Benefits of IOT in Supply Chain
11 November 2022
Improved last-mile deliveries, improved fleet management, temperature tracking on cold chain transports, and predictive maintenance all contribute to increased supply chain transparency.
They can gather and share information about how they are utilized and what is around them since they are connected via sensors. The advantages of IoT for supply chain management will be discussed in this article because it is anticipated to have a significant economic and social impact.
Supply chain management connects all phases of a product’s development. Every link in the chain needs to be reliable because weak points could result in greater costs and consequently reduced profit margins, such as transport delays, worn-out equipment, or operational errors.
The application cases and advantages are numerous, whether the supply chain is for specific products, warehouses, shipping containers, or even oil pipelines. Here, we’ll look at six of these advantages.
Inventory Monitoring and Upgrades
IoT-enabled devices assist manufacturers in tracking all of their necessary parts instantly and internationally. Manufacturers will receive notifications regarding the delivery dates of their components by using Radio Frequency Identification (RFID) tags on their parts.
This enables them to control product levels in their inventory more effectively and to make it more effective across all of their locations. Additionally, they can inform customers of any delays or current shipping times. To keep track of any product recalls, they can also trace finished goods.
Customers are becoming more and more interested in purchasing goods that were manufactured ethically and sustainably throughout the entire production process. Transparency is crucial throughout the whole supply chain as a result.
The more visible everyone is in the supply chain, including businesses, the more likely it is that it will run smoothly. By employing IoT-connected machinery and gadgets, every problem or impediment may be conveyed clearly for increased efficiency. As many as 70% of businesses face a supply chain interruption each year.
Finding out when machines need maintenance based on heat, humidity, vibration, and other data points is another fantastic advantage of IoT sensors. Instead of waiting for a machine to break down, possibly in the middle of a production run at the worst possible time, firms can schedule repairs during downtime that is planned. This is advantageous since it limits the problem to just one machine rather than the entire supply chain, lowers maintenance costs, and boosts profit margins.