The Impact of the Internet of Things on Supply and Production

Ever since the arrival of the industrial revolution, the finest companies from the around the globe have been using their manufacturing processes as sources for competitive advantage. However, unlike in the past, such systems are no longer doing things just to be right, fast or even efficient. In this manufacturing age, the key differentiator of benchmark organizations is their capability to improve production and sale operations at a pace competitors find hard to keep up with. And as manufacturers begin to embrace IoT into their operations, they are realizing the value of incorporating data into their enterprise functions. As a result, many manufacturers are leveraging on IoT to reshape production and product improvement. Real-time communication, rich data, and ever-present connectivity are all revolutionizing how manufacturers work. And from the look of things, this transformation is destined to expand beyond the machines in factory floors.

The Internet of Things at a glance

As the name goes, the internet of things is a network of sensors and devices all designed in such a way they can share information together. This makes it possible to gather granular data such as the company’s activities and power consumption. In reference to the production and supply process, IoT facilitates a continuous stream of information concerning the supply and demand of products in question. This gives manufacturers the freedom to optimize the manufacturing process by relying on data-oriented approaches.

Production process

IoT can be incorporated into the manufacturing machinery to enhance production. It makes it possible to capture information directly from machines which can then be examined to unearth underlying inconsistencies or probe the system for possible improvements. In such a situation, the data can be analytical or preventive. For example, if a machine is consuming too much power or overheats easily, the management can respond to the data through performing maintenance practices before crippling failures can occur. The data captured by IoT make production efficient since manufacturers have the power to optimize every stage of production.

Supply process

IoT is not just beneficial in the production process. Its benefits span the entire process of supply. From commodity fine-tuning, resource mobilization to informing and tracking final users whenever a product requires replacements or maintenances. Even better, the incorporation of blockchain simplifies the entire process of tracking. Automatic triggers can be incorporated which make it easier to transfer or approve purchases in escrow accounts or even notify consumers whenever commodities arrive for pickup. Integrating IoT in the supply process precisely aids in the determination of the whereabouts and state of a product.

Challenges

With no doubt, the cost of implementing this technology is a big challenge. Though some companies have already begun implementing the technology using newest enterprise business solutions, others might require time to amass enough resources that will enable them to integrate IoT into their manufacturing and supply process.

Inadequate interdependence, either due to reluctance or technical glitches will make it difficult for organizations to work in harmony. However, integrating blockchain has the capacity to transform this without necessitating that organizations expose their patented information.

Finally, there is security. With the internet of things being a connection of many devices, it provides hackers with multiple entry points which increases attack directions. Much can be done to improve such a situation but encouraging safe practices and implementing strong policies largely remains the obligation of the institutions implementing IoT.