The Internet of Things (IoT) connects devices and sensors that collect, transmit, and analyze data in real time. In supply chain management, IoT links the physical and digital worlds, improving efficiency and transparency.
The impact of IoT in supply chains is huge. According to Statista, over 75 billion devices will be IoT-connected by 2025, with logistics playing a key role. The IoT in SCM market is expected to grow at a CAGR of 13.2% from 2023 to 2030. Businesses adopt IoT for real-time tracking, predictive analytics, and better operational efficiency.
As Kevin Ashton, the originator of IoT, said: "The Internet of Things has the potential to change the world, just as the Internet did. Maybe even more so."
In this blog, we explore the role of IoT in supply chain operations, its applications, benefits, and how a mobile SCM solution enhances IoT-driven supply chains.
Role of IoT in Supply Chain Operations
The integration of IoT technology into supply chain operations is reshaping how businesses manage logistics, inventory, and customer service. Let's explore some of the key areas of business where IoT plays a significant role.
IoT is reshaping how businesses manage logistics, inventory, and customer service. Key areas of impact include:
Key Applications and Benefits
Real-Time Asset Tracking: GPS trackers and RFID tags provide full visibility of shipment location and condition.
Predictive Maintenance: IoT sensors detect potential failures in vehicles and equipment. This reduces downtime, lowers costs, and optimizes maintenance schedules.
Cold Chain Management: IoT monitors temperature-sensitive goods like pharmaceuticals, ensuring quality during transit. Examples include Maersk's Remote Container Management system.
Inventory and Warehouse Optimization: Smart shelves and RFID tags automate inventory, reduce errors, and improve fulfillment speed. Amazon’s IoT-enabled warehouses show its effectiveness.
Demand Forecasting & Cost Optimization: IoT collects and analyzes data for accurate demand predictions, minimizing overstock and reducing costs.
Industrial Applications of IoT in Supply Chain Management
IoT impacts various industries by increasing efficiency and safety.
1. Oil & Gas
Monitors pipeline integrity and equipment usage.
Tracks pressure, temperature, and vibration to prevent failures.
Reduces downtime and maintenance costs.
2. Pharmaceuticals
Ensures compliance with strict storage regulations.
Tracks temperature, humidity, and light exposure.
Protects product integrity during transport and storage.
3. Mining
Tracks machinery health and worker safety.
Monitors air quality, temperature, and hazardous conditions.
Minimizes downtime and maintenance costs while improving safety.
4. Construction
Tracks equipment usage and project progress.
Monitors fuel consumption and idle time.
Prevents costly downtime and improves productivity.
5. FMCG (Fast-Moving Consumer Goods)
IoT-enabled smart shelves track inventory in real time.
Reduces manual errors and ensures product availability.
Improves supply chain efficiency and customer satisfaction.
6. Electronics
Provides end-to-end visibility of manufacturing and logistics.
Optimizes production schedules and predicts maintenance needs.
Enhances efficiency and ensures timely deliveries.
Key Benefits of IoT in Supply Chain Management
IoT adoption offers clear advantages:
Enhanced Visibility: Track goods across the supply chain in real time.
Improved Efficiency: Reduce waste and optimize resources.
Cost Savings: Predictive maintenance and efficient routing lower expenses.
Better Customer Satisfaction: Ensure timely delivery and product quality.
Mobile SCM Solutions and IoT Integration
Mobile SCM solutions combine IoT with real-time decision-making. They provide:
Real-Time Shipment Tracking: GPS and RFID sensors monitor location and condition. Enhances transparency, accuracy, and risk mitigation.
Automated Inventory Monitoring: Smart shelves and sensors track stock, prevent overstocking, and reduce errors.
Proactive Alerts for Disruptions: Predictive analytics detect delays, equipment failures, or weather issues, enabling quick action.
Propel Apps’mobile SCM solution leverages IoT to optimize warehouses, logistics, and overall supply chain operations. Its sensors and analytics deliver predictive insights, full visibility, and seamless management.
Final Thoughts
IoT is transforming supply chain management by boosting visibility, efficiency, and innovation. From oil & gas to FMCG, IoT applications are diverse and impactful.
While challenges like data security and integration remain, strategic adoption of IoT and mobile SCM solutions can unlock significant value. The future of supply chain is smarter, more efficient, and digitally integrated.
