Three Ways IoT is Changing the Supply Chain Game

From connected cars to home automation, the Internet of Things, or IoT, is enabling new levels of convenience and efficiency in every industry. And Supply Chain is no exception. Today, more and more shippers are adopting IoT tools to improve their supply chain operations. Below, we discuss three of the most significant ways in which IoT is changing the game when it comes to the industrial supply chain.

Eliminating In-Transit Damages and Delays

One of the biggest challenges facing many manufacturers and shippers is the uncertainty associated with damages and delays incurred in transit. If a shipment arrives broken or late, it can mean lost profits or serious fees, not to mention harm done to the company's reputation and customer experience. That's why many shippers are turning to IoT-powered solutions to identify and eliminate these in-transit issues.

With real-time visibility into the exact location and condition of in-transit goods, potentially harmful conditions such as temperature excursions or lengthy idle times can be identified and resolved, often before the damage has been done. For example, when a refrigerated truck's air conditioning system malfunctioned in transit, this specialty chemicals company got an immediate email notification, giving them the information they needed to fix the cooling system before the product was destroyed. Similarly, if sensors on board critical shipments indicate a likely delay, the manager can call their carrier to resolve the issue and/or expedite a replacement before it's too late.

Providing Top-Notch Customer Experiences

Of course, reducing damage and delay levels can save a manufacturer some significant costs, but it's not only about direct financial savings. Improving the reliability and efficiency of supply chain operations can have a huge impact on the end customer's experience. With IoT trackers providing immediate insight into potential problems, supply chain and support teams are empowered to inform customers and resolve issues proactively instead of finding out from the customer when something goes wrong. 

Especially as consumer experiences reach new heights of transparency and efficiency, customers have come to expect similar levels of automation and visibility in their business interactions. Connected IoT solutions enable businesses to deliver top-notch customer experiences, ensuring that they stay competitive in the face of rising consumer standards.

Comprehensive, Data-Driven Optimization

Ultimately, IoT tools give shippers the power not only to resolve problems faster and improve individual customer interactions, but also to optimize on a macro scale. With access to comprehensive supply chain data, it becomes possible understand the root causes of issues and make changes that improve future supply chain operations. For example, if historical data indicates that harmful shock events tend to occur in a certain location, the manufacturer can work with their carriers to find alternate routes so that future shipments avoid the problem area.

With a data-driven approach, it becomes possible to stop guessing, and start actually solving problems in a quantitative, reliable manner. Instead of taking shots in the dark, IoT technologies help manufacturers to pinpoint exactly when and where problems are occurring, and address them with targeted, tactical solutions.

To learn more about how IoT is making a difference in the world of supply chain, take a look at this blog post on IoT and the Digital Supply Chain. And if you'd like to try it out for yourself, request a trial with Tive today.