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How IoT Is Disrupting the Supply Chain

While we're finding digital disruptions in many industries and even in our everyday lives, there's still room for more innovation. In a previous post, we touched on smart homes and how the internet of things was transforming home appliances, but although that's buzzing marketing to promote this technology, the truth is that IoT sensors can go a lot further. 

According to a survey conducted by Accenture, industrial IoT devices are expected to add 14 Trillion dollars to the global economy by 2030. How is the internet of things disrupting the supply chain?


Supply Chain IoT Innovation 

From revenue opportunities to operational efficiency, the internet of things is bringing many benefits to the supply chain and manufacturing sector. 

Location sensors

One of the ways that IoT is changing the processes in the supply chain industry is with location services. IoT sensors are being used to connect and track goods and materials as well as locating where they're organized in storage. 

With the importance of personalization and delivery for customer experience, as we've seen Amazon master, using location sensors to gather and organize goods, serve both the operations and the customers.

Operational Efficiency 

Thanks to the gathering of data and the ability to use that data to predict and take actions, IoT sensors are proving successful in improving operations in the supply chain and manufacturing sector. They help with forecasting and managing inventory, as well as can keep an eye on the product freshness and quality. 

The Volkswagen Example: IoT & AWS 

A use case that has been on the news recently, is the one of Volkswagen. They are aiming to use IoT along with Amazon Web Services to collect and analyze data to optimize production. 

"The world's biggest carmaker Volkswagen has said it will use cloud computing and Internet of Things (IoT)  technologies from Amazon Web Services (AWS) to connect and manage its manufacturing plants and supply chain.

The two companies said they have signed a multi-year deal to build what they are calling the 'Volkswagen Industrial Cloud', which will manage the automotive giant's manufacturing and logistics. The aims of the project are to increase plant efficiency and uptime, improve production flexibility, and increase vehicle quality."