Top 10: Uses of IoT in Supply Chains
The Internet of Things (IoT) has played a transformative role in supply chains over the last few decades.
Reshaping the way goods are tracked, stored and managed, IoT’s integration into supply chain operations has resulted in greater visibility and control. The technology is also improving productivity, reducing costs and enhancing customer satisfaction.
The continuous evolution of this technology only promises to further drive efficiencies and innovations for supply chains globally.
Discover the top 10 ways in which the supply chain industry is currently using IoT within its operations below.
10. Real-time tracking and monitoring
When it comes to real-time tracking and monitoring, IoT sensors on goods and vehicles provide real-time location data, enabling tracking from source to destination.
Enhancing inventory visibility, minimises loss and managing deliveries effectively, companies such as DHL, Maersk, Amazon and Nestlé are harnessing IoT for real-time tracking and monitoring within their supply chains.
DHL use IoT sensors to monitor shipments’ location and condition throughout their journey as well as ensure goods remain in the optimal environment. This is particularly valuable in cold chain logistics and the transportation of vaccines.
9. Predictive maintenance
Also using IoT sensors, predictive maintenance detects signs of wear and tear on equipment enabling the company to schedule maintenance proactively.
By taking this approach companies such as Caterpillar and Siemens can reduce unexpected downtime, keep operations running smoothly and extend equipment life.
Caterpillar for example has collaborated with Uptake to create IoT-based predictive maintenance solutions. The joint platform gathers real-time data from sensors to enable proactive maintenance by predicting failures before they occur.
8. Warehouse management
Using IoT devices for warehouse management, companies such as DHL, Amazon and Walmart are using solutions such as RFID tags and sensors to streamline their warehouse operations.
These technologies aid in tracking stock levels, managing inventory and automating reorders to minimise stockouts and overstock issues.
An example of this use of technology is Walmart, where the leading retail giant worked with Symbotic to bring high-tech automation to its supply chain.
Adopting mobile bots and complex algorithms the retailer has optimised its storage and retrial processes to speed up inventory handling, improve accuracy and customise pallets for efficient unloading.
7. Temperature and humidity control
For companies that work in pharmaceuticals and food, IoT solutions are being utilised to monitor temperature, humidity and other environmental conditions.
Such companies are doing this to ensure that they comply with quality standards and reduce spoilage during transit.
Hapag-Lloyd uses smart containers equipped with IoT sensors to monitor temperature and humidity. The company gain real-time data to ensure its sensitive goods remain in optimal conditions throughout the journey.
6. Fleet management
To optimise routes, reduce fuel costs and enhance driver safety, companies are utilising IoT in supply chain operations to manage their fleet.
IoT solutions in fleet management enhance these operations by monitoring vehicle conditions, fuel consumption and driver behaviour. Companies using IoT for fleet management include DHL, Amazon, Walmart, UPS, Maersk and FedEx.
For example, FedEx is utilising IoT technology through its SenseAware platform to enhance fleet management, especially for monitoring high-value and sensitive shipments.
5. Demand forecasting
When it comes to demand forecasting, IoT data from sensors and connected devices can predict demand trends to help companies better manage their inventory and reduce waste.
IoT solutions for demand forecasting are being used by Amazon, Coca-Cola, Unilever and Nestlé to collect data from multiple sources to help companies align production schedules with demand.
In Particular, Coca-Cola leverages IoT to monitor and gather data from its vending machines and refrigerators to track real-time metrics for stock levels and consumer preferences analysis. This allows Coca-Cola to make informed predictions about demand for specific product types and flavours.
4. Asset tracking and theft prevention
Increasingly valuable across supply chains, companies are incorporating IoT-enabled GPS trackers into their operations for asset tracking and theft prevention.
This enhanced visibility reduces the risk of theft and loss for companies such as Bosch, DHL, Maersk and Tech Mahindra so that they can respond quickly if an asset deviates from its planned route.
When it comes to Bosch leveraging IoT, the company monitors valuable assets and prevents theft by integrating IoT sensors and real-time data solutions. With greater visibility into asset location and status Bosch can respond faster to potential threats.
3. Quality control and inspection
By incorporating IoT sensors for quality control and inspection in supply chain processes, companies in the industry can benefit from improved product consistency and reliability, as well as minimise defects and recalls.
Companies such as DHL, Walmart, Maersk, Siemens and Bosch are transforming their quality management across their supply chain.
Siemens for example uses IoT to improve product quality through real-time data capture and analysis. By integrating IoT into the production lines Siemens monitors several factors to ensure it meets quality standards.
2. Energy management
Monitoring energy uses in warehouses, factories and transportation fleets, IoT is helping companies to reduce their carbon footprint, lower energy costs and improve sustainability.
Companies such as Siemens, Amazon and Schneider Electric are reducing their environmental impact by tracking energy consumption, emissions and waste along the supply chain.
For example, Schneider Electric leverages IoT to monitor and manage energy systems across industries, its EcoStruxure platform enables real-time monitoring and optimisation of energy use. As such companies can optimise their energy use, reduce costs and improve efficiency.
1. Customer experience enhancement
Allowing companies to provide accurate delivery updates and tracking information to customers, the likes of Coca-Cola, DHL, FedEx, Amazon, Levi Strauss, L’Oréal and Zara are enhancing the customer experience.
By integrating IoT into supply chain operations, companies gain greater control, improve efficiency and increase customer satisfaction with more reliable and streamlined processes.
For example, L’Oréal leverages IoT solutions to monitor its inventory and manage customer feedback in real-time. Sensors on products help track usage and real-time data from smart shelves help the company to provide a personalised shopping experience.
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