A view on the effect of the Internet of Things on the Supply Chain by Capgemini and MIT

With the “Internet of Things “, the supply chain will be able to manage the volatility of demand, personalized customer service, will allow better traceability and to answer environmental issues.

In a recent study, Capgemini Consulting and MIT have identified four major impacts of the Internet of Things in the supply chain:

- The connected objects will offer real-time visibility of flows to the Supply Chain executives. "The responsiveness and agility of the supply chain will be improved, says Lawrence Perea, director in charge of the Supply Chain offers Capgemini Consulting France. Companies will thus be able to control their chain closest to the operational reality, with reduced time about the replenishment of products. " - The objects help trace the history of a product from conception to consumption through manufacturing and transport. "This is particularly to address issues related to the copycats and the gray market, enabling traceability of sensitive cargo or to dematerialise shipping documentation," explains Laurent Perea.

- From automatic replenishment to proactive maintenance: connected objects can be considered as intelligent agents. They communicate directly, always in real time, with the active chain, improving the pooling and optimizing logistics. - - Finally, the Internet of Things will transform business models focused on products to service-oriented business models (automatic replenishment of consumable, proactive maintenance ...).

Enhanced standardization and security

Today all the ingredients are not yet met to conduct a large-scale transformation of the supply chain. "The technologies and communication rules lack of standardization and data are not interoperable between all actors of the chain and the company's management systems, explains Mathieu Dougados, SVP at Capgemini Consulting France, in charge of the Operations Excellence. Customers also are faced with the issue of cybersecurity, and all of this with the concern of managing the human and cultural aspects that companies will have to deal with transform their organizations, skills and processes.

(Written by Eddye Diba, Own translation)