Almost a year ago I wrote about the different IoT application stages in the supply chain, depending on the level of technological sophistication employed. My proposal today is to bring some examples, presenting the Internet of Things in a practical way.
Before thinking about the benefits of connecting things for the supply chain, it is important to remember the objectives of Supply Chain Management (SCM), which are to maximize service by increasing the values of time, place, quality and information and, at the same time, minimize costs by reducing waste, minimizing the use of resources, optimizing the use of assets and reducing inventories as illustrated in the following figure:
Figure 1: Objectives of Supply Chain Management
Source: ILOS
The Internet of Things can help SCM achieve its goals. That is, the IoT can help by bringing more value to the customer, contributing to the delivery of the product in the most appropriate way, time and place and, mainly, enabling the provision of the most varied information through tracking technologies, sensors and connection. In addition, IoT can also contribute to increasing efficiency and reducing costs in the chain, helping to reduce waste, optimize product and material flows and optimize resource allocation through the use of real-time information.
The following are some examples of IoT application initiatives in Supply Chain Management:
in inbound transport
- Real-time tracking and arrival forecast
- Automatic scanning of products upon receipt
in storage
- Automatic inventory management with pallet jack connection
- Automatic replenishment of stocks by connecting the pallet trucks to the supplier
- Real-time item tracking
- Monitoring asset utilization such as forklifts
- fault detection
- Automatic scheduling of equipment maintenance according to wear and tear
- Accident prevention through sensors
- Automatic route optimization
- automatic picking
- Savings in energy consumption
in outbound transport
- Real-time product and vehicle tracking
- Vehicle usage and occupancy monitoring
- Automatic fleet maintenance scheduling
- Transport forecasting and route optimization (traffic, overhead, etc.)
- Monitoring of product conditions (vibration, temperature, etc.)
- Monitoring of driving conditions (speed, safety, driver, etc.)
At Customer Service
- Real-time update of product movement and delivery
- Collaborative sales forecasting
- Real-time monitoring of consumption
- Automatic order for stock replenishment
It is also important to think about the application of IoT in the future of SCM, which already signals some transformations such as the use of big data, 3D printing, robots, drones, autonomous vehicles, etc. All this technology can be leveraged with the internet of things that will be the backdrop for this revolution.
The internet of things, therefore, is the transformational instrument that impacts not only the old ways of operating and the traditional objectives of supply chain management, but will also be the great enabler of future initiatives. Companies that still don't use this technology need to at least know about it and consider it in their future strategies to remain competitive in an increasingly connected market.
References:
http://gtdc.org/wp-content/uploads/2016/06/Internet-of-Things_ATKearney.pdf
'https://ilos.com.br/web/a-evolucao-da-internet-of-things-no-supply-chain-management/
Beatris Huber
https://ilos.com.brManaging Partner of ILOS, Master in Business Administration from COPPEAD/UFRJ with extension at the European Business School – EBS, Germany and Business Administration from UFRJ. More than 10 years of experience in training and consulting projects, focusing on Logistics and Supply Chain. In the training area, he developed company games and online courses and today teaches classes in Data Analysis, Inventory Management, Warehousing Management, in addition to applying business games such as Beer Game in open and in-company programs in companies from different segments, such as Coca -Cola, Nestlé, ThyssenKrupp, Votorantim, Carrefour, Mallinkrodt, Souza Cruz, Via Varejo, Monsanto, Itaú, Renner, Ipiranga, among others. In consultancy, he carried out projects such as Redefinition of the Logistics Network, Inventory Management, S&OP Process Structuring and Diagnosis of Storage and Transport Operations in companies such as Coca-Cola, Souza Cruz, Editora Moderna, Petrobras, Ducoco, Ultragaz, Silimed, Eudora among others.
