Internet of Things or IoT has proved to be a revolutionary technology for most industries. For instance, the implementation of IoT in retail, finance, banking, healthcare, transportation, and accounting has given out phenomenal results. Experts predict that the use of IoT in the supply chain will enhance the tracking and management systems and increase overall efficiency. In this blog, we discuss the benefits of IoT in Supply Chain Management.
Forecasting, managing, an overview of application will enhance the process of fleet management and result in efficient decision-making and distribution. All most all areas of the supply chain can be enhanced with the integration of IoT.
Five Benefits of IoT in Supply Chain Management
Automating Processes
IoT will help Supply Chain Automation to further grow in the coming times. For instance, automation in warehouses will completely change the ballgame of operations. When businesses have automated various tasks in the warehouse facility it will lead to improved efficiency and productivity.
Real-time tracking
One of the most important factors in the supply chain is accountability and transparency. These two are also known as the key functional areas of a supply chain management process. Real-time tracking with the help of IoT devices like GPS can give you accurate data on the shipment, its statistics like location, etc. Real-time tracking is a way of tracking minute-to-minute data and this vital data can help supply chain professionals to improve the entire process. Especially, in the case of high-value goods. For example, items, or medicines, which are temperature sensitive.
Predicting Accuracy
If IoT is integrated into the business properly, then it can bring out accurate and relevant data. For instance, IoT can predict the demand of the business and help manage inventory accordingly. All of this is possible as IoT collects huge amounts automatically and makes predictions basis the collected information.
This helps to improve the accuracy of data and provide better insights to supply chain professionals for forecasting demands. Data collection with the help of IoT will also guarantee there is no scope of human error and most importantly it saves human efforts. To collect humongous amounts of insights is not feasible manually so, IoT comes to the rescue here as well.
Management of Paperwork
IoT provides smart solutions for supply chain management and logistics operations. Smooth management of paperwork is important especially when there is a lot of paperwork involved with parties like truckers, freight agents, etc. With the help of IoT supply chain management operations can be upgraded to smart online solutions eliminating the need for paperwork. This will bring out efficient results and tasks like verification and creation of BOLs (bill of ladings) will be improved.
Inventory Management
Inventory management is a vital part of warehouse operations and supply chain management processes. IoT can be of great benefit in managing the inventory. Advanced IoT systems with the help of sensors can detect inventory situations and levels of stocks. It can track and analyze how long the inventory will last and give out minute-to-minute inventory tracking data.
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