The Future of IoT in Manufacturing

Gartner has forecasted that 26 billion connected devices will be installed by 2020.

Gartner also believes that IoT will have an enormous impact on how the supply chain operates and with the information available to supply chain and manufacturing leaders. In order to benefit from this technology,  it is not enough to simply implement it– you have to understand how what the most positive impact will be for your industry but also what the biggest implementation value will be for your individual enterprise.

The Current State of IoT in Manufacturing
Although IoT is already in widespread use in manufacturing and the supply chain, what it is used for is fairly limited and has only scratched the surface of what can be achieved. For example, IoT is used frequently in road forwarding to drive efficiency in route management and vehicle handling. While this is a great introduction to IoT in the enterprise, there are a multitude of potential uses that will benefit manufacturing at every stage.

IoT to Protect Against Cargo Theft
The greatest benefits that IoT will be able to provide are directly related to managing supply chain and manufacturing risks. This process could be much better managed through containers and packaging cases that are connected to the Internet through a sensing device that allows it to be tracked and monitored. This use of IoT at the individual packaging level will mean a safer overall trek for the package, as security or the authorities will be alerted if it is moved from where it is supposed to be.

Stolen cargo remains to be an issue in the United States. FreightWatch reported that although it declined by 12 percent in 2014 the average loss value per incident rose 36 percent, with attacks on valuables driving this increase. Additionally, cargo theft still has organized criminals that are known to target large, well-known ports and rest areas around the world, making theft a global issue. Using IoT to track packages against cargo theft would help shippers and logistics service providers save the billions of dollars each year lost from goods being stolen as well as the inventory delays caused. For manufacturing in particular, eliminating stolen and lost goods will mean that manufacturers only need to make the proper amounts of goods once, eliminating the duplication of efforts and the added cost of remaking goods that didn’t make it to the original destination.

IoT to Track Exactly What Happens to Goods
In addition to package security, another major benefit of IoT will be tracking in real-time exactly what happens to goods in transit or storage. Through connected devices and sensors, it can be more easily confirmed that goods remain at the correct temperature and have been handled properly among other concerns. Sensors that alert shippers to these behaviors will create significant cost savings – up to billions of dollars in damaged goods – and also allow LSPs to prove they have complied with individual customer’s operating procedures, which is particularly important when third-party contractors are involved.

IoT to Ensure Quality
The third major benefit of IoT in manufacturing is to ensure that the quality of goods remains consistent. In manufacturing, this means that off-shore production sensors and live connected video can be used to verify the components as being genuine and not substituted with cheaper alternatives. IoT in this capacity will also ensure that the correct production procedures have been followed, which is particularly useful when manufacturing locations frequently move to achieve the lowest cost possible. The sensors connected to the goods themselves as well as throughout the manufacturing floors will ensure this quality control. The use of IoT for quality control could potentially be able to eliminate widespread supply chain and manufacturing scares such as the discovery of horsemeat in the human supply chain.

IoT to Open Doors
Each of the above benefits adds makes it easier to connect devices, sensors and different pieces of equipment to the overall manufacturing process. This means that businesses will be able to collect real-time data that moves beyond just a signature at delivery at any place, time and stage of the manufacturing or shipping process. Additionally, real-time updates that deliver customized information streams will become much more prominent as the right automated information becomes better able to reach the right party. For example, IoT will be able to trigger an automated alert to begin preparing for next the next activity based on events further up the supply chain, rather than just based on completed actions.

The IoT Possibilities are Endless
IoT opens up an almost endless stream of possibilities for manufacturing businesses in a more streamlined, cost-effective way than the radio-frequency identification technology that is being utilized for tracking and collecting big data today. When implemented correctly in every stage of the manufacturing process, IoT will be a significant benefit to employees on the manufacturing floor to the shippers and finally to the customer. Now is the time to begin exploring the use of connected devices to ensure your enterprise is taking advantage of the “connected everything” trend in the most efficient way possible.