The Internet of Things Moves Supply Chain Solutions into the Future by Helping People Work Smarter.
Ever wondered what’s all the buzz about the Internet of Things(IoT)? Well, in simple words, IoT is the inter-connectivity of everyday devices and people through the internet. With a promise to generate over $8 trillion worldwide in the next decade, it is designed to help people work smarter. Its adoption in supply chain will prove to be a boon for businesses, accounting for 25 percent of the total global value over the next 10 years.
Investment in IoT by the logistics industry could result in profits worth $1.9 trillion in the form of increased revenue and cost savings, which still remains as untapped potential. According to the “Internet of Things in Logistics” collaborative report by DHL and Cisco (PDF), adoption of the new technology promises to have positive effects across all levels of supply chain, resulting in more efficient warehousing and logistics operations and improved shipping and delivery options.
Since 2012, there has been a significant jump in the number of internet connected devices. Surprisingly, with the advancement in technology, everyday tech like laptops, personal computers, tablets, and smartphones are likely to lag behind other “smart devices” connected to the internet.
With the proliferation of 5G communication technology and rising popularity of big data and cloud computing, the days of internet connectivity anytime, anywhere are not far.
IoT & Supply Chain
Internet of Things is all about capturing data and analysis anytime anywhere. It is here that networked sensors contribute to tracking data and information in real time. Businesses use these sensors to keep track of shipments and predict future performances.
The logistics industry has been using wireless connections, microprocessors, and sensor technology for years now, all of which are the building blocks of IoT. However, there is more to this technology than tracking. Technological improvements are only adding to the capabilities of this technological innovation.
Imagine a scenario where all pallets and items in a warehouse are interconnected and freely communicate with each other without human intervention or interaction, predicting asset failure and automatically scheduling maintenance checks. Imagine supplies reordering themselves when there is a deficit and notifying warehouse managers in times of surplus! Visualize sensors immediately sending notifications in the event of any incorrectly loaded item.
This is exactly what IoT promises. When that happens, warehouses can enjoy smarter inventory management, with more accurate, faster, and secure tracking of goods while giving customers real-time updates on the status of shipments.
Another advantage is end-to-end risk management, where systems are designed to automatically predict potential disruptions and trigger alterations.
Internet of Things holds great potential for the logistics industry, offering noticeable supply chain solutions that promise to challenge traditional business models, reengineer existing processes, and enhance productivity. However, a lot still needs to be done before the logistics industry can harness IoT. Close cooperation between different players in the industry is indispensable to derive significant value from IoT.
Contact Us to find out how we can start helping you boost your Supply Chain Solutions. We can also save you money on shipping as well as other areas of eCommerce like Managing Your Customer Service, Kitting and Assembly and Convention Logistics.