In the fast-paced world of supply chain management, keeping everything running smoothly can feel like trying to solve a giant puzzle with missing pieces. Now, imagine if you had a digital map that showed you where every piece fits in real time. That’s what the Internet of Things (IoT) is doing for supply chains today.
Logistics is being transformed by the IoT. IoT connects physical items to the digital world, changing how we track and manage operations. With real-time tracking and visibility, we can collect and analyse data more easily. This makes logistics more transparent and efficient, taking the industry to a whole new level.
In the past, keeping tabs on the various processes in the supply chain including delivery fleets was a logistical nightmare. Manual processes and constant back-and-forth with different parties made it cumbersome and downright inefficient.
IoT is transforming this journey of products from warehouses to customers. Here’s how:
A new era of inventory management
Picture this: you’re in a massive warehouse, and amidst the maze of shelves and forklifts, keeping track of every item seems like a Herculean task. In the old days, this meant manual counts, error-prone spreadsheets, and often, a whole lot of frustration. Enter IoT, and suddenly, things look a lot different.
IoT devices such as RFID tags and smart sensors are revolutionising inventory management by providing real-time updates on stock levels, locations, and conditions. These tags enable automated inventory tracking which in turn reduces stockouts and improves warehouse efficiency.
This technology minimises the risk of stockouts or overstocking, ensuring optimal inventory levels. A report by Allied Market Research indicates that the global RFID market was valued at $11.8 billion in 2021, and is projected to reach $31.5 billion by 2031 at a CAGR of 10.2% from 2022 to 2031.
Streamlined operations and asset management
IoT isn’t just about tracking inventory; it’s also about making operations smoother. One of the biggest advances of IoT is access to package conditions. This access helps in predictive maintenance and even foreseeing equipment failures before they occur. This is especially beneficial for perishable goods as the IoT-enabled sensors monitor factors like temperature, humidity, and shock, ensuring the integrity of sensitive products. Sensors on vehicles and machinery can detect anomalies and predict potential breakdowns, allowing for timely maintenance and reducing downtime. This predictive approach not only extends the life of assets but also ensures smooth operations and reduces unexpected costs. Think about a warehouse storing pharmaceuticals. Maintaining the right temperature is critical.
Enhancing visibility from warehouse to customer
One of the most exciting aspects of IoT is its impact on transparency and customer experience. Remember the days when you had to call customer service to find out where your package was? Those days are fading fast. With IoT, both companies and customers can track shipments in real-time.
One of the most significant benefits of IoT in logistics is real-time tracking. GPS tracking systems, for instance, provide live updates on vehicle locations, ensuring that fleet managers are always in the loop. According to a recent report by MarketsandMarkets, the global market for real-time location systems (RTLS) is expected to reach $16.2 billion by 2028, driven largely by demand in logistics and transportation.
Fuel sensors, another crucial IoT application, help monitor fuel consumption, detect theft, and optimize fuel usage. These sensors provide accurate, real-time data on fuel levels and usage patterns, which can be critical for reducing operational costs and improving efficiency.
GPS and end-to-end visibility
IoT is disrupting obsolete supply chains by deploying a network of smart sensors and devices across the supply chain. These devices when embedded in vehicles, containers, warehouse shelves or individual packages can collect a wealth of data. GPS and RFID tags provide real-time location tracking of vehicles, goods, and equipment. IoT-enabled trackers can be embedded within high-value goods, enabling real-time monitoring of their location. This reduces pilferages as well. Besides this, container locks with tamper-evident seals can notify the right authorities in case of unauthorised access. This improves security.
Looking ahead: the future of IoT in supply chains
The story of IoT in supply chains is still being written, and the future looks promising. Emerging technologies like artificial intelligence (AI) and machine learning (ML) are set to take things to the next level. Moreover, IoT is poised to enhance sustainability efforts. By optimising routes and reducing waste, companies can lower their carbon footprints.
From better inventory management and streamlined operations to enhanced visibility and future advancements, IoT is transforming how supply chains function. It’s not just about making things more efficient; it’s about creating a more transparent, customer-friendly experience.
The Internet of Things (IoT) is revolutionising supply chain management by providing real-time visibility and enabling data-driven decision-making. Through wireless transmission and sophisticated software analysis, logistics managers obtain comprehensive insights into operations, from shipment inception to delivery. This transformative technology enhances efficiency, resilience, and sustainability, promising a future where logistics operations are more streamlined and responsive to market demands.
So next time you track your package online remember: it’s all part of the IoT revolution, making supply chains smarter, faster, and more connected than ever before.
(Anshul Jain is the Co-founder and CTO of Roadcast)
