Technologies and IoT for Supply Chain Issues

This report discusses the use of technologies like cloud computing, big data, CRM, and IoT for overcoming supply chain issues and enabling effective exchange and sharing of information. It explores the advantages and uses of these technologies and provides examples of organizations that have implemented them. The report also highlights the importance of digital communication and concludes with a discussion on the proper use of these technologies for resolving supply chain issues.

Running head: TECHNOLOGIES AND IOT FOR SUPPLY CHAIN ISSUES
Use of Technologies and Network of Interconnected Devices for overcoming Supply
Chain Issues and enabling Exchange and Share of Information
Name of the Student
Name of the University
Author’s Note:

TECHNOLOGIES AND IOT FOR SUPPLY CHAIN ISSUES
Table of Contents
1. Introduction............................................................................................................................2
2. Discussion..............................................................................................................................2
2.1 Using Technologies and IoT for overcoming Supply Chain Issues with Examples........2
2.2 Uses of Technologies and Internet of Things..................................................................6
2.3 Using Technologies and IoT for enabling Effective Exchange and Sharing of
Information.............................................................................................................................7
3. Conclusion..............................................................................................................................8
References................................................................................................................................10

TECHNOLOGIES AND IOT FOR SUPPLY CHAIN ISSUES
1. Introduction
Digital technologies are uses of digital resources by finding, analysing, creating,
communicating and even using the information (Fitzgerald et al., 2014). Social connectivity,
communication speeds, versatile working and automation are the main benefits of digital
technologies. Due to such advantages, it becomes much easier to implement in any
organization or business. It occurs when appropriate information is not being exchanged and
shared with the users (Christopher, 2016). The following report outlines a detailed discussion
on the proper utilization of technologies like big data, CRM, cloud computing as well as the
network of interlinked devices, called IoT so that supply chain issues are overcome and
proper exchange or sharing of information with suitable examples.
2. Discussion
2.1 Using Technologies and IoT for overcoming Supply Chain Issues with Examples
Supply chain is the core system of organizations, activities, resources and information
that are being involved in the process of moving any specific product or service from supplier
to the respective customer (Monczka et al., 2015). Although supply chain comprises of some
of the most significant advantages to any business like high rate of efficiency, cost
effectiveness, increase of output and profit level, there are few issues that are extremely
common here like mismanaged implementation, inadequate training and vulnerable supply
chains and these are required to be eradicated on time with proper efficiency. Intex being a
popular manufacturer, although obtained several advantages from supply chain, has recently
faced an issue of cost reduction challenge. The supply chain managers face significant issues
on a regular basis that need quicker response and direct attention (Hugos, 2018). The most
common and significant issues related to supply chain are as follows:

TECHNOLOGIES AND IOT FOR SUPPLY CHAIN ISSUES
i) Management of Inventory: The inventory management is the proper supervision of
non capitalized assets as well as stock items. Inventory management is a balancing activity
and keeping adequate inventory on hand is required so that the client or customers’
expectations are met (Seuring, 2013). Hence, when inventory is insufficient, it evident the
customers would be dissatisfied. Moreover, due to lack of appropriate timing, delays are
incurred and thus profit is reduced.
ii) Management of Suppliers: Deere & Company has a complex product range and
thus during replenishing dealer’s inventory on a weekly basis, they checked that due to use of
third party suppliers, the costs were extremely high. The supply chain managers are
responsible to know the number of suppliers required and process of receiving the orders.
Every step hence needs to find suppliers with reliable and consistent services.
iii) Maintenance of Safety and Quality: It is required to maintain safety and quality
in products and services, however, often the products loses its safety and quality and this
could even lead to damage of the organizational reputation and affect overall cash flow
(Wisner, Tan & Leong, 2014). For example, McKinsey has faced major issue in
manufacturing their products. Hence, they had an economic impact of 11 billion dollars and
for this reason they decided to implement digital technology for predictive maintenance.
iv) Risk Mitigation: The supply chain should be free from risks and it is extremely
important to mitigate the risks on time. When the organizations are extremely reliant on any
one supplier, it becomes vulnerable as that particular supplier might not be able to meet the
demands of their customers. Proper backup plans eventually ensure that the organizational
supply chain is flexible and scalable for handling the changes (Hugos, 2018).
v) Staff Training: Since, it is a new technology, the staff often do not get a chance to
learn the major features of this technology and hence performance is reduced.

TECHNOLOGIES AND IOT FOR SUPPLY CHAIN ISSUES
vi) Redundancy: The excess capacity and backup is being created and hence regular
functionalities are required to be maintained for a stable supply chain. However, this is often
absent in a business context for digital technologies.
vii) On-Demand Economy: The impact of on-demand economy is also high for
supply chain. If proper technology is not implemented, the business operations cannot be
executed properly.
The technologies of cloud computing, big data and customer relationship management
could be extremely effective for resolving these issues of supply chain and the uses are as
follows:
i) Process Automation: Cloud computing is responsible for process automation and
hence it is extremely easier to automate the business processes and operations with the
incorporation these technologies (Kane et al., 2015). Moreover, better experience of the user
is also possible with this technology and the organizational systems for supply chain
management do not need regular updates.
ii) Lower Costs and Expenses: Another significant technology is big data that helps
to reduce the issues of supply chain is that this type of technology is responsible for lowering
the overall costs and expenses (Westerman, Bonnet & McAfee, 2014). It provides
opportunity to both supply chain manager and supplier to reduce the costs of raw materials
and transportation by making the processes much easier and simpler in comparison to others.
iii) Better Transportation: CRM is one of the most basic examples of technology that
is being used in almost every organization since it is responsible for providing better
transportation of raw materials and products and services and hence reducing the issue like
delays and lack of quality and safety of products to get reduced to a greater level (Parise,

TECHNOLOGIES AND IOT FOR SUPPLY CHAIN ISSUES
Guinan & Kafka, 2016). The communication speed is extremely higher and thus
transportation issue is resolved.
iv) Dealing with High Volume Data: Big data can easily resolve the issues related to
supply chain information management. For example, RateLinx organization has involved big
data for diagnosing the supply chain issue and making better decisions. The most effective
example of this type of technology is Hadoop, which can easily deal with all types of
complexities related to data management and data complexity.
Apart from the above mentioned technologies, Internet of Things is also effective for
managing the issues related to supply chain. It eventually improves the customer’s experience
and optimizes supply chain responsiveness (Da Xu, He & Li, 2014). This is done by
collecting and making visible data at the key points within supply chain. General Electric has
opened their Predix Technology platform for providing new business models to the
customers. The uses of IoT for resolving supply chain issues are as follows:
i) Management of Uncertainty: Since the order fulfilment could be delayed by
several factors that are difficult to control or predict. The traffic delays are the most common
cause of late deliveries as well as stock shortages (Al-Fuqaha et al., 2015). By eventually
making the utilization of sensor enabled IoT solutions, the speed and location of the vehicles
could be easily tracked and significant maintenance alerts could be provided. IoT is even
responsible for minimizing the wastage of food perishes that are quite common.
ii) Selection of Technology: Several different technical components are needed for
deploying IoT solutions like network infrastructure, integration services security solutions,
network platforms, applications and devices (Stankovic, 2014). The in-built sensors in the
technology are responsible for sending sensitive information and then securing them in a
secured private cloud. IoT even provides GSM networks to track the battery of vehicle and

TECHNOLOGIES AND IOT FOR SUPPLY CHAIN ISSUES
battery powered sensors subsequently transmit the data with the help of cellular network.
Transportation and inventory management issues are resolved with this technology.
Organizations using IoT for Supply Chain
Internet of Things is being used by several popular organizations for resolving their
supply chain issues. One of such popular organizations is Marine Transport International or
MTI. They have implemented IoT network for potentially serving as the logistics backbone
within their ocean vessel trade in the entire world. They have using IoT systems of Cisco for
monitoring as well as optimizing performances. Another organization is SophiaTX that has
implemented IoT for helping their users and providing them the ability to track supply chain
data in real time. They have implemented Wi-Fi connected robots for easy tracking so that
products are easily identified by reading QR codes with the help of in built cameras.
2.2 Uses of Technologies and Internet of Things
The digital technologies such as cloud computing, big data and CRM are responsible
for transforming each and every aspect of modern society (Hutchison & Woodward, 2014).
Amazon, being one of the most recognized brands, supply chain logistics are incredibly
important (Arts, van der Wal & Adams, 2015). The most significant and noteworthy
advantages of big data for supply chain include cost savings, time reductions, new product
development, understanding market conditions and controlling online reputation.
On the other hand, the major advantages of cloud computing technology for supply
chain include high reliability, process automation, manageability and strategic edge.
Although, cloud is much costlier than any other technology, it is quite effective for reducing
supply chain related issues (Gubbi et al., 2013). The main benefits of CRM technology
involve managing the growing database and then speeding up of growing process, helping in
centralizing the data and also building long lasting relations with customers. According to a

TECHNOLOGIES AND IOT FOR SUPPLY CHAIN ISSUES
survey, the authentication technology of IoT in public logistics services of supply chain helps
in implementation of IoT model in logistics services system.
2.3 Using Technologies and IoT for enabling Effective Exchange and Sharing of
Information
One of the major reason for the existence of supply chain issues is lack of effective
exchanging and sharing of information. Technologies like big data and cloud computing can
separate the redundant information from the respective system and hence making the
organizational system even more effective and efficient in comparison to others (Westerman,
Bonnet & McAfee, 2014). The information exchange could be easily implemented with the
help of numerous open and proprietary protocols, message as well as file formats. This could
be resolved with the use of these technologies and the main advantages of such technologies
are as follows:
i) Information Storage: Big data allows any type of data and information
management and even better information storage within small spaces. Big data has the ability
to provide data access from any one device to any section of supply chain.
ii) Versatile Working: Cloud computing helps in better information exchanging
(Hutchison & Woodward, 2014). This is mainly because it helps in process automation.
SMEs have implemented cloud computing in their business for getting advantages like
delivery of ICT solutions and software applications (Wu et al., 2013). Thus, cloud computing
helped them in reducing complexities of supply chain.
iii) Communication Speed: Communication speed is extremely important for
reducing every existing issue of supply chain majorly with customers and this becomes
higher with the presence of CRM and hence information exchange and sharing is much easier

TECHNOLOGIES AND IOT FOR SUPPLY CHAIN ISSUES
in comparison to other technologies. As customer experience is kept on top priority,
communication should be enhanced, hence creating a better customer experience.
The Internet of Things is also used for better and effective information exchange and
sharing for supply chain issues and the advantages are as follows:
i) Enhancement of Data Collection: If proper data would not be collected by the
user, it is evident that the supply chain manager will not be able to share and exchange them
efficiently (Cui, 2016). Implementation of IoT provides the core opportunity to collect
relevant data for better sharing of information and thus reducing the issues of supply chain.
ii) Data Tracking: The computer systems keep a track both for the quality as well as
viability of the data. The more the information, the easier it is to make the correct decision for
the supply chain managers (Da Xu, He & Li, 2014). IoT provides a proper platform to track
the data and then exchange and share it.
In spite of having these advantages, there are few issues of IoT in supply chain like
internal struggle within IT teams and operational management, lack of skills and better
management and analysis of data. These issues can be vulnerable for the entire supply chain
management as data might be inaccurate, insufficient and incomplete.
3. Conclusion
Therefore, from the above discussion, it can be concluded that digital communication
is the basic mode of communication. There are several significant issues of supply chain like
customer services, cost control, supplier and partner relationship management, planning as
well as risk management and many more. The most popular examples of cloud computing
vendors include IBM, Integration Point, Ariba and many more. Regarding IoT, the main
examples include for supply chain are Rogue Ale and Oregon. The above provided report has
clearly demonstrated the proper use of technologies such as cloud computing, big data and

TECHNOLOGIES AND IOT FOR SUPPLY CHAIN ISSUES
CRM and Internet of Things for resolving all types of supply chain issues and information
exchanging and sharing efficiently.

TECHNOLOGIES AND IOT FOR SUPPLY CHAIN ISSUES
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TECHNOLOGIES AND IOT FOR SUPPLY CHAIN ISSUES
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