IoT and the evolving supply chain landscape
Author : Sean Riley, Software AG
19 April 2018
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To remain competitive in today’s marketplace, digital transformation is no longer a choice - it’s a necessity. As we journey through 2018, it is likely we will continue to notice manufacturers driving this transformation process forward, embracing the latest technologies that will help them in changing the supply chain landscape. So, how can IoT help to streamline the entire supply chain?
It’s no secret that the Industrial Internet of Things (IIoT) is positioned to get “smarter”. As a result of IoT, manufacturers’ capabilities have increased; they are now able to monitor, collect and analyse data. However, “smart manufacturing” has yet to be scaled globally.
The future of shipping
In 2018, companies will augment their ability to understand the condition of a product as it’s in transit, instead of having to rely on testing upon arrival. This level of transparency will enable companies to verify product condition during the entire trip, from beginning to end.
Sensors can be placed in several sites, including being attached to the container or even the product itself, which allows supply chain managers to monitor several sites at once in realtime. For example, when shipping produce, it is essential to keep the product at a certain temperature throughout the supply chain. By installing sensors on the container of fruit or vegetables, both the seller and buyer can ensure the load maintains a proper temperature while in transit. Compared to the cost of replacing spoiled produce, the cost of a sensor looks relatively inexpensive.
Data on the move
With all this information streaming from products during transit, who can access the data? In the instance of produce, it should be both the shipper and the receiver. This two–party visibility means that both the shipper and receiver can check the data simultaneously, keeping both parties accountable. There is very little room for any discrepancies when the data is synced, providing another level of confidence throughout the supply chain.
Beyond temperature, other variables that supply chain managers should track include vibration and impact while en route, as well as the location at any given time. Today’s data analytics platforms are smart enough to only perform data collection actions as needed (i.e. when triggered by a pre-set rule or regulation), so instead of providing massive amounts of data that are difficult to sort through and make sense of, an intelligent data platform can send an alert only when a problem is identified, lowering data transmission costs. This setup also removes any troubles regarding tampering with monitoring and also ensures communication can continue into areas where there aren’t always stable networks.
Another area where we are seeing the connected IoT positively impact logistics is telematics. Telematics provide decision-makers the ability to more accurately calculate the estimated time of arrival with a high degree of certainty. These calculations can synchronise multiple assets and multiple pieces of supply chain function more effectively.
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Travelling along the tracks
In the traditional supply chain, a truck brings the product to the train, the train carries it a distance and then a truck picks it up to deliver the last mile. Even today, rail is a large component of our national logistics infrastructure because it’s far more fuel-efficient and therefore cost-effective for long-distance shipping. When using rail to deliver products, however, there is a greater variance in arrival times, which can cause a ripple effect throughout the supply chain.
Through the IoT companies can automate tracking and ensure synchronisation of trucks and a timely arrival of shipped goods by tracking train shipments through telematics. This allows trucking companies to plan more strategically, reducing downtime and improving efficiencies.
The final journey
Although it is important to track the entire supply chain to ensure a timely arrival, the last mile is essential. Estimated time of arrival synchronisation can provide great certainty for arrival times. This helps trucking companies place the right trucks in the right areas at the right times to avoid back-ups in the loading area - and ensures that other resources like fuel and hourly employee time are not wasted. The system will update arrival times and adapt to changes in real time, providing instructions for how the team at the trucking company should proceed accordingly.
The process of arrival starts with clearing the shipment through security, scheduling dock door placement with certainty and then optimising door opening and arrival times based on accurate arrival data. This sequence, when optimised with sensors on the containers, helps companies turn their assets more rapidly. Additionally, if a backup is occurring at the warehouse, the system can notify drivers of when they should arrive – delaying them if necessary – instead of adding to the chaos on site.
IoT makes it possible for automated vehicles to assist human workers, whether it’s in offloading products or moving them throughout the facility they can do so safely and securely. This human-robot collaboration, coined “cobotics” is starting to take place across the industry. As a result, companies are beginning to understand the benefits of automating dirty, often dangerous and repetitive tasks. As IoT continues to develop, we can expect to see robots and people working together across the supply chain.
As manufacturers continue to adapt and develop their best practices for the Industrial Internet of Things, they will derive a very clear ROI. The IoT will help companies to remain competitive in this ever developing landscape by freeing up manual resources, communicating data between buyer and seller and ensuring a timely and safe delivery throughout the transportation process.
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