Have you wondered how can the supply chain benefit from the Internet of Things? There are actually five ways. IoT allows a supply chain to control its external environment and execute sound decisions. It communicates data, change equipment settings and process the workflow in order to optimize performance. It helps the supply chain achieve its ultimate goal – fulfilling customer demands for products and services.
- Leverage IoT to Enhance Supply Chain Processes
The Internet of Things drives business and supply chain transformation. It also drives cumulative benefits to the existing processes in the supply chain. It plays an important role in production planning, spanning asset utilization and warehouse space optimization.
- Redesign the Existing Supply Chain Process
The rise of the Internet of Things will drive the need for redesigning of existing supply chain process. Companies will redefine their value propositions from offering one product or service to selling a complete solution of combined products, services and software.
- Offer IoT-enabled Information to Internal & External Customers
Thanks to IoT, the supply chains will have exceptional access to data, presenting them the opportunity to develop new solutions for customers and markets. It will allow them to share information with their trading partners to develop products that best meet the needs of the customers.
- Build Strong Leadership for Digital and Physical Convergence of Supply Chains
The Internet of Things, when incorporated to the supply chain, will create new challenges on the organization. It will present a great opportunity for the supply chain to play a leadership role in defining digital strategies through senior leadership and technical skillsets.
- Pursue the IoT in any Maturity Level
Although the maturity of an organization does not predicate the benefits it will get from the IoT, it will greatly affect the magnitude of those benefits. The Internet of Things can help ensure efficiency and improve cost reduction. All in all, it will improve the overall supply chain performance.