The Internet of Things is changing business as we know it. Defined as the place where the digital world meets the physical, it’s working to create extended enterprises that reach beyond the traditional supply chain paradigm. Supply chains used to be severed once the product reached the consumer, but with the Internet of Things, the chain now continues to another link.

Learn more about supply chain management with this infographic

So, what is the Internet of Things?  Why is it important and what does it do for us? Specifically, what can it do for supply chain management?

The Internet of Things is a catchall name for any and all physical products, devices, appliances, etc. that are embedded with some sort of digital component, like sensors, software, or internet connectivity. Like a refrigerator that’s Wi-Fi enabled. Or a device or program that allows you to close your garage door, turn off lights, and enable your security system, directly from your smartphone.

One study by Gartner estimates that by 2020, over 20 billion “things” will be digitally connected. That’s close to 3 “things” for every person currently on the planet. Whoa.

As products become smarter, so do the supply chains that deliver these products to the consumer. Objects and goods that deliver information contribute to a more holistic, 360-degree data visualization of a supply chain. 

For example, Microsoft customer WASH Multifamily Laundry Services has harnessed the power of connected devices to provide real-time data on the company’s washers and dryers. With over half a million washers and dryers in 75,000 locations, the ability to warehouse and gain insight on the data the machines provide is invaluable. WASH utilizes sensors, barcodes, smartphones, and other devices to gather data relevant to service calls and repair issues. Being able to view this data promotes overall supply chain efficiencies for WASH.

Manufacturing industries can benefit from IoT with a more connected and automated production line. Technologies like temperature gauges in factory facilities can optimize the perfect environment for the production of climate-sensitive goods.

Supply chain logistics can benefit from point-in-time data that will encourage shipping efficiencies. Product delivery delays can be avoided by using data to suggest the most efficient travel routes.

A more intelligent supply chain can enable greater efficiencies and, therefore, greater returns on investment. Providing additional data on a product after its purchase contributes to its overall value. Collecting data about the functionality of a product while a consumer is using it is invaluable. With this knowledge, you’re able to improve the next generation of your product with feedback provided directly by your users.

Supply chain management and the Internet of Things might just be a match made in heaven. With devices and connectivity to enable smarter production, more efficient logistics, and products smart enough to transmit data, the Internet of Things is facilitating smarter, more agile, and more connected supply chains.

Learn more about supply chain management: click here.

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About a month ago, I bought some jeans from my favorite retail clothing chain. The jeans fit perfectly- at first. After a few wears, they stretched out beyond return and I wanted to exchange the jeans. Problem: I didn’t have a receipt and I had washed them several times. To my surprise, it wasn’t a problem! The clothing store had my purchase history chronicled in my user account. I just had to provide my email address. They accepted the jeans, no questions asked, ordered the correct size since they didn’t have them in store, to be delivered to my front door. I was delighted at the ease of the experience! I walked away happy and satisfied, with an increased sense of loyalty towards the company that just took amazing care of my needs.

Like my experience, retail consumers want to gather information and make purchases, seamlessly across multiple platforms. Each channel should meld into the next, creating a uniform, continuous experience with up-to-date information, be it online, on the phone, or in the store. Omni-channel retailing is about being accessible and uniform with the same message, branding, and services throughout the experience.

With omni-channel retailing, customers make purchases using various methods working together cohesively. For example, a store that allows customers to browse and purchase merchandise online, and then pick the item up in-store. Or the ability to buy goods from a mail-order catalog, but return them to a brick-and-mortar store. Or log into an online account, print a return label and mail it back, without leaving home. A fully comprehensive omni-channel buying experience allows customers to buy, return, and/or exchange products through all channels.

Creating an exceptional omni-channel experience often requires the support of technology solutions, but it’s important to implement the right technologies to ensure accuracy, visibility, and consistency. Here are a few of the top trends in retail supply chain technology for 2016.  

RFID Tagging

Radio frequency identification (RFID) tagging is like a 21^st century barcode. It’s a method of organizing and tracking inventory, but RFID tags don’t have to be scanned and don’t require direct contact or line of sight to be detected. Even better than the barcode, RFID tags can also send out information, bringing inventory management to a whole new level. More accurate inventory and real-time information about product availability makes omni-channel buying easier because customers can quickly find out what’s in-stock at their local store, buy it online, and pick it up later. 

Learn more about retail supply chain management trends for 2016

Informative websites

Today’s customers do a lot of research before buying. Retailers must maintain an informative and current website where consumers can access their accounts, review their buying history, and check product availability. Customers also want to be remembered via customer profiles: which means all buying history, preferences, personal information, and payment options need to be accessible through a single customer account. Finally, the website should translate easily from desktop to mobile and tablet, offering all the same services and features.

Reverse logistics

What are reverse logistics? Exactly what you’d think! It’s the process a product follows backwards through the supply chain. Ensuring a supply chain can easily absorb returned and/or exchanged items enhances the customer’s overall experience and encourages repeat business. It’s also good to make sure customers can return and exchange through various avenues, not just the one through which they made the original purchase.

Hyper-local search results

By maintaining relevant information within online search results, businesses can encourage page visits and even increase store visits. Tailored search results focused on product availability, store location, store hours and pricing can actually inspire customers to visit your store. If that information isn’t available, one in four shoppers say they’ll steer clear of a nearby store to avoid the risk of items not being available. To avoid the risk, optimize your search results and make sure important information is available to your customers.

Learn more about supply chain management trends for 2016: download the infographic.

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