More than half of major new business processes and systems will rely on some element of the IoT by 2020, according to the research firm Gartner.
Mr. Rice shared three ways IoT will drive operational improvements and cost savings in the supply chain with Manufacturing Business Technology.
1. Manufacturing maintenance. IoT is already in some production facilities that integrate sensor networks into machinery to increase up-times, reduce operational cost and improve overall quality of service, according to Mr. Rice.
2. Inventory forecasting. IoT data offers important information to alter the way manufacturers and distributors understand procurement operations, said Mr. Rice. The collection of data intelligence, combined with pattern analysis, enables more accurate forecasting and intervention if there is an operational issue.
3. Asset tracking. IoT allows for new replenishment models that effectively monitor inventory and stock levels. The technology not only removes human error, but also creates a more efficient replenishment process.
More articles on supply chain:
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Merck releases 7 years worth of data on price hikes
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