The Internet of Things (IoT) is changing the way we see everything, from cooking and storing food at home to tracking products from the factory to the store shelf.
The logistics industry is just the latest in a long line of sectors adopting this new interconnected technology. So what are the benefits of the Internet of Things (IoT) for the supply chain?
Improve inventory through IoT asset tracking
Inventory systems are designed to help managers and business owners track the products they have on hand. If these systems rely on manual input and manual counting to update inventory quantities, they are very inefficient.
The Internet of Things (IoT) can take asset tracking to a new level by attaching a small RFID or Bluetooth tracker to packaging, which can provide real-time location information for every item in the supply chain.
By inputting real-time tracking data into warehouse management software, IoT asset tracking helps companies monitor inventory levels, prevent shortages, and avoid losses caused by theft.
Improve supply chain transparency
Supply chain transparency has become an increasingly important issue for business owners, as customers are making more environmentally friendly choices and want to know where their products come from.
A 2015 study found that 66% of shoppers were willing to pay more for products if companies were committed to environmental protection and maintained a transparent supply chain.
Supply chain transparency not only helps attract eco-conscious customers, but IoT-enabled transparent supply chains also help prevent disruptions throughout the supply chain.
With transparency, if one of your suppliers has a problem, there's nothing to hide. Once difficulties arise, all information is readily available.
Real-time temperature tracking in cold chain transportation
Cold chain transportation is an indispensable part of the food, beverage, pharmaceutical, and chemical supply chain. Each product needs to be kept below a certain temperature during transportation and storage. For items such as pharmaceuticals, a temperature change of less than 2 degrees Celsius can ruin an entire shipment.
Adding the Internet of Things (IoT) to cold chain transportation can provide real-time temperature tracking during transport and storage, alerting cargo owners or company managers if any changes occur in the internal temperature of a truck or warehouse.
Predictive maintenance to avoid downtime
Most warehouses and supply chains have an established maintenance plan that follows a strict schedule to shut down equipment for inspection and repair to prevent it from breaking down when it's most needed. While this is the most common maintenance strategy, it's not the best.
A study by the ARC Advisory Group found that only 18% of equipment failures are due to aging. The rest occur randomly, so supply chain owners need a new strategy to ensure this doesn't happen.
The Internet of Things (IoT) eliminates much of the need for preventative maintenance. IoT sensors track the health of each device and feed that data back to warehouse management software, which in turn alerts supervisors and maintenance teams when certain devices require maintenance, thus preventing costly downtime and equipment failure.
fleet management
If your warehouse also manages a fleet—from delivery trucks to forklifts and cranes within the facility—the Internet of Things (IoT) can help improve the quality of fleet management. Equipping your fleet with IoT sensors can help you track vehicle maintenance levels and alert you promptly when problems arise or adjustments are needed.
IoT sensors can also track vehicle fuel efficiency and even driver behavior, thereby ensuring driver safety while driving.
Smoother Last-Mile Delivery
Last-mile delivery is the most challenging aspect because it consumes so much time. Since the advent of e-commerce, companies have been looking for ways to improve this, and the Internet of Things (IoT) may be the perfect solution. Thanks to real-time traffic analytics, GPS and IoT can recommend optimized routes to reduce fuel waste and traffic congestion.
The same asset tracking technology used in warehouses can also facilitate consumer package tracking, simplifying last-mile delivery.
total
The Internet of Things (IoT) is growing exponentially. While the supply chain and logistics industry isn't the only sector that can benefit from IoT technology, its future development is inseparable from it.
