For equipment manufacturers, the Internet of Things (IoT) changes everything according to Ralph Rio. It connects “intelligent physical entities” such as sensors and devices to each other, as well as to Internet services and to applications.
We See All!
When component failure goes unnoticed, it causes ripples that can make for a major disruption, but IoT provides the remote oversight to monitor such variables in real-time. Many customers use a “run to failure” strategy, where agreements are in place for them to pay higher amounts in order to have failing parts replaced fast. IoT allows equipment manufacturers to respond to customer needs more as a matter of regular maintenance than as a series of emergency deliveries. This means that manufacturers can afford to keep lower stock levels and make more cheaper bulk deliveries. For more details and examples that highlight the points made here, check out the original article: http://logisticsviewpoints.com/2014/02/05/internet-things-changes-equipment-manufacturers-spare-parts-supply-chain/