Cool Thoughts

IOT, Logistics And The Supply Chain Management

Posted by Alex Sanchez on Jul 18, 2017 10:00:00 AM
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internet of things in logistics, internet of things in supply chain management, iot and logistics, iot and supply chain

When it comes to the internet of things in logistics, there are huge changes on the horizon.

For some people the internet of things (IoT) is confined to wearable technology and smart appliances for the home, but there is huge potential for the IoT and logistics. According to research firm Gartner there will be a thirty-fold increase in the number of connected devices by the year 2020, a development that will have a significant effect on the supply chain operations.

In fact the influence of the internet of things in supply chain management will allow better integration of enterprise resource planning (ERP) software and supply chain management (SCM), resulting in SCM 2.0.

Another benefit of IoT and supply chain integration is improved visibility of products in transit. Automated shipping and delivery will be enabled thanks to cloud-based GPS systems and radio frequency identification (RFID) technology, which will also allow for better monitoring of factors such as the temperature of shipments.

The IoT will also allow for real-time updates of shipping routes according to traffic conditions, saving on fuel and reducing product damage or loss. Better data collection and monitoring will also improve efficiency in shipping and warehousing.

Major players in the industry are alive to the possibilities of the internet of things in logistics. In 2015 DHL and Cisco estimated that IoT technologies could boost the supply chain and logistics sector by more than $1.9 trillion. Surveys carried out by GT Nexus and Capgemini recently discovered that 70% of manufacturing and retail companies are working on transforming their logistics operations digitally.

The IoT will allow for the collection of richer data and deeper intelligence across supply chain and logistics operations. Improved monitoring means that better decisions will be taken, boosting efficiency and optimizing stock management, reducing delays and costs, and increasing profits.

If you haven’t started to plan for the impact of the internet of things in supply chain management, it’s not too late. Early-adopting firms are ironing out the kinks and coming up with innovative uses for the technology, and your company can benefit.

At A-N-C Cold Storage Construction we work hard to stay ahead of the curve. Get in touch with our highly-trained team members to see how the internet of things can improve your logistics and supply chain operations to make you more money.

To find out more about our services, download your free cold storage design guide today.

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