Supply Chain Management encompasses a series of activities
which involves procuring raw materials from suppliers, transporting them to
manufacturing units, transforming the raw materials into finished goods and
distributing it to the customer. Since the entire process comprises of complex
network of suppliers, factory, distribution cells and customers, the system has
to be efficient, effective and robust. This was the traditional SCM Model. It
had some limitations, such as, in most of the cases it had fixed designs that
could not be changed according to the real time environment. Also the model
used to be cost oriented and not revenue oriented. To save upon the recurring
cost, a generalized Supply Chain System was implemented.
For
this process to work in the desired manner flow of material and information
becomes pivotal. But the flow of information is often outpaced by the flow of
materials in the SCM. Information technology is used passively to study the
processes but no real time information is available which could help analyse
them and the inefficiencies associated with it deeply. This is where Internet
of Things can be extremely useful. It is how materials can interact using
internet/web. In SCM this can be used to obtain real time information regarding
the materials, right after procurement to the distribution of materials. This
technology not only helps to track the process but also through real time
analysis helps to remove inefficiencies in the system real time eventually
assisting us in taking and implementing decisions
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