Everything You Need Know About IoT Supply Chain Management!

Updated on Dec 18th, 2023

Everything-You-Need Know-About-IoT-Supply-Chain-Management

Internet of Things (IoT) is the term that is used to describe a network of devices, sensors, and software that can communicate and exchange data over the internet. This technology has the potential to revolutionize various industries, including supply chain management. IoT technology is transforming the supply chain management industry in many ways.  

Real-time monitoring, automation, improved visibility, and sustainability are just a few of the benefits of IoT supply chain management. As this technology continues to evolve, we can expect even more advancements and improvements in how goods and services are delivered worldwide.  

The IoT supply chain management market is also evolving with time, as in 2022, the market size was reported as USD 18.95 billion. This size is anticipated to grow to USD 34.81 billion by 2027 at a CAGR of 12.7%. (Source) 

Through this blog, we will let you explore various aspects showcasing how with the advent of IoT, supply chain management has become more efficient and effective. 

  • From offering real-time monitoring and inventory management to quality control, the IoT in supply chain management has multiple major roles.  
  • There are different benefits that IoT supply chain management has to offer, such as cost reduction, improved customer satisfaction, and others.  
  • Industries like agriculture, retail, manufacturing, and others use IoT technology to enhance their supply chain management system.  
  • Multiple supply chain software driven by IoT is being used within different industries. 

Role of IoT in Supply Chain Management  

IoT plays a significant role in supply chain management by providing its perks in different operations. Here we have mentioned some of the significant role that the IoT plays in supply chain management system and they are:


Real-Time Tracking and Monitoring 

IoT sensors can be installed at various points in the supply chain to monitor the movement of goods and equipment. These sensors can track everything from location to temperature, humidity, vibration, and shock.  

Real-time tracking and monitoring provide supply chain managers with complete visibility into the entire supply chain process. They can identify any delays, damage to goods, or other issues and take immediate action to address them. This real-time data helps to improve the efficiency and effectiveness of the supply chain process.

Read More: Supply Chain App Development: Features, Benefits, and Development Process

Predictive Maintenance 

Another role of IoT in supply chain is to monitor the condition of equipment, such as trucks, forklifts, and other machinery, via connected IoT sensors. By analyzing data from these sensors, the issues can be identified before they become major problems. This proactive approach can prevent delays and downtime, leading to increased operational efficiency. 

Also Read: How to Develop IoT Predictive Maintenance Solution?

Inventory Management 

Third on this list is the role of IoT in inventory management within the supply chain processes. The IoT sensors can be used to monitor inventory levels in real time. This helps to optimize inventory levels, reducing the risk of overstocking or stockouts. By ensuring that the right products are in the right place at the right time, supply chain managers can improve the efficiency of the supply chain process. 

Quality Control 

Quality is another significant aspect of the supply chain. Using IoT supply chain management can be beneficial for enhancing the process involved in quality control. IoT sensors can be used to monitor the condition of goods in transit, ensuring that they are stored and transported safely and securely. This can help reduce the risk of damage or spoilage, leading to improved quality control and customer satisfaction. 

Environment Monitoring 

IoT sensors are also being used within the process of environmental monitoring, which is an essential part of supply chain management. It can be used to monitor the temperature, humidity, and other environmental conditions of goods in transit. This data can help to ensure that the goods are stored and transported under optimal conditions, reducing the risk of spoilage and improving the quality of the product. 

Also Read: How to Develop IoT-based Environmental Monitoring System?

Supply Chain Optimization 

IoT technology can be used to optimize supply chain processes, such as transportation routes and inventory management. The bottlenecks and inefficiencies in the supply chain process can be identified by analyzing real-time data from IoT sensors. Later this data can be used to take corrective action to improve efficiency and reduce costs. 

Also Read: IoT in Supply Chain: Use Cases and Implementation Strategy

Risk Management 

Another role of IoT  supply chain management is to monitor and mitigate risks in the supply chain, such as theft, damage, and environmental hazards. It can help businesses ensure the safety and security of their goods and reduce the risk of disruption to the supply chain process. Risk management is one of the major reasons why organizations leverage the IoT development services for their business. 

Benefits of Using IoT Supply Chain Management 

With the multiple roles of IoT within supply chain management, we have offered clarity that all areas of supply chain processes can be enhanced by using IoT technology. Now it’s time to scroll through the advantages this next-gen technology offers various businesses using supply chain management. Let’s talk about the major benefits that can be bagged after using IoT supply chain management, and they are: 


Improved Customer Satisfaction

First on the list is the perk of customer satisfaction that IoT technology can provide. With this technology, real-time updates on the status of orders and deliveries can be achieved. It helps in improving transparency and communication between businesses and their customers. This can help build trust and loyalty, leading to increased customer satisfaction.

Reduced Costs 

The second advantage is to optimize the supply chain processes and reduce waste with IoT technology. It can help businesses reduce costs associated with transportation, inventory management, and other aspects of the supply chain process. This can lead to increased profitability and a competitive advantage in the marketplace. 

Increased Safety and Security 

Another use of IoT supply chain management is to offer the security of high quality. As IoT sensors can be used to monitor the condition of goods in transit, ensuring that they are stored and transported safely and securely. This can help reduce the risk of damage or theft, leading to increased confidence in the supply chain process. 

Real-Time Visibility 

IoT sensors add a perk to the supply chain management process by tracking goods and equipment in real time. It helps in gathering the required data with complete visibility into the entire supply chain process. This real-time data helps to make more informed decisions, identify issues as they arise, and take corrective action to minimize disruption to the supply chain. 

Improved Operational Efficiency 

IoT technology can help businesses optimize their supply chain processes, reduce waste, and increase efficiency. With real-time tracking and monitoring, businesses can identify bottlenecks, optimize transportation routes, and streamline inventory management, leading to increased productivity and profitability. 

Also Read: IoT Consulting Services: Everything You Need to Know

Use of IoT in Supply Chain Across Different Industry 

IoT (Internet of Things) technology is used across various industry sectors to improve supply chain management. It is why companies try to optimize their supply chain process by integrating IoT technology into their existing system.  

They choose to leverage the custom enterprise software development services for the same. The sectors or industries using the IoT based supply chain management system to enhance their businesses are mentioned below: 



The retail industry uses IoT technology to track their inventory from different aspects in real-time, and IoT sensors are being used for the same. This enables retailers to optimize inventory levels, reduce the risk of stockouts, and improve the efficiency of the supply chain process. RFID technology is also being used to improve the accuracy of inventory tracking. 


Next on the list, we have the automotive industry, where IoT supply chain management is used to track the location and condition of vehicles and parts in real time. This helps to optimize transportation routes, reduce delivery times, and improve overall supply chain efficiency.  


The Healthcare industry also uses IoT-driven supply chain management for this business. The IoT sensors are used for tracking medical supplies and equipment in real time. It helps medical organizations to improve their inventory management and reduce the risk of equipment downtime. IoT sensors are also being used to monitor patient health and medication adherence, improving patient outcomes and reducing the risk of adverse events. 


IoT for supply chain management is used in the manufacturing industry. This industry requires monitoring the entire production process and the equipment required for the same. So IoT sensors are being used to monitor equipment and production processes in real time. This enables manufacturers to identify inefficiencies, optimize production processes, and reduce downtime. 

Also Read: How is IoT Used in Manufacturing?


This is another vital sector where the active use of IoT technology help in ensuring that product quality is best before being supplied. The agriculture industry uses IoT sensors to monitor crop health on different parameters. It enables farmers to optimize that the crop supplied is not at all damaged in any way. It also helps in improving overall farm efficiency. 

Major Supply Chain Software Driven by IoT  

There are many IoT powered software’s that are used to improve supply chain management for different industries. It is the reason behind businesses hiring the best supply chain software development providers to help them enhance the required processes. Here are some examples of supply chain software that use IoT: 

RFID (Radio-Frequency Identification) Technology 

It is an IoT technology that uses radio waves to identify and track objects automatically. RFID tags can be attached to products, pallets, and containers in the supply chain, allowing them to be tracked in real time throughout the supply chain process. Supply chain software that uses RFID can provide complete visibility into the supply chain. It makes optimizing inventory levels easy, reducing the risk of stockouts, and improving the efficiency of the supply chain process. 

Predictive Maintenance Software 

IoT in supply chain management can be used to monitor the condition of equipment, such as trucks, forklifts, and other machinery. Predictive maintenance software that uses IoT data can provide real-time insights into the equipment’s condition, helping identify potential issues before they become major problems. This proactive approach to maintenance can prevent downtime and delays, leading to increased operational efficiency. 

Supply Chain Visibility Platforms 

This type of supply chain software uses IoT data to provide real-time visibility into the entire supply chain process. These platforms can integrate data from various IoT sensors, providing a complete view of the supply chain process from end to end. This enables managers to identify inefficiencies, optimize inventory levels, and improve the overall efficiency of the supply chain process. 



The relationship between IoT and supply chain management has been well established through this blog. And if you wish to expand your business in any sector by integrating the power of IoT supply chain management, well, you have made the right decision. This technology has a vast range of IoT applications that can be used within different supply chain processes. From tracking to monitoring, this technology can offer you the desired transformation.

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