Supply chain Management

How the Internet of Things Relates to the Supply Chain?

IoT devices have revolutionized supply chain management (SCM). It’s much easier to understand where goods are, how they are being stored and when they can be expected at a specific location.

Authenticate the Location of Goods. At any time IoT devices can be attached to specific storage containers or to raw materials or products themselves. The IoT device will transmit its location, which can be picked up by GPS satellites and used to track movement of goods.

Track speed of movement and when goods will arrive. Tracking speed of movement and the traffic flow of products makes it much easier to predict how goods will move through the supply chain. Suppliers, manufacturers and distribution centers can prepare to receive goods, which reduces handling times and ensures the efficient processing of materials.

Monitor Storage Conditions of Raw Materials and Products. Some goods like food and chemicals need to be stored in ideal conditions. Specialist IoT devices can monitor areas like temperature, humidity, exposure to an atmosphere, light intensity and other environmental factors. These devices may even trigger an alarm if certain thresholds are breached. This makes it much easier to track the quality of goods through the supply chain and to reduce spoilage.

Streamline the Problematic Movement of Goods. Goods tracking and route planning through IoT devices can identify where and when goods are delayed in transit. This allows for contingency planning and alternative routes to speed up the supply chain.

Locate Goods in Storage. Goods can remain tagged with IoT devices when they are in a distribution center. This can make it much easier to find specific products within a large warehouse and ensures accurate identification and management of goods.

Administer Goods Immediately Upon Receipt. Verified tracking through IoT devices means that SCM can validate exactly when goods arrive. This can trigger other administrative tasks like supplier payments or onward shipping requests.

Supply chain Resiliency

Now, more than ever, the supply chain is critical. Companies need to develop a rapid response to address current disruptions and to repurpose and reshape supply chains for the future by increasing both resilience and responsibility. As established supply chain patterns are replaced with new ones, becomes critical to manage parallel supply chains while going through the transition.

The Intelligent Enterprise is capable of dynamic self-management and continual adaptation. It is built for agility, resiliency and growth.

Becoming an Intelligent Enterprise means shifting from top-down decision-making, empowering teams guided by purpose, driven by data, powered by technology and enabled by cloud for faster speed to market.

It calls for replacing rigid structures and creating an organization with modules that plug and play. Adopting a distributed global services model can also help large organizations across industries to diffuse enterprise risk and help to serve businesses now, and to position them for growth post-COVID-19.