The Internet of Things has been around for some time. In its simplest form, the IoT connects devices to a wider, intelligent network. Whether it’s sensors or machines on manufacturing lines, in distribution centers, or tracking devices on individual shipping pallets, it can give businesses real-time information to monitor, automate or optimize the process. When people talk about the “smart factory” or “smart supply chain” they’re talking about the IoT.
However, barriers to entry like complexity, technical limitations or implementation costs have often held businesses back from taking the plunge. Artificial intelligence once occupied the same space, but has broken through to the point where everyday businesses can utilize it for great benefit and return on investment.
Why IoT Use is Growing in Supply Chain and Manufacturing
Is the IoT finally about to have its moment? Manufacturing and supply chain could lead the charge here. The IoT market in manufacturing is expected to grow from $313 billion in 2023 to $970 billion by 2028. So, what’s changing?
For manufacturers, leveraging the IoT to connect machines can create a more intelligent, efficient and safer facility. Devices effectively communicate with one another, sharing data to make autonomous decisions based on real-time information, or to alert workers of maintenance or performance issues. While IoT solutions are bespoke by nature and tailored to specific environments, popular use cases include safety monitoring, automating production line processes such as quality control, and providing more accurate data and analytics.
In the supply chain, IoT solutions can help track, manage and deliver goods. Applications can help automate or monitor specific picking and packing processes, and brands like Amazon employ solutions like this. On the other end of the scale, applications can be used to monitor the entire supply chain. For example, Volvo uses IoT to track the movement of vehicle parts from various countries, and to oversee the delivery of vehicles globally.
What it Takes
This all sounds great, but as with any technology implementation, it comes down to how easy it is to implement and see a return on investment. As a fairly transformative technology, IoT solutions require a bit of work to get off the ground. Broadly speaking, implementation relies on three things: devices to gather data, applications to analyze this information and unlock value from it, and connectivity to bind it all together.
The importance of connectivity cannot be understated here. Many IoT applications are developed under the assumption they will be powered by real-time data from their devices. For this to work, the system needs internet connectivity that can connect a large number of devices at once, with reliable speed. This is far beyond having good Wi-Fi. It requires every connected device to be, well, connected at all times with no delays — if your production line or security monitoring relies on the internet, it needs to be rock solid. It also needs to be secure. It is called the Internet of Things because it connects devices to the internet, but you don’t want key elements of your factory or distribution reachable online by the public or cyber attackers.
How to Make it Work
This is why private networks are becoming increasingly popular for businesses, particularly in manufacturing and logistics. A private network is a mobile network (often 4G or 5G) set up to provide a specific area (like a factory) with reliable connectivity. It is, as the name suggests, private, so the business can ensure it has the exact bandwidth it needs, and the network is closed off from the security threats that would be present with a public network. Vendors including Amazon, Google and HPE all offer private network solutions, and Private 5G “in a box” models are becoming increasingly common, so it is easier than ever for businesses to deploy these without needing the same internal technical expertise.
Once you’ve got an ironclad network, the next thing is enabling all your IoT devices and sensors to connect. Just like your mobile, these devices connect to the internet via a SIM card. Of course, a typical SIM card connects to a single network (Vodaphone or Verizon etc.). This is fine for IoT devices that are going to exist at a single site and never leave, but if they are going to move across a supply chain, they need to be able to connect to more than one network.
Enter the eSIM. It might already be familiar from such consumer technologies as the latest iPhone. An eSIM, or embedded SIM, has two main differences from its predecessor. One, it’s embedded in the device, meaning you don’t have to physically insert or remove a SIM card, and two, it facilitates connections with more than one network. This makes it possible for devices with eSIMs to “switch” between networks. For a mobile phone, this would be used when travelling abroad or switching between a work and personal number, but for an IoT device, this can support switching from one private network to another, or even between a private and public network (for fleet tracking, for example.)
Who Should You Partner With?
IoT solutions by their very nature involve a lot of moving parts. Effective IoT in the supply chain involves understanding exactly what you want to achieve and supporting this solution with the right technology such as private networks and eSIMs. While this in itself has been a high barrier to entry (requiring technical knowledge and deep integration), the proposition is becoming less daunting as solutions become more streamlined over time. While IoT solutions might never be available “out-of-the-box,” the private networks that support it (or the eSIMs that connect the devices) are.
This is a large part of why so much growth is expected in the space in the next five years. Manufacturers looking to deploy IoT in that time should partner with specialists to help them deliver their vision. The supply chains of the future are being built today. Are you on track to deliver?
Luc Vidal is head of M2M/IoT business and mobility innovation at BICS.