The Way IoT Transforms the Entire Supply Chain

The way IoT transforms the entire Supply Chain Krishnapriya Nair  |   3 mins read July 1, 2021 | 98 eye icon

The amount of disruption brought by the Covid-19 pandemic in today’s business is very high. Several studies reveal that more than 80% of organization’s supply chains have been negatively impacted. Many organizations are rethinking their global supply chain and many are moving towards local and regional supply chains, with production and skills located closer to the customer. This has opened doors mainly to the digital Supply chains, where supply chains enabled by technologies like IoT and Artificial Intelligence are becoming popular. Companies said these assistants helped them speed up supply chain analysis by 26 percent and enhance employee productivity by 28 percent. 

The Internet of Things or IoT in short can be referred to as a system of internet-connected devices, and sensors that collect and transfer information over a wireless network without much human intervention. IoT technology in the global supply chain can help businesses serve their customers better and also save money and improve overall efficiency. 

 With companies now running on half the number of employees, IoT devices enable employees engaged in logistics to effectively track their cargo transportation and inventory.

Some critical insights into how IoT can reshape the entire supply chain potential:

  • Monitoring good conditions: IoT can be used to monitor warehouse goods’ conditions like temperature, pressure,     humidity, etc. with specially designed sensors. This allows less damage and loss of commodities and thereby saves money.
  • Managing Inventory effectively: An IoT inventory system helps to monitor in real-time the supply levels and shortages and accordingly business decisions could be taken. These data can also be used to analyze and predict the future inventory needs of the business.
  • Monitoring Shipments: Broad-spectrum IoT enables real-time tracking of shipments and helps to make accurate estimates of shipment delivery and reduce risk.
  • Real-time Location tracking: IoT-enabled supply chain helps to track real-time information on the location of the orders and packages regularly. This sends notifications and in the process, avoids wrong delivery of products. 
  • Supply Chain Maintenance: IoT sensors help to track the performance metrics of machines and equipment and predict breakdown and other possible issues.

    Examples of IoT transforming supply chain

  • Amazon:

Amazon Warehouse Automation is quite popular. It has around 400 robots and many IoT devices to track inventory, improve productivity and make the entire supply chain process smoother and efficient.  

  • Volvo

Volvo uses cloud-based IoT systems to track the shipping process of car components and car delivery to their global suppliers

  • Nissan

Nissan uses robots and IoT automation for a large part of its supply chain.

  • Decathlon

Decathlon – a sports retailer, uses IoT technology in its stores to track the delivery of its products.

Thus, the IoT-based platform has become an attractive investment for small businesses and enterprises as it helps retailers, manufacturers, and supply chain managers to share best practices and inspire new opportunities in this pandemic situation.

Krishnapriya Nair
Associate Faculty and Mentor
Athena Global Education


Krishnapriya T. Nair is a qualified professional with seven years of teaching experience. She has an MBA degree in Human Resources and Systems and an M.Tech degree in Control and Instrumentation.


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