many more are revamping their supply chains to make them more modern. And the goal here is not just to meet customer desires but also to overcome fundamental growth barriers.
What’s more, you’ll be surprised to know that,
By using integrated sensor technology, deep learning, predictive analysis, and machine learning, the Internet of Things (IoT) is thought to bring efficient and speedy solutions intended to tackle these supply chain concerns.
The worldwide IoT in the supply chain management market is expected to grow at a strong 13.2 percent CAGR during the forecast period, according to Businesswire (2020-2030). In 2019, the market was worth $34,504.8 million, and by 2030, it is expected to be worth $100,984.5 million.
So, let’s quickly start with,
What is the Supply Chain?
To put simply, a supply chain is a network that connects a business to its suppliers and consumers, and it encompasses all of the transactions that occur throughout the transformation of raw materials into marketable goods. It includes activities like sales, purchasing, manufacturing, logistics, and customer support among the functional teams involved in the business’s network.
Businesses can be transformed by superior supply chain management procedures. Businesses can indeed gain a competitive advantage by reducing waste and excess while lowering expenses and streamlining processes.
They can boost consumer loyalty by providing tailored logistics that cater to specific needs. They can also automate their procedures to make them more efficient, intelligent, and productive.
Besides, there are many benefits of using supply chain management for businesses. A few of them are listed below, so take a look!
- Ensures higher productivity
- Fix bottlenecks like lack of transparency, employee’s inefficiency, inadequate
- Storing methods, and a lot more
- Improve workflow
- Faster shipping & delivery time
- Easy fleet management
Apart from the above, there are many other benefits of using supply chain management systems for businesses.
Why is IoT-based supply chain management gaining a lot of traction nowadays?
Also Read: IoT in Supply Chain: Use Cases and Implementation Strategy
Role of IoT in Supply Chain Management
The IoT has the capabilities to make the world of business smarter and more integrated. Many organizations are revamping their supply chain management systems today to spread supplies equally across the value chain by leveraging the Internet of Things (IoT).
The IoT solutions for supply chain can establish machine-to-machine connections throughout the supply chain, allowing automobiles, packages, bins, loading equipment, and other devices and facilities to connect with others. When smart devices can automatically capture data, humans do not need to log it manually.
What Supply Chain Management Challenges Does IoT Solves? Top Benefits!
The top benefits of using IoT in supply chain management are:
1. Removes Ambiguity
Supply chain management has always been a tough task to handle due to the vast number of teams involved. The causes of order delays are impossible to predict or manage. Late deliveries and supply shortages are frequently caused by traffic jams. The position and speed of vehicles can indeed be recorded, and servicing notifications can be delivered using sensor-enabled IoT devices. The Internet of Things (IoT)-based connected sensor technology has the potential to cut waste. It’s a supply chain visibility enabler that allows stakeholders to share critical real-time data, decreasing interruptions.
2. Enhances Security
IoT-based systems assist & track all things and inform the management team if something goes missing. Connected CCTVs, applications that enable warehouse managers to shut facility entrances remotely, asset monitoring logistics tools that help monitor deliveries, and much more are examples of IoT-based supply chain management.
3. Improves Inventory Management
For inventory management, firms previously relied on manual processes and paper tags. They nowadays use RFID (Radio-frequency Identification) tags to give workers real-time access to information about material flow, thanks to the Internet of Things. This allows businesses to acquire a better and faster view of their inventory and make faster decisions by forecasting demand.
4. Helps to Monitor Storage Conditions
IoT systems may check environmental conditions such as moisture, wind exposure, light levels, temperature, and so on. For example, certain temperature-sensitive products must be kept within a set temperature range throughout the supply chain to avoid harm. If the temperature changes, the IoT device sends an alert (or sounds an alarm) and recommends manual action to prevent the goods from spoiling or being damaged. This gives purchasers confidence that their purchases will be delivered safely. It is beneficial to both suppliers and purchasers.
Read More: Tips for Successful IoT App Development
5. Predictive Maintenance
IoT aids in the predictive maintenance of machinery in business. On a constant basis, the real-time monitoring IoT devices incorporated with machines share data with other software/algorithms. These algorithms, in turn, use machine learning to detect if there’s anything wrong with the system right now or if it may fail in the near future. Predictive maintenance allows businesses to get the most out of their assets. It also has other advantages, such as:
- Enhances machine’s longevity
- Enhances overall productivity
- Reduces downtime
- Helps in reducing costs
- Helps owners to make more informed decisions
- Gives real-time insights
6. Flexibility
In comparison to on-premise solutions, IoT systems work faster and are more accessible. By deploying a cloud-based IoT platform, supply chain management ensures that all stakeholders associated with the process have access to specific data. In addition, a linked IoT solution provides all collected data in a way that is appropriate for a certain scenario, assisting workers in navigating the supply chain.
7. Break Silos
Using the Internet of Things throughout the supply chain provides decision-makers with real-time information on job statuses throughout the chain, which helps to break down silos. Increased cross-functional communication can aid in identifying possible bottlenecks earlier, making better strategic decisions, and increasing productivity.
8. Enhances Customer Experience
Not only does a more integrated supply chain improve productivity, but it also improves customer service. Managers may access the data in the office or via mobile apps to know exactly where an item is at any given time, allowing for more precise forecasting of delivery schedules.
Managers can thus spot possible problems sooner and make other arrangements to ensure Service Level Agreements are met. The linked fleet also allows for automated status updates, which keeps consumers informed and reduces calls to customer service centers.
Top Use Cases of IoT in Supply Chain Management
IoT is a technology for modern age business. Below are a few of the use cases of IoT in supply chain management.
1. Predictive Analytics
Nowadays, many businesses worldwide employ predictive analytics enabled by IoT in supply chain management. IoT technology enables real-time condition monitoring, which allows supply management firms to be faster and more agile. For instance, with IoT, it is feasible to track the condition of equipment, prevent downtime, detect inefficiencies, and foresee and mitigate risks.
2. Warehouse Management
IoT is used in warehouses to track shipment arrivals and adjust delivery statuses. Cameras scan barcodes and package labels, and all relevant data is automatically entered into the system.
3. Locate Goods
IoT devices can be connected to individual storage containers, raw materials, and finished products. The IoT device will send its location to GPS satellites that can be used to monitor the position of products.
4. Inventory Management
The Internet of Things (IoT) in the supply chain can assist in resolving the issue of under-or over-stocking. You can forecast demand growth based on data obtained by IoT devices.
One thing is absolutely clear after looking at the use cases of IoT in supply chain management that IoT solutions have proved to be beneficial. However, IoT development is not a child’s play. That’s why finding a trustworthy IoT development company is a must for modernizing your supply chain.
Read More: How to Improve Your Supply Chain With IoT Inventory Management?
Let’s look at some crucial stages to forming a partnership with one. When choosing a company to reap the benefits of IoT in the supply chain, there are various factors to consider:
- Define objectives
- Fix your budget
- Select the region of the IoT app development company
- Shortlist Companies
- Check their portfolio
- Check client testimonials
- Check their communication channels
- Check team expertise
Note: A company you select for IoT app development should also have extensive experience with different technologies like AI, ML, and many more.
Why Choose Us?
Matellio, as one of the top IoT app development companies, can assist you in developing exciting applications, assess new data, and provide IoT in supply chain management solution for healthcare, manufacturing, agriculture, transportation, security, retail, and many other industries with the best IoT development services.
Conclusion
IoT in supply chain management enables organizations to increase not only production but also encourage transparency and traceability. It allows businesses to track operations, collect data, gather important information, and turn that information into actionable steps. Undoubtedly, IoT app development is an excellent investment for both small enterprises and huge corporations. It’s also critical to bring in a team of professionals for the design and development stage. Contact Matellio, an experienced IoT application development company, to ensure that your IoT in supply chain management follows recent tech trends and is fully functional.
To discover more about Matellio’s expertise, take a peek at our portfolio. Leave a note to receive free consultation.
