Significance of Implementing IoT In Supply Chain

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IoT technology has brought a huge change in Supply Chain Management in terms of operational efficiencies and revenue generation. IoT empowered supply chain is helpful in tracking goods and having complete transparency, and identifying the reason for the delay, so it becomes easier to ensure quick transit of deliverables by planning alternative routes in real-time.

Benefits of IoT In Supply Chain

Supply Chain Management includes a series of activities involving the flow of goods, from procurement of raw materials to the supply of finished products to the customers. It involves several steps of sourcing, inventory management, warehouse management, logistics, shipping, and delivery.  IoT helps in making improvements in all these procedures and speeds up the supply chain with ease.
 
Tracking Assets

IoT devices and sensors help in modernizing asset tracking methods by integrating bar codes and tracking numbers.
IoT enabled supply chain helps to locate the goods and find out where and when the transition of goods is delayed
It helps in contingency planning and finding alternative routes to gear up the supply chain.

Monitoring Temperature & Humidity

IoT also helps the seller to monitor the storage condition, and make sure that environmental factors like temperature and humidity are maintained properly in the warehouse as well as during transit.

It helps the organization in quality control by offering better services.

Transparency

Integrating IoT with the supply chain helps in tracking the availability of goods and access data in real-time.
It helps in sourcing goods on time.
It makes it easier to make preparations for shipping and executing transactions.
Minimizes the chances of supply chain disruption and fulfills the demands of customers much more efficiently.

Better Logistics & Fleet Management
IoT devices help in getting real-time insights into fleet activities, so all the participants in the supply chain become able to carry out real-time tracking and estimate the time of arrival. Any incidence of delay can be dealt with with great care, so the deliverables can reach the destination on time.   
     
Inventory Planning

IoT sensors help to collect customer data and analyze sales patterns, so the seller gets a better insight of the actual consumption of various products.
It helps to enhance the capability of inventory management.
It helps the manufacturers in maintaining a perfect balance between manufacturing and sales. Similarly, the retailers can maintain a balance between supply and sales.
     
Predictive Maintenance

IoT sensors help in analyzing the condition of machines and make sure that they are kept in a well-suited environment based on temperature, humidity, vibration, or more such parameters.is data is updated regularly, so any discrepancies can raise the alarm for immediate repair and maintenance to prevent machine failure.
It helps the business to reduce downtime in productivity and minimizing loss of revenues.  

Challenges

When we discuss the enormous benefits of integrating IoT with the Supply chains, we cannot ignore the challenging parts of ensuring success. IoT sensors or devices cannot function properly in absence of flawless internet connectivity, so any hindrance in the internet can cause discrepancies in supply chain management.