Indeed, the IoT is set to revolutionize the supply chain with both operational efficiencies and revenue opportunities made possible with just this type of transparency. In today’s market, supply chain isn’t just a way to keep track of your product. It’s a way to gain an edge on your competitors and even build your own brand. The following are a few areas of operations where we’ll be seeing the most advancement and change with the ever-advancing Industrial IoT.
When it comes to operational efficiencies, the IoT offers:
- Asset Tracking: Tracking numbers and bar codes used to be the standard method for managing goods throughout the supply chain. But with the IoT, those methods are no longer the most expedient. New RFID and GPS sensors can track products “from floor to store”—and even beyond. At any point in time, manufacturers can use these sensors to gain granular data like the temperature at which an item was stored, how long it spent in cargo, and even how long it took to fly off the shelf. The type of data gained from the IoT can help companies get a tighter grip on quality control, on-time deliveries, and product forecasting. Not too shabby.
- Vendor Relations: The data obtained through asset tracking is also important because it allows companies to tweak their own production schedules, as well as recognize sub-par vendor relationships that may be costing them money. According to IBM up to 65% of the value of a company’s products or services is derived from its suppliers. That’s a huge incentive to pay closer attention to how your vendors are handling the supplies they’re sending you, and how they’re handling your product once it’s made. Higher quality goods mean better relationships with customers—and better customer retention overall.
- Forecasting and Inventory: Another bonus: IoT sensors can provide far more accurate inventories than humans can manage alone. For instance, Amazon is using WiFi robots to scan QR codes on its products to track and triage its orders. Imagine being able to track your inventory—including the supplies you have in stock for future manufacturing—at the click of a button. You’d never miss a deadline again. And again, all that data can be used to find trends to make manufacturing schedules even more efficient.
- Connected Fleets: As the supply chain continues to grow—upward and outward—it’s even more imperative to ensure that all your carriers—be it shipping containers, suppliers’ delivery trucks, or your van out for delivery—are connected. Again, the data is the prize. Just like cities are using this data to get to emergencies quicker or clear up traffic issues, manufacturers are using it to get better products to their customers, faster.
- Scheduled Maintenance: Of course, the IoT can also use smart sensors on its manufacturing floors to manage planned and predictive maintenance and prevent down-time that can cost so much.
- How can IOT increase operational efficiencies?
- How does IOT improve forecasting and inventory ?
- How can IOT used for asset tracking ?