The Internet of Things (IoT) has already disrupted supply chain management with asset tracking, sensors that monitor product location and condition, and fleet management via cloud platforms that enable optimization of delivery routes. Other IoT next-generation technologies such as AI, ML, blockchain, and robotics will drive multiple growth opportunities, according to Frost & Sullivan’s latest analysis, Growth Opportunities in the Internet of Things-enabled Supply Chain Management Market, Forecast to 2024.
End-to-end visibility, predictive analysis, transparency, and real-time insights are some of the benefits driving the adoption and implementation of IoT systems within the supply chain management (SCM) market. The trend toward IoT-enabled SCM is creating a convergence of disparate sets of providers and the rise of a new ecosystem that will have far-reaching benefits to users.
“Current supply chains will be reinvented as IoT-enabled systems allow unprecedented end-to-end visibility, remote tracking, and control,” said Deepali Sathe, Senior Industry Analyst at Frost & Sullivan. “The increase in automation will significantly improve the accuracy of predictions and speed of execution.”
The research identifies market drivers and restraints, offers strategic recommendations, and forecasts IoT revenues in the digital supply-chain management sector until 2024. It also lists a variety of use-case scenarios across the various segments in supply-chain management.
One of the biggest impacts of technology adoption on SCM has been the introduction of new business models. As data silos diminish, customers can focus on the benefits that can be achieved as a result of improved end-to-end visibility, the ability to remotely control devices, and automated processes.
“Predictive analytics based on artificial intelligence (AI), machine learning (ML), and Big Data Analytics (BDA) will reduce errors and take the guesswork out of planning, forecasting and execution,” noted Adrian Drozd, Research Director, ICT at Frost & Sullivan. “Technologies such as blockchain can create better and faster processes and prevent fraud, while robotics will enhance automation and precision for greater accuracy.”
Vendors offering IoT-enabled solutions can tap into new growth opportunities by:
- Focusing on increasing demand for IoT-enabled, multi-function robots and cobots;
- Investing in the development of sensors and tags required for connected devices;
- Offering strong, multi-layered cybersecurity solutions to tackle potential threats;
- Harnessing data using AI and ML technologies to enable solutions such as chatbots or smart home speakers; and
- Meeting customer preference for XaaS business models such as platforms and sensors.
Source: Frost & Sullivan
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