Supply chain management is the management of the flow of goods and services and includes all processes that transform raw materials into final products. It involves the active streamlining of a business’s supply-side activities to maximize customer value and gain a competitive advantage in the marketplace. SCM represents an effort by suppliers to develop and implement supply chains that are as efficient and economical as possible. Supply chains cover everything from production to product development to the information systems needed to direct these undertakings.

Asset Tracking:

Supply chain efficiency depends on asset tracking solutions. While asset tracking is not a new practice for supply chain management, IoT technology has the potential to increase the amount and quality of information available.

Tracking numbers and bar codes used to be the standard method for managing goods throughout the supply chain. But with the IoT, those methods are no longer the most expedient. New RFID and GPS sensors can track products “from floor to store”—and I’d venture, even beyond. At any point in time, manufacturers can use these sensors to gain granular data like the temperature at which an item was stored, how long it spent in cargo, and even how long it took to fly off the shelf. The type of data gained from the IoT can help companies get a tighter grip on quality control, on-time deliveries, and product forecasting.

Inventory Management:

The Internet of Things will also allow businesses to monitor inventory in ways that are much more efficient. When important inventory has IoT sensors, managers can check inventory levels at any time and receive alerts when stock gets low.

Beyond monitoring and alerts, the additional information can be used to improve inventory management. IoT systems can be designed to analyze the information concerning inventory levels and the usage of different products and materials. With this information, businesses can identify trends that will help them to manage their inventory more efficiently.

Connected Fleets:

Moving goods from point to point has become more efficient and cost-effective due to Internet of Things fleet management systems that provide everything from GPS navigation to supply chain management to environmental impact controls.

As the supply chain continues to grow—upward and outward—it’s even more imperative to ensure that all your carriers—be it shipping containers, suppliers’ delivery trucks, or your van out for delivery—are connected. Again, the data is the prize. Just like cities are using this data to get to emergencies quicker or clear up traffic issues, manufacturers are using it to get better products to their customers, faster.

Transparent Marketing

Consumers of the past rarely thought about where their products came from or how they made it to the store. However, this is starting to change. IoT tech can be one of the answers for brands that want to show their customers that they are sourcing their products ethically and acting responsibly.

With the Internet of Things, companies can bring supply chain transparency to new levels. This not only helps the company run a more efficient supply chain, but it can also be used to show customers the various processes that helped that product make it to them. For a company that wants to appeal to socially conscious consumers, a transparent supply chain provides an opportunity to demonstrate brand values that align with those of their customers.

Scheduled Maintenance:

Every supply chain relies on the health of machines. When a machine like factory equipment or a delivery truck breaks down, it can potentially create inefficiencies. Well, thanks to the Internet of Things, smart sensors can now be installed in these tools to provide better maintenance and prevent failures.

Instead of having a standard preventative maintenance schedule that is based on the average machine of its kind, the sensors collect data that is then analyzed to predict issues that would otherwise go undetected. This predictive maintenance can be the key to keeping the supply chain running smoothly, and help companies save money by preventing expensive equipment failures.