Enhancing Supply Chain Operations Using IoT and Digital Twin
• Predict the impact of disruptions .
• Improve the accuracy of inventory forecasts .
4.3 KEY USE CASES AND BENEFITS
IoT and digital twins can transform many aspects of supply chain operations when implemented together . Some of the key use cases and benefits include :
• Inventory management : IoT sensors can be used to track the location and condition of inventory in real time . This information can be used to prevent stockouts , improve planning , and reduce waste .
• Logistics monitoring : IoT sensors can be used to track the location and movement of goods in transit . This information can be used to optimize routing , improve delivery times , and reduce costs .
• Warehouse operations : IoT sensors can be used to monitor the temperature , humidity , and other conditions in warehouses . This information can be used to prevent spoilage , damage , and other problems .
• Quality control : IoT sensors can be used to monitor the condition of products during manufacturing and transportation . This information can be used to identify problems early and prevent defects . The IIC ’ s Industrial Digital Thread is one such example .
We earlier looked at the end-to-end supply chain systems for the aviation industry , where connected systems and enhanced data collection via IoT systems , adds overall efficiency . Such efficiencies and reduced disruption to airline passenger journeys coupled with increased safety of air-travel justify the investments in such IoT and digital twin stems . It allows the aircraft manufacturers and the airlines to communicate why such longer term investments are needed to its stakeholders and investors .
5 IMPLEMENTATION CONSIDERATIONS
While promising , there are key challenges involved in implementing an integrated IoT and digital twin solution across the supply chain . These challenges include :
• Legacy hardware / software integration : Many legacy machines and IT systems are not built to handle new data sources and digital twin integration . APIs and custom programming are required to connect new platforms with old platforms .
• Cybersecurity risks : With billions of new connected devices , expanded attack surfaces and data vulnerabilities need to be managed through cybersecurity best practices for IoT .
• Data standardization : Data from disparate sensors and sources needs to be standardized and contextualized so it can be meaningfully aggregated into supply chain analytics and digital twin models .
10 August 2023