Internet of Things will transform supply chain, predicts Gartner
The Internet of Things will enable supply chain leaders to provide more differentiated services to customers through a networked ecosystem that can formulate an intelligent response, predicts Gartner.
The market research firm forecasts that a 30-fold increase in Internet-connected physical devices by 2020 will alter supply chain leaders' information access and risk exposure.
"It's important to put IoT maturity into perspective, because of the fast pace at which it is emerging, so supply chain strategists need to be looking at its potential now," says Michael Burkett, managing vice president at Gartner.
"Some IoT devices are more mature, such as commercial telematics now used in trucking fleets to improve logistics efficiency. Some, such as smart fabrics that use sensors within clothing and industrial fabrics to monitor human health or manufacturing processes, are just emerging," Burkett notes.
IoT will also lead to a double-digit increase in digital marketing investment will provide supply chain leaders with improved market insight as well as challenges in industries that target more granular market segments.
By using digital channels for product launches, marketers are carrying out campaigns and communications using multiple channels and adjusting promotions depending on results.
"Supply chain leaders must design their processes to operate in this digital business world. This includes fulfilling the new expectations of customers and the volatile demands that digital marketing will create. A future supply chain will meet those expectations by converging people, business and things in a digital value network, and incorporating fast-emerging capabilities such as IoT and smart machines into this design strategy," concludes Burkett.
- see the Gartner release