Traditionally, a supply chain is the main element that has not been opened to the digital evolution offered by IoT (Internet of Things). But outdated supply chain management methods must be left behind.

The digitalization offered by IoT primarily brings benefits in terms of the strategy behind a supply chain. From calculating stocks to estimating demand and transportation availability, things will move much faster.

The needs of a modern supply chain

  • Supply chain automation. By 2020, 90% of supply chain execution systems will be based exclusively on cloud data storage applications. This allows high-performance systems of logistics companies to plan the transit of products automatically, through a very easy and fast access to data. The data will be provided by predictive analysis systems, which provide a real-time situation of available stocks and need.
  • Outsourcing logistics services . This model follows the success of the Amazon retailer, which has a network of supply chains in the micro-logistics system. Instead of owning a lot of their own supply chains, they will share this with other retailers.
  • Automation achieved through robots in the supply chain. The transition to such a technology proved to be profitable, being chosen in a percentage of 24% last year, a doubling in numbers compared to previous years, where the percentage was around 13%.
  • Waiver of short-term demand forecast. Through IoT, the market demand will be automatically anticipated and in a continuous flow. Thus, the supply method will be determined, without any unforeseen delays or interruptions.

Automating these processes and investing in modern technologies can be costly and complicated at first. For this reason, the outsourcing of logistics services to specialized companies is encouraged. Not only do they have the necessary technologies, but they also offer consulting adapted to each type of business.

A modern supply chain must now focus on digital elements. This increases productivity and speed on several levels. Stocks will never be lacking, because demand is anticipated and handling is streamlined by robots.