A lot of the time, the companies that approach us are companies looking to gain visibility over assets or inventory that they own. To them, predicting and prevent issues makes a huge amount of sense as it directly affects their bottom line. However, there are other stakeholder groups within the supply chain that will be dramatically impacted by the increase in adoption of IoT.
More and more companies are looking to new technologies to gain competitive advantages in the supply chain. Track and trace technologies offer companies the ability to collect more information to what happens to their goods, learning an taking action to prevent loss and poor efficiency.
A lot of the time, the companies that approach us are companies looking to gain visibility over assets or inventory that they own. To them, predicting and prevent issues makes a huge amount of sense as it directly affects their bottom line. However, there are other stakeholder groups within the supply chain that will be dramatically impacted by the increase in the adoption of IoT.
In this blog, we ask the question: is IoT in the supply chain an opportunity or a threat to logistics companies?
Logistics companies are a key stakeholder in any supply chain. Responsible for moving goods to and from premises in the most time and cost effective ways is key to success here. But that is the key driver to winning business – cost. Logistics has become a race to the bottom, where contracts are won on cost-effectiveness. It’s the same across many service businesses within the supply chain space.
IoT offers next level visibility, next level data, next level digitalisation. The value proposition for those businesses that own assets is clear. Track and trace offers a means of capturing and preventing issues to avoid stock loss. But for the service providers who don’t necessarily own the assets, could IoT actually be seen as a threat?
IoT won’t replace the need for logistics companies, I mean the technology can’t enable stock to move by itself… yet. What it can do is offer operators the ability to see more and know more.
For logistics companies, it might not be desirable for their customers to see more of an asset’s journey. More data often leads to more questions and more tasks, right? It’s very easy to see why some logistics companies see IoT as a technology that will make their jobs harder and lead to more scrutiny.
But for the more enlightened companies, there is a real opportunity.
For companies that want to achieve greater visibility over their assets, technologies such as Entopy’s Tracca Platform Solution offer drop and play, stand-alone technology that can deliver the track and trace required. But with other stakeholder buy-ins, the scale of IoT projects can dramatically increase.
If all stakeholders work together, the entire chain can be digitised enabling visibility and transparency between all stakeholders that has never been achieved before.
The logistics companies that see IoT as a value-added service opportunity will win. By providing their customers with what they want, they will unlock tremendous growth opportunities.
Not only will IoT enable logistics companies to offer value-added services, winning more customers, but it will also reduce administrative costs associated with supplier/customer interactions, improve their own efficiencies, reduce stock liabilities and so on.
Some will see IoT as a threat. Others will see IoT as an opportunity. It will be the forward-thinking and innovative companies that lead the way into digitalisation of the supply chain.
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