IoT Supply Chain Management and Logistics

By Prometteur solutions 18 Min Read

We are steadily transitioning into a smart world as IoT technologies are connecting us.

These technologies are harnessing the benefits of a data-driven world, sharing vital information and insights into supply chains.

With this blog post, we shall be walking you through the benefits of IoT for supply chain management.

We will also discuss some important use cases and how the technology is useful for implementation.

IoT Supply Chain and Logistics Management: Understanding the Concept

The popularity of IoT technology is increasing as each year passes by. The adoption and implementation of technology in different industries are driving a lot of transformation.

Imaginovation Insider posits that in the year 2019, about half the total number of manufacturers implement IoT logistics. The tech contributors also affirm that many other manufacturers and businesses around the world are already planning or considering adopting the technology for the optimisation of their businesses.

Some people wonder; what actually makes IoT technology special enough to drive the supply chain industry. Others also asked questions around; IoT logistics, IoT in fleet management, IoT in warehouse management, etc.

The answers to all these questions are not far from the benefits that IoT technology holds and offers manufacturers and businesses. For example, IoT for supply chain management offers transparency and efficiency.

IoT Supply Chain Management – Transparency and efficiency

For the sake of clarity, IoT connects different physical devices for the monitoring, storage, and transmission or exchange of information. IoT devices usually work with computer systems and networks for effective and enhanced performance.

So, what does IoT combine these technologies to achieve in the supply chain? Well, we can think of real-time tracking and monitoring. Both of which lead to transparency and efficiency.

IoT plays an important role in ensuring accurate and timely tracking, including the monitoring of fleet operations. The technology also offers route optimisation/management and ensures transparency in real-time. This means that customers and management can conveniently monitor the movement of the orders within the supply chain.

The Most Common and Important Devices of IoT

Once you hear of the words IoT technologies in different industries, IoT (smart) sensors may also come to mind. These are IoT devices that play major roles in the collection and transmission of data in the following areas; location, humidity, movement and temperature. The devices are also very effective in handling, speed and motion. All of which are crucial in the supply chain and logistics industry.

Therefore, the application of IoT supply chain management technologies is a rewarding practice. Rewarding in the sense that the technology enables the real-time tracking and authentication of products as well as shipments.

IoT can also easily monitor different storage facilities by analysing their conditions and how they are effective for certain goods or products. It is, therefore, no wonder that Serge Legchekov describes IoT as a state-of-the-art technology for managing each stage of the supply chain.

From all said so far, IoT logistics play important roles in enhancing quality management and ensuring that customers get satisfactory services.

What is the Role of IoT for Supply Chain Management?

There are several important roles that IoT plays in boosting supply chain management. Let us look at a few.

The Use of IoT in Fleet Management

Are you a fleet manager with different and many vehicles for your supply chain business? How are the delivery services going and would you love to do these; easily monitor, maintain, reduce resources and track your vehicles?

If yes, then you really should consider IoT in fleet management. This innovative technology helps you to easily track and monitor your vehicles by equipping you with sensors. These sensors offer real-time monitoring and will help in improving the maintenance of your vehicles.

Also, the use of IoT sensors will enable you to receive automatic alerts when (potential) issues have been found with your delivery vehicles. Such timely notifications will enhance timely response from you which will aid in preventing downtimes.

IoT in fleet management also plays a crucial role in helping you to keep an eye on the driver. Not only that, you can also monitor traffic conditions and use the insights to improve your strategies for optimal performance.

When you successfully implement IoT in managing your fleet, you will find new and innovative ways of managing resources including saving time. Remember, IoT for supply chain management helps in reducing costs as well as prevents unexpected vehicle breakdowns.

IoT in Predictive Maintenance

If you want to run a successful warehouse and a supply chain, you need a very good maintenance culture in place. This includes having a functioning maintenance scheduling system in place to keep your supply chain in place.

In this case, what will be the best solution?

Traditional maintenance systems have failed warehousing and supply chains in several ways. They are costly to maintain and struggle to keep up with increasing demands. However, the evolution and implementation of IoT in predictive maintenance offers the best solution.

IoT for predictive maintenance can prevent equipment from unexpected failures. This is because it enables you to accurately predict potential failures before they happen.

IoT sensors can detect potential issues and notify the engineering or maintenance teams to make timely decisions. Also, the technology can help you to take down equipment and fix it before it breaks down to cause damaging downtime.

IoT in Asset Tracking and Monitoring

Manufacturers in the supply chain implement IoT for asset tracking and monitoring of their operations. This happens in real time.

IoT for supply chain benefits raw material suppliers, manufacturers, logistics operators, warehouse managers, and retailers.

IoT asset tracking works with GPS and network systems to track the shipment or movement of goods and equipment within and outside the company. With such a solution, supply chain managers can identify issues or hurdles as well as offer sustainable solutions.

IoT in asset tracking and monitoring aids in optimal asset utilisation which leads to an increase in production. It also enables efficiency and sustainability of performance.

Unlocking the Power of IoT for Supply Chain Visibility

What is Supply Chain Visibility?

Supply chain visibility, in simple terms, is having a real-time view of every step in the journey of a product. It’s like having a GPS tracker on your precious cargo, providing you with updates on its location, status, and conditions as it travels from point A to point B.

Now, let’s dive into how IoT for supply chain management takes this concept to a whole new level.

The IoT Revolution

IoT for supply chain management is a game-changer.  You can Imagine a world where your supply chain is very transparent, just like an open book. That’s what IoT brings to the table.

At its core, IoT for supply chain management is about connecting everyday objects to the internet.

In the supply chain context, these objects can be shipping containers, trucks, products themselves, or even the shelves in a warehouse.

These connected devices become your eyes and ears, providing a constant stream of data.

End-to-End Visibility

IoT offers end-to-end visibility across the entire supply chain. It’s enabled supply chain managers to a bird’s-eye view of the entire journey; from the moment a product leaves the manufacturer to its arrival at the customer’s doorstep.

Imagine this scenario for example:

You’re a manager at a company that imports fresh fruits. With IoT, you can track the temperature and humidity inside shipping containers in real time. If there’s a sudden spike in temperature, you receive an alert. This allows you to take precise and immediate action to prevent your precious fruits from spoiling.

Real-Time Data

One of the most significant advantages of IoT in supply chain visibility is real-time data. This means no more waiting for manual updates or relying on outdated information. With IoT sensors in place, you get live updates on product movement, delays, and potential disruptions.

Consider a company that relies on just-in-time inventory management. IoT sensors can notify them instantly if a shipment is delayed due to bad weather or traffic. They can then adjust their production schedule accordingly to avoid costly downtime.

Enhanced Decision-Making

In the world of supply chain management, decisions need to be made swiftly and accurately.

IoT empowers you with the data you need to make informed decisions in real time. It’s like having a crystal ball that shows you the future of your supply chain.

Let’s say you’re a retailer preparing for the holiday season. IoT sensors can help you predict which products will be in high demand based on real-time sales data.

You can adjust your inventory and order more of those hot-selling items, ensuring you never run out of stock during the holiday rush.

Risk Management

In the unpredictable world of supply chain management, risks are abundant. Delays, natural disasters, and unforeseen circumstances can wreak havoc on your operations. IoT acts as a risk mitigation tool.

Picture a company that sources raw materials from different parts of the world. IoT sensors can track the political stability, weather conditions, and even the traffic in those regions.

If a potential risk arises, you receive an alert, allowing you to proactively seek alternative sources or adjust your supply chain strategy.

Therefore, IoT for supply chain management is not just a technology; it’s a transformation.

It’s about having the visibility and control you need to navigate the complex web of modern supply chains.

With IoT, your supply chain becomes a well-orchestrated symphony, where every note is in perfect harmony, leading to efficiency, cost savings, and ultimately, customer satisfaction.

How do Global Brands Transform their Supply Chain and Logistics with IoT?

Global brands are embracing IoT to revolutionize their supply chains and logistics, leading to increased efficiency and cost savings.

Let us look at a few big names.

Amazon uses IoT for Warehouse Management

One of the typical examples of companies using IoT to boost their warehousing management is Amazon. They deploy IoT devices that scan QR codes and identify products, automating tasks, reducing costs, and enhancing overall warehouse performance.

Amazon’s vast network of 493 warehouses, covering 180 million square feet, relies on a fleet of 100,000 IoT robots. The acquisition of Kiva Robots further streamlines inventory management.

These robots can handle heavy loads, thereby, reducing the need for manual labour.

Amazon has a trucking app, Relay, that ensures smoother deliveries to warehouses.

The New Jersey Turnpike Authority use IoT for Traffic Management

The New Jersey Turnpike Authority (NJTA) is collaborating with IBM to use IoT data for traffic management and safety purposes. they use IoT sensors to easily generate real-time data for emergency services and traffic operators.

The insights on the data help them to respond quickly to accidents. This goes a long way in reducing congestion.


This is another big company that utilises IoT in its manufacturing and management processes

Volvo utilizes IoT in a very smart way by allowing the technology to fully automate container ships.  It reduces low efficiency a lot and minimises human intervention.

they also use IoT sensors to enhance efficiency and reduce errors while a cloud platform connects all aspects of this transport system, improving coordination.


DHL is yet another big name among those who enjoy using IoT for supply chain management.

The company (DHL) leverages IoT to maintain high availability of roller cages and optimize heating, ventilation, and air conditioning systems in real time.

This allows for the minimization of energy consumption and improvement on our environment.


Nissan is an old name in the game of warehouse management. They know what solutions is best for them and that’s why IoT for supply chain management is very important.

The company employs an IoT-based warehouse management system at its UK factory. This technology has been a top secret in helping them in enhancing logistics efficiency.


This is one of the biggest Danish shipping companies that introduced Remote Container Management. The innovation is driven by IoT for supply chain management and is effective for the monitoring of shipping container conditions. It helps I the prediction and prevention of cargo spoilage, reduces waste, and improves transportation scheduling accuracy.

Aker Technologies

Aker Technologies is an Agtech company and they offer one of the best IoT systems to agriculture suppliers. They use drones, 3D video sensors, big data, and machine learning to identify crop damage and take prompt action.

Their operations explore the use of IoT devices to make it easier to track goods, improve storage management, and enhance delivery planning.

Akter technology is a global brand like the rest we mentioned and they all illustrate the use cases of IoT for supply chain management and logistics operations.


What is the role of IoT in logistics and supply chain management?

IoT plays a crucial role in the logistics and supply chain management in several ways. They use (smart) sensors to first do the following; measure location, collect data on humidity, and data on the movement of vehicles, equipment and goods.

IoT sensors also help in the handling of vehicle speed. With all these, IoT in supply chain management plays the essential role of tracking and authenticating products. They are also very instrumental in tracking and monitoring shipments.

How Does IoT Logistics Work?

Imagine IoT technologies in logistics like having smart helpers on board.

We’ve got wireless wizards like RFID tags, eSIM, and GPS sensors doing the heavy lifting.

These tech champs are vital for logistics companies because they make tracking shipments a breeze, thanks to real-time location data.

Plus, they’re our go-to crew for keeping an eye on things like container temperature and humidity levels.

What is an example of IoT application in Supply Chain Management?

Ever wondered how those IoT sensors work? Well, they have sensors, work with networks, computer systems and connectivity. They are like our logistics super spies.

They feed us real-time info about where our shipments are, how they’re holding up, and their overall condition.

This isn’t just data; it’s our secret sauce. We use it to make our shipping routes smarter, speed up deliveries, and keep our inventory in check.

It’s like having our logistics magic wand.

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