How IoT Is Revolutionising The Supply Chain
The Internet of Things (IoT) refers to a system of internet-connected objects that collect and transfer data over a wireless network without human intervention. Whilst its application spans multiple industries, in this blog I unpack highlight the importance of IoT to the supply chain and logistics.
Simply put, IoT is taking all the things in the world and connecting them to the internet. It promises to completely change the way that we communicate and interact with the world around us, allowing devices to become smart i.e to send or receive information, or both.
Sensorsthat allow us to gather data (e.g temperature, movement) and make intelligent decisions
As consumers we are so used to this form that we often take it for granted. e.g machines such as printers
The most sophisticated IoT applications allow objects to send and receive information, autonomously making intelligent decisions based on the data. A good example can be seen in modern farming. Sensors can collect information about the soil moisture indicating to the farmer whether crops need to be watered. However, instead of a farmer, the interconnected irrigation system can automatically turn on.
The variety of IoT’s applications stretches from smart homes and cities to connected cars and drones. The drop in sensor costs has driven adoption of the technology not only across different industries but also democratised its application across different geographies. The average price of an IoT sensor has declined from$1.30 in 2004 to $0.44 in 2018. This is great news for developing economies which have benefited from the increased accessibility and affordability. For me, the technology’s most exciting impact is in addressing clean water distribution. Simple sensors have allowed millions to access clean water from a network ofwater quality sensors in Bangladesh to pump and water flow performance sensors in Kenya.
We no longer live in a time world where moving goods from A to B is enough. Due to increased competition and multiple challenges, in recent times theAmazon effect and COVID pandemic, companies that involve logistics from food retailers to ecommerce must offer speed, visibility and quality.
Whether you’re a company operating in the first mile or the last, planning and managing the flow of raw materials and finished goods can often present complex challenges. It’s common for materials to be improperly shipped and stored which can damage goods. On top of that, the sheer size of large operations can lead to inefficiencies in a manufacturing warehouse or distribution centre.
