Impact of Internet of Things on Supply Chain Management

SUPPLY CHAIN MANAGEMENT SUPPLY CHAIN MANAGEMENT 20 20 SUPPLY CHAIN MANAGEMENT Supply Chain Management [Name of the Student] [Name of the University] [Author note] Introduction: 3 Impact of Internet of Things over the Business performance: 4 Social: 4 Improved rate of visibility: 4 Wide view of the Plant: 4 Visibility to the supply chain: 4 Economic: 5 Collection of Data: 5 Smart assembly: 5 Production of Alerts along with resolution of events: 5 Maintenance at an advanced rate:

Running head: SUPPLY CHAIN MANAGEMENT
Supply Chain Management
[Name of the Student]
[Name of the University]
[Author note]

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Table of Contents
Introduction:....................................................................................................................................3
Impact of Internet of Things over the Business performance:........................................................4
Social:..........................................................................................................................................4
Improved rate of visibility:......................................................................................................4
Wide view of the Plant:...........................................................................................................4
Visibility to the supply chain:..................................................................................................4
Economic:....................................................................................................................................5
Collection of Data:...................................................................................................................5
Smart assembly:.......................................................................................................................5
Production of Alerts along with resolution of events:.............................................................5
Maintenance at an advanced rate:............................................................................................6
Environmental..............................................................................................................................6
Analysis of the facilities:.........................................................................................................6
Automation:.............................................................................................................................6
The moving of the manufacturing companies at a rapid rate:.................................................7
Supply management tools and techniques:......................................................................................7
1. Shipping Status Tools: Alerts and Updates.............................................................................7
2. Order Processing Tools............................................................................................................7

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3. Lean Inventory Tools...............................................................................................................8
4. Warehouse Management.........................................................................................................8
5. Freight Handling......................................................................................................................8
6. Bid and Spend Tools................................................................................................................9
7. Supplier Management..............................................................................................................9
8. Demand Forecasting................................................................................................................9
9. Collaboration Portals.............................................................................................................10
10. Security Features.................................................................................................................10
11. Compliance Tools................................................................................................................10
12. Audit Tools..........................................................................................................................11
Role of Supply Chain in Block chain and internet of things.........................................................11
End-to-End Real-Time Supply Chain Visibility........................................................................11
Enhancing Global Supply Chain Financing..............................................................................11
Regulated Supply Chain Reliability..........................................................................................12
Data-Driven Insights..................................................................................................................13
Role of Reverse Logistics..............................................................................................................14
 Reduction of the costs....................................................................................................15
 Faster rate of service.......................................................................................................15
 Retention of Customer...................................................................................................15
 Reduced losses and unplanned profits............................................................................15

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Conclusion:....................................................................................................................................15
Bibliography:.................................................................................................................................17
Introduction:
Internet of Things or the IoT can be considered as a promising technology which can help in
tackling of problems which are faced by the organization Shape Nz Limited. Shape Nz Limited
is a manufacturing company which is facing few problems. The use of IoT on the manufacturing
company has various impacts. The use of IoT technology that mainly includes the inter-
reliability of the sensors, equipment’s, machines, lines, processing units, plants, materials,
containers, transportation, buildings, computers, software and many more. The use of technology
has greatly helped in the achieving of results which are innovative and are also responsible for
driving the value in the manufacturing process. The use of IoT has been responsible for
disrupting various industries but it is the manufacturing industry which are getting the major
benefits.
Supply chain management is a systematic approach that is adapted in order to manage the
distribution of goods from producers of raw materials, through manufacturers and eventually
down to end users. Supply chain management affects manufacturing companies in a variety of
ways, including the availability of inputs needed for production processes, costs and profitability
of manufactured items, company infrastructure and ways in which companies interact with their
suppliers and customers. Understanding the ways that supply chain management affects

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manufacturers from both a daily operational perspective and a strategic viewpoint is important
for all managers and entrepreneurs in the industry.
Impact of Internet of Things over the Business performance:
The different ways by which the manufacturing industry is evolving by making use of the
IoT mainly involves the following:
Social:
Improved rate of visibility:
The manufacturing industry needs to have a clear view about the resources that are needed along
with the performance of the equipment’s and the various security threats. The use of IoT would
be helping in the development of dashboards which would be associated with showing the
various kind of details which might include the details of the plant environment, safety along
with the efficiency and the return on the assets.
Wide view of the Plant:
The integrated production system is very critical for any manufacturing plant. I case if the
manufactures are located at geographically dispersed locations then the IoT would be greatly
helping in the shortening of the lead times. In order to make the information flow further at a
faster rate along with enhanced market responsiveness and quick making of decisions would be
helping the manufacturers in increasing the Internal Protocol network technology which is
associated with creating connection with the enterprise location assisted by the device-level
production data on a real-time basis.

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Visibility to the supply chain:
The visibility to the supply chain is very much essential as well as challenging. The application
of the IoT on the manufacturing industry would be ensuring a real-time visibility to the processes
related to manufacturing.
Economic:
Collection of Data:
The collection of the data by different kind of sensors and machines are very much helpful in the
analysis and application of the data. Assisted by the cloud the flexibility and the efficiency is
also increased during the collection and storage of the data.
Smart assembly:
The bridging of the gap that exists between the manufacturing and the enterprise networks is also
done by making use of the IoT. The deployment of the intelligent network greatly helps the
manufacturing organization. This greatly helps in the reduction of downtime and this is done by
enabling the remote access to the systems as well as to the partners. Along with this it also helps
in delivering precision, reliability and resilience from the floor of the manufacturing plant to the
enterprises.
Production of Alerts along with resolution of events:
There exists many cases where it is seen that the manufacturing plants are lacking the capability
of providing notifications on a real-time basis relating to the failure of the equipment’s. The open

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standards are associated with allowing them to tap the sensor-level networks and by this the
detecting of the malfunctions become much quick in order to craft the high levels of the overall
effectiveness of the equipment’s.
Maintenance at an advanced rate:
The regular maintenance at a regular basis acts as a key factor in smoothing the functioning of
the plants. The planned outages that are responsible for the maintenance and the repairing of the
equipment’s would be helping the company in making better deal during time of emergencies.
The adaptation of this type of approach is unproblematic as there is no need of maintenance for
all the equipment’s at the same time and according to the same schedule. The industrial IoT has
been helping the company to adopt a more proactive model related to the predictive
maintenance. The industrial IoT is associated with providing a real-time monitoring of the
various machineries along with the health of the devices. This initially enables the company to
schedule the maintenance when there is a need by the machine and not as an arbitrary schedule.
Environmental
Analysis of the facilities:
The comparing of the efficiency with the quality of the product across various facilities was very
much challenging in the past but by making use of the IoT the manufacturing company has been
capable of collecting the data along with analyzing the data from different kind of facilities. This
helps a lot in making better decisions regarding the quality, operational, efficiency and many
more.

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Automation:
The Industrial use of IoT mainly involves the communication between the machines without any
interference from the humans. This is generally associated with extending the scope related to
the manufacturing by making use of the IoT and this has been adopted in order to increase the
production and to boost up the efficiency and also for the purpose of improving the quality and
consistency of the products.
Along with this the use of the Low-cost cloud computing along with the wired and wireless and
communication and systems of the chips for the purpose of embedded computing would be
fueling the IoT revolution.
The moving of the manufacturing companies at a rapid rate:
The manufacturer would be capable of moving heavily towards the individualization along with
mass communication which is a part of the luxurious products which are connected to the
network. For the purpose of enabling this there is a need of maintaining the alignment with the
supply management along with the logistic functions and the partners in order to make sure that
all the levels of service are maintained.
Supply management tools and techniques:
1. Shipping Status Tools: Alerts and Updates
This is one of the most popular features that is built into supply chain management software this
is the functionality which is associated with the providing of timely information related to
shipping. The manufacturing companies consist of a large-volume supply chains, and has many
different types of cargo which are shipped to the customers all around the country or around the

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world. The Digital alert as well as the update features helps in making the shipping process
transparent, along with helping in the tracking of the logistics for the stakeholders.
2. Order Processing Tools
This is another type of supply chain management technology which is associated with working
with the supplies during intake. Processing of the Order helps the companies in better
understanding of what’s happening when the deliveries of various type of products are received.
The Order processing tools mainly include various types of metrics and identifiers in order to
help the business analyze the intake, which is considered as one of the many steps related to the
ensuring of on-time delivery to the customers.
3. Lean Inventory Tools
The lean inventory tool which is also known as just-in-time inventory can be considered as the
new and emerging tool which is associated with carrying of certain kinds of supply chain
management. The idea of this tool mainly includes the whenever needed immediately and this is
generally based on current and projected customer demand. The main goal of this practice is for
the purpose of optimizing the inventory planning and this is mainly done by cutting down on
warehousing space, inventory costs and the different procedures related to storing of excess
inventory. Lean inventory tools is also associated with providing a quite a bit of return on
investment made on the business, while decreasing the need for real estate and streamlining their
labor force.
4. Warehouse Management
In many cases it is seen that the supply chain management tools is associated with helping the
manufacturing company is managing the warehouse’s day-to-day inventory operations. But the

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reality which lies behind is that with the comprehensive design of supply chain management
software, vendors have helped in the warehouse management, including supply chain
performance tools and tools for evaluating the condition of inventory materials.
5. Freight Handling
Associated with the various shipping features, supply chain management tools can also be
helpful in incorporating various types of industry-specific freight handling functionality.
6. Bid and Spend Tools
Cost can be considered as another major area of supply chain operations. Sophisticated supply
chain management tools can be very helpful in the dig down followed by the taking of a granular
look at what the spending on each item are being made and send out during production. These
tools is also associated with assisting the manufacturing company in evaluating the bids that are
received from different suppliers and this helps in spotting the opportunities for improvement.
7. Supplier Management
Besides the assistive features for cost issues, supply chain management tools are also associated
with helping the business in getting a better understanding of how all this are related to the
suppliers. Supplier management tools is also associated with showing the history of the business
partnership and how it would be affecting the supply chain. They are also capable of showing the
level of value and quality that each of the supplier is associated with bringing to the process.
Supplier performance reports is one of the example of a feature built into supply chain
management tools which is associated with showing the way by which a given supplier makes
contribution to the business model. By having this information in hand, the decision makers are

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capable of acting in a more confident way in order to make changes or to manage the supplier
relationships.
8. Demand Forecasting
This is another tool which is associated with working on the predictive model. This tool helps in
the anticipation of the customers’ demand for the purpose of speeding up or to slow down the
supply chain processes. In many situations the demand forecasting acts as a part of a supply
chain management software dashboard. This feature is associated with allowing the management
of the supply chain processes in a much more modern way.
Previous the industry, simply guessed the amount of supply chain product they is needed,
oftentimes holding onto large amounts of production materials that took up unnecessary space.
Demand forecasting and related planning resources is associated with helping the manufacturing
company in achieving a cost savings and business process improvements through more accurate
planning.
9. Collaboration Portals
Along with the modern supply chain management tools, it’s also possible for manufacturing
company and the suppliers to work together with the supply chain processes. This is very
valuable for the stakeholders, as this can help in the elimination of many different challenges,
which includes the communications issues, bottlenecks in requisition and ordering, etc. by
having the self-service Internet portals, the manufacturing company is capable of authorizing the
suppliers to do certain kinds of documentation and to automate the parts of the ordering process.

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10. Security Features
This can be considered as an another element of the SCM software which is mainly focused upon
the security. The manufacturing company also have to think about what types of data can act as a
sensitive one.
11. Compliance Tools
The manufacturing company might be having certain compliance responsibilities. Compliance
tools are mainly built with the responsibilities in mind. Again, with product-centered businesses,
compliance may be related to cold chain storage or other handling requirements. With other
businesses, it may be related to financial data and customer identifiers. Either way, compliance
tools help to maintain compliance standards.
12. Audit Tools
Audit tools is associated with helping the outsiders to get involved in the business and this is
done by taking a look at the operations. These SCM features acts a very useful process in the
eDiscovery and also for other situations which also includes the legal challenges.
Role of Supply Chain in Block chain and internet of things
End-to-End Real-Time Supply Chain Visibility
End-to-end visibility across supply chains is complicated by the number of parties involved in
global supply chains. While companies collect their own data to respond to supply chain
disruptions, they need to be able to analyze data across various companies and validate it for
reliability before they can respond. IoT devices that can track the status of goods as they move

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through the supply chain and share this information to a blockchain-based framework can ensure
that all of the participants in the chain can access the data in real time.
All of this would be done via a combination of IoT-based statuses published to a secure
distributed block chain. These could also be combined with third-party data sources, such as
weather data streams, to anticipate any delays. A supply chain with real-time access to shared,
reliable data in a secure block chain allows companies to be responsive to unexpected supply
chain events such as supply disruption or a sudden dip in customer demand.
Enhancing Global Supply Chain Financing
Global supply chains typically involve cross-border transactions, which require voluminous
paperwork and bureaucracy. All of this has a significant impact on the time it takes for
international payments, because these involve multiple parties and are subject to local banking
regulations. Any discrepancies, such as duplicate invoices, can lead to significant delays in
clearing the payments. Blockchain and IoT working together could significantly speed up the
movement of goods across borders, resulting in secure, efficient, and cheaper transactions that
prevent fraud through a distributed register that cannot be manipulated.
This is facilitated in block chain using smart contracts, which are computer programs where the
terms of an agreement between two parties can be preprogrammed, automatically executed, and
enforced based on the occurrence of defined events. Smart contracts eliminate the need to
reconcile documents across multiple parties. With IoT devices that can monitor the actual status
of the shipments and trigger the execution of the payment terms of the contract upon delivery,
the banks have visibility into the original contract, the sales order, and the actual delivery status.

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This allows them to validate the origin and authenticity at the same time and speed up the
payment cycle.
Regulated Supply Chain Reliability
In highly regulated industries such as manufacturing, goods need to be transported across
locations under strictly controlled environment and within specific time windows. It is important
for manufacturers and distributors in these industries to be able to provide evidence of adherence
to specified ranges. Failure to do so can result in high-value shipments being delayed or
impounded for investigation. It’s currently possible to capture temperature feeds from onboard
sensors and transmit them online to an IoT platform. What has been missing is the ability to
ensure that the captured, transmitted data is secure and tamperproof. A block chain framework
complements an IoT-based data feed to guarantee the reliability and security of information
received and captured. Such a combination also would enable suppliers to capture compliance
conditions in a smart contract. In this case, the actual temperature feeds during the journey could
be compared against the defined conditions in the contract to demonstrate compliance as well as
any exceptions.
Ensuring a tamperproof, reliable data chain for medicinal products and perishable goods can
allow manufacturers and suppliers to ensure they are compliant with regulations and avoid losses
due to delays for investigations, while at the same time addressing the safety of humans
consuming these products.

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Data-Driven Insights
Block chain and IoT allow for all the partners and things in a supply chain ecosystem to share
data securely. Stakeholders can use the latest machine-learning techniques on this holistic
dataset, often in combination with third-party data sources, to derive new insights across their
supply chains.
For example, manufacturers can gain the ability to share and access real-time data from all
partners such as suppliers, logistics providers, and contractors on a single secure platform, and
combine it with economic and climate trend data across the network. This could enable them to
make better decisions on realigning their sourcing and distribution networks. At the same time,
the partners are able to utilize data to visualize their role and impact on the overall supply chain
and make improvements designed to improve their competitiveness.
Block chain and IoT can come together to address some of the key issues faced by supply chains
today and unlock real value for enterprises. Both IoT and block chain are gaining traction in their
own right, and this trend will likely accelerate into production as the technologies mature.
Role of Reverse Logistics
Reverse logistics refer to monitoring the life-cycle of your products after they arrive at the end
consumer. This could include how your product could potentially be reused, how it should be
properly disposed of after use, and any other way where your expired product can create value.
There are four key supply chain analytics that can help you understand the flow of returned
products entering your supply chain. They are as follows:

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1. Volume. Are the same items being returned over and over? Is this happening in large
volumes? Answer yes to either of these questions and you’ve probably got a larger problem than
just a few faulty units. You may need to consider a recall or an overhaul of your production
process.
2. Percent of Sales. What percentage of your sales are lost to product returns? And how many
of these products can be reincorporated into your supply chain via reverse logistics?. What can
you do to minimize these losses of revenue? How can you turn a profit on a loose?
3. Condition the Product is Returned In. Is the product failing after a specific operation?
Can you determine any patterns of failure among the returned product? This is where quality
assurance (QA) and error reproduction are important. You want to figure out what went wrong
so you can adapt and correct the problem before it happens again.
4. Financial Value. Without monitoring and managing your reverse logistics, your company
could be losing millions of dollars in potential value. Consider failed electronics that are returned
to their manufacturer. According to “Recovering Lost Profits by Improving Reverse Logistics,”
electronics sold in secondary-markets “represent an estimated $15 billion (sold) in the United
States.” These electronic companies manage to turn product failure into new profits by utilizing
reverse logistics.
Some of these benefits are:
 Reduction of the costs. By planning ahead for returns and making the return order right,
you can reduce related costs (administration, shipping, transportation, tech support, QA,
etc.)

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 Faster rate of service. This refers to the original shipping of goods and the return /
reimbursement of goods. Quickly refunding or replacing goods can help restore a
customer’s faith in a brand.
 Retention of Customer. Dealing with errors is just as important as making sales. If a
customer had a bad experience with your product, you have to make it right. Fulfilment
blunders can create educational opportunities. Learn how to keep your customers happy
and engaged with your company - even after you’ve made a mistake.
 Reduced losses and unplanned profits. Recover the loss of investment in your failed
product by fixing and restocking the unit, scrapping it for parts, or repurposing it in a
secondary market. With a good reverse logistics program in place, you don’t have to
leave money on the table. Take a product that would otherwise just cost your company
money and turn it into an unforeseen asset.
Conclusion:
The report helps in concluding to the fact that the IoT can be adopted by the business for the
purpose of eliminating different type of difficulties that are faced by Shape Nz Limited. The first
section of the report is associated with discussing about the effects of the IoT on the various
business process of Shape Nz Limited. The second section of the report is associated with
discussing about the supply chain management tools and techniques. The role of IoT, reverse
logistics and block chain over the business process of the Shape Nz Limited has also been
discussed. By adaptation of proper ways the organization Shape Nz Limited can become
successful in their business. the adaptation of new and emerging internet of thing technology the

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organization Shape Nz Limited would be gaining a lot of benefits and the supply chain
management would become much more easy.

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