IoT refers to connecting physical devices to the internet and to each other to generate and share data. This data can provide insights to improve procurement and supply chain management. Specifically, IoT data from internal sources like warehouses and machines and external sources like suppliers can be used to better manage risks, reduce costs, improve processes, make effective decisions, conduct spend analysis and forecasting, and enhance supplier management. Examples of potential benefits include automatically generating requisitions based on warehouse inventory levels and improving subcontracting processes through real-time tracking of parts and quality checks. The key is identifying meaningful ways to leverage relevant IoT data sources for specific organizational needs.
Almost everything in your warehouse will eventually be connected to the Internet of Things (IoT), the online network that connects and exchanges data between devices, vehicles, inventory and even buildings. The Internet of Things is already starting the digital transformation of supply chains by improving efficiency, accuracy, and reducing costs. It is anticipated that many more benefits and opportunities will emerge in the future. Every supply chain business, from manufacturing to logistics, should be taking a close look at the Internet of Things now. Early adopters of IoT technologies will be better able to take a giant leap forward in their business and gain a competitive edge from this technology.
OT - How IoT will Impact Future B2B and Global Supply Chains - SS14Mark Morley, MBA
This presentation was originally given at an EDIFICE plenary in Brussels in May 2014. EDIFICE is a European based industry association driving B2B standards across the high tech industry. The presentation discussed digital disruption and how the Internet of Things is likely to impact future design of B2B platforms and global supply chains. - Updated March 2015
It may seem to you as if we live in an Internet of Everything IOE world today. Between smart grids, your connected car, building automation and all the smart devices on the Internet of Things market, it is hard to get away from all the innovation of the fourth industrial revolution. New business models are being developed to improve customer experiences. Keeping Internet of Things secure is a top priority to safeguard personal data.
In the world of warehousing, IoT has taken hold. To speed up the handling, storage and shipping of inventory, warehouses are relying more on IoT-enabled devices including wearables, smart glasses, AMR and AGV. Robotic and artificial intelligence solutions are being utilized in warehouse and logistics operations in concert with warehouse workers to improve performance and reduce errors. Facility managers now can rely on Chuck to be the workhorse of their operation and reduce their dependence on seasonal or unreliable workers.
It’s a different world out there everyone. We all need to get SMART…
Logistics IT Solutions Turn Smarter with IoT Driven MobilitySPEC INDIA
The entire globe has been embraced by the latest technological advents – Internet of Things (IoT) and Enterprise Mobility. Shipping & Logistics industry is no exception – IoT and mobility has influenced the Shipping Software Solutions to a great extent. There are evident benefits that can be witnessed with the implementation of these trend setting technologies. Have a brief look at them and how they have helped the shipping industry to its best.
Read More at: https://blog.spec-india.com/iot-powered-mobility-conquers-world-shipping-software-solutions-get-smarter/
Almost everything in your warehouse will eventually be connected to the Internet of Things (IoT), the online network that connects and exchanges data between devices, vehicles, inventory and even buildings. The Internet of Things is already starting the digital transformation of supply chains by improving efficiency, accuracy, and reducing costs. It is anticipated that many more benefits and opportunities will emerge in the future. Every supply chain business, from manufacturing to logistics, should be taking a close look at the Internet of Things now. Early adopters of IoT technologies will be better able to take a giant leap forward in their business and gain a competitive edge from this technology.
OT - How IoT will Impact Future B2B and Global Supply Chains - SS14Mark Morley, MBA
This presentation was originally given at an EDIFICE plenary in Brussels in May 2014. EDIFICE is a European based industry association driving B2B standards across the high tech industry. The presentation discussed digital disruption and how the Internet of Things is likely to impact future design of B2B platforms and global supply chains. - Updated March 2015
It may seem to you as if we live in an Internet of Everything IOE world today. Between smart grids, your connected car, building automation and all the smart devices on the Internet of Things market, it is hard to get away from all the innovation of the fourth industrial revolution. New business models are being developed to improve customer experiences. Keeping Internet of Things secure is a top priority to safeguard personal data.
In the world of warehousing, IoT has taken hold. To speed up the handling, storage and shipping of inventory, warehouses are relying more on IoT-enabled devices including wearables, smart glasses, AMR and AGV. Robotic and artificial intelligence solutions are being utilized in warehouse and logistics operations in concert with warehouse workers to improve performance and reduce errors. Facility managers now can rely on Chuck to be the workhorse of their operation and reduce their dependence on seasonal or unreliable workers.
It’s a different world out there everyone. We all need to get SMART…
Logistics IT Solutions Turn Smarter with IoT Driven MobilitySPEC INDIA
The entire globe has been embraced by the latest technological advents – Internet of Things (IoT) and Enterprise Mobility. Shipping & Logistics industry is no exception – IoT and mobility has influenced the Shipping Software Solutions to a great extent. There are evident benefits that can be witnessed with the implementation of these trend setting technologies. Have a brief look at them and how they have helped the shipping industry to its best.
Read More at: https://blog.spec-india.com/iot-powered-mobility-conquers-world-shipping-software-solutions-get-smarter/
Proof of concepts and use cases with IoT technologiesHeikki Ailisto
Set of proof of concept and use cases with internet of things technologies are presented with one sliders. In each case, the IoT challenge, result, benefits and use case example are given.
Information sharing is a major challenge in SCM due to the geographical spread of partners and monumental paper work involved across countries and regions. Digitisation impacts the flow of goods, funds and information. It is at the threshold of introducing the Smart Factory where all flows are automated. How relevant are these technologies for India? What can be the Smart Approach for India in sequencing the adoption of these technologies? We present a suggested approach here.
Industrial IoT – the disruption of manufacturingFelix Plitzko
Industrial IoT has been around for quite a while. But it is more than just visualizing the immense amount of data available within manufacturing machines. It creates opportunities to offer a new range of services. I will talk about the opportunities Industrial IoT creates, and how we use it to offer our services at AISLER.
This presentation is part of a talk I gave at RIOT.berlin 2017.
Industrial Internet of Things by Edy Liongosari of Accenturegogo6
Download our special report, IoT Tech for the Manager: http://bit.ly/report1-slideshare
Introduction to the Industrial Internet of Things as presented at the IoT Inc Business' Fifth Meetup. See: http://www.iot-inc.com/meetup-driving-growth-industrial-internet-of-things/
In our fifth Meetup we have Edy Liongosari, Managing Director of Accenture Technology Labs presenting “Driving Unconventional Growth Through the Industrial Internet of Things.” Come meet other business leaders in the IoT ecosystem and discuss the business issues you face in the Internet of Things.
PRESENTATION ABSTRACT
The Industrial Internet of Things has been heralded primarily as a way to improve operational efficiency. But in today’s environment, companies can also benefit greatly by seeing it as a tool for finding growth in unexpected opportunities. In the future, successful companies will use the Industrial Internet of Things to capture new growth through three approaches: boost revenues by increasing production and creating new hybrid business models, exploit intelligent technologies to fuel innovation, and transform their workforce.
Connected Retail: The Business Case for IoT in RetailOliver Guy
IoT (Internet of Things) has a lot of promise for retailers over the next few year. Estimates run into the hundreds of billions of dollars of annual impact by 2025. But building an ROI is difficult. How do you get value now?
The IoT Food Chain – Picking the Right Dining Partner is Important with Dean ...gogo6
Download our special report, IoT Tech for the Manager: http://bit.ly/report1-slideshare
The IoT Food Chain – Picking the Right Dining Partner is Important as presented at the IoT Inc Business' fourteenth Meetup. See: http://www.iot-inc.com/internet-of-things-value-chain-meetup/
In our fourteenth Meetup we have Dean Freeman, Research VP at Gartner presenting “The IoT Food Chain – Picking the Right Dining Partner is Important”.
Presentation Abstract
The Internet of Things means many different things to different people. What is key about the IoT is there is a distinct food chain that runs from the silicon devices to the services and then back. The level of success you will have in the IoT is heavily dependent upon where you fit in the food chain, and if you have the capability to move up the chain or across the chain into different verticals. In this presentation we will explore the food chain, what is important and what steps need to be taken to succeed in the world of the IoT.
INTERNET OF THINGS - THE NEXT WAVE OF INNOVATIONRajat Maheshwari
IoT is the new wave of innovation.
IoT has the potential to enable extensions and enhancements to fundamental services in transportation, logistics, security, utilities, education, healthcare and other areas, while providing a new ecosystem for application development.
A concerted effort is required to move the industry beyond the early stages of market development towards maturity, driven by common understanding of the distinct nature of the opportunity.
IoT Technologies and the Changes in Manufacturing and Logistics CESAR
Apresentação feita no "German-Brazilian Workshop: Smart Manufacturing, Logistics & Energy Systems - Industrial Needs Meet Research Developments", realizado em agosto/2017.
O evento teve como objetivos:
- a apresentação de estudos de caso e avanços tecnológicos e científicos em manufatura inteligente de produtos, logística e sistemas energéticos.
- a identificação de problemas e desafios encontrados pelas indústrias.
If you have somehow missed the hype, the Internet of Things (IoT) is a fast-growing constellation of internet-connected sensors attached to a wide variety of 'things'. Sensors can take a multitude of possible measurements, Internet connections can be wired or wireless, while 'things' can literally be any object to which you can attach or embed a sensor. If you carry a smartphone, for example, you become a multi-sensor IoT 'thing', and many of your day-to-day activities can be tracked, analysed and acted upon.
Many of the conversations taking place around the IoT are incomplete without a mention of big data. Big data is characterised by “4 V’s”: volume, variety, velocity and veracity. That is, big data comes in large amounts (volume), is a mixture of structured and unstructured information (variety), arrives at (often real-time) speed (velocity) and can be different levels of uncertainty (veracity).
As organizations step into IoT, they must understand the symbiotic relationship between IoT and big data. Just like with any big-data play, merely collecting the data isn't enough. The data must be processed and analyzed to derive meaningful insights, and those insights must drive actionable steps that can improve the business.
What that means is that, without Big Data, the IoT can offer an enterprise little more than noise. But wait…! On the other hand, without IoT, the Big Data is little more than any other software lying idle. Actually you need two to Tango. That’s when you get the perfect marriage!
How to answer the challenges of industrial IoT?Dieter Laevers
If you want to talk to the author Dieter Laevers, take your chance and meet him at Smart Industries in Paris, December 6-9.
Inquire for a personal meeting / demo here: www.event.movilitas.com
Proof of concepts and use cases with IoT technologiesHeikki Ailisto
Set of proof of concept and use cases with internet of things technologies are presented with one sliders. In each case, the IoT challenge, result, benefits and use case example are given.
Information sharing is a major challenge in SCM due to the geographical spread of partners and monumental paper work involved across countries and regions. Digitisation impacts the flow of goods, funds and information. It is at the threshold of introducing the Smart Factory where all flows are automated. How relevant are these technologies for India? What can be the Smart Approach for India in sequencing the adoption of these technologies? We present a suggested approach here.
Industrial IoT – the disruption of manufacturingFelix Plitzko
Industrial IoT has been around for quite a while. But it is more than just visualizing the immense amount of data available within manufacturing machines. It creates opportunities to offer a new range of services. I will talk about the opportunities Industrial IoT creates, and how we use it to offer our services at AISLER.
This presentation is part of a talk I gave at RIOT.berlin 2017.
Industrial Internet of Things by Edy Liongosari of Accenturegogo6
Download our special report, IoT Tech for the Manager: http://bit.ly/report1-slideshare
Introduction to the Industrial Internet of Things as presented at the IoT Inc Business' Fifth Meetup. See: http://www.iot-inc.com/meetup-driving-growth-industrial-internet-of-things/
In our fifth Meetup we have Edy Liongosari, Managing Director of Accenture Technology Labs presenting “Driving Unconventional Growth Through the Industrial Internet of Things.” Come meet other business leaders in the IoT ecosystem and discuss the business issues you face in the Internet of Things.
PRESENTATION ABSTRACT
The Industrial Internet of Things has been heralded primarily as a way to improve operational efficiency. But in today’s environment, companies can also benefit greatly by seeing it as a tool for finding growth in unexpected opportunities. In the future, successful companies will use the Industrial Internet of Things to capture new growth through three approaches: boost revenues by increasing production and creating new hybrid business models, exploit intelligent technologies to fuel innovation, and transform their workforce.
Connected Retail: The Business Case for IoT in RetailOliver Guy
IoT (Internet of Things) has a lot of promise for retailers over the next few year. Estimates run into the hundreds of billions of dollars of annual impact by 2025. But building an ROI is difficult. How do you get value now?
The IoT Food Chain – Picking the Right Dining Partner is Important with Dean ...gogo6
Download our special report, IoT Tech for the Manager: http://bit.ly/report1-slideshare
The IoT Food Chain – Picking the Right Dining Partner is Important as presented at the IoT Inc Business' fourteenth Meetup. See: http://www.iot-inc.com/internet-of-things-value-chain-meetup/
In our fourteenth Meetup we have Dean Freeman, Research VP at Gartner presenting “The IoT Food Chain – Picking the Right Dining Partner is Important”.
Presentation Abstract
The Internet of Things means many different things to different people. What is key about the IoT is there is a distinct food chain that runs from the silicon devices to the services and then back. The level of success you will have in the IoT is heavily dependent upon where you fit in the food chain, and if you have the capability to move up the chain or across the chain into different verticals. In this presentation we will explore the food chain, what is important and what steps need to be taken to succeed in the world of the IoT.
INTERNET OF THINGS - THE NEXT WAVE OF INNOVATIONRajat Maheshwari
IoT is the new wave of innovation.
IoT has the potential to enable extensions and enhancements to fundamental services in transportation, logistics, security, utilities, education, healthcare and other areas, while providing a new ecosystem for application development.
A concerted effort is required to move the industry beyond the early stages of market development towards maturity, driven by common understanding of the distinct nature of the opportunity.
IoT Technologies and the Changes in Manufacturing and Logistics CESAR
Apresentação feita no "German-Brazilian Workshop: Smart Manufacturing, Logistics & Energy Systems - Industrial Needs Meet Research Developments", realizado em agosto/2017.
O evento teve como objetivos:
- a apresentação de estudos de caso e avanços tecnológicos e científicos em manufatura inteligente de produtos, logística e sistemas energéticos.
- a identificação de problemas e desafios encontrados pelas indústrias.
If you have somehow missed the hype, the Internet of Things (IoT) is a fast-growing constellation of internet-connected sensors attached to a wide variety of 'things'. Sensors can take a multitude of possible measurements, Internet connections can be wired or wireless, while 'things' can literally be any object to which you can attach or embed a sensor. If you carry a smartphone, for example, you become a multi-sensor IoT 'thing', and many of your day-to-day activities can be tracked, analysed and acted upon.
Many of the conversations taking place around the IoT are incomplete without a mention of big data. Big data is characterised by “4 V’s”: volume, variety, velocity and veracity. That is, big data comes in large amounts (volume), is a mixture of structured and unstructured information (variety), arrives at (often real-time) speed (velocity) and can be different levels of uncertainty (veracity).
As organizations step into IoT, they must understand the symbiotic relationship between IoT and big data. Just like with any big-data play, merely collecting the data isn't enough. The data must be processed and analyzed to derive meaningful insights, and those insights must drive actionable steps that can improve the business.
What that means is that, without Big Data, the IoT can offer an enterprise little more than noise. But wait…! On the other hand, without IoT, the Big Data is little more than any other software lying idle. Actually you need two to Tango. That’s when you get the perfect marriage!
How to answer the challenges of industrial IoT?Dieter Laevers
If you want to talk to the author Dieter Laevers, take your chance and meet him at Smart Industries in Paris, December 6-9.
Inquire for a personal meeting / demo here: www.event.movilitas.com
The workshop "Platforms for connected Factories of the Future" took place on 5 and 6 of October 2015 in Brussels. Main objective on the first workshop day was to give an overview on existing activities in industries and research regarding platforms for the manufacturing area.
Internet of Things, Connected Infrastructure & The Modern Supply ChainJeff Risley
Every market has infrastructure -- physical assets needed for the operation of an enterprise. And every piece of infrastructure will be impacted by the Internet of Things -- physical "dumb" objects, embedded with sensors, connected to the internet, communicating with one another and people. Understanding this collision of the Internet and Infrastructure is important for the future of both. This is a presentation I gave at the CSCMP Annual Conference.
A case illustrates how Manufacturing Execution Systems enable a manufacturer to keep track of the production progress and contribute to an optimized execution on the workfloor. A vision is posted on two possible future orientations of MES systems which lead to optimized and self-organizing execution on the shop floor.
Capgemini’s Smart Plant Supervision (SPS) solution can improve plant and facilities management using the Watson IoT Platform to leverage data from a wide range of digital and analog sensors. The end-to-end solution for data aggregation, analytics and action—in near real time—is offered only by Capgemini on Bluemix. By leveraging our IOT Platform Service running on Bluemix, SPS enables predictive and preventive maintenance, higher machine uptime and maximum efficiency.
While supply chain optimization spans multiple areas, this slideshare discusses consolidation of distribution networks of the two merging organizations as the place to start - an area that offers several opportunities to establish quick wins with minimal risk.
Strong Security Elements for IoT Manufacturing GlobalSign
GlobalSign’s Vice President of IoT Identity Solutions, Lancen LaChance, presented a session on Strong Security Elements for IoT Manufacturing at the Internet of Things Expo in New York.
Lancen will run through some ideas and perspectives around incorporating strong information security elements into your IoT devices during the manufacturing process. Within this context we'll look at how we are examining the risks associated with IoT Products, Then we'll discuss some of the approaches for implementing these technologies in the manufacturing cycle. And finally we'll cover some example IoT use cases which are well aligned with the application of these technologies
As we look at the evolving IoT space, one bet we're willing to make is that the privacy and security of IoT products will continue to become more distinguishing features and differentiators. In this vein, Lancen address' how products can be built to achieve these goals through security by design, leveraging past technology successes, as well as the nuances and requirements of implementing within the manufacturing process
If you didn’t get a chance to make it to the conference and see Lancen live, we wanted to share the recorded presentation with you.
Watch the whole talk here: https://www.youtube.com/watch?v=fycAaOkpMrs
Leveraging IoT for Product Visibility across the Supply Chain Capgemini
During transportation, medicines and medical equipment need to preserve their integrity. In order to monitor key indicators in real time (e.g. temperature, pressure, vibration, humidity), J&J worked together with Capgemini to build a proof of concept solution for a smart container. The solution aggregates data from various sources (traffic patterns, weather data, GPS) and on board sensors, analyzes it in real time for exceptions and tolerance violation. It also includes email notifications for exception/rule violation and dash boarding capabilities for various devices. Using IBM technology and Capgemini pre-configurations, the solution was developed in six weeks. This validated the requirements, the technology stack and the industrialization potential.
Leveraging IoT Testing to manage Supply Chain Risks.pdfMindfire LLC
IoT is a game-changing technology that has had a significant impact on sectors like retail, transportation, banking, healthcare, and energy. When it comes to supply chain management, the Internet of Things can be extremely handy. Applications for management, forecasting, and supervision assist fleet managers in increasing operational distribution efficiency and adding transparency to decision-making.
How Manufacturers Can Unlock Business Value via IoT AnalyticsCognizant
Internet of Things (IoT) analytics presents manufacturers with a vast opportunity to drive revenues and enhance operations, from real-time analytics at the edge of technologies (consumer products, instrumented devices, manufacturing machines, etc.) through systems to evaluate and act on the plethora of detailed insights IoT provides. We offer a roadmap for manufacturers to pursue this crucial monetizing analytics opportunity.
Reaping the Benefits of the Internet of ThingsCognizant
Before they can realize the potential of the Internet of Things, organizations must deal with shortcomings in IT standards, skill sets, and data and infrastructure management capabilities.
Designing for Manufacturing's 'Internet of Things'Cognizant
The deeper meshing of virtual and physical machines offers the potential to truly transform the manufacturing value chain, from suppliers through customers, and at every touchpoint along the way.
IoT in Logistics and Supply Chain- Role, Benefits and Use Cases.Techugo
Discover how the Internet of Things (IoT) is revolutionizing logistics and supply chain management. IoT devices enable real-time monitoring of inventory, transportation, and delivery, increasing efficiency, reducing costs, and improving customer satisfaction. Explore the role, benefits, and use cases of IoT in logistics and supply chain management, and learn how it can help you streamline your operations and stay ahead of the competition.
IoT in logistics and supply chain management by providing real-time visibility and transparency. It allows the tracking of goods, equipment, and vehicles using sensors, RFID, and other technologies. IoT helps optimize operations by automating inventory management, predicting demand, reducing waste, and enhancing efficiency.
smart manufacturing is a term that is transforming the huge industry scenario. the works are basically done by the robots and all the system have been automated. so, a huge transformation in there in the employment. the pillars that are required for smart manufacturing is also explained.
Transforming the logistic industry in India - Addverb TechnologiesAddverb Technologies
Industry 4.0 is fast transforming business models and operations. Digitalization, aided by disruptive new technologies such as IoT, AI, big data & analytics, machine learning, automation and robotics, cloud computing, blockchain, 3D printing, etc. and the explosive growth of smart devices, is leaving no segment of the business untouched. Supply chain management has become even more complex than before and stands to benefit tremendously from going digital.
Using Ontology to Capture Supply Chain Code HalosCognizant
Manufacturers need to create a lingua franca that extends throughout the supply chain ecosystem, in order to generate insights from the digital data encircling their employees, partners, processes and customers.
Revolutionizing Efficiency: The Power of IoT Asset Trackinghealthcare360social
The Internet of Things (IoT) has emerged as a transformative force, reshaping industries and redefining the way businesses operate. One of the significant applications of IoT that has garnered widespread attention is IoT asset tracking. This technology has proven to be a game-changer, enabling organizations to monitor and manage their assets with unprecedented precision and efficiency.
Here's how big data and the Internet of Things work together: a vast network of sensors (IoT) collect a boatload of information (big data) that is then used to improve services and products in various industries, which in turn generate revenue.
2. What is IoT?
The Internet of Things, or IoT, is set to
be the next mega-trend in technology.
It is important to understand what IoT
exactly refers to.
Gartner defines IoT as the network of
physical objects that contain
embedded technology to
communicate and sense or interact
with their internal states or the external environment.
In simple words, IoT refers to the connection of various devices to the Internet and to one
another. These devices could be anything: an industrial machine, a delivery truck, a weighing
scale, a street light, a health monitor, an ERP, a mobile phone - just anything.
Why so much buzz about IoT?
IoT refers to enormous amounts of data that millions of devices around us are capable to produce. With
advanced analytic capabilities this unstructured data can be transformed into meaningful datasets. This
data can cater the growth of information based system which utilizes the capabilities of real time data
and advanced analytics to deliver real
time enhanced productivity. This
concept can be applied across all
verticals and horizontal levels in an
organization to unlock the huge
potential benefits associated with
usage of data produced by IoT.
As per a report:
Annual cost savings from IoT could be $500 billion in manufacturing
22% potential margin impact through supply chain efficiencies can be achieved in area of
logistics
50% reductions in shrinkage in grocery stores can be achieved in area of retail
3. What is in IoT for procurement and supply
chain?
The huge amounts of data generated by IoT can
be leveraged very effectively in the area of
procurement. The benefits achieved using IoT
and advanced analytics based on big data can
be broadly classified into following categories
for procurement.
Managing risks in Supply Chain
Analytics over IoT can be leveraged to identify
trends and events that can serve as an alarm or
a warning signal for the supply chain risk. It
could relate to supplier risk metrics, risks
associated with a certain route for movement
of goods, identifiable trends in price fluctuation
of raw materials etc.
Cost savings in sourcing
IoT can be a major source of information which
can be used to identify opportunities for better
sourcing opportunities. By constantly
monitoring market prices and economic
forecasts, an organization could identify the
right time and budgets for a more cost efficient
sourcing process.
Agile and efficient sourcing processes
As per a report, around 20 – 50 % of time in
procurement is linked to searching for
information. Analytics over real time data
generated by IoT can link, aggregate and
analyze information which can be used by
purchasers to take a decision; hence, leading to
an efficient an agile strategic and operational
procurement process.
Effective decision making driven by facts
Purchasers can make decisions that are
supported by data oriented evidences such as
quality issues arising related to a particular
supplier, or material availability etc.
Spend Analytics / Forecasting and Predictive
Analysis
This would be the most obvious use case for
analytics over IoT. Merging various datasets of
various factors together with your organizations
policies could give organizations a good view of
their performance and efficiencies.
One of the greatest opportunities available
from huge amounts of IoT data is achieving
higher level of accuracy and predictions in
forecasting demand and managing the supply
‘in time’.
Supplier Management
Suppliers are an integral and crucial part of any
business. The extensive data available from IoT
can be utilized for an in depth analysis of
supplier performance and relationship
management.
The Hackett Group's research revealed a change
in procurement's priorities for 2015. While
4. traditional goals such as cost reduction and
expanding the scope of spend influence remain
important, new objectives are coming into
focus. More than 70 percent of study
respondents cited elevating procurements role
to more of a trusted advisor as their top priority
for 2015, making it the number one
procurement strategy. Improving
procurement's business agility was cited as the
third most critical goal, right below cost
reduction. Procurement has the opportunity to
drive insights and powerful strategic advantage
if it can improve its ability to capture and
analyze both information generated internally
and also data from suppliers and other external
sources.
Data Sets for IoT
IoT consists of data being generated from any source. For an organization, we could broadly classify the
source of data as:
1. Internal: Data generated from sources within the organization.
2. External: Data generated from sources outside the organization.
This classification could include various sources of data such as:
Internal
1. Data generated by end users
2. Internal inventory and warehouse data
3. Data generated by machines
External
1. Data generated by ERP’s of various organizations
2. Data generated by transport and logistics
3. Visibility of supplier inventory
Various data sources mentioned above have been illustrated below. It can be easily observed that
massive amount of data is already being generated in a single process and with IoT coming into scenario,
enormous amount of meaningful information can be generated.
5. If all the above sources of data were to be merged, analyzed and presented to a purchaser, the following
applications/ benefits could be achieved.
1. Buying pattern recognition merged with product availability at low cost.
2. Real time tracking and visibility of goods in transit.
3. Smarter sourcing by combining requirements from end users merged with predictive demand
management from various departments.
4. Better budgeting and cash flow management
5. Supply risk management using supplier evaluation information
6. Supply risk management by combining supplier inventory data combined with historical lead
time information
7. Supply risk management by using more informed routes for transport of goods
8. Overall reduced costs by utilizing space availability at low costs by transport and logistics service
providers
Use Cases for IoT in Procurement and
Supply Chain
Use Case 1: Auto generation of requisitions by warehouse
In this case, warehouse equipment can act as ‘the thing’ transmitting information.
6. - With IoT, warehouses could automatically generate requisition in the system based on material
availability.
- This could lead to a more efficient process where the procurement or the replenishment
process is triggered much before the MRP run is executed. Hence, giving real time visibility to
business and automatically executing business process well in advance.
Use Case 2: IoT in sub-contracting process:
In a sub-contracting process, a semi-finished product with a bar code can act as ‘the thing’ transmitting
information. Following steps can be made more efficient by using this information:
- A bar code is applied on each part which is subject to a sub-contracting process.
- Workers and machines on the floor can easily identify the details of the sub-contracting process
e.g. Service order details, required follow on process details etc.
- Details of vehicle/carrier on which it should be transported
- Tracking of process completion levels at the sub-contractor’s place
- Quality control process
- Inventory management
- Invoice Management
There can be many more such use cases that organizations can use to enhance their efficiency, agility
and better manage supply risks. However, the key for success for organizations embarking on journey to
utilize IoT is not to boil the ocean, but identify and work with information sets that are meaningful and
useful for them.