Page 18 - Case Study Annual 2015
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The internet
Unravelling the benefits of the
Internet of Things
The Internet of Things (IoT) extends the Internet to traditionally unconnected goods
and services, bringing with it a wealth of supply chain data … and new challenges.
The mass adoption of the modern smartphones For example, while being informed of a traffic jam
occurred roughly eight years ago with the once a vehicle is stuck is useful for updating ETAs
introduction of the iPhone (savvy users will for the end receiver and potentially enacting certain
argue that Nokia and Blackberry got there first, countermeasures (in the case of delivering cold chain
but Apple defined the primary design and interaction goods, for example). However, a more useful approach
criteria). It introduced the general population to the idea would be of road sensors that inform transporters of
of permanent, mobile connectivity and in a remarkably traffic conditions before vehicles leave the depot,
short span of time has radically changed our relationship enabling the use of an alternate route.
with data and our interaction with it.
The IoT expands visibility beyond the product itself.
Today, combined with a proliferation of consumer- It sets up relationships between the various actors
level hardware, a vast number of devices and objects within a supply chain and to infer insight into how they
have embedded computers and sensors that are operate. An example might be assigning IoT-enabled
constantly collecting data on their use and external keys to drivers so, regardless of which vehicle in your
environment while communicating with other devices fleet they’re driving, you can link their driving behaviour
through an ever-expanding network. This has become to feedback from actuators, accelerometers and cameras
colloquially known as the Internet of Things (IoT), and it to specific driver behaviour.
encompasses everything from wearable health monitors
to home style improvements. This could be tied to workflow management apps
on their phones that allow transport managers to
By 2020, it’s estimated that some 50-billion devices capture the drivers’ work-related activities against other
will be connected in the IoT, and the logistics sector is variables for improved insight into their work ethic and
likely to be one of its biggest benefactors. The supply behaviour.
chain industry is well acquainted with many of the
principles and technologies of the IoT, but generally But why collect all this information? Where does
within closed, proprietary systems largely implemented its value lie? It lies in the unspoken effects between
internally within their businesses and connecting these actors. The analysis of this data will allow you
limited external devices or vehicles to the whole. The to draw conclusions about product use, machines
IoT takes that deep analysis beyond the walls of their within your organisation, the real impact of business
organisations. processes and regulations. If you have fragile goods
and label them as such, does it have an impact on
Benefits: Over the garden wall how the goods are handled? In a small experiment
by Popular Mechanics, for example, a package with
The idea of the IoT is a simple one: connecting disguised sensors registered increased rough handling
traditionally ‘dark’ objects to a network in order to when marked as ‘Fragile’.
obtain increased value from their use and – more
importantly in the supply chain context – improved Causation is hard to pin down with such a small
visibility. This visibility can give companies not only sample size, but supply chains don’t have that problem.
more precise information about a product or goods’ With cloud computing putting the power of big data
location in the supply chain, but additional data that analytics within the reach of small-to-medium-sized
can be used to redefine, modify or completely reinvent enterprises, companies have the opportunity to make
their supply chain process. a wealth of small refinements based on extensive
analytics of incoming data.
16 the logistics news case study annual 2015
