Internet of Things To Accelerate Supply Chains

by CXOtoday News Desk    Mar 25, 2014

IOTsupplychains

Imagine never running out of a product or having surplus stock because you always know exactly what your customers want and when. The day may not be far as a recent Gartner study predicts that the Internet of Things (IoT) will enable supply chain leaders to offer more differentiated services to customers through a networked ecosystem that can formulate an intelligent response in the coming years. The research firm forecasts a 30-fold increase in Internet-connected physical devices by 2020 will alter supply chain leaders’ information access and risk exposure.

“It’s important to put IoT maturity into perspective, because of the fast pace at which it is emerging, so supply chain strategists need to be looking at its potential now,” said Michael Burkett, managing vice president at Gartner. “Some IoT devices are more mature, such as commercial telematics now used in trucking fleets to improve logistics efficiency. Some, such as smart fabrics that use sensors within clothing and industrial fabrics to monitor human health or manufacturing processes, are just emerging.” 

As these capabilities become mainstream, they will allow modern supply chains to deliver more differentiated service to customers more efficiently. This will happen when many more physical assets will be communicating their state to a networked ecosystem that then formulate an intelligent response. 

Read: For Internet of Things, 2020 will be a revolutionary year

Gartner believes that IoT will also lead to a double-digit increase in digital marketing investment will provide supply chain leaders with improved market insight as well as challenges in industries that target more granular market segments.

By using digital channels for product launches, marketers are carrying out campaigns and communications using multiple channels and adjusting promotions depending on results.

“Supply chain leaders must design their processes to operate in this digital business world. This includes fulfilling the new expectations of customers and the volatile demands that digital marketing will create. A future supply chain will meet those expectations by converging people, business and things in a digital value network, and incorporating fast-emerging capabilities such as IoT and smart machines into this design strategy,” concludes Burkett.