How Industrial IoT Is Revolutionizing Supply Chains: 3 Key Transformations

The biggest reason early adopters are making the switch over to Industrial Internet of Things (IIoT) solutions is to gain an advantage over competitors.

Given the success that these companies are already enjoying, we will likely see many more companies begin to implement their own IIoT projects in the coming years. Organizations that wait any longer run the risk of being disrupted by those that get ahead.

Author Dan Roberts outlines three key areas where IIoT will soon begin disrupting supply chains:

More efficient operations. In retail, industrial IoT is helping deliver every supply chain manager’s dream of visibility and food security. Companies like Walmart, working with IBM, are taking the opportunity to integrate ‘blockchain’ technology for distributed ledgers to ensure tracking and food security throughout the supply network.

Improved customer experience. Elekta, a Swedish manufacturer of medical technologies for treating cancer and brain disorders, uses connectivity and smart device technology to help differentiate its service business and expedite the way its products are being serviced. Elekta partnered with PTC and GE Digital-owned ServiceMax to implement Connected Field Service.

New revenue opportunities. Rolls-Royce is using Industrial IoT to change its role within the supply chain. The company’s TotalCare services provide a ‘power by the hour’ model, where customers pay based on engine flying hours. The responsibility for engine reliability and maintenance rests with Rolls-Royce, which analyzes engine data to manage engine maintenance and maximize aircraft availability.

Vendors selling IoT-enabled products or solutions will need to solve the security question. And they will need to design it in at entry level, from microprocessor manufacturers such as ARM and Intel to the IoT platform providers like GE Digital, Microsoft, and AWS.

By 2020, Roberts says we can expect that the plethora of industrial IoT products and services will have consolidated and the pricing models will be simpler and well established. Customers will expect their suppliers to be tracking their products through sensors, as standard solutions replace special projects.

Beyond 2020, he anticipates supply chains will be transformed by the digital projects of their participants. That means greater transparency and traceability, with improved customer experience and lower costs.

Read the full story on our sister site EBNonline.com