Supply Chain Management With the Internet of Things Integration

The supply chain in its traditional form faces several uncertainties and challenges like complexity, cost, or vulnerable problems. The supply chains must become streamlined and robust to eradicate the problems in the system. 

This is where the application of the Internet of Things (IoT) in supply chain management comes into the scenario. 

IoT brings about the establishment of intelligent infrastructure on a large scale to merge data, information, physical objects, products, and supply chain processes.

This article provides insights into the impact of the internet on supply chain management and how the Internet of Things (IoT) helps build a smart and secure supply chain management system. 

What Is The Internet Of Things (IoT)?

Internet of Things (IoT) is simply a physical object (things) connected within a network embedded with specific technologies, software, and sensors to establish a purposeful connection over the internet to exchange data with other devices. 

IoT devices are different from the devices which keep humans connected to the internet. IoT devices generally include smart home sensors and appliances, wearable technologies, smart home security devices, etc. 

It is predicted that the total base installation of IoT devices globally by 2025 will be 30.9 billion units.

Reference Source: Internet of Things (IoT) and non-IoT active device connections worldwide from 2010 to 2025

IoT impact on supply chain management has helped strengthen the ICT infrastructure so that there can be greater integration with the organization and on an external basis with suppliers and customers.

Impact Of IoT On Supply Chain Management

IoT, or the internet in general, makes the entire process of supply chain management efficient by saving companies time and money. Daily, many products require shipment, tracking, accounts done by people, ships, or via any transport medium.

IoT impact on supply chain management is a crucial solution to reduce the cost involved. The information available on the Internet-based online marketplaces involves transparent and speedy transactions. 

IoT devices considerably impact the entire supply chain management process, mainly including warehouse management, logistics, transportation, and delivery of goods to the end customer. 

Overall, the impact of internet on supply chain management has led to the creation of new technology like IoT devices that deliver optimum performance. Such devices include autonomous vehicles, optimum energy consumption sensors, safety workplace alarm sensors. 

Manufacturers can carry out their operations and deliver customer services more efficiently with the help of IoT devices in their supply chain. IoT sensors can provide real-time reports on GPS and any weather conditions. 

Many companies have unique IoT solutions that allow them to collect and write accurate information directly from IoT sensors onto a decentralized blockchain that cannot be hacked. 

It also allows manufacturers to have a complete real-time insight of their supply chain and customers to scan and check whether the product delivered is original. 

Why Is IoT Important For Supply Chain Management?

1. Increased Visibility

IoT in supply chain permits real-time updates to the supply chain managers, who can track the entire process, schedule decisions, and deliver goods more efficiently.

2. Better Collaboration

IoT allows decision-makers to access near real-time information on job statuses across the entire chain and helps impact business with increased collaboration.  

3. Intelligent Planning

Logistics and supply chain managers can optimize productivity by utilizing and identifying assets and their performance, along with intelligent route planning. Increased assets allow the managers to plan for increased dispatch and delivery.

4. Optimized Customer Service

A securely connected supply chain helps deliver better customer services. Managers can look into potential problems earlier and try to meet customer expectations and Service Level Agreements.

Also Read: 6 Technologies Shaping the Supply Chains


There are multiple cases of IoT in supply chain involving technological revolution, and the impacts of the same are analyzed and discussed in this article. The internet as a whole plays a vital role in overcoming the traditional setbacks faced in SCM.

John Langer is a freelance writer, with years of experience, creating content for varied online portals. His content is published on many national and international publications. He has expertise in writing about business services, marketing home improvement.