IoT in SSCM - Webarchive
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Received: 6 November 2022 / Revised: 29 November 2022 / Accepted: 7 December 2022 / Published: 30 December 2022
Abstract
The traditional supply chain system included smart objects to enhance intelligence, automation capabilities, and intelligent decision-making. Internet of Things (IoT)
technologies are providing unprecedented opportunities to enhance efficiency and reduce the cost of the existing system of the supply chain. This article aims to study
the prevailing supply chain system and explore the benefits obtained after smart objects and embedded networks of IoT are implanted. Short-range communication
technologies, radio frequency identification (RFID), middleware, and cloud computing are extensively comprehended to conceptualize the smart supply chain
management system. Moreover, manufacturers are achieving maximum benefits in terms of safety, cost, intelligent management of inventory, and decision-making.
This study also offers concepts of smart carriage, loading/unloading, transportation, warehousing, and packaging for the secure distribution of products.
Top
Furthermore,
the tracking of customers to convince them to make more purchases and the modification of shops with the assistance of the Internet of Things are thoroughly idealized.
the tracking of customers to convince them to make more purchases and the modification of shops with the assistance of the Internet of Things are thoroughly idealized.
Keywords: sustainable supply chain management; Internet of Things; smart supply chain; smart distribution
1. Introduction
The systematic process of managing the flow of operations from acquiring raw materials from suppliers, manufacturing products, and distribution of manufactured
goods or services to retailers for onward submission to end customers is termed a supply chain. Supply chain management, as depicted in Figure 1, is further
elaborated as the right item intended for the right customer at the right price under the right condition at the right place and time in the right quantity [1]. However, this
ideal condition has never been realized and is confronted with real supply chain problems of delivery delays, overstocking, and stock out [2].
Over time, the supply chains are getting riskier, more complex, and costlier which is against the main theme of the subject. Hence, to make it more convenient in
the face of the growing challenges of new world orders, the involvement of information and communication technology has become a necessity [3]. In this connection,
infrastructure relevant to the chain of supply needs to be intelligent and integrated. It can be materialized by combining products, services, operations, data
communication, electronics, and computer science into a single platform to take full advantage of engineering, technology, and business [4]. Values can be added to the
existing infrastructure of manufacturing by employing smart tools and equipment, analytics, and business intelligence [5]. With the emergence of commercialization and
globalization across the globe, it has become mandatory for firms to have an advantage over their rivals to survive in a highly competitive market. Numerous examples
are set to exist as smart versions of home, agriculture, city, and health.
In this context, various efforts have been extended to ensure the management, transmission, collection, and further predictions are intelligent to identify the cause
and effect of disruption by real-time data analytics. By implementing advanced digital technologies, such as fog, edge and cloud computing, data analytics, and
penetration of Internet of Things technology, it is possible to resist disruptions and recover in hostile conditions to provide seamless connectivity [6]. Moreover,
digitization of the supply chain will assist in building a resilient manufacturing system and also in mitigating the risk of a war-like situation in a pandemic [7].
Furthermore, the resilience of the firm can be enhanced through suppliers, manufacturers, and customer integration. Additionally, the role of digitization in supply chain
management is boosting the functional coordination and the downstream and upstream of supply chain integration [8].
This research article aims to provide necessary insights about the Internet of Things for the efficient and effective management of the supply chain. The paper is
structured as follows. In Section 2, features of IoT are discussed. Section 3 gives a comprehensive overview of technologies applied in IoT. In Section 4, the
structured as follows. In Section 2, features of IoT are discussed. Section 3 gives a comprehensive overview of technologies applied in IoT. In Section 4, the
application of IoT in manufacturing and distribution is thoroughly deliberated. Section 5 details the retail industry, Section 6 provides challenges of IoT, and Section 7
concludes the paper.
The Internet of Things is an integrated system of intelligent interconnections fused with wireless sensory networks, big data, and cloud computing. The number of
connected objects has surpassed the total population of the world, according to studies conducted by Cisco [9]. Immense numbers of opportunities are generated with
the assistance of billions of smart objects of the Internet of Things [10]. The emergence of IoT technologies has revolutionized traditional society to a new horizon of
information and interconnections. The term, IoT, was first devised for the presence of RFID that was later on used for embedded systems implanted for the fulfillment of
special purposes in the physical world to redress problems or increase efficiency [11]. The role of IoT in supply chain management is unforgettable as it has enabled
real-time monitoring of every stage of the chain to provide seamless movement of goods and information [12]. The first application of IoT in the supply chain was to
identify and track items with the help of sensors and hand-held devices to control the flow of physical objects and information [13]. The decision process in the supply
chain has been significantly improved due to an unprecedent amount of information generated in big data for processing. Hence, it has resulted in quicker and more
efficient decisions being made. Traditional problems associated with the supply chain are replaced with newer problems of technology, system, and business modeling.
The cost of ICT and smart equipment has been reduced due to excessive applications in other fields as well. The following are three core characteristics induced in
supply chain management due to the integration of IoT.
2.1. Intelligent
Most of the organization’s decisions will be taken by machines without the involvement of human beings. These decisions are comparatively fast, in real-time, and
maintain room for future predictions. The intelligence in the system is accompanied by simulation and modeling capabilities and perform the assigned task as predict-
and-act [14]. This feature is greatly assisting executives in trading off repetitive work.
2.2. Interconnected
The entire network of IoT has gained interconnectivity at unprecedented levels ranging from suppliers, manufacturers, and distribution to delivery of items to
customers through smart gadgets. Interconnectivity in some cases is replaced by collaborations even at the global level that broaden the scope of business operations
[15].
2.3. Instrumented
The visibility of IoT based-supply chain systems is more prominent compared to traditional systems due to generations and processing of real-time data acquired
from sensors, actuators, GPS, and RFID tags at each distinct stage [16]. In this particular scenario, human involvement in monitoring and tracking products, services,
trucks, and containers is significantly reduced.
3. IoT Technologies
3.2. RFID
The term is frequently used for two types of devices, the reader (master of communication) and the tag (associated electronic cod). The reader propagates the RF
signals, and tags receive identification codes through implanted sensors. Tags can either be powered by a battery or attain the energy from the RF signals of the reader.
Numerous applications of RFID include security, asset identification, actuation, and user interactions to interact with centralized IoT systems. These are categorized as
analog or digital types; however, they provide a variety of sensing applications, particularly in IoT system. The analog RFID system, although low-cost, experiences a
serious trade-off between communication and sensing requirements. In contrast, digital RFID systems are immune to ambient interactions; however, generating
precision with selective output at the cost of heavy energy consumption is practiced [20,21].
3.3. Middleware
The volume of data (structured, semi-structured, and unstructured) generated from IoT devices strictly depends on the number of surrounding devices; hence, a
great numbers of events are consequently covered. The middleware layer, as drawn in Table 1, operated between the application and operating system to arrange a
hidden translation. This function as a plumber integrates two applications; however, data is fed from the database. Different vendors are operating different middleware
platforms to provide support with different underlying technologies. Multiple functionalities are controlled by the middleware, such as data storage and management,
device interactions, analytics, security, and processing [22]. Platform in this regard must be specific to meet the requirement of the system. Four different types of
middleware platforms are:
Table
The middleware for IoT must adopt the basic features to perform predefined functionalities, for instance, availability and stability to provide continuous service
(24X7). This capability is sometimes vital in medical care facilities to monitor the patient’s health around the clock. However, in the case of the smart industry, limited
hours can be observed. Different pricing models are considered by vendors, such as pay for storage, pay as executed, pay as per connected devices, and subscription
based. AWS charges for storage or execution. In contrast, Microsoft Azure collects bills for the number of connected devices and traffic of messages. IBM Watson
charges based on data storage. Nevertheless, ThingSpeak and Kaa are open sources and offer free services for personalized applications, while Tembo and Carriots
apply subscription-based services. In a scenario of support of hardware, Arduino and Raspberry Pi are customized boards to run IoT-based applications with various
features and standards. These boards are provided with different built-in features of clock speed, RAM, processors, price, GPU, and support for different languages
supports [24]. Keeping in view of the security requirements, various algorithms are applied according to applications. Numerous protocols control the functionality of IoT
as per application requirements. For example, CoAP is comparatively lightweight versus HTTP and appropriate for mobile applications; however, MQTT is more suitable
for limited bandwidth applications. Moreover, data may be obtained either through real-time streaming or historically to conduct analytics, such as Oracle, Google, Azure
and Microsoft which offer real-time streaming options [25].
3.4. Computing Platform
Over the Internet, it aims to provide hosting services on the concept of distributed software architecture. New markets and communities have come into being due
to cloud computing concepts, and remote computers are fed from data centers located in far-flung areas of the globe [26].
The role of a cloud platform is promising due to its immensely easy storage service, and vendors are taking advantage by providing subscriptions at hourly rates.
IoT devices’ data are stored directly on to a cloud computer leading to the new concept of a cloud of things that provides benefits in term of storage and computational
resources. The introduction of the cloud platform expands the broadening of services to the real-world environment. This ecosystem is comprised of three services, as
depicted in Figure 3. Firstly, the sensory network collects data from the surrounding environment about the physical world. Secondly, the storage, processing, and
analysis of data are performed in the cloud environment. Computational and storage functions are conducted on virtual machines installed on physical servers in the
cloud. The third vital component is the application running on a smartphone or computer. Visualization of results and issuance of necessary commands are executed by
end-users.
Figure 3. WSN-connected cloud platform of IoT.
The journey of a smart supply chain management system ranges from the provisioning of raw materials from suppliers, intelligent production of products at the
manufacturing site, and secure and intelligent carriage of products under a strict monitory system. These products are transported to a retail store to provide to end-
users, as demonstrated in Figure 4. Customers are further tracked down through a fully connected IoT system to monitor their behavior.
Figure 4. Smart IoT application in supply chain management.
In addition, other benefits are planning and monitoring of the production process, saving of raw material and human labor, a decline in downtime, manufacturing
process efficiency, availability of real-time system information, improvement of transportation and logistics, the introduction of quasi closed loop production, production
of refined products, implementation of an innovative ecosystem, and enhancement of attractiveness of jobs and activities. RFID and sensors are mandatory
components of modern technologies in the implementation of smart factories. Several automation processes related to factories ranging from inbound and outbound
components of modern technologies in the implementation of smart factories. Several automation processes related to factories ranging from inbound and outbound
management to identification of tools and parts are critical activities performed on the mentioned technology [28]. Primarily, the application of the technology was to
identify and track the items in the logistics and retail sector of the supply chain; however, maximum benefits can be obtained in the manufacturing sector as well [29].
Similarly, cloud computing is providing on-demand service to furnish flexibility, reduce costs, and increase efficiency and revenue to smart factories [ 30]. Cloud
platforms extend computational and storage capabilities that can be enhanced on demand. In this context, a huge amount of data generated during the operation of
sensing devices of IoT are transported to cyberspace for conversion into useful information.
As a result, the optimization and management of systems are conducted by big data analytics [ 31]. Cognizance about the running process inside the factory at
different levels is disseminated from the wireless sensory network. A comprehensive IoT system, as shown in Figure 6, is installed with vibration sensors that issue
warnings for preventive maintenance whenever its value exceeds the normal limit [32]. Similarly, low-cost but high-speed communication is performed through Wi-Fi,
Bluetooth, and WiMAX in a smart factory.
The retail industry, as given in Figure 7, has witnessed immensely high competition that can only be beaten by the introduction of innovative solutions. To efficiently
run a retail store, engagement with potential or current customers is vital to establish new connections or increase purchases from existing ones, respectively. This
arrangement can be made either inside the store over applications on smartphones or the Web. The in-store encounters can significantly be improved by utilizing IoT-
enabled gadgets. The camera network extends from an IoT system designed for in-store use to determine and analyze the employees and customer behavior and
inventory management [54]. This network is responsible for analyzing the entrance and exit patterns, visit frequency, duration of visit, and interactions of the customers
with sales people. The store layout is accordingly modified to increase the flow of customers and mobile marketing. Local servers are installed in the store based on
these patterns so personalized offerings are made on screen or engaged with Chabot. Furthermore, customer-specific information collected based on facial recognition
is fed on social network sites and new offerings are made [55]. Another option is to track the shopper during a purchase from the store and establish the relationship
through a mobile payment method via the wireless network. This option is comparatively cheaper than the camera network; however, it is inadequate to learn more
about overall customer experiences and behaviors. Customers who intend to shop are offered Wi-Fi connectivity invitations by retailers to be followed. In case shoppers
decline to use Wi-Fi service, they are still tracked unless their smartphone Wi-Fi is turned off. Cisco, Apple, and Starbucks in Korea provide cloud-hosted portals to
predict customer behavior and path visualization. Likewise, customer buying behavior is followed based on credit cards whenever scanned for payment at the point of
sale [56]. This is considered the cheapest option to track the shopping habits of the customer. IoT devices are an integral part of the advent of printable RFID tags that
are not required to be removed at the POS.
Moreover, these tags are included with detailed information about shoppers and the store. To further enhance the customer experience and track the location of
products, the items are affixed with sensors that are connected through optical communication, Wi-Fi, ZigBee, Bluetooth, and ultra-wideband. The efficiency of logistics
is increased with the enhancement of tracking capabilities both at storage and transit from the distribution center to the store or warehouse [57].
The IoT-based supply chain is confronted with numerous financial and environmental challenges. The higher cost of smart gadgets, especially RFID, does not allow
the penetration of technology into the open market [58,59,60]. Similarly, the design and prices of controlling software systems for the smart operation of the process are
considered big hurdles in the prevalence of the Internet of Things in the supply chain. However, the issue has been partially countered by connecting the transducers of
IoT networks with mobile devices providing versatility and availability. In the context of the environment, the challenge currently faced by IoT devices is the lagging
traditional design of sensors and actuators increasing e-waste. The advent of smartphones in the open market with multi-functionalities is introducing green technology
[61,62,63]. Serious efforts in this regard would help in the revolution of IoT in every field of life.
7. Conclusions
The adoption and integration of IoT have demonstrated social, economic, and environmental on-the-ground benefits. The entire supply chain has been transformed
as flexible and dynamic with high quality and low cost at delivery of service. This paper provides due understanding to supply chain policy makers and managers and
helps proceed into the industrial revolution. Packaging of manufactured products prepared to be carried to the distribution center need more accuracy and precision. In
this context, excessive use of supply chain-based sensory networks, RFIDs, and bar codes is an effective solution that can further be integrated with the distribution
center for early preparedness. On the distribution side of the supply chain management system, strict monitoring of cargo and vehicles and safe delivery of items to the
distribution point and updating the location record can significantly reduce the loss. Moreover, smart warehousing is critical for space optimization and continuous
distribution point and updating the location record can significantly reduce the loss. Moreover, smart warehousing is critical for space optimization and continuous
improvement in product management. IoT-based integrated systems of warehousing, loading, and unloading can reduce operational time with enhanced efficiency. The
store layout is accordingly adjusted and modified to increase the frequency of customers and guide them to purchase more from the store. Purchasers are further
tracked by collecting customer-specific information through Wi-Fi technology. IoT is considered an effective technology in the future that would revolutionize the existing
industry and households. Moreover, the connected gadgets will be data-driven and highly responsive with a strong feedback system. The technology will pave the way
for personal autonomy and energy efficiency with minimum waste.
Author Contributions
The original draft of this endeavor of research was designed and prepared by Y.K. However, the definition of methodology and supervison of research has been
provided by M.B.M.S. and M.M.A. Moreover, formal analysis and curation fo data has been conducted by S.F.A. Last but not least, N.K. and A.Y.A.B.A. have been
keenly involved in investigation, visualtization and writing—review and editing of this research work. All authors have read and agreed to the published version of the
manuscript.
Funding
Not applicable.
Not applicable.
Not applicable.
Acknowledgments
We acknowledge Multimedia University, Malaysia for providing the funding for this research. We also acknowledge the role of Middle East University, Amman
Jordan as significant in this research.We would like to appreciate the contribution in terms of technical support of Iqra National University, Riphah International
University, Institute of Business Management, and University of Chakwal.
Conflicts of Interest
No potential conflicts of interest were reported by the author.
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MDPI and ACS Style
Khan, Y.; Su’ud, M.B.M.; Alam, M.M.; Ahmad, S.F.; Ahmad, A.Y.A.B.; Khan, N. Application of Internet of Things (IoT) in Sustainable Supply Chain Management.
Sustainability 2023, 15 , 694. https://doi.org/10.3390/su15010694
AMA Style
Khan Y, Su’ud MBM, Alam MM, Ahmad SF, Ahmad AYAB, Khan N. Application of Internet of Things (IoT) in Sustainable Supply Chain Management. Sustainability. 2023;
15(1):694. https://doi.org/10.3390/su15010694
Chicago/Turabian Style
Khan, Yasser, Mazliham Bin Mohd Su’ud, Muhammad Mansoor Alam, Syed Fayaz Ahmad, Ahmad Y. A. Bani Ahmad (Ayassrah), and Nasir Khan. 2023. "Application of
Internet of Things (IoT) in Sustainable Supply Chain Management" Sustainability 15, no. 1: 694. https://doi.org/10.3390/su15010694
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