See how IoT revolutionizes supply chains—real-time tracking, predictive maintenance, demand forecasting, and customer experience boost a competitive edge.
The Internet of Things (IoT) has transformed supply chains over the last few decades.
IoT’s integration into supply chain operations has resulted in greater visibility and control by reshaping how goods are tracked, stored, and managed. Technology also improves productivity, reduces costs, and enhances customer satisfaction.
The continuous evolution of this technology only promises to drive efficiencies and innovations for supply chains further globally.
Discover the top 10 ways the supply chain industry uses IoT within its operations below.
-
Customer experience enhancement
Companies such as Coca-Cola, DHL, FedEx, Amazon, Levi Strauss, L’Oréal, and Zara are enhancing the customer experience by allowing companies to provide accurate delivery updates and tracking information. By integrating IoT into supply chain operations, companies gain greater control, improve efficiency, and increase customer satisfaction with more reliable and streamlined processes.
For example, L’Oréal leverages IoT solutions to monitor its inventory and manage customer feedback in real-time. Sensors on products help track usage, and real-time data from smart shelves helps the company provide a personalized shopping experience.
-
Energy management
Monitoring energy uses in warehouses, factories, and transportation fleets, IoT is helping companies reduce their carbon footprint, lower energy costs, and improve sustainability. Companies such as Siemens, Amazon, and Schneider Electric are reducing their environmental impact by tracking energy consumption, emissions, and waste along the supply chain.
For example, Schneider Electric leverages IoT to monitor and manage energy systems across industries; its EcoStruxure platform enables real-time monitoring and optimization of energy use. As such, companies can optimize their energy use, reduce costs, and improve efficiency.
-
Quality control and inspection
By incorporating IoT sensors for quality control and inspection in supply chain processes, industry companies can benefit from improved product consistency and reliability and minimize defects and recalls. Companies such as DHL, Walmart, Maersk, Siemens, and Bosch are transforming their quality management across their supply chain.
Siemens, for example, uses IoT to improve product quality through real-time data capture and analysis. By integrating IoT into the production lines, Siemens monitors several factors to ensure the system meets quality standards.
Also Read: Beyond Net Neutrality: Why a Free Market Approach Benefits Consumers
-
Asset tracking and theft prevention
Increasingly valuable across supply chains, companies incorporate IoT-enabled GPS trackers into their operations for asset tracking and theft prevention. This enhanced visibility reduces the risk of theft and loss for companies such as Bosch, DHL, Maersk, and Tech Mahindra so that they can respond quickly if an asset deviates from its planned route.
When it comes to Bosch leveraging IoT, the company monitors valuable assets and prevents theft by integrating IoT sensors and real-time data solutions. With greater visibility into asset location and status Bosch can respond faster to potential threats.
-
Demand forecasting
Regarding demand forecasting, IoT data from sensors and connected devices can predict demand trends to help companies manage inventory and reduce waste. Amazon, Coca-Cola, Unilever, and Nestlé use IoT solutions for demand forecasting to collect data from multiple sources to help companies align production schedules with demand.
In Particular, Coca-Cola leverages IoT to monitor and gather data from its vending machines and refrigerators to track real-time metrics for stock levels and consumer preferences analysis. This allows Coca-Cola to predict demand for specific product types and flavors.
-
Fleet management
Companies are utilizing IoT in supply chain operations to manage their fleets to optimize routes, reduce fuel costs, and enhance driver safety. IoT solutions in fleet management enhance these operations by monitoring vehicle conditions, fuel consumption and driver behavior. Companies using IoT for fleet management include DHL, Amazon, Walmart, UPS, Maersk and FedEx.
For example, FedEx utilizes IoT technology through its SenseAware platform to enhance fleet management, especially for monitoring high-value and sensitive shipments.
Also Read: How IoT is Revolutionizing Modern Agriculture
-
Temperature and humidity control
For companies in pharmaceuticals and food, IoT solutions are being used to monitor temperature, humidity, and other environmental conditions. Such companies do this to comply with quality standards and reduce spoilage during transit.
Hapag-Lloyd uses smart containers equipped with IoT sensors to monitor temperature and humidity. The company gains real-time data to ensure its sensitive goods remain in optimal conditions throughout the journey.
-
Warehouse management
Using IoT devices for warehouse management, companies like DHL, Amazon, and Walmart use RFID tags and sensors to streamline their operations. These technologies aid in tracking stock levels, managing inventory, and automating reorders to minimize stockouts and overstock issues. An example of this use of technology is Walmart, where the leading retail giant worked with Symbotic to bring high-tech automation to its supply chain.
Adopting mobile bots and complex algorithms, the retailer has optimized its storage and retrial processes to speed up inventory handling, improve accuracy, and customize pallets for efficient unloading.
-
Predictive maintenance
Also, using IoT sensors, predictive maintenance detects signs of wear and tear on equipment, enabling the company to schedule maintenance proactively. Companies like Caterpillar and Siemens can take this approach to reduce unexpected downtime, keep operations running smoothly, and extend equipment life.
For example, Caterpillar has collaborated with Uptake to create IoT-based predictive maintenance solutions. The joint platform gathers real-time data from sensors to enable proactive maintenance by predicting failures before they occur.
-
Real-time tracking and monitoring
Regarding real-time tracking and monitoring, IoT sensors on goods and vehicles provide real-time location data, enabling tracking from source to destination. To enhance inventory visibility, minimize loss, and manage deliveries effectively, companies such as DHL, Maersk, Amazon, and Nestlé harness IoT for real-time tracking and monitoring within their supply chains.
DHL uses IoT sensors to monitor shipments’ location and condition throughout their journey and ensure goods remain in the optimal environment. This is particularly valuable in cold chain logistics and the transportation of vaccines.
