Understand The Background of IoT In A Supply Chain

Posted 18/02/22

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In this era of digitalization, almost all the industries are now using some form of IoT in their supply chains. It has become one of the most integral parts of ensuring a smooth supply chain management process. However, many people are still not aware of how IoT works in a supply chain. This article will provide you with a basic understanding of the background and working of IoT in a supply chain.

What is IoT?

IoT stands for Internet of Things. It is a system of interconnected devices, sensors, and software that collect and share data. IoT is useful in supply chains because it can track inventory, monitor conditions, and automate processes like ordering.

The Evolution of IoT

The term “IoT” has only been around for a few years, but the concept of interconnected devices dates back centuries. The first IoT devices were looms in the 1800s that created fabric. The looms had punch cards that controlled the sequence of operations and used cords and pulleys to create a network of looms.

From homes, to businesses, to factories and hospitals, even our cars are using IoT devices.And as IoT technology continues to evolve, we can expect to see even more amazing applications for it in the future.

One of the most exciting aspects of IoT is its potential to revolutionize supply chains. By connecting devices and sensors along the supply chain, businesses can gather real-time data about their operations.

For example, let’s say a company is shipping products from its factory to its distribution center. By attaching sensors to the products and tracking their location with GPS, the company can know exactly when each product arrives at the distribution center.

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How Does IoT Work in a Supply Chain?

IoT, or the Internet of Things, is a network of physical objects that are connected to the internet. These objects can communicate with each other and share data. IoT is changing the way businesses operate and manage their supply chains.

IoT can be used in a supply chain to track inventory, resources, and shipments. It can also be used to monitor conditions along the supply chain, such as temperature and humidity. By collecting data from all parts of the supply chain, businesses can make better decisions about how to improve efficiency and reduce costs.

IoT is still in its early stages, but it has great potential to revolutionize supply chains. Businesses that are able to harness the power of IoT will be at a competitive advantage in the years to come.

Benefits of Implementing IoT in a Supply Chain

When it comes to supply chain management, the Internet of Things (IoT) is becoming an increasingly popular topic of discussion. IoT has the potential to revolutionize the way supply chains making them more efficient and effective. Here are some of the key benefits of implementing IoT in a supply chain:

1. Increased Visibility and Transparency
You can use IoT devices to keep track of inventory, and pinpoint where your inventory will be located and how much is available. This improved visibility can help to prevent stockouts and disruptions in the supply chain.

2. Enhanced Efficiency and Productivity
IoT data can be used to optimize various aspects of the supply chain, from route planning and warehouse management to inventory control. By streamlining operations and reducing waste, IoT can help to increase efficiency and productivity throughout the supply chain.

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3. Reduced Costs
IoT can also help to reduce costs throughout the supply chain. In addition, IoT-enabled automation can help to reduce labor costs by eliminating manual tasks and processes.

4. Improved Customer Satisfaction
By reducing disruptions and ensuring that products are available when and

Case Studies of Successful IoT Implementations in a Supply Chain

1. Inbound logistics at Coca-Cola HBC: The Coca-Cola Hellenic Bottling Company (HBC) is one of the world’s largest bottlers of The Coca-Cola Company’s products. HBC switched to using IoT devices to track inbound shipments of raw materials, which has helped the company reduce costs and improve efficiency.

2. Warehouse management at Philips: Philips, a leading electronics company, uses IoT sensors to improve the management of its warehouses. The sensors are used to track the location of goods and optimize stock levels, which has helped the company save time and money.

3. Transportation at DHL: DHL, a leading global transportation company, has implemented IoT devices in its fleet of vehicles to track their location and monitor their status. This has helped the company to improve its transportation operations and reduce costs.

4. Manufacturing at GE: GE, a leading industrial manufacturing company, uses IoT sensors in its factories to track the performance of its machines.

5. After-sales service at John Deere: John Deere, a leading manufacturer of agricultural equipment, uses IoT technology to track the performance of its products in the field.


In conclusion, the development of IoT in a supply chain must take into consideration many factors in order to be effective. Cyberattacks are common, so access to your data needs to be tightly monitored. The availability of collected data lets supply chains operate at a high level of success. When done correctly, IoT can provide benefits such as increased efficiency and cost savings.

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