Many executives seeking to reduce waste, improve visibility and protect their bottom lines believe Internet of Things technologies could address numerous pain points and elevate competitiveness. What are the most impactful ways to integrate the IoT in supply chains for measurable benefits?
1. Tracking Goods’ Movement
A lot happens between when goods leave factories and reach their destinations. IoT technologies remove uncertainty by providing real-time updates of items’ locations. They also alert representatives to rough handling, temperature extremes or other events that could ruin products and disappoint customers.
Some executives meet specific needs by offering trackable containers for temperature-sensitive goods, such as pharmaceuticals. Since improper conditions risk lives and degrade quality, supply chain leaders appreciate technologies that minimize problems and boost transparency.
During an interview about his IoT-monitoring solution for perishable goods, an executive mentioned how it achieves temperature excursion rates below 0.05% due to advanced hardware and running times from 270 to 300 hours. This gives company representatives updated information so they have time to correct problems before they cause losses.
Increased awareness also supports supply chain professionals overseeing critical infrastructure. A collaboration between an IoT technology provider and a convenience store retailer involves reusable, tracking device-enabled totes containing gas pump parts. Users can see each container’s location and movement information and get alerts about lengthy dwell times or low stock levels.
The store brand operates nearly 600 locations in several states. The parts-tracking improvement ensures each one addresses customers’ expectations of functional gas pumps while saving time and money.
2. Improving Inventory Management
Successful deployments of the IoT in supply chains help leaders track stock levels across sites and visualize how goods move throughout expansive facilities. Many sensors connect to data analysis platforms, revealing trends and aiding demand forecasting to improve customer satisfaction and reduce stockouts.
Detailed information also lowers warehouses’ costs by identifying slow-moving products, shrinkage patterns and other areas for improvement. Because most IoT technologies operate with limited oversight, they minimize time-consuming tasks, freeing workers up for alternative value-added duties.
One recent warehouse partnership combines IoT sensors, robots and cameras to scan up to 10,000 inventory locations every hour and feed the data into a digital twin. This solution also captures real-time item information such as dimensions and volume, improving space management in busy facilities while raising productivity, output and profitability.
3. Enhancing Deliveries
Supply chain executives implement the IoT to monitor parcels moving from distribution hubs to customers’ doorsteps. Combining vehicle tracking with artificial intelligence can raise efficiency by up to 25% by identifying optimal routes. Sensors also capture data about idle times, driver behaviors and maintenance needs, streamlining essential fleet management activities.
Britain’s Royal Mail service pioneered a tagging solution for 850,000 containers transporting customers’ mail. Nearby Bluetooth stations automatically detect connected stickers on items moving through the network, eliminating manual scans and providing environmental data.
Letters and parcels move between 1,200 delivery offices, two automated hubs and 37 postal facilities on the organization’s vehicles. That movement creates a digital map with live data, letting decision-makers review overall efficiency and target shortcomings.
Deploying the IoT in Supply Chains
Supply chain experts interested in adding the Internet of Things to their workflows get the best results by identifying specific use cases and planning strategic rollouts. Selecting metrics to track throughout the process enables continuous improvement opportunities and reveals operational impacts.
