T he Internet of Things (Io T) is most often mentioned in a consumer context—perhaps a scenario where a smartphone “talks” to a coffee maker and tells it when
to have the coffee ready, or a refrigerator sends a text message
alerting the consumer that it’s time to buy more milk. But the
Io T is not simply a facilitator of consumer convenience.
That’s because the Internet of Things allows for visibility where
there previously was none. It captures data where it previously was not
possible. It therefore provides supply chain and logistics managers with
something they often lack: the visibility and data necessary for supply chain optimization.
The Internet of Things, in other words, has the potential to change everything.
WHAT IS THE IOT?
The IoT represents the convergence of the physical and digital worlds. Physical objects are
equipped with technology that enables the object to send and receive information via fixed-wire or wireless communications links to the Internet, and to then transmit information in one
form or another. The McKinsey Global Institute defines Io T devices as those that “can monitor
their environment, report their status, receive instructions, and even take action based on the
information they receive.” 1
This definition from One Network Enterprises, a supply chain technology provider, offers
a supply chain example: “[The IoT] refers to data communication among a large range of
Networked, connected devices and
equipment will provide supply chain
and logistics managers with
something they often lack: the
visibility and data necessary for
supply chain optimization.
BY KATE LEE
How the Internet
of Things will change
your world
