The Internet of Things (IoT) has brought significant improvements in the daily operations of many industries. Many of the implementations of this technology relate to the supply chain. Here are five ways to use the IoT in supply chain processes for impressive results.

1. Minimizing Downtime During Production

Using the IoT in the supply chain can start at the factory level. Smart sensors can reduce downtime caused by unexpected machinery failures. Some IoT products and platforms can detect potential abnormalities days before humans notice something’s wrong.

The statistics associated with one IoT product designed to cut factory downtime showed that it reduced failures and the time required to resolve issues that arose. The company’s data indicated that downtime can be reduced by nearly 40% within a year of installation.

Additionally, the technology causes a nearly 20% decrease in the mean time to repair metrics that measure how long it takes a company to resolve an issue. Company decision-makers should consider how they can get the most out of technology options like these. One possibility might be to use IoT sensors on the most critical machinery or equipment that suffered the most outages recently.

2. Showing the Real-Time Location of Parcels

Using the IoT in supply chain management is also valuable when people need to know precisely where parcels are at any given time. Having that information is vital when the packages are temperature-sensitive or contain life-saving goods. However, it could also be an important part of customer retention.

One study found that a 5% increase in customer retention resulted in 25%-95% more profits for the business in question. There’s no single best way to keep customers loyal in all cases. However, companies could discover that the IoT helps them make progress by offering better supply chain visibility.

One postcard-sized IoT tracker goes into a package at distribution centers. It then provides details confirming the parcel’s location and condition throughout the supply chain to both the sender and receiver. Besides giving customers the peace of mind they want, such tracking technology could minimize instances of packages arriving in an unsellable condition.

3. Enhancing Decision-Making Capabilities

Another benefit of using IoT in supply chain workflows is the potential for cutting manual steps, which can be time-consuming and increase the likelihood of errors. The IoT can also help a company become more productive if it supports automation and allows humans to concentrate on higher-value tasks. Many IoT solutions automatically collect data for later analysis.

In one real-life example, logistics company C.H. Robinson invested in the IoT to get more intelligence about how certain supply chain events could have wider implications. The business can then distribute that information to its customers sooner, giving them more time to plan for the expected disruptions and make the necessary adjustments.

David Fraas, the company’s director of software engineering, explained the hopes for IoT technology and what it has already achieved. “Even in a perfect world where everything is automated, there’s always going to be that factor of something goes wrong, be it a snowstorm or a traffic jam – those things are going to always happen.”

He continued, “So for us, it’s about how we control that as much as possible and really help clients as fast as possible when those things are going to have a real impact.”

4. Progressing Toward Sustainability Goals

More companies and individuals worldwide are increasingly concerned with sustainability. Making gains in this area can happen when people use the IoT to support the supply chain.

One option is to rely on the IoT to understand things like gas mileage and emissions associated with delivery vehicles. A fleet operator used the IoT and geofencing technology to monitor whether drivers followed a new procedure of cutting off the truck’s engine within one minute of arriving at a destination.

This IoT-enabled strategy caused a 90% reduction in idle time and generated $80,000 in annual fuel savings. IoT sensors can also promote supply chain sustainability by minimizing resource usage during manufacturing. Whether a process relies on electricity, water or something else, the IoT can monitor when dependence increases and help decision-makers determine why it happened. More importantly, installing the IoT to help with resource management lets companies gradually become more sustainable through new practices.

5. Improving in-Store Inventory Tracking

Depending on the IoT in supply chain management is also a valuable option when retailers want to track how fast certain items are selling and ensure customers won’t arrive to empty shelves. The IoT sensors on store shelves could send real-time information to sales floor and warehouse associates, letting them know when it’s time to restock.

Evidence also suggests that the IoT could be useful for preventing food waste in grocery stores. However, smart sensors could help retail leaders know which products sell best in certain locations. That way, they’ll be less likely to stock slow-selling items.

Suppose an IoT tracking system extends to several of a brand’s stores within a region. In that case, the retailer could adjust inventory levels based on the data. Perhaps a certain sweater is a hot seller at one Colorado location and not moving so swiftly at another store in the same state. In such instances, the IoT supports moving inventory to the places where it’s most likely to sell quickly and help the retailer profit.

Using the IoT in Supply Chain Applications Makes Sense

These five examples of using the IoT in supply chain processes should give people some
fantastic inspiration about using the technology. However, individuals are likely to get the best outcomes when they take the time to understand their needs and how the IoT’s capabilities could support them.

Source: Plato Data Intelligence: PlatoData.io