-Julie Van Haare Heijmeijer-

The Internet of Things is a system of interrelated computing devices, mechanical and digital machines, objects, animals or people that are provided with unique identifiers and the ability to transfer data over a network without requiring human-to-human or human-to-computer interaction. 

The Internet of Things trend is going to impact businesses, and in particular, it will break up the way we think about logistics. Research firm Gartner wrote a piece about this. The author says that Internet connected devices will increase times thirty from now until 2020. This will “significantly alter the way in which the supply chain operates.”

The IoT revolution will allow us to enhance solutions by intelligently connecting people, processes, data, and things via devices and sensors. This intelligence can come to life in many different ways when it comes to supply chain data and intelligence – from automation of the manufacturing process to improved visibility within the warehouse.

An example of the use of IoT in business logistics is an improvement of traffic jam information. Providing information about a traffic jam before you leave is much more valuable than getting a warning signal when you al already on the road. By implementing IoT the context-aware intelligence can enhance the supply chain visibility.

You can use IoT in every link in the supply chain, from manufacturer until the costumer, the Internet of Things means richer data and deeper intelligence for all parties in a supply network. By allowing devices to “talk to each other” in the right way, IoT can help improve the supply chain in different ways, for instance:

  • You could know about product issues in time to be able to find a solution. Therefore you could reduce asset loss.
  • You could safe fuel costs if you know everything about traffic conditions and choose the best route.
  • You could manage warehouse stock and monitor inventory to reduce out of stock circumstances.
  • You can create insight into customer behaviour and product usage by embedded sensors.

These are only a couple of examples; there will be a lot more possible with IoT in the supply chain. Nowadays IoT for the supply system and transportation is an important factor in the digital business landscape. Organizations can work smarter, plan better and foster more intelligent decision making processes thanks to connected devices.

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