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How IoT can Help Procurement Teams
Devices are more connected than people in today's world. Whether it's the smartwatch on your wrist or the voice assistants on which we've become so reliant, the gadgets around us make our lives easier by working in unison.
Fremont, CA: IoT sensors can make a significant contribution to a well-functioning inventory management system. RFID tags, for example, combined with IoT devices, track physical inventories without the need to scan barcodes or labels. Furthermore, businesses can track the days before items expire using interconnected IoT devices, which is especially useful when a company has a large inventory. There is a risk that the products will pass. Notifying management of the due dates prevents inventory from being discarded as waste.
IoT also helps prevent product theft by allowing businesses to track the location of their items. Furthermore, procurement teams can arrange products based on demand using machine learning.
Visibility of the Supply Chain
Another way that IoT technology can be successfully used in procurement is through supply chain visibility, in which items are documented as they travel from the manufacturer to the customer.
When coupled, an IoT system can efficiently follow the supply chain by reading data from various devices such as smart tags (RFIDs and Barcodes) and sensory data such as ambient temperature and humidity, vehicle speed, and geolocation.
The use of IoT devices aids in determining the lead times required to assemble all of the production parts. Excessive lead times are identified to avoid bottlenecks caused by a lack of critical parts, which can halt the manufacturing process.
Monitor and Alert Maintenance
Teams can observe temperature, vibration, oil, and performance analysis indicators by using IoT sensors for condition monitoring. IoT sensors send alerts to groups via computers when these indicators fall out of range. Signs for these deviations indicate when equipment requires a basic check or is on the verge of failing. When maintenance is scheduled as soon as a potential problem is identified, the likelihood of downtime is significantly reduced, ensuring that operations continue to run smoothly.
Predictive Data Analytics Improves Decision Making
Procurement teams can forecast the future using predictive data analytics and spend analytics. These forecasts can aid in critical decisions regarding the design and implementation of business strategies. In addition, continuous data collection with IoT devices aids in the development of more robust and relevant historical data.