The value of IoT in supply chains
In South Africa mining companies are using sensors to detect methane and rock movement, fuel pipelines have been fitted with sensors to monitor leaks, and the retail sector is using radio-frequency identification (RFID) tags to track items. Because Africa doesn't have the same extensive legacy applications and infrastructure as Western countries, African businesses are in a unique position to leapfrog over interim technology and adopt IoT solutions more easily.
Streamlining the supply chain
There are still many opportunities available for African businesses to use IoT technology to improve efficiency for the supply chain. Businesses in many industries can adopt IoT technologies to better track assets, control inventory and limit inefficiencies. Shipments can be traced through the manufacturing and transportation process in real-time, providing accurate delivery and improved customer service. Using big data and IoT, organisations can proactively replenish inventory based on exact physical data and forecasted demand, maintaining efficiency while never losing a sale due to out of stock merchandise. Embedded sensors can monitor finished products or equipment and predict, alert and even book service and maintenance.
Visibility into the supply chain will no longer be limited to when items will be shipped or delivered, but will expand to include exact time of arrival, temperature control and quality control information. This data will be automatically recorded in the system, adding significant value by documenting each step of the supply chain process. Strengthened by advanced technologies, sensors and big data generated by the IoT, businesses will benefit from a strong and informed supply network that is able to predict, correct and prevent problems before they occur, keeping their supply chain running at optimal efficiency.
Application integration
The IoT will impact every stage of the supply chain. Product lifecycle management (PLM) systems will expand to incorporate product performance measurements, enterprise resource planning (ERP) systems will be able to monitor parts that need replacing, and customer relationship management (CRM) applications will automatically notify customers of the need to replace the part before a fault occurs.
By integrating all supply chain related systems, businesses can revolutionize the customer experience and create a competitive edge. For example, a washing machine manufacturer that equips its products with IoT sensors can create a scenario where the washing machine automatically detects limescale build-up before it damages the engine. The machine notifies the ERP system and checks if a replacement part is in stock. A technician then schedules a service call with the customer and replaces the part before the washing machine breaks down.
Utilizing IoT throughout the supply chain and integrating systems can increase efficiency and revolutionise the customer experience. Organisations that leverage IoT technology can take an important leap forward, widen the gap between themselves and the competition, and become market leaders.
About Lindsay Britz
Lindsay Britz is the Regional Marketing Manager for Magic Software South Africa. She is responsible for marketing functions including proliferation of the Magic brand into SA and Sub-Sahara. With a BCom and BCom Honours in Marketing Management from the University of Johannesburg, Lindsay is passionate about all things inbound within the business to business environment.
