Since information is one of the most critical elements of a connected supply chain, the Internet of Things has a direct impact on how supply chains function. Basically, the physical world is able to interact with business applications. It is estimated that there are currently 50 billion objects connected through the internet, with that number growing daily.
IoT uses sensors and technology to allow internet applications, buildings, infrastructures, devices and other ‘things’ to share information at a fast rate of speed. Data from sensors can provide continuous feedback on how a product is performing. Personal examples include tracking calories consumed, steps taken, or grocery requirements from the refrigerator.
Supply chain examples include monitoring of carbon emissions from sensor-equipped machines, or asset tracking that allows for continuous, real-time information on location and status of each trailer, container and asset.