The Internet of Things (IoT) is growing at a rate that almost seems implausible. This world of wirelessly connected smart devices that started in the 1980s with a soda machine on a college campus, was officially named the IoT in 1999 and has been growing in dribs and drabs over the years. In just the last few years, though, IoT devices have exponentially multiplied and are now on kitchen counters and in workplaces in huge numbers all over the world. It has become one of the most interesting and important technological developments of the last decade.
The proliferation of wireless technology is one reason the IoT has recently grown so fast but its usefulness in any number of situations has caused the explosion in adoption. In a professional setting, one of the biggest areas IoT devices have helped revolutionize is supply chain management. Here we will discuss three reasons why the IoT has become important for supply chain management.
Traceability
Once upon a time, a supply chain manager really only knew the exact location of an item moving through the supply chain when it was at Point A. It would then be again put into transit and one wouldn’t know where the product was in real-time until Point B or, more realistically depending on the length and complexity of the supply chain, until it reached Point E, F, G, or even Z. Managing a supply chain used to be as much about educated guesses and estimating as it was about tracking commodities.
IoT devices in supply chain management are changing that. Whether it is equipment, raw materials, or finished goods, GPS-enabled IoT devices can now be attached to vehicles, shipping vessels, or even individual products. Using the connectivity the IoT provides, supply chain managers can get an accurate picture of exactly where everything is at any given moment. This is an incredible advantage for current managers over their previous counterparts.
By definition, supply chain management is about tracking things as they move through the chain, so this advancement is the biggest step forward that IoT devices and technology have provided to this area of business. It is a true game-changer, the likes of which you rarely see in business processes.
Better Movement Visibility
Closely related to traceability, the improved movement visibility within a supply chain has been a huge improvement for supply chain managers. With better ways of real-time tracking available today through IoT technology, supply managers do their jobs managing the supply chain much more efficiently and effectively than was previously possible. In 2020, this tracking ability has become more important than ever.
The difference is akin to waiting for a bus with a paper bus schedule in your hand versus waiting with a live traffic TV cam feed in your hand. The knowledge you get when you have a live look at not just where things are but the conditions they are facing, and may be facing in the near future, is incredible compared to the old way of doing things.
This real-time knowledge allows supply chain managers to do things that would never have been possible in the past. IoT technology gives these managers better insight into when goods will arrive, improved ability to make adjustments for delays, more efficient overall shepherding of supplies through the chain. These three abilities, more accurate timetables, adjusting on the fly, and more efficiency have always been the keys to supply chain management and the IoT technology today improves them all.
Monitoring
As discussed above, much of supply chain management is about the “where” and “when” of moving supplies through the chain. IoT devices can also be about the “how” in many instances. Monitoring conditions along a supply chain is often critical, especially for certain condition-sensitive goods such as food or pharmaceuticals. Having conditions go wrong or not work correctly in the supply chain can mean huge losses of materials or products for companies.
Cloud-based monitoring systems that can integrate data loggers across a supply chain, such as those provided by Dickson and others, have become a useful tool for supply chain management. To monitor certain conditions along the supply chain such as temperature, pressure, humidity, and other significant conditions, managers are using cloud-enabled data loggers to create a real-time monitoring system by which issues can be identified and problems can be addressed as soon as they happen, not after they have already caused irrevocable harm.
When supply chain professionals have an accurate read on the conditions in which products are being transferred and stored throughout the entire transport route, they can ensure that the integrity and the safety of the material are up to par. This not only makes the companies happy and secure knowing that they will deal with less loss due to poor handling conditions but it also helps give consumers peace of mind that the final product has been handled properly through the supply chain.
Conclusion
The Internet of Things makes so many areas vastly easier. From ordering a shirt online to helping avoid traffic on your morning commute to creating the car you drive, IoT technology is creating less stress and more transparency in our lives at every turn. Nowhere is it more valuable than in supply chain management. IoT devices help us connect in real-time and get a more comprehensive picture of where things are and what is happening with them at any moment. With that description of the technology, it is almost as if it was created specifically to help supply chain management!
As this technology gets ever smaller and more affordable, and provides data on an even more granular level, it will continue to revolutionize supply chain management and give those who work in the field even more knowledge and control over where things are and under what conditions at all times. It is the perfect match of business and tech.
