Supply Chain plays a vital role in keeping goods and services flowing in the marketplace effectively, quickly and as cost effectively as possible. From sourcing raw materials to delivering finished products at the point of purchase, top companies in industries such as computer hardware, food and beverages, automotive, pharmaceuticals, electronics, etc. practice supply chain management. Businesses and firms use supply chain management principles to plan, assemble, store, ship, and track products in the entire supply chain from the beginning to the end. The industry has seen a massive spike in the recent times and is driven by statistics and quantifiable performance indicators.
IoT and Big Data are the most talked about technologiesin the recent times, and they are expected to deliver significant benefits across various industries. Amongst the sectors, IoT and Big Data have the most obvious applications and impact on the supply chain management industry, because of which companies have had to upgrade their current processes and tools. With the help of these two technologies, the supply chain is getting a lot smarter.
Here we will see how IoT and Big Data have improved the supply chain industry and how they are changing things for the enterprises.
IoT in Supply Chain:
Globalization has led to a massive increase in the number of devices that are connected online and communicating. From a few thousand devices in the 1980s to an expected 25 billion connected devices in 2020, IoT has become a vital technology for business, especially in the supply chain. It is capable of impacting all aspects of the supply chain like tracking assets, controlling inventory, managing shipment, etc. Implementation of IoT results in added efficiency and lowered costs.
Shipments can be tracked and managed through centralized systems and servers, providing accurate real-time data, thereby speeding up the implementations. Low stocks will be detected by IoT and orders will be placed to preorders automatically. It allows supply chain professionals to carry out equipment monitoring to keep track of the equipment needs and a need for maintenance and service. IoT has embedded sensors which can monitor finished goods and products and alert for support and service as and when needed. These sensors can predict and prevent problems, even before they occur and hence keep the entire supply chain running at optimal efficiency.
Big Data in Supply Chain:
With the evolution of digital technology, companies are collecting a large number of data, and they require new and efficient strategies and tools to manage relevant and useful data and insights from them. Companies were not keen to adopt big data and analytics in the supply chain as in other areas of operations such as manufacturing or marketing. Supply chain involves a large amount of structured and unstructured data in transportation logistics, inventory management and other areas of the industry and big data helps in analyzing such data. Stock levels, warehouse, and distribution can be easily managed with very little need of human interaction. Sensors detect the need for stock and shelf management in real time and let professionals know if the right things are at the right place, at the right time.
By implementing big data and embedding analytics into the routine operations, enterprises can reduce the order-to-delivery times by half, thereby increasing the efficiency. This will help reduce the supply chain management costs. Using big data for supply chain requires people with requisite skills and tools to conduct an efficient analysis. Companies will be able to create better opportunities with big data analytics, which will lead to increased efficiency and greater savings,
Companies can revolutionize customer satisfaction and improve efficiency by using IoT and Big Data to integrate systems throughout the supply chain. Silver Touch is a leading software solution provider with expertise in offering effective wholesale and distribution inventory management software solutions. We have experience in serving the global clientele in multiple industry verticals. To know more about our business possibilities and offerings, write to us at firstname.lastname@example.org.