Advancements in Supply Chain Management: Role of IoT in Expanding the Scope of the Industry

In the era of globalization, supply chains are the most important components of international trade and commerce. Typically, a supply chain refers to a network of various stakeholders, including individuals and companies that participate in multiple processes from raw material procurement and production to distribution of finished goods to wholesalers, retailers, and end-user customers. Naturally, the profitability of any business directly depends on the resilience demonstrated by its supply chain. Supply chain management involves the overall administration, control, and regulation of these manufacturing processes and logistical procedures. 

Growing Dependence on Supply Chain Management for Enhanced Business Operations

In the last few years, the importance of supply chains has increased exponentially due to rise in demand for consumer goods, including industrial equipment, electrical and electronics appliances, lifestyle and personal care products, foods and beverages, and others. As per a report published by Allied Market Research, the supply chain management market is anticipated to gather a revenue of $85.3 billion by 2033, citing a CAGR of 11.1% during 2023-2033.

The recent disruptions in global supply chains have further increased the significance of supply chain management. During the COVID-19 pandemic, governments across the globe imposed social distancing norms and lockdowns, which led to huge decline in the production of various goods. Furthermore, the demand for different products was also reduced due to a fall in the overall disposable incomes of people across the globe. Moreover, geopolitical tensions around the world, including the Israel-Palestine conflict and the Russia-Ukraine war have impacted manufacturing and logistical networks. To help their businesses thrive in such a negative scenario, companies are increasingly investing in advanced technologies to improve the overall efficiency of their supply chains and manage their operations better.

The Internet of Things has been one of the most critical technologies that has contributed to the growth of the supply chain management industry. IoT-enabled devices are used by logistical companies to improve their monitoring capabilities. These gadgets aid companies in tracking the location of their shipments and keeping an eye on the status of the delivery package. This technology enables companies to measure various parameters such as temperature, humidity, atmospheric pressure, traffic patterns, and many more to simplify the manufacturing and delivery processes. Ultimately, this helps enterprises reduce their input costs, maximize their profit share, and expand their customer base globally. 

Technology Companies Investing in R&D Activities and Launching Innovative Products

Recently, several key software businesses have invested in R&D activities and launched ingenious products to increase their footprint in the industry. For instance, in February 2023, KORE, a major IoT solutions provider, announced the launch of MODGo, a unified SaaS platform that helps companies implement different IoT-enabled services in processes related to inventory management, reverse logistics, network connectivity, and lifecycle management. Such software applications have played a huge role in expanding the operations of the concerned companies in various regions worldwide and strengthened the foothold of the sector.

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