Logistics used to just mean getting a product from Point A to Point B. While that is still the end result, there are a lot of factors that go in between that are of vital importance. An efficient supply chain is vital to companies staying competitive. And the job and salary of supply chain managers proove this.
With cloud computing comes the Internet of Things (IoT) and with it a revolution in logistics from when a product is manufactured to delivered and then warehoused.
Previously, there was a lot of waste in many supply chains that lead to high costs and delays. Now, things are streamlined to such a degree that it is hard to imagine something like international shipping without it.
In this article, I will go over some of the ways that logistics are improved by the IoT. For the sake of this article, we will use stainless steel flanges as an example.
Location management
Your supplier has all the pipe flange dimensions perfected and in boxes on their way to the destination.
Now, the trick is to trace it throughout the process of its delivery.
The IoT will give you information on driver activities, vehicle location, and delivery status all within a few minutes. Any changes can be alerted in real time so if something goes wrong anywhere along this chain, it can be dealt with immediately.
Plans can be made or changed according to the information available and the process more streamlined by reacting quickly based on current information.
Inventory tracking
Accurate inventory management is important to any business. By knowing exactly what is in your inventory you can prevent running out of stock, ensure precise recordkeeping and manage multiple locations.
The IoT does all of this automatically instead of relying on labor intensive manual controls. Sensors located in the warehouse can track the movement of your flanges. If they are moved to another part of the warehouse, they won’t get lost. And when they are shipped, it registers automatically.
The number of flanges left in stock is calculated automatically on the cloud. That way it is always up to date and accurate leaving little mystery as to how much stock you have.
Predictive analysis
Managing risk can only be done when you can see into the future. Unfortunately, we don’t have that ability yet. The next best thing is to use predictive analysis which is possible thanks to the IoT.
The sensors used in the supply chain when using the cloud record a staggering amount of data. This data is then used to predict the most likely scenario when it comes to delays, or shortages. Then smart decisions can be made based on these predictions.
With just in time shipping being used to cut costs, it is all the more important to head off any problems before they actually become problems.
Conclusion
It doesn’t matter how big or small your business is. If you have a product that is manufactured, shipped and stored, then the IoT is going to make your doing business a lot easier.
