A REPORT ON

CONCEPT OF BIG DATA & IOT RELEVANT TO

SUPPLY CHAIN

SUBMITTEDBY
Vivek Vashistha-M20221147
Harsh Nayak-M20222065
Hemant Sharma-M20221150
Prapti Jain-M20222072
Ankit Kumar Gupta-M20222062
GUIDED BY- Dr. Aman Sinha

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 Index

Sr No. Title Page No.

1 Introduction 3-4

2 Need Analysis 5

3 Literature Review 6

4 Smart Supply Chain 7

5 Challenges Of Using Iot In Supply Chain 8-9

6 DHL Case Study 10-11

7 Future Aspect 12

8 Recommendation 13

9 Conclusion 14

10 References 15-16

Introduction

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The concept of Big Data and the Internet of Things (IoT) has revolutionized the way businesses operate,
especially in the supply chain industry. In simple terms, Big Data refers to the massive amount of data
generated by various sources such as sensors, devices, and social media platforms. IoT, on the other
hand, refers to the interconnectedness of devices and machines that can exchange data without human
intervention. Both these concepts have a significant impact on supply chain operations.

The use of Big Data and IoT in the supply chain industry has enabled companies to improve their
efficiency, reduce costs, and provide better customer service. Here are some of the ways in which these
concepts are relevant to supply chain management:

Real-Time Tracking and Monitoring: With the help of IoT-enabled sensors and devices, companies can
track their inventory, shipments, and delivery vehicles in real-time. This helps them to optimize their
logistics operations and make more informed decisions.

Predictive Analytics: Big Data analytics can help companies predict future trends and demand patterns.
This enables them to plan their inventory levels, production schedules, and logistics operations
accordingly.

Improved Customer Service: The use of Big Data and IoT can help companies to provide better
customer service by enabling them to track their orders, monitor their deliveries, and provide
personalized recommendations based on their purchase history.

Supply Chain Optimization: Big Data analytics can help companies identify bottlenecks in their supply
chain and optimize their operations to reduce costs and improve efficiency.

Enhanced Safety and Security: IoT-enabled sensors and devices can help companies monitor the safety
and security of their products, shipments, and warehouses. This can help them prevent theft, damage, or
other security breaches.

Sustainability: Big Data and IoT can help companies track their environmental impact and reduce their
carbon footprint by optimizing their logistics operations, reducing waste, and using renewable energy
sources.

Scope:

The scope of Big Data and IoT in the supply chain industry is vast and continues to expand as new
technologies and applications emerge. Here are some of the ways in which Big Data and IoT can be
applied in supply chain management:

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Inventory Management: Big Data and IoT can help companies optimize their inventory levels by
providing real-time data on stock levels, demand patterns, and lead times. This enables them to reduce
stock outs and overstocking and improve their overall inventory efficiency.

Logistics Optimization: The use of IoT sensors and devices can help companies optimize their logistics
operations by providing real-time data on the location, status, and condition of shipments and vehicles.
This enables them to optimize their routes, reduce transit times, and minimize delays.

Demand Forecasting: Big Data analytics can help companies forecast future demand patterns by
analyzing historical sales data, market trends, and other relevant data sources. This enables them to plan
their inventory levels, production schedules, and logistics operations accordingly.

Quality Control: IoT-enabled sensors and devices can help companies monitor the quality and condition
of their products throughout the supply chain. This enables them to detect any issues or defects early and
take corrective action to minimize the impact on customers.

Customer Service: Big Data and IoT can help companies provide better customer service by enabling
them to track orders, monitor deliveries, and provide personalized recommendations based on customer
purchase history.

Sustainability: Big Data and IoT can help companies track their environmental impact and reduce their
carbon footprint by optimizing their logistics operations, reducing waste, and using renewable energy
sources.

Supply Chain Transparency: Big Data and IoT can help companies improve supply chain transparency
by providing real-time data on the location, status, and condition of shipments and products. This
enables them to better track and trace products throughout the supply chain, improve compliance, and
reduce the risk of counterfeiting and fraud.

Risk Management: Big Data and IoT can help companies mitigate supply chain risks by providing
realtime data on disruptions, such as natural disasters, labor strikes, and political unrest. This enables
them to quickly respond to these events and minimize their impact on operations.

Need:

The supply chain industry is undergoing a digital transformation, with the adoption of new technologies
such as Big Data and IoT. The need for these technologies in supply chain management is driven by
several factors:

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Data Explosion: The volume of data generated by various sources such as sensors, devices, and social
media platforms has increased exponentially in recent years. This data can be harnessed through Big
Data analytics to provide insights into supply chain operations, demand patterns, and customer behavior.

Real-Time Tracking and Monitoring: IoT-enabled sensors and devices can provide real-time data on the
location, status, and condition of shipments, inventory, and delivery vehicles. This enables companies to
optimize their logistics operations and make more informed decisions.

Increased Customer Expectations: Customers today expect fast, reliable, and transparent delivery of
products. The use of Big Data and IoT can help companies meet these expectations by providing
realtime tracking and monitoring of shipments, personalized recommendations, and better customer
service.

Globalization: Supply chains today are complex and global, with multiple partners, suppliers, and
vendors involved. The use of Big Data and IoT can help companies manage these complex supply chains
by providing real-time data and insights into operations.

Risk Management: Supply chain disruptions such as natural disasters, political unrest, and labor strikes
can have a significant impact on operations. Big Data and IoT can help companies mitigate these risks
by providing real-time data on disruptions and enabling them to quickly respond and minimize the
impact.

Sustainability: Customers today are increasingly conscious of the environmental impact of their
purchases. The use of Big Data and IoT can help companies track their environmental impact and reduce
their carbon footprint by optimizing their logistics operations, reducing waste, and using renewable
energy sources.

Literature Review

The fourth industrial revolution, also known as Industry 4.0, is at the center of the Internet of Things
(IoT), big data, and artificial intelligence, a topic that has gained much attention in academic and
professional circles. It also entails integrating factory production with the full product life cycle and
supply chain processes , as well as modifying people's work habits and supply chain management.

The ability of companies to use digital technologies to record and analyze data in real time and then
provide critical information to industrial systems is a key element of Industry 4.0. As shown in Figure 2,
the Internet of Things (IoT), big data, and artificial intelligence enable this, forming the cyber-physical
systems paradigm of Industry 4.0.

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To remain competitive in their global supply chains, most supply chains are leveraging information
technology to improve automation and manufacturing performance in this new dynamic business world.
Businesses must embrace Industry 4.0 by leveraging the Internet of Things (IoT), a concept initially
advocated by Kevin Ashton in 1999, to alter the digital supply chain

In 2011, the federal government, universities and private companies responded to the German proposal
for Industry 4.0, a strategic step to improve the production system and increase the competitiveness and
quality of the country's industry. This definition implies the emergence of a new industrial phase in the
manufacturing systems. It refers to a collection of converging and evolving technologies that add value
throughout the product life cycle. To create human influence in the production system in this new
industrial stage, social technologies are required. Throughout this phase, all value chain operations will
be developed and carried out with the help of intelligent approaches based on information and
communication technologies (ICTs).

Industry 4.0 is currently focusing on information sharing and supply chain integration (also known as
smart supply chains), the synchronization of data generation and analysis with manufacturers to reduce
lead times, and the bullwhip effect caused by insufficient information. This integration also enables
companies to collaborate with industrial capital , allowing them to concentrate on key competitive
advantages and share product-related engineering capabilities in internal industry forums, allowing them
to co-create more valuable products, assets, and services.

Industry 4.0 considers both the transformation of manufacturing processes (smart manufacturing) and
new delivery systems (smart products) based on new information technologies. The distribution of raw
materials and goods (smart supply chain) is also considered, as are new forms of employee performance
enabled by new information technologies (smart work).

Smart Supply Chain

According to supply chain management standards, the most essential justification is that it is less
expensive, quicker, and stronger. In today's digital world, supply chains are growing increasingly
complicated, expensive, unpredictable, and fragile. As a result, supply networks must become smarter in
order to handle the expanding difficulties. The new supply chain paradigm will necessitate the creation
of a plethora of new intelligent devices that enable the integration and iteration of data, information,
physical parameters, products, and operational processes by leveraging technological advances in areas
such as computer science, semiconductors, and other information technologies. For example, there are
clear benefits to overcoming physical distances and creating information value chains between factories
outfitted with smart devices and tools for fulfilling accurate product delivery with global partners,

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computer analysis, and complex systems. Companies that possess these abilities will undoubtedly gain a
competitive advantage. Intelligent transportation management systems and smart factories are two
common examples of intelligent supply chain systems in use today.

As a result, smart supply chains are a complex, interconnected framework that includes stand-alone,
regional, and individual enterprise use, as well as broad comprehensive supply chain implementations.
These terms have unmistakably been applied to larger, more complex business networks like online
supply chains, the Internet of Things, smart factories, and the Industrial Internet. Individual RFID
applications are intelligently linked to fragmented IoT devices, smart factories, and eventually become
part of a global supply chain network within the same company. Smart supply chains can also be defined
as a contemporary business framework for interconnected enterprises, ranging from isolated, partially
regional IoT implementations to larger systems with smart supply chains. In other words, the smart
supply chain exhibits the aforementioned features through the use of different technologies, such as the
Internet of Things, smart machinery, and smart infrastructure.

The interconnected supply chains, effective data collecting, and real-time communication are all aimed
at intelligent decision making, efficient and responsive operations. On the one hand, technology is
required outside the plant to enhance the distribution of raw materials and finished products in the
supply chain via horizontal integration of the factory with external suppliers, cutting operating costs and
shortening lead times. The smart supply chain, on the other hand, sees factory innovation as a tool to
help employees work more efficiently and better adapted to the needs of industrial systems.

General Electric is a prime example of a smart supply chain. GE gathered relevant data from industry
systems and, after implementing a smart supply chain, installed vibration sensors in power plant
turbines, saved 35% on global turbine maintenance and developed design improvements.

Challenges Of Using Iot In Supply Chains

Thanks to the widely interconnected Internet of Things], vast amounts of information and more
advanced, smarter services are readily available. Significant corporate, political, and technological issues
have arisen in the Internet of Things infrastructure, which must be replicated before these systems can be
widely used. Determining how knowledge is accessed is one of the issues facing the IoT in supply
chains.

To improve the efficacy and efficiency of the supply chains, IoT applications must be assessed in terms
of the value created across the supply chain . In contrast, the Internet is currently a vast and untapped
resource for unstructured data. Collecting and analyzing valuable data for reuse and improvement is
critical to fully leveraging IoT in supply chains.

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Another set of difficulties and challenges of IoT in supply chains identified by numerous professors is
the security and privacy concerns raised by Bi et al . The challenge of data dependency has been raised
due to the massive rise of data in the supply chain. Congestion has been identified as a stumbling block
for scaling, extending, planning, research, and storing. These facts, such as noise buildup, misleading
information, measurement inaccuracy, and other flaws, may have a gradual impact on the users and
these facts may even compromise information and manufacturing security during the supply chain
process. Furthermore, as information technology advances, the number of cyber-crime increases,
potentially increasing the possibility of information leaks and jeopardizing the privacy of businesses and
individuals.

All of the above issues and challenges are related to information. Aside from this, some organizational
issues and challenges are considered. Because of the high labor costs and severe working circumstances
in these sectors, the Internet of Things may readily be utilized to optimize production and distribution in
mechanical engineering, automotive and discrete manufacturing, power generation, oil and gas, and
mining . To maintain production safety, stability, and efficiency, these manufacturing and heavy
industries require the use of IoT in their supply chain. However, the use of IoT in the supply chain of
light industries and service industries such as taxis and hairdressers have encountered obstacles. This is
due to the high demand for personalized and humanistic care in these industries, which makes the
replacement of machines and sensors difficult. Furthermore, technical advancements in IoT and artificial
intelligence are still insufficient to entirely replace people in these . industry and service industries.
Another reason is that national regulatory restrictions and traditional perceptions of people are also key
barriers to the implementation of IoT in light industry and service supply chains.

Another organizational difficulty is that various organizations store different types of data and utilize
different operating systems, making the exchange of information across industries problematic..
Meanwhile, to maintain secuirty, some companies maintain tight information loops within their
industries. Once an information exchange platform is in place, it can easily create uncertainty and risk
throughout their industry. On the other hand, restrictions on data access stifle the development of IoT in
the supply chain

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DHL CASE STUDY

DHL, one of the world's largest logistics companies, has been at the forefront of adopting Big Data and
IoT technologies to transform its supply chain operations. Here are some examples of how DHL is uses
Big Data and IoT:

Smart Warehouses: DHL has implemented smart warehouse technologies such as IoT sensors, RFID
tags, and drones to optimize its warehouse operations. The company uses IoT sensors to track inventory
levels, monitor temperature and humidity, and detect any anomalies in the warehouse environment.
RFID tags are used to track and locate inventory, while drones are used for inventory counting and
stock-taking.

Predictive Maintenance: DHL uses Big Data analytics to predict when maintenance is needed for its
equipment and vehicles. The company collects data from sensors and devices installed on its assets and
uses machine learning algorithms to analyze the data and predict when maintenance is required. This
helps DHL reduce downtime and improve efficiency.

Real-Time Tracking and Monitoring: DHL uses IoT-enabled sensors and devices to provide real-time
tracking and monitoring of shipments, inventory, and delivery vehicles. The company has implemented
a platform called MySupplyChain that provides customers with real-time visibility into their supply
chain operations, enabling them to track shipments and monitor inventory levels.

Demand Forecasting: DHL uses Big Data analytics to forecast demand and optimize its inventory levels.
The company collects data from multiple sources, such as customer orders, sales data, and social media,
and uses machine learning algorithms to analyze the data and forecast demand. This helps DHL reduce
inventory costs while ensuring that it has the right products available at the right time.

Route Optimization: DHL uses Big Data analytics to optimize its delivery routes, reducing fuel
consumption and improving efficiency. The company collects data on traffic patterns, weather
conditions, and road closures, and uses machine learning algorithms to analyze the data and optimize its
routes.

Sustainability: DHL uses Big Data analytics to track its environmental impact and reduce its carbon
footprint. The company collects data on its energy consumption, fuel consumption, and waste
production, and uses machine learning algorithms to analyze the data and identify opportunities for
improvement.

In conclusion, DHL is using Big Data and IoT technologies to transform its supply chain operations,
improving efficiency, reducing costs, and enhancing customer service. The company's innovative use of

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these technologies demonstrates the potential of Big Data and IoT to revolutionize the supply chain
industry.

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Future Aspect

The future of Big Data and IoT in the supply chain industry is promising, with new technologies and
applications emerging rapidly. Here are some of the future aspects of Big Data and IoT for supply chain:

Autonomous Vehicles: The use of autonomous vehicles in the supply chain is expected to increase in the
future, with self-driving trucks and drones delivering goods more efficiently and safely. Big Data and
IoT technologies will be used to enable these vehicles to collect and analyze real-time data on traffic
patterns, weather conditions, and other factors to optimize their routes and improve efficiency.

Blockchain: Blockchain technology has the potential to revolutionize supply chain management by
providing a secure, decentralized platform for tracking and tracing products and transactions. Big Data
and IoT technologies can be integrated with blockchain to provide real-time data on the location, status,
and condition of shipments and products, improving transparency and reducing the risk of fraud and
counterfeiting.

Predictive Analytics: The use of predictive analytics is expected to become more widespread in the
future, with companies using machine learning algorithms to analyze Big Data and IoT data to predict
demand, optimize inventory levels, and improve supply chain efficiency.

Augmented Reality: Augmented reality technologies can be used to provide workers with real-time data
and insights on inventory levels, equipment status, and other critical information. This can improve
efficiency and reduce errors in warehouse operations.

Robotics: The use of robotics in the supply chain is expected to increase, with robots performing tasks
such as picking and packing, sorting, and palletizing. Big Data and IoT technologies can be used to
optimize the performance of these robots and ensure that they operate safely and efficiently.

Edge Computing: Edge computing is a distributed computing model that processes data near the edge of
the network, closer to where the data is generated. This can improve the speed and efficiency of data
processing and reduce the need for large amounts of data to be transmitted over the network. In the
supply chain, edge computing can be used to process IoT data from sensors and devices in real-time,
enabling faster decision-making and improving efficiency.

In conclusion, the future of Big Data and IoT in the supply chain industry is exciting, with new
technologies and applications emerging rapidly. Companies that adopt these technologies and integrate
them into their supply chain operations can gain a competitive advantage by improving efficiency,
reducing costs, and enhancing customer service.

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Recommendation:

Here are some recommendations for adopting Big Data and IoT technologies in supply chain operations:

Develop a clear strategy: Before implementing Big Data and IoT technologies, it is essential to develop a
clear strategy that defines the goals and objectives of the project. The strategy should identify the
specific business problems that Big Data and IoT can solve and how these technologies will be
integrated into existing supply chain operations.

Focus on data quality: Big Data and IoT rely on high-quality data to provide accurate insights and drive
decision-making. Therefore, it is essential to focus on data quality by ensuring that data is collected
consistently and accurately and that data is cleaned and standardized before analysis.

Build a scalable infrastructure: Big Data and IoT generate vast amounts of data, which require a scalable
infrastructure to manage and analyze. It is essential to build a scalable infrastructure that can handle the
volume, velocity, and variety of data generated by Big Data and IoT.

Invest in analytics capabilities: Analytics capabilities are essential for making sense of the vast amounts
of data generated by Big Data and IoT. It is essential to invest in analytics capabilities, such as machine
learning, to analyze data and extract insights that can drive decision-making.

Collaborate with partners: Supply chain operations involve multiple partners, such as suppliers,
manufacturers, distributors, and retailers. To fully realize the benefits of Big Data and IoT, it is essential
to collaborate with partners and share data and insights.

Ensure data security and privacy: Big Data and IoT technologies generate sensitive data that must be
protected from unauthorized access and breaches. It is essential to implement robust security measures,
such as encryption and access controls, to ensure data security and privacy.

Conclusion:

To recapitulate, with the development of the digital economy, new information technologies such as the
Internet of Things and Big Data/artificial intelligence have steadily influenced the establishment of
global supply chains. As a result, production efficiency has increased while costs have decreased. In the
meantime, integrating IoT into the supply chain presents some organizational and informational
challenges.

To begin, this paper defines the supply chain in the introduction. In the literature review section, the
causes of supply chain transformation (Industry 4.0), smart supply chain, IoT technology and IoT
application issues were examined individually. Furthermore, issues related to the integration of IoT in

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the supply chain be carefully distinguished as organizational issues and informational issues. To support
the claims of this paper, examples and figures are included where appropriate.

According to the observations in this paper, the use of IoT is accelerating the trend of changes in the
supply chain. These can boost a company's product's productivity and efficiency. It is critical to
understand the evolution of today's smart supply chain and to be knowledgeable about the application of
information technology. In addition, the research community and industry need to thoroughly investigate
the challenges and issues related to the use of IoT in the supply chain. If the research community and
industry can conduct detailed and accurate investigations, we can see how corporations will rearrange
their supply chains to obtain a competitive edge in global marketplaces in the future, which is
demonstrated in product productivity and manufacturing efficiency.

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