The rise of our digital landscape is continuing to present fresh advantages for many sectors. One of the most agile and exciting aspects of this is the internet of things (IoT). This refers to a connected ecosystem of objects that collect, share, and analyze data. Most people are familiar with how this functions in the home. However, the industrial IoT is also developing as an indispensable tool to help keep businesses agile.
Among the ways this is most prevalent is with respect to the global supply chain. International markets are more accessible than ever before to businesses of all sizes. However, this also creates significant logistical challenges. As the industrial IoT continues to grow and become more affordable, it is proving to be a practical contributor to addressing these challenges.
Let’s take a closer look at how the Industrial IoT is optimizing global supply chains.
Manufacturing Efficiency
Manufacturing is toward the top of the funnel in any supply chain. This means that the actions taken at this part of the process have a trickle-down effect on every other element. When there are inefficiencies in manufacturing, the result is often that all other aspects of the process experience disruption in the form of bottlenecks and missed deadlines. As such, there is significant motivation to improve efficiency by utilizing the industrial IoT here.
One of the most powerful ways these tools are affecting production is by tracking the entire lifespan of the manufacturing process. Sensors present throughout various stages of production collect and share data on machine functionality, materials use, and waste generation. This information allows key staff to gain insights into where improvements can be made to reduce time spent on manufacturing, reduce errors, and minimize unnecessary overhead.
Another way in which the industrial IoT is improving manufacturing efficiency is with regard to machine maintenance. Sensors — usually in the form of radio frequency identification (RFID) chips — are placed in and around machinery to monitor their operations. When a maintenance issue occurs with a machine, the sensors pinpoint precisely where the issue is. Analytics software in conjunction with these sensors also tracks operations and can predict when problems are likely to arise. This allows leadership to schedule essential maintenance, avoid lag in the supply chain, and mitigate dangerous scenarios.
Warehousing Efficacy
The most common use of the IoT in warehousing is tracking and adjusting inventory. Sensors or even quick response (QR) codes on individual items allow you to pinpoint precisely where items are in the world and within the warehouse itself. Not to mention you have an accurate tally of exactly how many of each item you have in stock in real-time. This doesn’t just help you minimize the potential for excessive and wasteful over-inventory. It also means that you can monitor the demand for and movement of specific items around the world to ensure you keep the appropriate amount of inventory in the nearest warehouse locations, thereby improving purchase to delivery times.
The industrial IoT is also effective in streamlining warehouse operations. By issuing employees with wearables, managers can track their movements during shifts. This shouldn’t necessarily be purely a method to put additional undue pressure on workers, though. Rather, it can help you understand what tasks take the longest and identify common excessive walking journeys between picking areas. This data can empower you to redesign your warehouse layout for greater efficiency or adjust the distribution of employees to ensure there is adequate support in areas of high demand.
Shipping Optimization
Shipping can be one of the most vulnerable aspects of the supply chain. During manufacturing and warehousing, your operations are relatively sheltered from external risks. The transition from warehouse to delivery is a time when products can be lost, stolen, or delayed by unexpected issues. Indeed, from a global perspective, the logistics process tends to involve multiple vendors, often transitioning between different sites within a single country. The industrial IoT is a tool to minimize the disruptions that can result in significant costs here.
RFID sensors in the IoT can pinpoint an item’s location throughout the entire route. When there are well-organized and frequent scanning protocols in place, both your company and the customer can keep tabs on the journey, which builds a sense of transparency. It also makes investigations into loss and theft of items more accurate and manageable. Relatively little specialist equipment is required to make this practical either. Delivery personnel and depot staff can scan items utilizing both professional tools and smartphones loaded with appropriate apps.
Alongside theft and loss in shipping, another logistics challenge is maintaining the condition of items in transit. The greater demand from consumers for the delivery of refrigerated items has resulted in a need for industrial IoT solutions to effectively handle cold chain management. Pharmaceuticals, cold foods, and other temperature-sensitive goods can be kept safe during transit through the use of sensors. These are placed on each product and track the temperature and condition of individual items, providing drivers and shipping companies with vital data in real-time. If the conditions inside the vehicle start to drop below optimum levels, staff can make changes that keep all items safe for consumption upon delivery.
Industrial IoT Implementation
While these important tools can have an impact on operations, the mere existence of technology in your supply chain isn’t sufficient. It’s vital to establish how the industrial IoT can be best suited to the unique needs of your business. You can then put in place an implementation plan that ensures an efficient and effective rollout.
Often, it’s best to approach this by creating a process map. This involves mapping out the 7 stages of the decision-making process in a visual way. This gives you clarity on the specific challenges so you can understand what the most appropriate industrial IoT tools are to address them. Where there are multiple options available to you, decision trees give you visibility on the potential advantages and issues that could arise. This not only helps you to understand the balance of risks and advantages. It can also highlight areas in which testing is needed before full rollout, which can prevent costly errors.
While the tools in the industrial IoT can be geared toward automation, you also need to recognize that your staff is key in its effective implementation and ongoing improvements. Human talent shouldn’t be usurped by technology, rather, you need to approach the matter as a collaboration between your employees and the technology. Make sure you provide staff members with regular training on the effective use of these tools. This should include basic maintenance so they can address issues should they arise.
Conclusion
The industrial IoT is proving to be an agile ecosystem of tools to positively impact the global supply chain. From helping maintain efficient manufacturing to ensuring the safe delivery of perishable items, this technology has a presence throughout each link in the chain. However, it’s important to make sure your implementation is led by thorough planning protocols to ensure you choose the most appropriate tools and your staff is empowered to use them well. It takes some investment and focus, but the industrial IoT can keep your global supply chain functioning at its peak.
