IoT and productivity in supply chains

By Rodney Repullo, CEO of Magic Software Brasil

 
Countries where the legacy of IT infrastructure and applications are not abundant, as in developed countries, are in a unique position to make a leap in emerging technology and move towards the adoption of Internet of Things (IoT) solutions more easily.
 
Advances are already happening in emerging countries, such as South Africa: in mining, companies are using sensors to detect methane and the movement of rocks. Pipelines were also equipped with sensors to monitor leaks. The retail industry is using radio frequency identification (RFID) tags to track items.
 
Brazilian companies can understand how to benefit from these examples and make a leap in much-needed productivity.
 
Supply chain optimization
 
There are many opportunities available for Brazilian companies to use IoT technology in order to improve the efficiency of the supply chain. In many industries, it is possible to adopt IoT technologies in asset tracking, control inventory and eliminate inefficiencies. Shipments can be tracked between the manufacturing process, its transportation and destination, in real time, providing accurate deliveries and better customer service.
 
Using the information generated in this process and the IoT, companies can proactively replenish their inventories based on accurate physical data and expected demand, maintaining efficiency without ever losing any sales due to sold out goods. Sensors can monitor out-of-stock products or equipment as well as predict, alert and even schedule services and maintenance.
 
Supply chain visibility will no longer be limited to informing when items should be shipped or delivered; it will be expanded to include the exact arrival time, temperature control and quality control information. This data will be recorded automatically in the management system (ERP), adding significant value when documenting each stage of the supply chain process. Reinforced by advanced technologies, sensors and data in large volumes (Big Bata) generated by IoT, companies will benefit from a strong and well-known supply network, capable of predicting, correcting and preventing problems before they happen, maintaining the supply chain operating with maximum efficiency.
 
IoT will impact every step of the supply chain. Product life cycle management (PLM) systems will be expanded to incorporate product performance measurements, management systems (ERP) will be able to automatically monitor parts that need replacement and customer relationship management (CRM) applications will notify customers of the need to replace the part before a failure occurs.
Through the integration of all systems related to the supply chain, companies can revolutionize the customer experience, make a leap in productivity and create a competitive advantage. For example, a washing machine manufacturer, by equipping its products with IoT sensors, can create a scenario in which the machine automatically detects scale build-up before it damages the engine. The machine notifies the ERP system and it checks whether a spare part is in stock. A technician then schedules a service call with the customer and makes the replacement before the washing machine breaks down.
 
Using IoT throughout the supply chain and integrating systems can increase efficiency and revolutionize the customer experience. Organizations that take advantage of IoT technology can take an important leap forward, increase their competitive edge, as they can also become market leaders.