The supply chain is going through a period of great change, technological but not only. Indeed, recent years have shown how what might have been considered certainties, in pricing and supply availability, are actually much more volatile than we imagined. We need to rethink it, to make it more agile, more responsive and secure, to enable a more modern approach to manufacturing.
The adoption of sensors, Industrial Internet of Things (IIoT) and control activities such as Real Time Monitoring (RTM) is contributing to this transformation. Starting with enabling technologies such as next-generation sensing, to new supply chain management techniques, digital transformation is a very important aid and support to the change taking place.
IIoT: the basis of the new smart supply chain
As we mentioned, sensors are at the heart of this innovation push. In order to perform any kind of analysis, from simple real time monitoring to predictive scenario analysis, critical data must be collected throughout the entire supply chain, including machinery and production facilities.
Sensors can monitor various parameters, for example , temperature, humidity, position, vibration, and battery level.
For example, temperature sensors are essential in recipe management in the pharmaceutical and food industries, where specific conditions must be maintained to ensure product quality or, in some cases, the very success of the preparation.
Here the theme of monitoring returns. While this is not an evolved use of data so to speak, at least at first superficial analysis, it is a vital business use. Let’s not forget, however, that a connected supply chain can also use this information in smarter ways.
Staying with the example of temperatures, it is possible to check through historical data when anomalies have occurred and, through multidimensional analysis tools, to see if they can be traced back to some specific cause, such as hours of machinery operation, raw materials used or external environmental conditions.
IIoT sensors can be integrated at various points in the supply chain: manufacturing facilities, warehouses, transportation and so on. The goal should be to deploy them ubiquitously, to achieve comprehensive, end-to-end visibility capable of providing real-time data, both for contingent audits and to enable advanced analytics and decision support.
As a testament to the value this data has, more and more companies are gearing up to collect it, as evidenced by the growth of the industrial IoT market¹ from $865 billion in 2024 to $3,353 in 2030.
IIoT: an investment with value
Although today the distance between the two worlds is shrinking more and more, in reality the IIoT should be considered an evolution of sensing in the strict sense, which amplifies its capabilities by enabling the communication and analysis of collected data. Through the resulting networks of interconnected devices, the IIoT enables the collection, transmission and processing of large volumes of data, which can be analyzed using machine learning and artificial intelligence algorithms to identify patterns, predict anomalies and optimize operational processes.
We have already seen a brief example with temperatures, but the applications are numerous: for example, a smart supply chain can use sensor data to monitor the status of goods in transit in real time. If a deviation from the expected temperature is detected, operators can receive an alert and work to resolve the problem within the tolerance time frame. In this way, losses, including economic losses, can be avoided and a more secure and effective system can be built.
The Benefits of Real Time Monitoring in Supply Chain Management
IoT sensors, in short, are radically changing the supply chain. But how do these benefits materialize? Here are some examples of the most significant ones.
Visibility and transparency: real-time data are vital to constantly monitor the status of the supply chain. The resulting visibility improves product traceability, facilitates inventory management, and reduces the risk of loss or damage.
Responsiveness and flexibility: the ability to constantly monitor supply chain conditions and performance and to matrix this data with external conditions enables companies to respond quickly to any problems, changes in demand or other contingencies. This results in increased operational flexibility and reduced downtime.
Process optimization: analysis of data collected from sensors can help identify inefficiencies and perfectible processes. For example, monitoring machine operating conditions can prevent unexpected failures through predictive maintenance, increasing productivity and reducing operating costs.
Risk management: real-time data collection allows risks to be quickly identified and mitigated. For example, sensors can detect hazardous or abnormal conditions, such as leaks, excessive vibration, or excessive variations in field data, and activate safety systems to prevent accidents.
From sensors to digital transformation: how the supply chain evolves
Supply chain transformation through the use of sensors and IIoT is one of the most interesting evolutions in logistics, manufacturing and goods movement. While starting from a simple and straightforward assumption, in fact, it enables the projection of historical data, information and tools necessary for important business evolution. Companies that adopt these technologies can benefit from visibility, responsiveness and significant process optimization. Real-time monitoring, in short, is not only a strategic choice, but an opportunity to open up for more advanced solutions in the future.
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¹: Source. Statista.com
