A survey by Forbes Insights from the end of 2018 to 700 executives shows that companies are adopting IoT to improve the capabilities of their supply chains and operations:
- 27% are using IoT to improve their manufacturing operations.
- 22% are implementing IoT to provide greater transparency in their supply chains.
- 16% are focusing their IoT efforts on storage and logistics.
- 38% seek to use IoT to improve their operational capabilities.
- 27% seek to take advantage of their IoT capabilities to support more intelligent logistics and route design.
The survey also shows that companies are linking their IoT to cognitive and analytical applications:
- 71% indicated AI and machine learning systems.
- 55% indicated integration with advanced analytical algorithms.
- 47% have begun to implement visual analyzes on a limited scale to ingest visual data captured by cameras.
With sensors and smart cameras, now integrated into production machines, logistics facilities, vehicles, raw materials and products, companies can track and control in real time the location of their key assets and products and their state.
The advantages of smart supply chains powered by IoT are as follows:
- Product origin: with the help of IoT, more precise data on the composition of manufactured and purchased products can be obtained.
- Product quality: the transparency provided through IoT in the production and assembly of products, and the data generated in all phases of the product life cycle, allows companies to detect and address possible product problems and eliminate defects.
- Inventory replenishment: the predictive power of AI applied to video data monitored from warehouses, shipping centers and points of sale, companies can better meet the requirements of the demand for their products by consumers.
- Predictive and prescriptive maintenance: with smart supply chains enabled for IoT, companies can predict and act on possible bottlenecks automatically even before they occur.
An intelligent supply chain also requires the full participation of partners and suppliers, generating a series of challenges:
- 23% of executives say that one of the challenges of IoT is to access third-party devices.
- 21% of executives pose difficulties in obtaining permits to access remote data from devices.
- 77% say that many of their partners do not have the technology or equipment to participate in IoT.
Regarding the benefits of IoT in supply chains:
- 25% of executives say there is better control over operating environments and assets.
- 23% appreciate greater granular transparency in supply chains
- And 22% have seen an end-to-end view of product life cycles and use.