Internet of Things (IoT) is trending in supply chain circles. A buzz has started. According to a recent article on Kinaxis, IoT has nearly taken hold of every aspect of our lives. Can you believe there will be over 6 billion connected devices by next year? And that number is projected to increase to 20 billion by 2020. Watch out! A key question is whether we are ready for the stream of data coming from these devices and how we'll handle it (and leverage it) in supply chain planning processes. For example, just think of the power of a simple Amazon dash button. It is mind boggling to consider the impact of the amount of data, what the data will be able to do and the risks inherent with this data.
What Should We Consider and/or What Impacts Could Arise?
The internet of things is bound to have a dramatic impact on every business. The possibilities are endless... Smart appliances will change the way we shop, handle typical repairs and much more. Smart cars are already starting to transform our lives. Even my mom said tonight that she sees value in an alarm system that would lock the door from afar. There are almost limitless possibilities.
All of these collect data. Imagine how this data could transform your supply chain planning process! If you know real-time what is most popular and what is needed, could you be more responsive to your customers? Better yet, could you be in front of your customers with value-added suggestions? What could that mean for your customer experiences and revenue growth? The bottom line is that this topic is definitely one to add to your strategic discussions, whether to figure out how to incorporate IoT with your products or how to proactively respond to what will be coming down the pike in the future.