The global economy is rising every year and so is the reliance on technology for its development. When it comes to smart supply chain it is set to revolutionize every business in the coming years. It will help in strategic decision-making and creating a truly agile and optimized ecosystem. As Hendrich Vanlon Smith Jr said, “Global supply chains have many constituents and responsible parties. Everyone in the supply chain has a responsibility to act in a way that promotes efficiency in the supply chain.” loT is also a part of smart supply chain and it is a contributor to the success of smart supply chains around the world to. Therefore, it can be established the internet of things have huge scope in smart supply chain. In fact,, 94% of retailers agree that the benefits of implementing IoT outweigh the risk.
Supply chain is multi-dimensional. Throughout the whole process a lot of operations unfold simultaneously which is why it’s important to streamline them. The Internet of Things is the technology that helps build big-picture views and create complex yet functional frameworks for operational efficiency in this field. In fact, according to Gigabit, Companies could invest a total of up to $15 trillion in IoT by 2025.
Let us look at what the scope of lot is in smart supply globally:
1. Asset management.
loT systems facilitate asset monitoring and management. Connecting with variety of tech and smart material makes it easier to track each item and help supply chain managers can get instant access to key insights on each delivery, including the contents of the parcel, storage manual. Forbes suggests that in 2025, as many as 152,200 IoT devices will be connecting to the internet every minute.
There are many applications of Internet of Things in supply chain management that help automate warehouse operations from inventory drones to connected infrastructure for warehouse condition monitoring and remote control. The human-technology co-operation in manufacturing and supply chain helps in increasing productivity, cut costs and increase resilience. However, a McKinsey study suggests that many manual workers will lose their jobs by 2030 due to automation.
3. Resource management.
IoT in supply chain comes from machine intelligence and the ability of technology to find issues or saving points that people won’t be able to spot and even see the future. In fact, connected systems gather data needed for predictive analytics at different stages of supply chain. This power of predictive analytics is widely used in many industries and it is the next big thing in supply chain management globally
Through loT communication can be improved between all the parties involved in the exchange. According to Aruba Research Report, 83% of organizations that employ IoT technology have reported a significant increase in business efficiency. Having access to real-time location, productivity, and environmental data, managers can also communicate with end clients and keep them informed thus providing better more personalized service
It is due to different IoT sensors for supply chain management and asset tracking, businesses can now can get a very precise picture of how resources such as power and water are used, implement green strategies to fleet management and shipping and integrate environmental initiatives at scale. Therefore, IoT is a sustainability enabler and one of the technologies that will help companies to comply with the current environmental regulations and emission caps.
The scope of loT in smart supply chain is immense. The Viewneo, Grand View Research suggest that the market size for IoT in retail is expected to be worth $94.44 billion by 2025, with a CAGR of 21.5%. Here are some other benefits of loT in supply chain.
- Higher speed and accuracy
- Improved flexibility
- Better segmentation
- Increased efficiency.
The Internet of Things has a vast range of IoT applications in smart supply chain management, be it locally or globally. It facilitates the tracking and monitoring of goods, brings more transparency to the communication process, and increases the precision of planning. In the coming years loT will be incorporated in smart supply chains even more.