Impact of IoT on supply chain performance
Aim: To increase the understanding of the Internet of Things (IoT) by demonstrating its impacts and benefits on supply chain performance. Design/methodology/approach: System dynamics to assess the benefits of using IoT technology to enhance supply chain performance. Findings: Simulation results show a positive impact on the supply chain activities targeted in three propositions: 1) Better decision-making-Better asset utilization and reduced shipping time. However, transportation costs increase because of the lack of a decision-making system. 2) Reduced lead time-A reduced shipping time for location technology and when all technologies are combined. 3) Better asset utilization-A higher utilization factor, hinting at better asset utilization. Limitations/implications: The models presented are based on merged data from different sources as well as estimates based on assumptions. Practical implications: A decision-making processing system that integrates the complete array of appropriated technologies. This system is the underlying concept and the contribution of the IoT.