Globalization has made logistic flows complicated. Think about this: Just one sea freight container shipment alone can involve 20 players and about 200 (human) interactions. Take the example of the aeronautics industry where production flows of parts involve hundreds or even thousands of subcontractors and suppliers. This makes it extremely challenging for the supplier to have real time visibility of each of these parts.
This is where the Internet of Things (IoT) solutions can simplify the logistics flows of products by providing a way for businesses to keep track of products in real time.
According to Pierre-Fabrice Storino, Managing Director at Argon Consulting, a Sigfox partner, IoT solutions offer two key advantages to supply chain managers. These are:
- IoT sensors enable businesses to reduce lead time as businesses are able to track their inventory in real time including the supplies already in stock for future manufacturing. In the supply chain, lead time equals agility, inventory and cash reduction.
- Data collection in real time helps to optimize planning and production. For example, suppliers can manipulate their production processes and master the flow of products when they know when parts and supplies will be arriving at their destinations.
As the supply chain continues to grow, all carriers – shipping containers, suppliers’ delivery trucks and vans – have to be connected. Real time data enables businesses to make better business decisions and improves the service levels to clients.
With access to real time data, businesses are able to form tighter connections with customers and inevitably, to market to them in new and better ways.
In the final analysis, IoT enables shippers to offer greater delivery visibility to their clients and enables them to know where their products are at all times. This transforms supply chain efficiencies. With IoT solutions providing access to real time data, businesses can ‘clear the clutter’, ‘eliminate blind spots’, get real time information and master the physical flows. Thus, organizations can become more agile and begin to build a new type of relationship with their customers.
If you want to read further, download our latest Whitepaper “Supply chain: Get rid of blind flows with IoT“.