The challenge of embedding IoT in the supply chain

As more and more manufacturers embrace the disruptive benefits which IoT technologies offer, a new set of challenges has emerged. There are multiple reasons why companies are embracing the Internet of Things (IoT). Extending the product reach, better product traceability and greater transparency in the supply chain are three such factors. The Manufacturer recently sat down with Graeme Wright, CTO Manufacturing, Utilities, and Services Fujitsu UK&I, to discuss how manufacturers can overcome the common stumbling blocks when adopting IoT technologies. According to Wright, the majority of the partners Fujitsu works with collect data to screen their supply chains, extend their product reach and bridge costly gaps in their distribution and retail networks. Wright stated that one way Fujitsu supports its partners by embedding IoT-based ‘Near Field Communication’ (NFC) devices into their products for actionable business insight. Wright explained: “Even when a manufacturer holds a significant value of goods globally, there is no guarantee that they stock the required products. To have sufficient insight into the supply chain is therefore crucial for manufacturers. Companies who miss out on making their supply chain more transparent potentially face a significant loss of revenue and higher costs and low free cash flow. However, companies have to be prepared, Wright warned. Some businesses may not have the right tools to hand over data, other may lack the necessary integration to stop data slipping through the cracks. The company integrated active RFID tags to monitor the temperature of the product through the supply chain, Wright continued, and it identified the root cause of the products turning sour and reduced product wastage costs.