IoT applications for supply chain
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The document discusses the use of IoT in supply chain management, emphasizing the need for full visibility of products and efficient sensor application without tracking each item individually. It highlights the importance of standardization, particularly GS1 standards, and discusses the limitations and appropriate use of technologies like barcodes and RFID. The key takeaway is that while single item tracking is impractical, closed-loop applications and tracking at the package or pallet level enhance supply chain agility.
IoT applications for supply chain
- 1. 1 IoT applications for Supply Chain Andrej Planina Spica International Andrej.planina@spica.com
- 2. 2 Andrej.Planina@Spica.Com What is Supply Chain? Manufacturing -> Distribution -> Transport -> Retail IT systems 1. Ownership of goods changes through the chain 2. Information must be ahead of shipments
- 3. 3 Andrej.Planina@Spica.Com Spica Background • Spica provides IT solution for regional Supply Chain actors • Team of 100 engineers in 6 countries • 3.000 installations • 20 years • Consultants
- 4. 4 Andrej.Planina@Spica.Com Supply Chain Requirements • Full visibility of: • Products => item, batch number, expiry dates • Capabilities (Assets) => supply & demand, cost optimisation • Connectivity • Information exchange capabilities • Standardisation • GS1 standards
- 5. 5 Andrej.Planina@Spica.Com Visibility of Products • Do we really need to track each item? NO! • Let‘s track packages! • Package related problems: • Single or mixed product? • All items with same expiry date? • There are many repackaging points in a chain!
- 6. 6 Andrej.Planina@Spica.Com How to use IoT in Supply Chain? • Sensor on each product? NO! • What characteristics do we need to track? 1. Location 2. Temperature (product or environment?) 3. Acceleration (fragile products) 4. … • How often do we need this data? • Online (mobile connectivity) • Offline and sensor with recording capability
- 7. 7 Andrej.Planina@Spica.Com Where to Put Sensors? • Supply chain is very price sensitive! • What is acceptable ratio between price of sensor per price of tracked goods? • Sensor on each product? • RFID with price of 0,10 EUR per unit is not acceptable • NO! • Sensor on each similar product? (same batch) • Pack of 20 units in a box. • Can we achieve 2 € per IoT sensor per box? • NO! • Sensor on each pallet? (mixed products!) • YES! • Who will invest into IoT capabilities? • The owner of products! • But ownership changes over supply chain!
- 8. 8 Andrej.Planina@Spica.Com Do We Have Sensors Already on Items? • The only standardised sensing technology in supply chain is BARCODE! • GS1 standards: • Product level coding • Additional product level coding (batch, expiry) • Package level coding • Data exchange technologies already heavily in use • RFID is standardized but very rarely in used in a supply chain • Only closed-loop applications exist
- 9. 9 Andrej.Planina@Spica.Com Closed Loop Applications • Let‘s track our containers! • Container loading and unloading needs to be tracked with the use of bar-codes • Container departure and arrival needs to be tracked with IoT connected sensor (RFID) • Additional information need to be collected during container life • Container with a sensor needs to return and to be re-useable
- 10. 10 Andrej.Planina@Spica.Com Recap: IoT in Supply Chain • Single item tracking? NO! • Closed loop applications? YES! • Barcode for items? YES! • RFID container tracking? YES! • Ownership problem • Standardisation problem (GS1 needs to lead!)
- 11. 11 Andrej.Planina@Spica.Com Thank you! Implementing Agility into Supply Chain