Udaya Shankar, vice president at Xchanging, knows like the rest of us that the Internet of Things (IoT) is not all about wearable gizmos or tracking how much ice cream is left in the fridge. There is a very real effect that IoT will have on enterprise resource planning and supply chain management (SCM), and the result will be the new age of Supply Chain Management 2.0.
Cloud-based GPS and radio frequency identification (RFID) bring unprecedented visibility to tracking goods throughout the supply chain, allowing supply chain professionals to even automate shipping and delivering with precision. Shankar provides an example to illustrate what this all really means:
Putting an RFID chip in a pallet and a combined integrated device in the shipment vehicle, data is transferred into the cloud. Here, the devices can identify the pallet and share information about its position and status like weather conditions, traffic conditions, and driver-specific data (i.e., driving pattern, average speed). By combining real-time sensor data with environmental and other data, stakeholders can make efficient decisions that drive overall productivity. This moves the supply chain process from a reactive mode to a proactive one by offering information well before an incident happens.
Shankar goes on to find that reducing asset loss, saving fuel costs, ensuring temperature stability, managing warehouse stock, gaining user insight, and creating fleet efficiencies are all major benefits of SCM 2.0 with IoT. And while this wonderful new era may still be a few years away, a big part of success is remembering to always be looking ahead. You can read Shankar’s full article here: http://www.ebnonline.com/author.asp?section_id=3630&doc_id=273790&itc=ebnonline_gnews