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to name just three examples. In addition to having its own individual status updates, each device that is connected to the network contributes to a general data feed so that users get a more comprehensive view of overall operations. For an example of how this can be used in the warehouse, see the sidebar.

Improved fleet management. Equipping fleets with sensors designed to improve vehicle performance and diagnostic capabilities extends the life of costly assets. Vehicle-generated data-collection activities like location tracking, tire-pressure monitoring, stability control, and collision avoidance converge to make fleets not only more efficient, but also safer. Utilizing this wealth of data to adhere to vehicle-maintenance schedules and address unanticipated repairs as soon as they appear keeps budgets predictable, more extensive repairs at bay, and more vehicles on the road.

New commercial trucks manufactured by Daimler Trucks North America, for example, are now equipped with sensors that feed data to a Daimler-operated call center— what equates to a “virtual service station.” Sensors detect and diagnose maintenance issues in real time; the system communicates that information to the Daimler network, and then connects the driver with the call center to receive instructions. Drivers with critical issues are directed to nearby mechanics by means of a GPS system, which determines the truck’s location. This automation and centralization of fleet management responsibilities have allowed for substantial gains in efficiency. For an example of how this can be used in the warehouse, see the sidebar.

LOOKING FORWARD

As the examples in this article have shown, the Internet of Things is already having a big impact on supply chains. Moreover, as the number of devices grows and the capabilities of IoT devices continue to evolve and develop, the impact on the supply chain will become even greater.

Developments are moving along so quickly that Gartner warns that supply chain strategists should be looking at the potential of the Io T right now, not later. But the impact of the Io T is not just a matter for strategists and theorists; it is also important that supply chain professionals look at the Io T’s capabilities and potential. The transparency and end-to-end visibility afforded by the Io T creates new opportunities that supply chain professionals can leverage in order to optimize supply chains and generate value.

The sheer amount of real-time data afforded by the Io T
is game-changing. As more companies integrate the IoT
and connected devices into their operations, a gap will be
created. On one side will be companies that have embraced
the Internet of Things, and on the other side will be those
that have not. Companies that embrace the IoT will move
forward, leaving those who do not behind. ;

Notes:

1. McKinsey Global Institute, Disruptive technologies: Advances that will transform life, business, and the global economy (June 2013): 51.

2. One Network Enterprises, The Internet of Things: How ‘Process Robots’ Are Transforming Supply Chains, (2014): 2, http://www.automation.com/pdf_articles/internet_of_ things_2014.1.pdf.

3. Cisco Systems, The Internet of Things: How the Next Evolution of the Internet Is Changing Everything, (April 2011): 3, http://www.cisco.com/web/about/ac79/docs/ innov/IoT_IBSG_0411FINAL.pdf

4. Ibid.

5. Ibid.

6. Tony Danova, “Morgan Stanley: 75 Billion Devices Will Be Connected To The Internet Of Things By 2020, Business Insider, http://www.businessinsider.com/75- billion-devices-will-be-connected-to-the-internet-by- 2020-2013-10#ixzz3RLzxXZNh.

7. Gartner Inc., “Gartner Says It’s the Beginning of a New Era: The Digital Industrial Economy,” press release (October 7, 2013) http://www.gartner.com/newsroom/ id/2602817.

8. Joseph Bradley, Joel Barbier, and Doug Handler, Embracing the Internet of Everything To Capture Your Share of $14.4 Trillion (2013): 1, http://www.cisco.com/web/ about/ac79/docs/innov/IoE_Economy.pdf.

9. Gartner Inc., “Gartner Says a Thirty-Fold Increase in Internet-Connected Physical Devices by 2020 Will Significantly Alter How the Supply Chain Operates,” press release (March 24, 2014) http://www.gartner.com/ newsroom/id/2688717.

10. TotalTrax, “Reduce costly forklift damage,” http:// www.totaltraxinc.com/index.php/resources/case-studies.

11. Aaron Mamiit, “Amazon Order Fulfillment More Efficient with its Fleet of Robots,” Tech Times (December 1, 2014) http://www.techtimes.com/articles/21229/20141201/ amazon-order-fulfillment-more-efficient-with-its-fleet-of-robots.htm.

12. Peter Bradley, “Bobcat excavates productivity, inventory improvements, DC VELOCITY (September 17, 2014) http://www.dcvelocity.com/articles/20140917-bobcat- excavates-productivity-inventory-improvements/.