Manufacturing benefits greatly from IIoT technology. It is used for preventive maintenance and can predict when a machine needs to be repaired or replaced. It can also help to prevent machine breakdowns and improve business capacity and workflow. The embedded sensors can help keep workers safe. Manufacturers are adopting IIoT to stay ahead of the competition. IIoT is changing the way companies manage their supply chains. By connecting machines, sensors, and other devices to the internet, IIoT enables manufacturers to collect and analyze data in real-time. This data can then be used to optimize supply chain operations, improve productivity, reduce costs, and increase profitability. In this article, we will explore the impact of IIoT on supply chain management.
Real-time visibility into the supply chain
One of the key benefits of IIoT is its ability to provide real-time visibility into the supply chain. With IIoT sensors installed in key locations such as factories, warehouses, and trucks, manufacturers can track the movement of goods from the point of origin to the point of consumption. This information can be used to identify bottlenecks and inefficiencies in the supply chain and make real-time adjustments to improve the overall process.
For example, if a shipment of goods is delayed due to traffic or weather conditions, IIoT sensors can detect the delay and automatically reroute the shipment to an alternate route. This helps to minimize delays and ensure that the goods arrive at their destination on time. By improving supply chain visibility, IIoT can help manufacturers reduce inventory levels, lower transportation costs, and improve customer satisfaction. IIoT can also be used to monitor the condition of goods during transportation. Sensors can be installed in trucks and containers to monitor temperature, humidity, and other environmental factors that can affect the quality of the goods. This information can be used to ensure that the goods are transported in optimal conditions, reducing the risk of spoilage or damage. In addition, IIoT can be used to track the performance of equipment in factories and warehouses. Sensors can be installed on machines to monitor their performance and detect potential issues before they become major problems. This helps to reduce downtime and increase productivity, leading to lower costs and higher profits.
Optimizing supply chain planning
By analyzing real-time data on customer demand, inventory levels, and production capacity, manufacturers can make more accurate forecasts and plan their supply chain operations accordingly. This helps to reduce the risk of stockouts or excess inventory, which can lead to lost sales or increased costs. Due to the implementation of sensors on all assets, asset tracking and inventory management are key benefits of IIoT in the supply chain. Goods often go missing in transit, but with these RFID sensors, their location can be tracked throughout. Depending on your business strategies, having the right network and systems in place can involve tracking and finding the goods while they are in storage for quick delivery, or allowing the company to track delivery times to see if improvements can be made. Asset tracking can also help identify bottlenecks in the supply chain, which can lead to inefficient processes and higher costs.
“Manufacturers face an increasingly complex and competitive landscape, where supply chain performance and factory efficiency are critical to success. Fragility has been exposed in supply chains and digitization continues to be a massive opportunity to drive visibility into the supply chain and factory floor,” says Tim Long, Global Head of Manufacturing at Snowflake.
Lower Maintenance and Fuel Costs
To some extent, reducing fuel consumption is linked to route optimization. The fuel economy of a route is one thing to consider in route optimization. However, fuel consumption is not only determined by the route. Overspending, fast acceleration, and quick breaking all contribute in increased fuel consumption and maintenance costs. When integrated into your fleet, IoT technology may provide the route manager with real-time information on driving patterns that increase fuel consumption or the likelihood of an accident.
With this information, the manager may devise strategies to address poor driving practices among drivers and assure compliance with company rules. IoT sensors can also monitor engine performance, brake condition, oil changes, and tire quality, allowing you to catch problems early and save maintenance costs.
Improving supply chain security
By monitoring the movement of goods in real-time, IIoT can detect potential security breaches and alert security teams to take action. This helps reduce the risk of theft, damage, or other security issues, ensuring that goods arrive at their destination safely and securely. Organizations should prioritise supply chain security because a breach in the system could harm or disrupt operations. Vulnerabilities in a supply chain can result in unnecessary costs, inefficient delivery schedules, and intellectual property loss. Physical and cyber threats to supply chains can be mitigated with security management systems. While threats cannot be completely eliminated, supply chain security can contribute to more secure, efficient goods movement that can recover quickly from disruptions.
The Industrial Internet of Things is transforming supply chain management. By providing real-time visibility into the supply chain, monitoring the condition of goods during transportation, optimizing supply chain planning, enabling predictive maintenance, and improving supply chain security, IIoT is helping manufacturers to reduce costs, increase productivity, and improve customer satisfaction. As IIoT technology continues to evolve, we can expect to see even more innovative applications in the supply chain management space in future.