The trend toward IoT-enabled SCM is creating a convergence of disparate sets of providers and the rise of a new ecosystem that will have far-reaching benefits to users.
According to Frost & Sullivan, some of the benefits driving the adoption and implementation of Internet of Things (IoT) systems within the supply chain management (SCM) market are end-to-end visibility, predictive analysis, transparency, and real-time insights.
"Current supply chains will be reinvented as IoT-enabled systems allow unprecedented end-to-end visibility, remote tracking, and control," said Deepali Sathe, senior industry analyst at Frost & Sullivan. "The increase in automation will significantly improve accuracy of predictions and speed of execution."
These trends are identified in the Frost & Sullivan’s latest research entitled “Growth Opportunities in the Internet of Things-enabled Supply Chain Management Market, Forecast to 2024”.
Introduction of new business models
One of the biggest impacts of technology adoption on SCM has been the introduction of new business models.
As data siloes diminish, customers can focus on the benefits that can be achieved as a result of improved end-to-end visibility, ability to remotely control devices, and automated processes.
"Predictive analytics based on artificial intelligence (AI), machine learning (ML), and Big Data Analytics (BDA) will reduce errors and take the guesswork out of planning, forecasting and execution," noted Adrian Drozd, research director, ICT at Frost & Sullivan. "Technologies such as blockchain can create better and faster processes and prevent fraud, while robotics will enhance automation and precision for greater accuracy."
Vendors offering IoT-enabled solutions can tap into new growth opportunities by:
- Focusing on increasing demand for IoT-enabled, multi-function robots and cobots.
- Investing in the development of sensors and tags required for connected devices.
- Offering strong, multi-layered cybersecurity solutions to tackle potential threats.
- Harnessing data using AI and ML technologies to enable solutions such as chatbots or smart home speakers.
- Meeting customer preference for XaaS business models such as platforms and sensors.