For large cold-chain organizations, implementing IoT can be a major challenge. The upfront investment required to be successful can be difficult to secure, and the organizational change management requires leaders to re-imagine many business processes.
Over the last seven years, I was at the forefront of this challenge. I’ve been focused on bringing IoT to life for one of the largest healthcare organizations in the world. This came with many roadblocks, technical challenges, and learning along the way.
So, if you're ready to supercharge your supply chain IoT journey, buckle up. I'm about to share some hard-earned wisdom that could save you a ton of time, money, and headaches.
Temperature excursions are the enemy of on-time, in-full (OTIF) deliveries. Every time a shipment goes out of range, it's a potential delay, damage, or even a complete loss. IoT can help you catch those excursions early, allowing you to intervene and prevent problems before they snowball.
Imagine getting an alert the moment a shipment starts to heat up. You could take action immediately, potentially saving thousands of dollars. Calculate the financial impact of preventing just one major excursion – it might surprise you.
IoT can also help you reduce lead times by days. Real-time visibility means you know exactly where your shipments are and when they'll arrive. This lets you optimize your inventory, reduce carrying costs, and improve customer satisfaction. Figure out what a single day of lead time reduction is worth to your business. It's likely more than you think.
Don't try to boil the ocean all at once. Start small, get some quick wins, and build momentum from there.
Begin by transforming passive logger data into analytics. This will give you a baseline of data to understand your current risks and challenges. Think of it as gathering intel before you launch a full-scale attack.
Once you have some passive data, it's time to experiment with real-time visibility. But don't just slap sensors on every shipment. Focus your pilots on where you'll get the biggest bang for your buck.
By strategically targeting your pilots, you'll be able to quickly and convincingly demonstrate the value of real-time visibility. This will make it easier to secure buy-in for a broader rollout. Remember, it's all about building credibility and momentum.
Check out this PAXAFE blog on the 4 Stages of IoT Maturity.
Think of shipment creation as the starting line of a relay race. The more information you have at the outset, the more your team is better equipped to win.
The key to unlocking the full potential of IoT lies in maximizing the data you capture at the very beginning of the shipment journey. This data fuels your analytics engine, empowering you to make informed decisions and proactively address potential issues.
Here are some critical data points to include at shipment creation:
By capturing and integrating this data at shipment creation, you'll understand each shipment's risk profile comprehensively. This allows you to tailor your monitoring strategies, proactively address potential issues, and ensure your products arrive on time and in perfect condition.
Remember, the more data you have at the starting line, the stronger your finish will be.
Don't get locked into a rigid, proprietary system. Embrace an API-first approach to maintain control, flexibility, and the ability to innovate. Setup an API between your ERP, TMS, and Control Tower. This will ensure top data quality and reduce the time it takes for operators to create shipments at scale.
When choosing sensor providers, prioritize those that offer webhooks. Webhooks enable real-time data streaming and seamless integration with your other systems. This eliminates the need for manual data downloads and empowers you to automate processes and respond to events as they happen.
Without a webhook, your IT department will have to build a customized polling mechanism to constantly query sensor data from your device provider. This will require additional investment and may lead to data quality issues down the road.
While it's tempting to rely solely on external providers, it's crucial to take ownership of your data. This allows you to switch providers, integrate new technologies, and build custom applications tailored to your needs.
Real-time visibility is great, but predictive analytics is the real magic. By leveraging machine learning and AI, you can anticipate potential issues before they occur, enabling proactive intervention and minimizing disruptions.
Accurate ETAs are the foundation of trust and efficiency. Your system consistently provides reliable arrival times, enabling your team to make informed decisions and optimize their operations.
“I’m holding a package in my hand and the ETA still says it’s 2 hours out. Now I don’t trust any of the data.”
This quote highlights the importance of accurate ETA's. When your system fails to deliver on its promises, it erodes trust and undermines the value of your entire IoT investment.
By adopting an API-first approach, focusing on predictive analytics, and ensuring accurate ETAs, you'll build a flexible, future-proof system that empowers your team to make data-driven decisions and deliver exceptional results.
Implementing IoT isn't just about technology – it's about transforming how you do business.
Embrace the possibilities of automation. Envision a world where temperature assessments and product releases happen seamlessly, driven by real-time data and intelligent algorithms. This will free up your team to focus on higher-value tasks and reduce the risk of human error.
Form a risk review board by bringing together key stakeholders from across your organization. This cross-functional team will be responsible for evaluating insights from your IoT system, making informed decisions, and swiftly mitigating risks.
It is crucial to gain buy-in from leadership at both origin and destination sites. When leaders understand the value of IoT and champion its adoption, it creates a ripple effect throughout the organization.
"My job is to get as much product out the door as possible. Adding 10 minutes of process to apply a sensor on every shipment does not help me achieve my goals."
This quote from an outbound operator highlights the importance of aligning goals with new processes. When employees understand how IoT benefits the organization and their own roles, they're more likely to embrace change.
Business processes will inevitably evolve as you integrate IoT into your operations. Be prepared to adapt, train your team, and provide support to ensure a smooth transition. Remember, change can be challenging but also an opportunity for growth and improvement.
You'll create a culture of innovation and continuous improvement by reimagining your processes, establishing a Risk Review Board, securing leadership alignment, and empowering your team. This will enable you to harness the full power of IoT and achieve lasting success in the ever-evolving world of supply chain management.