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How Internet of Things Impact Supply Chain Management

June 16 2017
IMS Logistics

Internet of things defined as the merging of the physical and digital worlds, which people and/or objects and be identified with the ability to share information over a network without actual conscious intervention. The date is automatically transferred, analyzed, and used to trigger an event.

So, what’s the impact to supply chain management?

Internet of things can increase supply chain management activity, such as improve factory workflow, increase material tracking, and optimize distribution to maximize revenue. Impacts to supply chain will be broad and far-reaching, and it’s utilizing big data to gather and analyze information across the process.

Internet of things has an ability to track and monitor a shipment in real time by using connected devices and communication channel. They not only offer real-time shipment condition tracking but also the model to develop transit routers to optimize freshness in perishable cargo into account environmental elements. The internet of things will not only optimize transit flow but also better serve humanity.

Also the capability to automatically recognize the need to order and restock a product on a “machine to machine” basis will reduce the need for human interaction. The less human intervention, the better sales forecasting and it will increase revenues and also it bring happiness to workers.

IMS Logistics

Key to in-transit visibility are cloud-based GPS and Radio Frequency Identification (RFID). This technology will provide identity, location and other tracking information and it also the backbone of Internet of Things as it relates to supply chain. Data from GPS and RFID technologies allow supply chain professionals to automate shipping and delivery with exactly predicting the time of arrival, so they can monitoring and it will impact the quality of product in-transit. Data gathered also detailed visibility of an item is provided from manufacturer to the retailer.

It also combining real-time sensor data with environmental data can provide intelligence of higher order to all the stakeholders in the ecosystem. The stakeholders will socially aware and make an efficient decision that drives productivity. It changes supply chain process from reactive mode to proactive by offering information before any activity happen.

For example, the data provide information about traffic jam and potential delay before the trip will be important than getting alert when already stuck in traffic. This the same with logistics transportation which needs that information before they shipping process.

Internet of Things can help supply chain professionals to reduce asset loss with know about product issues in time and how to find the solution. Also, it will save fuel cost for shipment, by knowing the fleet routes and monitoring the traffic conditions and use the fastest and cheapest route. It also can use to manage warehouse stock and avoid reduce out of stock situations by monitoring inventory into the detail.

Internet of Things and supply chain are part of today’s digital business landscape which connected devices organization to plan something before act and more intelligent decision making.`

If you need information about logistic company which integrated with technology, you can freely ask our logistics consultant at

Read more: How to Improve Workforce Efficiency in Warehouse

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