IoT in Supply Chain and Logistics
Use Cases and Benefits

The Smart Warehouse makes use of machines and computers to manage routine tasks such as moving racks and labeling products, among other things. It was a task that humans had performed in the past.

Amazon

All of Amazon’s heavy lifting and running errands are performed by robots. While working with the robots in their duties, humans could pay attention to tasks that need agility and the ability to think critically. The warehouse floor is covered with QR codes to help self-driving cars find their way around. Thanks to the automation made available by IoT in supply chain, Amazon can now stock twice as much product and retrieve it in a third of the time. Further, 40% savings has been achieved in fulfillment costs.

Nissan

The Internet of Things development service has been beneficial to Nissan in several respects. The first company utilizes the Internet of Things to monitor car shipments to overseas consumers. In contrast, the second company adopts an Internet of Things-based warehouse management system at its facility in the United Kingdom.

The RCM (Remote container management) system enables the tracking and real-time monitoring of temperature and humidity inside refrigerated containers, regardless of their physical location. The power connection status may be seen at any moment while the ship is in transit.

RCM is an application of IoT (Internet of Things) technology in supply chain management

Maersk

Maersk, a Danish corporation that is one of the leaders in the shipping and logistics industries, is in charge of the development of a system known as Remote Container Management. Perishable cargo spoiling may be avoided, waste can be cut down, and transportation schedule accuracy can be enhanced by using this system to monitor the temperature and humidity within shipping containers.

Aker

Aker Technologies, an ag-tech company, provides agricultural suppliers with an Internet of Things (IoT) system that makes use of drones, 3D video sensors, big data solutions, and machine learning. Using those products can detect crop damage caused by various circumstances and take appropriate corrective action as soon as possible.

Volvo Group

There are many use cases for the IoT in supply chain, and Volvo is famous. The company uses a cloud-based networked system for tracking international shipments of car elements. Using the Internet of Things, Volvo monitors where its vehicles are in transit as they are sent to suppliers throughout the globe.

From manufacturing to product sales, it affects the whole supply chain. Suppliers of raw materials may employ Internet of Things devices in supply chain to monitor the conditions that impact the reliability of their shipments in both time and quality. Such as keeping an eye on the well-being of crops, trees, and animals is a key component of agriculture, forestry, and livestock dairy farming.

Additionally, IoT is used by merchants to improve the accuracy of merchandise pickup and the effectiveness of material handling. In addition to allowing for more precise inventory management and insightful customer traffic analysis, the capability of tracking items across shelves has proven to be an advantage to retail enterprises.

When there are too many moving parts in a value chain, the chain generally breaks apart into a series of data silos. As a result of teams responding to different data and not being on the same page, bottlenecks develop in the supply chain. This is particularly true for businesses that are still using outdated systems that have limited or no data analytic capabilities. By using the cloud and data analytics, IoT-based solutions enable all teams in the value chain to work off of a single, accurate set of data. In doing so, it improves teamwork and paves the way for more rapid problem-solving.

Supply chain managers and logistics teams may optimize fleets, offer better route planning, and discover delayed assets with the enhanced connection now achievable by the IoT in supply chain. This can result in a reduction of almost 25 percent in driver hours. Furthermore, these organizations can track asset productivity, enabling operational adjustments that boost output.

When supply chains run well, managers can fulfill the needs of their final customers in terms of delivery speed and quality. It improves how businesses interact with their clients, resulting in success. Not only that, but they can also track shipments and products in real-time and provide precise arrival time estimates. When problems with delivery are spotted in their early stages, appropriate action may be taken. They can also make alternative delivery arrangements to satisfy service-level agreements.

Supply chain management has always struggled with a significant obstacle known as asset tracking. Companies are responsible for checking that their inventory, both coming in and departing, is going to the correct destinations.

IoT asset-tracking gadgets allow businesses to monitor the status of their merchandise, shipping containers, and company vehicles in real time. When they know exactly where their assets are at all times, they can instantly notice delays and be easy to know that their valuables are safe. By setting up geo-fencing, we may get notifications whenever an object we are tracking enters a specific region.

To this day, many businesses in the manufacturing and distribution industries still use outdated techniques of forecasting when planning upcoming operations. With the use of IoT sensors, businesses may go beyond relying on estimates and into consumption-based planning. You can keep track of your inventory, including the items you already have on that point, so you have all the data you need for making important decisions. As inputs to complex analytics, all this information may be analyzed for useful insights, such as optimizing manufacturing times and preventing product oversaturation.

Organizations are looking more closely at best practices in health and safety and ESG issues to ensure they follow the law and meet the social standards of investors, customers, and other stakeholders. Using data from Internet of Things sensors provides a fast, reliable, and low-cost solution for supporting ESG compliance strategies and decision-making.

Supply chain and warehouse management would be incomplete without inventory tracking and control. IoT devices monitor stock levels and inventory locations to improve management and maximize performance. Supply chain managers, such as those in distribution and transportation, may benefit from the accurate information IoT-enabled inventory monitoring systems provide.

Automation has become more important in modern companies since it helps cut down on manual work, labor costs, the potential for human mistakes, the time it takes to provide resources and other factors. With the help of IoT, the manufacturing supply chain may finally implement the vital automation of the preceding management and industrial operations. Warehouse management drones may be used as an Internet of Things tool or a whole infrastructure can be built and managed remotely for overseeing logistical processes.

Many Internet of Things platforms and devices depend on ongoing access to the internet and other short-range technologies like Bluetooth and Near Field Communication. This problem will be fixed mechanically when internet usage grows, and 5G becomes widely accessible.

Employees in the warehouse and those operating company vehicles need to be trained on the best safety practices and guidelines for utilizing Internet of Things (IoT)-based supply chain management systems.

Potential advantages and disadvantages might be found in the huge information pool generated by IoT devices. A sufficient amount of server power is required in order to store and analyze the gathered data. In addition, there have to be data governance regulations in place so that accurate conclusions may be made.