Home Digital Marketing How IOT is Changing Supply Chain Management

How IOT is Changing Supply Chain Management


Many people ask what IoT means and what it helps us with. The answer to these questions are here and other more valuable information that may help you.

Literally, IoT or The internet of things means a system of connected objects, devices, machines, animals, or people that are given unique identifiers. Iot objects can transfer data over the network without the help of human interaction.

Sure enough, a lot of you are using your gadgets or devices when listening to music, watching a movie, reading a book, checking the temperature, knowing locations, and a lot more. Those are things that produce data that can be transferred or can be accessed using the help of the internet, which is beneficial to everyone. Its like taking everything in the world and sharing it with anyone that is connected to the internet.

Why does it matter in business?

It’s easy to understand what IoT is but let’s also check out why we really need to learn IoT. Information is essential in everyone’s life; it helps people function and does things much faster and easier. It is especially true in businesses that aim to handle their logistics easier.

With the integration of this technology in different industries, it can lessen human error and make the decision making more impactful for the business. Here are the reasons why IoT matters in various sectors.

  • Gathering And Providing Data

IoT devices usually collect and send pieces of information with the use of sensors. Sensors could be temperature sensors, motion sensors, air quality sensors, light sensors, moisture sensors, etc depending on its purpose. An example of this is dispatch software that helps get information and send it to the computer, which can be useful in decision making in the business

  • Receiving Data and Producing Programmed Response

IoT devices provide command on certain machines or devices and acts on it. For instance, a printer is used to print an image or file once you get data or a softcopy. Another is the response of a car door if you send a signal from your car keys. You will send command information on those devices, and it will act on a particular programmed order.

  • Connecting Virtual Data To Physical Devices

For this category, it can use the example of sensors used in farming. Once the sensors verify the moisture on the soil, it will send the data to the farmer, so it will know how much water it needs for the crops, but you don’t really need the farmer or personnel to go to the field to verify this information directly. You can also gather data using dash cams.

How IOT Changed The Way, We See Supply Chain Management

IoT can also be used in business and services, like manufacturing and supply chain. Since IoT allows its user connectivity, owners and business owners can make their logistics easier and more efficient. Thus, making business deals and handling the supply chain successfully in less time and saves money. With the help of IoT machines and devices, the work in manufacturing and supply chain becomes more reliable and better.

Here are the ways how IoT changes the supply chain.

  • Production Facilities with Connected Branches

With the help of sensors, data is gathered from the machines and the overall process of production. The information can now be used to check any problem with the machines, and safety alerts can be put up in the production part of the business. In this way, the managers and machine manufacturers will be notified in any case of malfunctions. Thus, it’s easier to find alternatives to keep delays in minimum.

  • Retail Stores with the IoT

Once the products are done, it will be transported to retail stores and be displayed for the customers. The products that are sold and unsold are information that will be collected for the inventory. Other useful information can also be gathered using the devices and sensors inside the store like the security cameras, the billing system, and the POS system that will help enhance the business and safeguards not only your products but also your customers.

  • Improvement in Inventory Management

The inventory system is a significant part of the business. It oversees and keeps track of the products they produce in a given time and usually done by an employee. IoT helps in tracking and managing the inventory system. With the help of RFID tags, dispatch track, or bluetooth trackers, it can monitor the real-time location of every product available without any assistance from an employee.

  • Management of Product Transportation and Logistics

The customer’s good impression is essential to establish, and it’s challenging to maintain in the same way. A business must provide a satisfactory service to its customer, and IoT helps with this.

If the customer receives the products on time, it will leave a good impression on the business, that’s why tracking is essential. The delivery may be tracked using GPS and dispatching software and will ensure the monitoring of the products. IoT can guarantee that delivery or shipments are on-time, and it can detect possible issues that may happen on the way.

  •  Track Product or Supplies

One of the most helpful assistance of IoT in Business is its tracking capabilities. The tracking tags and bluetooth trackers attached in the packages of the products helps to oversee its shipment remotely. It can also help with the safety and security of the vehicles that will transport the products because it has attached trackable sensors and tags. A high-end GPS and WiFi with bluetooth sensors enhance its tracking and monitoring ability.

  • Prediction Based Enhancements

To finish and ship the customer’s products on time is crucial in any business. The products should be delivered either to a customer or a retail store, which can be delayed by many things or, worse, hinder the shipments. It is where predictive maintenance can play an important role. The devices and sensors can provide information about delays, problems, or any factors that may happen. Once the information is collected, it can be used as a reference and provide a better solution.


IoT or the Internet of Things play a significant role in the business supply chain management and manufacturing. It helps enhance the performance and efficiency of the business, especially in supply chain management, with its tracking capabilities. Different companies have benefited from integrating IoT in their business. In this ever-changing world of business, its vital to be on par by learning more about IoT devices and dispatching software.