Digital transformation through the emergence of cloud services, mobile technologies, BI, analytics and Internet of Things (IoT) has changed the way businesses operate, and the impact on the supply chain is no different.
According to Gartner, the IoT presents unprecedented opportunities to digitally enable the supply chain and create solutions that successfully combine digital and physical products and services.
Below we outline the positive impact of IoT management on the supply chain management and a few of its multitude of benefits.
1.Optimise Supply Chain Control and Performance
Organisations can leverage IoT in their supply chain environment to control external factors and optimise process workflow performance.
For example, sensor-embedded factory equipment can communicate vital data parameters and automatically adjust equipment settings to improve operations, as opposed to having personnel manually implement these changes if and when they realise such changes are required.
Also, the captured information can serve as a benchmark for technicians to make decisions as to running diagnostics and maintenance procedures, increasing machine uptime and performance.
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2.Rethink and Expand the Supply Chain
IoT opens unprecedented access to valuable data for supply chain management, but its implications and reach can be a gold mine for stakeholders.
Firstly, IoT allows organisations to rethink the way their supply chain works and impacts customer service. For example, data captured from equipment sensors can assist relevant parties to understand how different products and machines are used on a daily basis, and what features can be improved to meet the customers’ expectations.
Finally, the inclusion of IoT technology presents an opportunity to upscale R&D efforts in the supply chain, and even develop solutions based on the extracted data for customers and the industry as a whole. Additional products and services can be created in this way.
3.Support the Convergence of Digital and Physical Channels
The next-generation supply chains powered by IoT will play an important role in the organisation’s digital transformation strategy.
The technology itself can drive organisations to not only rethink their existing supply chain infrastructure and processes but to embrace the technical acumen and skills needed to define new digital directions.
It is no longer about providing technical support for the supply chain and its functions. The IoT-enabled supply chain will create new opportunities and demands for technology-enabled solutions, and revolutionise existing systems such as asset tracking technologies through intelligent behaviour.
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