Internet of Things Supply Chain: Main Links

By: Segiy Sergienko, 18 Oct 2021
4   min read
Reading Time: 4 minutes

Advances in technology improve market infrastructure and ways of doing business. The Internet of Things has the potential to innovate the supply chain across industries.

Management, forecasting, and monitoring applications improve product distribution efficiency and decision-making transparency. You don’t have to personally check boxes and containers. This will be done by smart devices, sensors, and finally, robots. They will advise you on how to save fuel, optimize routes and form the best price offer.

This article sheds the light on the key aspects of the IoT Supply Chain technology implementation, as well as its advantages and disadvantages.

Internet Of Things Supply Chain Technology: Key Benefits

Employing the capabilities of IoT in logistics brings the following advantages.

Real-time monitoring and tracking

IoT devices help track everything from location to cargo temperature, providing the most up-to-date data. They can automatically tag shipments that have left the safe temperature zone and protect customers from spoiled goods.

End-to-end automation

Automation of supply chain and logistics business tasks provides accurate and quickly available data for the operation of automated warehouse systems.


Businesses can automate the most extensive and cumbersome paperwork, such as checking a freight broker’s collateral or adjusting a bill of lading.

Precise forecasting

The Internet of Things supply chain technology helps improve data accuracy and provides better demand forecasting materials by:

  • reducing the human factor effect;
  • gathering data without downtime by custom schedule;
  • easily getting you data that is difficult or impossible to gather manually.

Inventory management

The IoT-enabled ecosystem of supply chain technologies automatically monitors and analyzes stock status and levels.



The IoT in logistics improves the efficiency of interaction between parties in the supply chain. Managers can communicate with customers more conveniently, providing personalized service.

Ecological factor

IoT sensors help implement green fleet management strategies and integrate green initiatives.

High performance

Intelligent scheduling and tracking tools accelerate deliveries, reduce feedback loops, reduce the risk of delays, and improve inventory efficiency.


Turnover information helps to determine the required order quantity. The IoT also adds high fidelity to navigation.

Better segmentation

The combination of the Internet of Things and supply chain technology enables learning more about products, customers, and demand. The data helps you understand the market and segment products based on your target audience.

Better productivity

The IoT offers a wide range of employee-centric connected platforms. Tools like smart glasses help instruct warehouse workers. Thus, the Internet of Things collects performance-related data and raises awareness of resource and workforce management.


Approaches to employing the IoT in logistics:

There are two major business value boosting principles: 

  1. Increasing profits. The Internet of Things will show you how to increase your logistics revenue. It makes it easier to improve existing and create new logistics products that meet industry standards.
  2. Reducing expenses. Optimizing your supply chain with IoT tools is easier. All shortcomings are immediately visible, as well as the effectiveness of measures to eliminate them.

Smart warehouses assess fluctuations in demand and automatically send a replenishment request.

The IoT-enabled ecosystem of supply chain technologies provides the ability to anticipate desires, collect search and lead data from customers, and keep in-stock goods in demand. The implementation helps to create an audit plan and reduce unnecessary costs.

The IoT will help avoid issues due to overloaded vehicles, use of low-quality roads or tires. You may safely expect to reduce repair costs, downtime, and other expenses.

Vehicle telemetry provides insight into improved routes by eliminating fuel-intensive roads. You can route goods to where there is demand, and not use heavy trucks on the last mile of delivery.


Challenges of Using IoT in Logistics

Despite the many advantages of using the IoT in the supply chain and logistics business, a number of issues associated with its implementation remain relevant.

Lack of expertise

Managing interconnected systems requires additional training. Explaining security practices and making recommendations will take time.

Data storing and processing

The IoT-enabled ecosystem of supply chain technologies requires powerful servers, data governance policies, and skilled analysts.

Security threats

Vulnerabilities in network-bound platforms create risks that undermine a company’s reputation and add to the cost of disruptions, leaks, and breaches. The introduction of machine learning and cryptographic monitoring of equipment can reduce security threats related to data access and storage.


The Internet of Things supply chain technology requires a reliable Internet coverage network. With the proliferation of 5G, this issue should be gone off the agenda. Bandwidth is another issue. Connected platforms consume significant bandwidth and require a high-tier server farm to run smoothly.


Building a flawless Internet of Things Supply Chain will require regular analytics and monitoring of pricing, supply security, and communication transparency. You can implement it yourself or resort to the help of professionals with experience and expertise in this area.

Sirin Software offers a top-notch IoT product development and support team. Contact us, and in the shortest possible time, your supply chain and logistics business will acquire a high level of efficiency in full accordance with your needs.

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