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 Role of Internet of
Things (IoT) and its impact on supply chain management (SCM) through out the
extensive literature review. The main Important aspects of IoT in SCM are
covered IoT definition, main IoT technology enablers and various SCM processes
and applications. We offer several categorization of the extant literature,
such as based on methodology, industry sector and focus on a classification
based on major supply chain processes. In order , a bibliometric analysis of
the literature is also presented. We aslo find that most of the studies have
focused on conceptualizing the impact of IoT with limited analytical models and
empirical studies.

In addition, most of the studies have been focused on the
delivery  of supply chain process  and manufacturing supply chains. Areas of
future SCM research that can support IoT implementation are also identified.

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The Fourth
Industrial Revolution is “fundamentally changing the way we live, work, and
relate to each one another. The Industry 4.0 concerns of the development of the
connection of emerging technologies in areas such as 3D printing, augmented
virtual reality, artificial intelligence, robotics, autonomous vehicles, big
data, cloud computing, biotechnology in a way to promote activity in
businesses, but the main and various important changes may also be occured in
the economy and as well the society. Along with the carious technologies, the
Internet of Thing (IoT) is reaching substantial attention. As per the multiple
data collected from the Weinberger, Bilgeri & Fleisch , the term IoT “was
initially coined at the Auto-ID labs at the Massachusetts Institute of
Technology (MIT) and describes the vision that virtually all objects become
smart and connected”. Kafle, Fukushima & Harai considers it as an object of
the physical world (physical thing) or the information’ world (virtual thing),
which is capable of being identified and integrated into communication
networks.

 

 

 

The just a position
of IoT’s revolutionary potential and the lack of understanding of its
implications is troublesome for the firms seeking to harness the technology’s
capabilities to seek competitive advantage. Given the technology’s new, few
cases of success or failures of firms using IoT have been documented.
Therefore, it remains unclear what a firm needs to do to improve the
performance of its supply chain using the IoT capabilities.

Various
types of information transverse and influence the functioning of supply chains.
Lee and Whang  describe five types of
information shared in a supply chain which are- inventory levels, sales level,
demand forecasts, order status, and production schedule. The information transfer
MIT Global Scale Network  takes place via
different modes such as direct information transfer (for e.g., through out
electronic data interchange, vendor manager inventory and so on) transfer
through a third party, or through an information technology hub. The
information shared influences behaviors of the parties using it. As a result,
any distortion of the information can cause unintended disturbances in the supply
chain. Lee, et al.suggest 4 potential causes of information distortion that
create the bullwhip effect-efficiency,effectiveness demand signal processing,
in which the retailer’s orders to the wholesaler (who would then order from a
distributor or the manufacturer) are based on the updated demand forecast,
instead of the actual demand; rationing game, in which the retailer orders more
than what is needed if she anticipates that the wholesaler would allocate less
than what was ordered; order batching, in which the retailer orders
periodically from the wholesaler and, as a result, the finite demand
information is lumped into one order; and price variations, in which retailer
orders different order quantities in response to the actual and anticipated
changes in price. The net result of each of these four is that the orders
placed by the retailer to the wholesaler exhibit a pattern different from that
of the market demand.

 

Supply chain
maladies related to information exchange and human decision-making biases may
be cured by using a different information and decision-making ecosystem such as
the internet of things. Some of the emerging research on implications of IoT
for supply chain management suggests that the IoT capabilities can help
companies improve the efficiency of their supply chain operations and
facilitate innovation (Rong, Hu, Lin, Shi, & Guo). In addition, IoT
capabilities can also be used to track goods geographically and over time (as
well as people; however, ethical ramifications of tracking people need to be
considered), provide improved situational awareness, facilitate sensor-driven
decision making, automate production processes, optimize resource use, and
allow real-time sensing of unpredictable conditions .

A
study of the internet of things in logistics (Macaulay, Buckalew, & Chung),
jointly published by the leaders in the domains of IoT (CISCO) and logistics
(DHL), notes that IoT can enhance an organizations capabilities for measuring,
controlling, automatizing, optimizing, learning, and monitoring various
activities in the supply chain. The paper provides examples to illustrate how
IoT could improve the outcomes of logistics processes. These examples include
improvement of operational efficiency (fleet and traffic management, resource
and energy monitoring, and connected production floor), improvement of safety
and security MIT Global Scale Network 9 (equipment and employee monitoring,
health monitoring, physical security), enhance customer experience (connected
retail, context-aware offers to customers), and engender new business models
(firms become service providers, usage-based insurance). The report concludes
by providing three use-cases of IoT in logistics: warehouse operations, freight
transportation, and last-mile delivered.

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