INDIVIDUAL ASSIGNMENT

SUBJECT: BSM3044 SUPPLY CHAIN STRATEGY & CASES

(WEEKEND)

COURSE LECTURER NAME: MR MOHD FAIZAL SULAIMAN

TOPIC TITLE : INTERNET OF THINGS (IoT)

STUDENT NAME: ID NO:

MUHAMMAD ZUKHRI BIN MOHD ZURAIDI B20080015

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 TABLE OF CONTENTS

Table of contents...................................................................................................................2

List of Figures........................................................................................................................3

INTROUDUCTION...................................................................................................................4

WHAT IS THE CONCEPT?.....................................................................................................5

THE IMPORTANT TO ADHERE TO THESE TREND IN SUPPLY CHAIN

MANAGEMENT.....................................................................................................................5-7

IMPACT OF A GOOD TECHNOLOGY TO SUPPLY CHAINS.................................................7-8

CHALLENGES OF USING IoT iN LOGISTICS AND SUPPLY

CHAINS.................................................................................................................................8-9

IoT IN SUPPLY CHAIN: EXAMPLES OF SUCCESS STORIES...........................................10-11

STUDY CASE SUPPLY CHAIN IN INNOVATION WITH IoT................................................12

CONCLUSION......................................................................................................................12

APPENDIX &
REFERENCES.......................................................................................................................13

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 LIST OF FIGURES

Figure 1. Amazon warehouse..........................................................................................10

Figure 2.Volvo S60............................................................................................................10

Figure 3. Volvo Prime Mover............................................................................................10

Figure 4. Nissan factory................................................................................................... 11

Figure 5. Maersk Bintulu...................................................................................................11

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Introduction

Over the past few years, IoT has become one of the most important technologies of the 21st century.
Now that we can connect everyday objects kitchen appliances, cars, thermostats, baby monitors to the
internet via embedded devices, seamless communication is possible between people, processes, and
things.The internet of things, or IoT, is a system of interrelated computing devices, mechanical and
digital machines, objects, animals or people that are provided with unique identifiers (UIDs) and the
ability to transfer data over a network without requiring human-to-human or human-to-computer
interaction

By means of low-cost computing, the cloud, big data, analytics, and mobile technologies, physical things
can share and collect data with minimal human intervention. In this hyperconnected world, digital
systems can record, monitor, and adjust each interaction between connected things. The physical world
meets the digital world and they cooperate.
Industrial IoT (IIoT) refers to the application of IoT technology in industrial settings, especially with
respect to instrumentation and control of sensors and devices that engage cloud technologies. Refer to
thisTitan use case PDF for a good example of IIoT. Recently, industries have used machine-to-machine
communication (M2M) to achieve wireless automation and control. But with the emergence of cloud
and allied technologies (such as analytics and machine learning), industries can achieve a new
automation layer and with it create new revenue and business models. IIoT is sometimes called the
fourth wave of the industrial revolution, or Industry 4.0. The following are some common uses for IIoT:

i. Smart manufacturing
ii. Connected assets and preventive and predictive maintenance
iii. Smart power grids
iv. Smart cities
v. Connected logistics
vi. Smart digital supply chains

What is the concept?

An IoT ecosystem consists of web-enabled smart devices that use embedded systems, such as
processors, sensors and communication hardware, to collect, send and act on data they acquire from

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their environments. IoT devices share the sensor data they collect by connecting to an IoT gateway or
other edge device where data is either sent to the cloud to be analyzed or analyzed locally. Sometimes,
these devices communicate with other related devices and act on the information they get from one
another. The devices do most of the work without human intervention, although people can interact
with the devices for instance, to set them up, give them instructions or access the data.

The Internet of Things shows its potential to the fullest in processes like supply chain. Management,
forecasting, and oversight applications help fleet managers improve the operational efficiency of
distribution and add transparency to decision-making.All areas of the complex supply chain process can
be improved with the Internet of Things. In this post, you’ll find about the impact of IoT on supply chain
and learn about the applications used in this industry.

The important to adhere to these trend in supply chains management

The internet of things helps people live and work smarter, as well as gain complete control over their
lives. In addition to offering smart devices to automate homes, IoT is essential to business. IoT provides
businesses with a real-time look into how their systems really work, delivering insights into everything
from the performance of machines to supply chain and logistics operations.

IoT enables companies to automate processes and reduce labor costs. It also cuts down on waste and
improves service delivery, making it less expensive to manufacture and deliver goods, as well as offering
transparency into customer transactions.As such, IoT is one of the most important technologies of
everyday life, and it will continue to pick up steam as more businesses realize the potential of connected
devices to keep them competitive.

The internet of things offers several benefits to organizations. Some benefits are industry-specific, and
some are applicable across multiple industries. IoT encourages companies to rethink the ways they
approach their businesses and gives them the tools to improve their business strategies.

For example,Tracking and monitoring are some of the main objectives for IoT deployment in supply
chain management. The technology allows warehouse and fleet managers to keep track of their cargo
and inventory.

However, there’s more to the Internet of Things than its asset management potential. Here are many
more reasons for using IoT in SCM:

i)Real-time location-tracking

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Internet of Things provides managers with a coherent stream of real-time data regarding the location of
the product and the transportation environment. You will be alerted if the product is shipped in the
wrong direction and will be able to monitor the delivery of ready goods and raw materials.

ii)Storage condition monitoring

Thanks to environmental sensors, managers can track shipment conditions and proactively respond to
changes. For instance, one of the most common IoT supply chain solutions gathers data on the
temperature inside vehicles, pressure, humidity, and other factors that could compromise the product’s
integrity and triggers automatic condition adjustment.

iii)Forecast the movement and the arrival of the product

Managers use IoT devices and data analytics systems to improve the quality of decision-making and
increase the precision of delivery forecasts. Thanks to real-time tracking, companies are able to monitor
goods during shipment and predict the delivery as well as forecast and mitigate risks associated with
delays.

iv)Locate goods in the warehouse

Integration of IoT-based supply chain management systems is among the top warehouse technology
trends. The benefits are numerous from the increased efficiency of warehouse processes to better
inventory management and employee safety. Thanks to real-time location trackers, for instance,
employees on-site can easily locate goods and get quick to the exact aisle for a specific product. In this
case, Internet of Things enables seamless workflow and performance that is impossible to achieve
otherwise. Moreover, combined with artificial intelligence, IoT becomes a stepping stone for full-on
warehouse automation with little to no human supervision.

v)Improve contingency planning

IoT and data analytics help supply chain managers plan routes, taking into account traffic, weather,
possible accidents or other delay-inducing occurrences that happen on the way. The Internet of Things
curates all data needed to develop flexible contingency plans and get to the cause of existing delays. The
technology offers supply chain managers real-time alerts that increase the speed of risk mitigation.

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Impact of a good technology bring to supply chains

Organizations best suited for IoT are those that would benefit from using sensor devices in their
business processes.

i. Manufacturing

Manufacturers can gain a competitive advantage by using production-line monitoring to enable

proactive maintenance on equipment when sensors detect an impending failure. Sensors can actually
measure when production output is compromised. With the help of sensor alerts, manufacturers can
quickly check equipment for accuracy or remove it from production until it is repaired. This allows
companies to reduce operating costs, get better uptime, and improve asset performance management.

ii. Automotive

The automotive industry stands to realize significant advantages from the use of IoT applications. In
addition to the benefits of applying IoT to production lines, sensors can detect impending equipment
failure in vehicles already on the road and can alert the driver with details and recommendations.
Thanks to aggregated information gathered by IoT-based applications, automotive manufacturers and
suppliers can learn more about how to keep cars running and car owners informed.

iii. Transportation and Logistics

Transportation and logistical systems benefit from a variety of IoT applications. Fleets of cars, trucks,
ships, and trains that carry inventory can be rerouted based on weather conditions, vehicle availability,
or driver availability, thanks to IoT sensor data. The inventory itself could also be equipped with sensors
for track-and-trace and temperature-control monitoring. The food and beverage, flower, and
pharmaceutical industries often carry temperature-sensitive inventory that would benefit greatly from
IoT monitoring applications that send alerts when temperatures rise or fall to a level that threatens the
product.

iv.Retail

IoT applications allow retail companies to manage inventory, improve customer experience, optimize
supply chain, and reduce operational costs. For example, smart shelves fitted with weight sensors can
collect RFID-based information and send the data to the IoT platform to automatically monitor inventory
and trigger alerts if items are running low. Beacons can push targeted offers and promotions to
customers to provide an engaging experience.

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Challenges of using IoT in logistics and supply chains

Despite the growing need for digital transformation, many companies still use outdated legacy systems
to manage deliveries and track assets. By leveraging the use of IoT in supply chain, can solve many
problems associated with outdated operational practices and technologies. However, there are many
IoT implementation challenges to keep in mind.

i. Skill gap

Adjusting to managing connected systems will require intensive training for warehouse workers and
vehicle drivers. Explaining the security practices and outlining the guidelines for using corporate
platforms is a time-consuming process.

Finding a team skilled enough to design a solution that caters to the company is a challenge on its own,
considering the lack of professional IoT training. With the international tech talent shortage in mind,
supply chain managers should understand that hiring skilled professionals will be a time-consuming
process.

ii. Increased data storage challenges

Large data pools are one of the numerous advantages the Internet of Things provides supply chain
managers with. However, with that power, comes the responsibility of acquiring enough server power
to store and process all the collected data. Company managers will need to develop data governance
policies, look for data scientists and analysts to ensure they drive the right conclusions from IoT-based
insights.

iii. Security threats

Building a secure architecture is another objective supply chain managers have to tackle before fully
transitioning all processes to connected platforms. Data processing and storage vulnerabilities can result
in outside attacks and leaks, tanking the company’s reputation and increasing the cost of failure.

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The good news is, by implementing the concepts of machine learning and cryptographic hardware
monitoring, company managers can mitigate outside security threats and access all stored data safely.

iv. Connectivity issues

IoT heavily relies on having a stable Internet connection. Since fleet drivers are moving from one
location to another, there’s not always a reliable network. As Internet coverage increases and 5G
becomes widely available the connectivity issue is likely to mitigate itself for now, supply chain
managers have to put up with it.

Bandwidth is another issue to keep in mind when implementing IoT in the supply chain. Connected
platforms usually consume a lot of bandwidth and require a high-level server farm to operate smoothly.

IoT in supply chain: Examples and success stories

Global brands push the frontier connecting Internet of Things and supply chain. Here are a few examples
of how large-scale corporations benefit from IoT on a daily basis:

i. Amazon

Amazon excels in the use of IoT devices in supply chain. Back in 2012, the company integrated fleets of
connected robots for warehouse management. The main task of automated technology is to identify
products by scanning QR-codes on the parcel. By implementing IoT in the warehouse, Amazon uses the
human workforce more productively, allowing people to focus on tasks like packing, wrapping, or
inventory management.

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 Figure 1. Amazon warehouse

ii. Volvo

The company is using a connected cloud-based system to monitor the shipment of car parts from
different countries. Volvo uses the Internet of Things to track vehicle delivery to the corporation’s
international suppliers.

Figure 2.Volvo S60 Figure 3. Volvo Prime Mover

iii. Nissan

The car manufacturer relies on IoT automation to connect various industrial plants. The company has
implemented intelligent warehouse management systems at its factory in Sunderland, UK.

Figure 4. Nissan factory

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iv. New Maersk Line

One of the leaders in shipping and logistics services, Maersk is also a high-end company to look into
while searching for advanced supply chain IoT user cases. The Danish company piloted a Remote
Container Management System. It monitors the temperature and humidity in shipping containers,
reducing food spoilage and resource waste. The platform allows operators to monitor environmental
conditions and improve the precision of transportation planning and implementation.

Figure 5. Maersk Bintulu

Study case Supply chain in Innovation with IoT

Study case by Yu Cui,which published on June 27th 2018 also mention that The realization of supply
chain intelligent management is an important subject of the supply chain system based on IoT and one
of the major changes in supply chain function. To realize the intelligent management of IoT, intelligent
platform, which is based on IoT, is significant. The development of IoT technology provides technical
support for intelligent management of supply chain. Perception layer is the foundation of IoT. Through
the sensor devices of perception layer, the IoT-based supply chain system can continuously obtain
information of nodes in supply chain, and dig, classify, integrate, and store relevant data with IoT data
processing technology.Eventually, extract useful knowledge and provide timely information regarding
supply chain operation status and tendency, and hence realize intelligent decision-making.

Besides Yi chun also mention that ;Innovation of supply chain system under the IoT context mainly
includes two aspects: innovation of supply chain function and innovation of supply chain process. Along

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with the continuous development of IoT technology, the function of IoT-based supply chain system has
transformed significantly.

In detail, the main functions of traditional supply chain include planning, organizing, coordinating,
control, etc. In the context of the IoT, the functions adjust accordingly. In correspondence with this
change, supply chain process also needs to adjust. In general, supply chain processes include
procurement, production and processing, logistics, sales, and after-sales service process, which also
need to be improved accordingly.

Conclusion

The Internet of Things has a vast range of IoT applications in supply chain management. It facilitates the
tracking and monitoring of goods, brings more transparency to the communication process, and
increases the precision of planning.

An IoT-based platform is a great investment for small businesses and large companies alike, as long as
you have a clear objective for what you need the technology to accomplish for you. Onboarding a skilled
team for the design and development stage is crucial as well. To make sure your IoT solution for supply
chain meets the modern tech trends and is fully functional.

Appendix & References

https://www.oracle.com/internet-of-things/what-is-iot/

https://internetofthingsagenda.techtarget.com/definition/Internet-of-Things-IoT

https://www.digiteum.com/iot-supply-chain/

https://www.intechopen.com/chapters/59528

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