How the Internet of Things re-write the Supply Chain’s rules

The Supply Chain system during the last years is changed rapidly, the first reason  is the  rise of new technologies able to share quickly a consistent number of data called Internet of Things (IoT). The second is the Digitalization of data stored and shared thanks to the Cloud system and Digital Platform.

The utilization of IoT device has influenced the entire Supply Chain system. In particular has been touched the production system. Here the Internet of Things can generally improve the functioning of the processes, in particular the Production Planning Process.

The Definition of production planning is – a long-term plan for the operations subsystem – which includes the objectives to be met, the actions to take and allocation of resources to various products and tasks.

The main features:

• Monitoring of product quality, which will allow a better control of damaged, lost and stolen products;
• Improvement and ensuring of product safety, especially the safety of perishable products, such as food or    pharmaceutical products, by means of a powerful real-time traceability system
• Make real-time product information available and for all the supply chain nodes, including customers. This will allow better product follow-up all along the transport route, the exact location and recovery of products, if required, and also information about consumer habits. The participants in the chain will be synchronised with changes in demand. It will also allow customers to decide when to buy and it will offer them ample information about products and producers
• Know the state of equipment, its performance in real time, identify and manage emergencies more quickly.

Relate to the Logistics and in particular the Ports actors, if analyzed in deep the data talk about a level of infrastructure congestion that impact on 1% of EU GDP. The answer to this level of diseconomies will be provided by the Digitalization of both private and public stakeholders.

Following this direction, the container terminals have started to deploy sensors in the cranes, container handling equipment, containers, trucks, and at gates to enable:

• Better management of existing infrastructure
• Understand better the port activities
• Reduce the traffic-related emissions
• Synchronise the arrival of ships and cargo in terminals, schedule and accredit vehicles and consequently use the full capacity of port access.

The next challenge will be the creation of efficient digital platform, where the ensemble of data will be shared in a safest way. One of this solution seems to be the famous Blockchain, where the different actors create personal blocks within the single delivery chain, inserting all sort of information and events related the goods shipped.