Managing unprecedented supply chain challenges with IoT
A properly functioning supply chain requires efficient communication and real-time visibility for all stakeholders involved. Recently, however, complex regulations, financial risks and missing data have caused disruptions along the supply chain and put businesses at risk.
By using IoT devices, businesses can address the problems caused by rising prices and supply shortages.
“Some of the recent supply chain disruptions we have seen are due to a lack of real-time visibility across the supply chain. For a well-functioning supply chain, across multiple levels, you must collect, integrate and analyse data to provide a single view of the supply chain”, explains Bjorn Andersson, the Senior Director of Global IoT at Hitachi Vantara.
“This view should include data from sensors and devices, such as data associated with temperature and vibration. IoT enables this level of visibility, allowing you to see if suppliers can meet their commitments, or to spot when a proactive action needs to be taken to prevent a disruption in production.”
Using sensors and software to calculate specific elements of the supply chain, IoT devices can be used to validate products, streamline the transportation of goods, and track estimated arrival times.
For instance, PureFresh, a food distribution company, provides real-time shipment condition tracking and optimal transport routes (taking temperature and atmosphere into consideration) to ensure freshness.
PureFresh claims that between 30% – 50% of food is normally lost before it reaches the store shelves. But, by using IoT, the company can control how food is transported to supermarkets and therefore reduce the amount of goods that are wasted.
Ultimately, IoT technology allows organisations to take care with cost-effective and timely decisions, by facilitating transparency and automation throughout the supply chain process.
