DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) - April 18th and 19th 2023 

Sub Working Group Outline on 

Augmented Logistics and Smart Supply Chains

Sub-Group Members

Robby Moss, 

Tom Katsioulas

Steve Griffith

Mike Bergman

Ann Mehra
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) - April 18th and 19th 2023 

Definition - Augmented and Smart Supply Chains

• Augmented Supply Chain Definition 

• Augmented supply chain refers to the integration and use of emerging technologies such as IoT, AI, 

5G, blockchain, and other digital technologies into traditional supply chain processes. This 

integration aims to enhance visibility, improve operational efficiency, reduce costs, and provide 

greater transparency throughout the supply chain. Augmented supply chains use real-time data 

and analytics to monitor and track goods from suppliers to end customers, making it easier to 

identify bottlenecks, optimize operations, and improve overall performance.

• Smart Supply Chain Definition 

• Smart supply chain refers to a network of interconnected enterprises in a value chain that use 

digital technologies to exchange information deliver products or services to end-users. Smartconnected value chains leverage advanced technologies and digitalization infrastructure to make 

intelligent decisions by establishing provenance, traceability and market preference through 

trusted digital thread and data analytics. They adapt quickly to customer needs by anticipating 

demand, inventory levels, and logistics for assured supply. They enable marketplaces by leveraging 

the digital thread of data to manage vulnerabilities, establish market preference and create datadriven ML/AI applications and IoT services to maximize security and economic growth. 
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) - April 18th and 19th 2023 

Sub Working Group Outline on 

Augmented Supply Chain Logistics
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) - April 18th and 19th 2023 

• Real-time monitoring and tracking: IoT enables real-time monitoring and tracking of goods, assets, and equipment 

throughout the supply chain, increasing visibility, reducing delays, and improving operational efficiency.

• Predictive maintenance: IoT devices can monitor equipment performance, predict potential failures, and trigger 

proactive maintenance, minimizing downtime and disruptions in supply chain operations.

• Enhanced inventory management: IoT technologies facilitate better inventory management, enabling companies 

to optimize stock levels, reduce carrying costs, and minimize stockouts and overstocks.

• Improved demand forecasting: IoT devices can collect and analyze data on consumer behavior, market trends, and 

sales patterns, allowing businesses to make more accurate demand forecasts and adjust their supply chain 

operations accordingly.

• Increased transparency and traceability: IoT can provide greater transparency and traceability throughout the 

supply chain, enhancing trust and accountability among stakeholders and facilitating compliance with regulations 

and standards.

Opportunities for IoT Augmented Supply Chain Logistics
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) - April 18th and 19th 2023 

• Automation and robotics: IoT-enabled automation and robotics can increase productivity, reduce labor costs, and 

improve accuracy in supply chain operations, such as warehousing and material handling.

• Enhanced transportation management: IoT technologies can optimize transportation routes and schedules, 

monitor vehicle performance, and provide real-time updates on traffic and weather conditions, improving the 

efficiency and reliability of transportation networks.

• Energy and resource efficiency: IoT can help monitor and optimize energy consumption and resource use in supply 

chain operations, leading to cost savings and reduced environmental impact.

• Improved collaboration and decision-making: IoT-driven data sharing and analytics can enhance collaboration 

among supply chain partners, enabling better-informed decision-making and more agile response to changes in 

demand or supply conditions.

• Enhanced risk management and resilience: IoT can help businesses identify, monitor, and mitigate supply chain 

risks, such as disruptions, delays, or quality issues, enhancing the resilience and adaptability of their supply chain 

operations.

Opportunities for IoT Augmented Supply Chain Logistics
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) - April 18th and 19th 2023 

• Tracking and tracing of raw materials: 

• Leveraging technologies such as RFID tags, GPS, and sensors, manufacturers can gain real-time visibility into location and 

status of raw materials as they move through the supply chain.

• Enhanced visibility allows manufacturers to optimize logistics, reduce lead times, and minimize stockouts or overstocking.

• Provides assurance of responsible sourcing of materials, as well as compliance with environmental and regulatory standards.

• Supplier performance monitoring: 

• Potential to facilitate real-time monitoring of supplier performance in the automotive industry by installing sensors and 

other IoT devices at supplier facilities.

• Manufacturers may remotely gather data on KPIs such as production rates, quality metrics, and delivery times enabling 

data-driven decisions regarding supplier selection and management, leading to improved supply chain efficiency.

• May help manufacturers identify and address potential bottlenecks, quality issues, or other disruptions in the supply chain 

before they escalate into more significant problems.

• Dynamic pricing and demand forecasting: 

• By collecting and analyzing real-time data on factors such as market conditions, weather patterns, and consumer trends, IoTenabled systems can help manufacturers make more accurate predictions about future demand for raw materials.

• May enable adjustment of procurement strategies and negotiation of better prices with suppliers based on anticipated 

demand fluctuations.

• Facilitates dynamic pricing models, where manufacturers and suppliers can negotiate prices in real-time based on changing 

market conditions and availability of raw materials, leading to more cost-effective procurement strategies.

Global Automotive Supply Chain Process Steps Benefiting from 

IoT Technology – Raw Material Sourcing and Procurement
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) - April 18th and 19th 2023 

• Production line optimization: 

• Deploying sensors and connected devices throughout the manufacturing process, manufacturers can monitor and collect 

real-time data on equipment performance, product quality, and worker productivity. 

• Enables predictive maintenance, where manufacturers can proactively maintain and repair equipment based on data-driven 

insights, reducing downtime and increasing overall productivity.

• Facilitates implementation of automated and collaborative robots, streamlining processes, and improving production rates.

• Quality control and assurance: 

• Integrating sensors and other IoT devices into production lines enables manufacturers to automatically monitor and collect 

data on product quality at various stages of the manufacturing process. 

• Data can be used to identify defects, inconsistencies, or other quality issues in real-time, enabling manufacturers to take 

immediate corrective action and reduce the number of defective products reaching the market. 

• Additionally, IoT can help manufacturers track and trace root causes of quality issues, enabling continuous improvement.

• Energy and resource management: 

• Monitoring and analyzing real-time data from sensors and connected devices allows manufacturers to gain insights into 

energy consumption patterns and identify opportunities for optimizing energy usage. 

• IoT can also help manufacturers implement smart energy management systems that automatically adjust energy 

consumption based on production schedules, equipment utilization, and other factors. 

• Facilitates more effective resource management, such as tracking and monitoring water usage, waste generation, and 

emissions, enabling manufacturers to improve their sustainability efforts and meet environmental compliance requirements.

Global Automotive Supply Chain Process Steps Benefiting from 

IoT Technology – Manufacturing and Production
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) - April 18th and 19th 2023 

• Real-time inventory tracking: 

• Utilizing technologies such as RFID tags, sensors, and GPS, manufacturers can obtain real-time visibility into the location, 

status, and condition of inventory items. 

• Real-time information enables manufacturers to optimize warehouse layouts, improve stock rotation, and reduce the risk of 

stockouts or overstocking. 

• IoT can help streamline inventory reconciliation processes, allowing for more accurate and efficient inventory management.

• Warehouse automation: 

• Deploying automated guided vehicles (AGVs), robots, and other IoT-enabled equipment allows manufacturers to automate 

various warehousing tasks such as picking, packing, and transporting inventory items. 

• IoT enabled automation reduces the reliance on manual labor and also minimizes the likelihood of human error in 

warehouse operations. 

• IoT technologies can enable the use of advanced warehouse management systems (WMS) that leverage real-time data to 

optimize warehouse processes and improve overall performance.

• Predictive maintenance for warehouse equipment: 

• Installing sensors on equipment such as forklifts, conveyor systems, and storage racks allows manufacturers to monitor 

equipment performance and detect potential issues in real-time. 

• Data can then be analyzed to predict when equipment is likely to fail or require maintenance, allowing manufacturers to 

proactively schedule repairs and maintenance activities. 

Global Automotive Supply Chain Process Steps Benefiting from 

IoT Technology – Warehousing and Inventory Management
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) - April 18th and 19th 2023 

• Real-time tracking and monitoring: 

• Equipping vehicles and shipments with GPS trackers, RFID tags, and sensors, manufacturers can obtain real-time visibility 

into the location, status, and condition of their goods as they move through the supply chain. 

• Enables manufacturers to optimize routing, monitor transit times, and proactively address potential delays or disruptions. 

• Can help manufacturers ensure the security of their goods and maintain compliance with regulatory requirements.

• Fleet management and optimization: 

• Collecting and analyzing real-time data from connected vehicles, manufacturers can gain insights into vehicle performance, 

fuel consumption, and driver behavior. 

• Data can be used to implement more efficient routing, reduce fuel costs, and improve overall fleet performance. 

• IoT can also facilitate predictive maintenance for vehicles, allowing manufacturers to proactively schedule maintenance and 

repairs based on data-driven insights, ultimately reducing vehicle downtime and extending the life of the fleet.

• Smart logistics and dynamic decision-making: 

• Leveraging real-time data from various sources, such as traffic conditions, weather patterns, and geopolitical events, IoTenabled systems can help manufacturers make more informed decisions about their transportation and logistics strategies. 

• IoT can facilitate dynamic routing, where vehicles are automatically rerouted based on changing traffic conditions or other 

factors to minimize transit times and reduce transportation costs. 

• IoT can empower manufacturers to make data-driven decisions about their logistics partners, helping provide assurance 

they work with reliable and efficient providers.

Global Automotive Supply Chain Process Steps Benefiting from 

IoT Technology – Transportation and Logistics
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) - April 18th and 19th 2023 

• Demand forecasting and inventory replenishment: 

• By collecting and analyzing real-time data on consumer preferences, market trends, and regional sales patterns, IoT-enabled 

systems can help manufacturers make more accurate predictions about future demand. 

• Enables optimization of inventory levels at distribution centers and retail outlets, reducing risk of stockouts or overstocking.

• IoT can facilitate just-in-time (JIT) inventory management, reducing storage costs and improving overall efficiency.

• Customer experience and personalization: 

• Leveraging connected devices and data analytics, manufacturers can gain insights into individual customer preferences, 

driving habits, and vehicle usage patterns. 

• Data can be used to tailor marketing efforts, personalize product offerings, and provide customized after-sales services, such 

as maintenance reminders and software updates. 

• IoT can enable manufacturers to implement connected car features, such as remote diagnostics, over-the-air updates, and 

vehicle tracking.

• Supply chain visibility and collaboration: 

• Sharing real-time data on inventory levels, sales performance, and demand forecasts with suppliers, logistics providers, and 

retailers allows manufacturers to foster better alignment and coordination among supply chain partners. 

• Increased visibility and collaboration can lead to more efficient planning, improved responsiveness to changing market 

conditions, and enhanced overall supply chain resilience. 

• IoT can enable manufacturers to monitor and evaluate the performance of their supply chain partners, promoting 

continuous improvement and fostering stronger, more reliable partnerships.

Global Automotive Supply Chain Process Steps Benefiting from 

IoT Technology – Distribution and Order Fulfillment
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) - April 18th and 19th 2023 

• Remote diagnostics and predictive maintenance: 

• Equipping vehicles with connected sensors and telematics systems, manufacturers can collect real-time data on vehicle 

performance, component wear, and potential issues. 

• Data can be used to identify and diagnose problems remotely, often before the vehicle owner is even aware of an issue. 

• IoT can enable predictive maintenance, where manufacturers can proactively schedule service appointments based on datadriven insights, minimizing vehicle downtime and improving the overall ownership experience.

• Over-the-air updates and vehicle customization: 

• Utilizing connected car technology, manufacturers can remotely deliver software updates, feature enhancements, and 

performance improvements to vehicles without requiring physical access to the vehicle. 

• Saves time and resources for both manufacturers and vehicle owners but also enables manufacturers to continuously 

improve and adapt their products to changing customer needs and preferences. 

• IoT can enable manufacturers to offer personalized vehicle customizations and feature upgrades.

• Enhanced customer support and communication: 

• By leveraging connected devices and data analytics, manufacturers can gain insights into customer preferences, usage 

patterns, and service needs, enabling them to offer more personalized and proactive support. 

• For example, IoT can enable manufacturers to send targeted maintenance reminders, service offers, and safety alerts to 

vehicle owners based on their specific needs and habits. 

• IoT can facilitate more effective communication channels between manufacturers, dealers, and customers, improving the 

overall customer experience and fostering long-term brand loyalty.

Global Automotive Supply Chain Process Steps Benefiting from 

IoT Technology – After-sales Support and Service
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) - April 18th and 19th 2023 

• End-of-life vehicle tracking and reporting: 

• Utilizing connected devices, such as RFID tags and GPS trackers, manufacturers can monitor the location and status of 

vehicles approaching the end of their life cycle. 

• Data can help manufacturers identify vehicles that are due for recycling or disposal, ensuring compliance with 

environmental regulations and facilitating efficient end-of-life management. 

• IoT can enable manufacturers to maintain accurate records of end-of-life vehicles, helping meet reporting requirements.

• Resource recovery and recycling optimization: 

• Deploying sensors and connected devices at recycling facilities, manufacturers can collect and analyze real-time data on the 

composition, condition, and value of materials being processed. 

• Data can help optimize recovery of valuable materials, such as metals, plastics, and electronics, from end-of-life vehicles. 

• IoT can facilitate the development of more efficient and environmentally friendly recycling processes, reducing waste, 

emissions, and energy consumption associated with end-of-life management.

• Circular economy and sustainable supply chain practices: 

• Providing real-time visibility into material flows and resource consumption throughout the supply chain, IoT can help 

manufacturers identify opportunities for waste reduction, resource efficiency, and closed-loop recycling. 

• IoT can enable manufacturers to track and trace the origin, lifecycle, and environmental impact of materials used in their 

products, allowing them to make more informed decisions about their sourcing and production strategies. 

• IoT can facilitate sharing of data and best practices among supply chain partners, fostering greater collaboration and 

innovation in the pursuit of sustainability goals.

Global Automotive Supply Chain Process Steps Benefiting from 

IoT Technology – End-of-Life (ELV) Management and Recycling
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) - April 18th and 19th 2023 

• Establish a comprehensive National IoT Strategy for Adoption in Supply Chain Management: The federal 

government should consider establishing a comprehensive national IoT strategy that outlines clear goals and 

objectives for IoT adoption in supply chain management. This strategy should encompass regulatory frameworks, 

infrastructure development, education, and incentives for implementation.

• Promote creation and adoption of IoT industry standards and protocols: Industry standards and protocols will 

help provide assurance of data privacy, security, and reliability, fostering trust among supply chain stakeholders and 

promoting the exchange of information across the entire ecosystem. This can lead to more efficient, transparent, 

and resilient supply chain operations, ultimately driving the widespread adoption of IoT technologies in the 

industry.

• Establish and provide financial incentives: Providing incentives aims to encourage businesses to adopt IoT 

technologies in their supply chain operations by reducing the initial investment costs and perceived risks associated 

with the implementation of IoT solutions. Financial incentives, such as tax breaks, grants, subsidies, or low-interest 

loans, can help lower the financial barriers for companies to experiment with and deploy IoT systems.

Recommendations for Driving IoT Adoption for Augmented 

Supply Chain Logistics
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) - April 18th and 19th 2023 

• Establish and foster public-private partnerships (PPPs) focused on IoT adoption: PPPs focused on IoT adoption will 

aim to facilitate collaboration and knowledge sharing between government agencies, businesses, technology 

providers, and academia. By creating platforms to encourage the exchange of ideas, resources, and expertise, PPPs 

can help accelerate the development, deployment, and adoption of IoT technologies in supply chain management.

• Invest in and promote education and workforce development focused on IoT: By investing in educational 

programs, training initiatives, and professional development opportunities, the government can help provide 

assurance that businesses have access to a workforce equipped with the necessary expertise to harness the 

potential of IoT technologies. This also includes creating partnerships between educational institutions, industry 

stakeholders, and technology providers to facilitate internships, apprenticeships, and real-world projects that offer 

practical experience in IoT implementation.

• Strengthen cybersecurity measures focused on IoT across supply chain networks: Strengthening cybersecurity 

measures involves promoting the development and adoption of security best practices, guidelines, and standards 

specifically tailored to IoT systems in supply chain management. This includes securing data transmission, storage, 

and access, as well as protecting IoT devices and networks from unauthorized access, manipulation, and 

cyberattacks.

Recommendations for Driving IoT Adoption for Augmented 

Supply Chain Logistics
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) - April 18th and 19th 2023 

• Promote international collaboration in IoT adoption across global supply chains: Promoting international 

collaboration involves creating platforms and forums where policymakers, industry stakeholders, technology 

providers, and researchers from different countries can come together to exchange ideas, discuss common 

challenges, and explore opportunities for joint projects and initiatives. This can lead to the development of 

harmonized regulations, standards, and guidelines that enable seamless integration of IoT systems across borders, 

fostering efficient and resilient global supply chain networks.

• Support and strengthen sustainable and scalable growth in the domestic IoT manufacturing supply chain: This is 

achieved via an appropriate mix of policies, incentives, and grants that can gradually phase in domestic content 

requirements allowing manufacturers to effectively meet deployment goals and strive towards a future where this 

content Is Made in All of America by All of America's Workers. 

Recommendations for Driving IoT Adoption for Augmented 

Supply Chain Logistics
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) - April 18th and 19th 2023 

Sub Working Group Outline on 

Smart Supply Chain Traceability 
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) - April 18th and 19th 2023 

Significance - IoT Markets Fueled by Electronics Value Chains 

*Source: https://www.precedenceresearch.com/

IoT Markets ($Billion) 2021 2030 CAGR % Markets, Uses and Applications IoT Systems & Devices Top System OEMs Top Chip Suppliers 

(Supply Chain Provenance)

Industrial 326.1 1742.8 20.5%

Manufacturing, Energy & Power, Oil & 

Gas, Smart & Critical Infrastructure, 

Logistics & Transport, Agriculture

DCS, PLCs, SCADA, UPS, 

Systems (Remote Monitoring, 

Control , Intrusion Detection) 

IBM, Siemens, Cisco, GE, 

Schneider, Rockwell, PTC, 

Microsoft, SAP, Honeywell

TI, Infineon, ADI, ST, Renesas, 

NXP, Maxim, Microchip, ON 

Semi, Micron, GF, TSMC

Manufacturing 205.8 1523.9 24.9%

PROCESS: Energy, Utilities, Chemical, 

Food & Bev, Water/Waste; DISCRETE - 

Automotive, Machine, Electronics

PLCs, HMIs, IPCs, Process 

Sensors, SCADA, Drives, RFID

Siemens, ABB, Honeywell, 

Emerson, Schneider, MEL, GE, 

Rockwell, Bosch

Intel, Advantech, Kontron, 

NXP, TI, Infineon, ADI, ST, 

NVIDIA, Renesas, GF, TSMC

Automotive 82.7 621.8 25.1%

Fleet Management, V2V Comms, 

Vehicle to infrastructure, Navigation, 

Infotainment, Telematics, Autonomy

ECUs, CAMs, ABS, ADAS, 

Infotainment, Telematics, etc.

Toyota, VW, Hundai, GM,Ford, 

Honda, Nissan, BMW, 

Daimler, KIA, Audi, Tesla, etc.

NXP, Infineon, TI, ST, Renesas, 

ADI, ON Semi, Qualcomm, 

Intel, Micron, GF, TSMC

Consumer 221.7 616.7 12.0%

Wired, Wireless Connectivity; 

Consumer Electronics, Healthcare, 

Wearables, Automotive Gadgets

Smart Home - thermostats, 

locks, lighting, appliances, 

motion sensors, irrigation, etc.

Amazon, Google, Samsung, 

LG, Xiaomi, Philips, Nest Labs, 

Bosch, Whirlpool, Electrolux

Qualcomm, MediaTek, NXP, 

TI, Broadcom, Samsung, Intel, 

ST, Infineon, Micron, TSMC

Transportation 85.2 498.5 21.7%

Road/Rail/Airways, Maritime; Traffic 

Control, Telematics, Security & 

Surveillance , Remote Monitoring

Automtotive, GPS, Systems for 

Control, Diagnostics, Traffic, 

Collision Avoidance, etc. 

Bosch, Continental, Denso, 

Magna, Valeo, Aptiv, ABB, 

Siemens, Cisco, Schneider

NXP, Infineon, TI, ST, Renesas, 

ADI, ON Semi, Micron, Maxim, 

Intel, GF, TSMC

Aerospace & Defence 42.4 156.3 15.6%

Fleet Management, Equipment 

Maintenance, Security, Space 

Systems, Air/Sea/Ground Vehicles

Systems - Radar, Sonar, Flight 

Control, Avionics, Missile 

guidance, Satellites, etc.

Boeing, Airbus, Lockheed 

Martin, Northrop Grumman, 

Raytheon, BAE Systems, etc. 

Intel, ADI, Xilinx, TI, ST, NXP, 

Infineon, Microchip, ON Semi, 

GF, Maxim, Micron, TSMC
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) - April 18th and 19th 2023 

• Increased demand for IoT devices: The Covid-19 pandemic has led to an increased demand for connected devices, 

particularly in areas such as healthcare, remote monitoring, and smart homes. This has created new opportunities 

for chip and electronic device manufacturers to supply these devices and related components.

• Accelerated digital transformation: The pandemic has accelerated the digital transformation of many industries, 

leading to a greater need for IoT devices to support remote work, e-commerce, and other digital applications. This 

has fueled demand for electronics used for IoT devices and chips parts manufactured in various sources of origin. 

• Reshoring and diversification of supply chains: Shortages have highlighted the risks associated with overreliance on 

a single supplier or region for critical components. This has led many companies to re-shore or diversify their supply 

chains, creating new opportunities for electronics manufacturers to expand their customer base.

• Geopolitical tensions, restrictions, sanctions: Geopolitical tensions have led to trade restrictions and tariffs, making 

it more difficult for companies to source components from certain regions. This drives new opportunities for OEMs 

to supply trusted devices and components that establish market preference and regulate market access and usage.

• Global cybersecurity and supply chain drivers: EO 14017 for supply chain security, plus the recent enacted NDAA 

laws on supply chain traceability plus the national cybersecurity strategy, call for increased cooperation with 

international allies to address supply chain risks thought transparency, risk management and intelligence sharing.

Opportunities and Drivers for Traceable IoT Value Chains
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) - April 18th and 19th 2023 

• Establish Provenance during design and manufacturing: Supply chain attacks have become increasingly common, 

and cybercriminals often target supply chains as a way to gain access to sensitive data or systems. By implementing 

supply chain provenance and traceability linked to design and manufacturing supply chain risks can be reduced.

• Ensuring the security and integrity of critical systems: Many systems in critical infrastructure and transportation, 

rely on hardware and software components from many suppliers. Supply chain traceability can ensure the security 

and integrity of these systems by tracking the origin and path of every component (HBOM, SBOM, DBOM).

• Leveraging the IoT Cybersecurity labeling program to drive new requirements: The Consumer IoT Cybersecurity 

labeling can be an effective way to raise awareness and drive supply chain traceability requirements and standards 

for the components used in IoT devices. The labeling infrastructure can be leveraged for other IoT markets. 

• Strengthening international cooperation for provenance: The recent announcement between the US & EU to 

coordinate on CHIPS Acts subsidies, provides opportunities to share information on manufacturing provenance and 

collaborate on strategies to manage supply chain traceability that will help mitigate vulnerabilities and risks.

• Addressing the growing threat of nation-state cyber attacks: Nation-state cyber attacks are growing as attackers 

target's systems or data, while remaining undetected and difficult to defend. Upstream supply chain traceability 

(from SBOM to underlying HBOM) can help trace such attacks and improve the ability to manage vulnerabilities. 

Opportunities and Drivers for Traceable IoT Value Chains
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) - April 18th and 19th 2023 

• Chip Design, Manufacturing and Delivery: Internal workflow traceability of IC design, manufacturing, assembly, and 

test. External asset traceability (via distributor) of chip delivery to ODMs, OEMs, and/or contract manufacturers. 

• PCB Design and Assembly: Internal workflow traceability of PCB design and provenance of Bill of Materials (BoM) 

for PCB/System Assembly. External asset traceability of device delivery to OEMs and integrators.

• Embedded System Delivery: Internal workflow traceability of embedded system, OS, and software and external 

traceability of device/system delivered, at end-customer site, attested and securely onboarded to the cloud.

• Device Lifecycle Management: External (in-field) traceability of connected device, hardware upgrades, software 

updates, internal status, real time application data, and internal traceability of (AI-based) applications and services. 

• Application Lifecycle Management: Internal & external traceability of software development workflows including 

SBOM, integrity, and software supply chain delivery, plus traceability of the data produced by edge apps. 

• Recycling or Decommissioning: Internal & external traceability “catch all” of hardware for any markets. Recycled 

components must be reset to manufacturers defaults and EOL components must be flagged as retired. 

Opportunities to Create Digitalized IoT Value Chains
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) - April 18th and 19th 2023 

• Digitalization of Workflows with Metadata Indexing for provenance of workflows including inputs, tasks, outputs, 

and deliverables among people, tools, and machines without compromising users’ proprietary data. 

• Cryptographic Traceability and Hand-offs including public-private ledgers of metadata indices with permissioned 

access for visibility and assurance of provenance data and that workflows were not tampered or altered.

• Asset Identifiers and Certificates for workflows producing physical assets* (such as Wafers, Dies, Chips, PCBs, 

Systems), used for provenance of product, authentication, and attestation in the supply chain and during field use. 

• Digitalized Market Access whereby asset deliverables are tied to standards for monetization, enablement of 

scalable business models, new services, and data-driven revenue streams.

• Secure Connectivity Protocols across hardware, firmware, OS, Edge, cloud and smart infrastructure driven by 

devices Root of Trust based provisioning, onboarding, monitoring, reporting and updates.

• Authentication and Attestation linked to Cybersecurity labels to establish a digital paper trail and ensure that 

products do not contain counterfeit parts, that they are trusted and that they function as originally intended.

Opportunities to Create Trusted Enterprise Traceability 

*These are asset types for the electronics & semiconductor supply chains. For other supply chains, replace them with other assets.
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) - April 18th and 19th 2023 

• Encourage the use of Global Identifier Standards for supply chain traceability: The federal government should 

collaborate with international allies to create programs that incentivize suppliers to establish unique corporate IDs, 

product IDs, asset IDs and part IDs by using global standards such as GS1. By using Identifiers to track & trace any 

assets from design to manufacturing to field use, this will help enhance national security, protect public health and 

safety, promote environmental sustainability, and meet consumer demand for transparency and accountability.

• Promote development and use of trusted architectures for supply chain provenance and traceability: The federal 

government should incentivize hardware suppliers to develop trusted architectures for supply chain provenance and 

traceability. By cryptographically linking the SBOM to trusted HBOM, industries can help mitigate the risks associated 

with compromised components and ensure the security of critical systems. This will provide benefits for national 

security, public safety, and economic stability, making it a worthwhile investment for the government and society.

• Accelerate creation of a trusted digital thread (DBOM) in the value chain: The government should support the 

development of a digital thread or DBOM by incentivizing companies to digitalize their workflows and leverage the 

Cybersecurity labeling program to create a digital trail of IoT systems’ holistic Bills of Materials (DBOM, HBOM, 

SBOM) that vary by vertical market. The creation of a Trusted digital thread will enable marketplaces of data 

producers and data consumers that can have a significant impact on supply chain traceability, innovation, efficiency, 

security and economic growth. 

Recommendations to the Federal Government 
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) - April 18th and 19th 2023 

• Encourage global cooperation on supply chain traceability standards: NIST and the wider USG should work with 

international partners to integrate the Cyber Security Framework (CSF) with IoT Security and Cyber-Supply Chain 

Risk Management (C-SCRM) to enable digitalization methodologies and consistent traceability metrics across 

borders. This will help reduce compliance costs, track goods across the globe, improve customs controls, reduce 

administrative burdens, improve global trade and ensure that supply chains are transparent, efficient, and resilient.

• Incentivize the OT Supply Chain to accelerate adoption of trusted traceability. Ensuring the security and integrity of 

the OT supply chain is essential to accelerate IT/OT convergence and prevent cyber-attacks in critical infrastructure 

that could result in serious human and economic losses. To incentivize the adoption of trusted traceability methods 

for the OT supply chain, the government could offer tax credits, grants, or other financial incentives to companies 

that offer traceable OT products. The government could also require contractors and suppliers to adhere to specific 

security and traceability standards when bidding on government contracts especially for critical infrastructure.

• Promote the Creation of Trusted IoT Network Ecosystems: Drive awareness and interoperability programs on how 

trust is established among devices, networks, and personas operating in connected IoT environments, in ways that 

enable secure and reliable data exchanges and protect against malicious attacks, data breaches, and other security 

threats. By promoting a framework of trust, the government can have a significant impact on the security and 

resilience of critical infrastructure, information sharing, innovation, data protection, international cooperation and 

international trade.

Recommendations to the Federal Government 
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) - April 18th and 19th 2023 

• Incentivize formation of trusted data marketplace: The government can incentivize marketplaces where data 

producers and consumers can connect and share data, enabling better supply chain visibility and traceability. This 

can drive incentives for market preference, regulated access & use of goods as well as tax credits or subsidies. This 

will help producers and consumers reduce costs, improve efficiency by streamlining processes and eliminate 

redundancies, especially in complex supply chains where information flows are often fragmented or disconnected.

• Subsidize digitalization of enterprises in the IoT value chain: The digitalization of all business functions (design, 

production, marketing, procurement, distribution, etc.) enables more efficient management, greater visibility and 

traceability over supply chains to track products, monitor quality, and fix issues or defects. By using cryptographic 

methods, digitalization can have a major impart in the security, reliability, and integrity of the data for the digital 

economy. By providing incentives for businesses to adopt digital technologies and tools, the federal government can 

help promote secure ecosystems, and economic growth while creating opportunities for businesses and workers.

• Promote creation of trusted value chains: Promote orchestration of networks of entities, such as manufacturers, 

service providers, and regulatory bodies, that interact to establish and maintain Trust through collaboration and 

accountability to ensure that the IoT value chains and infrastructure are secure, transparent, trustworthy. By 

providing incentives for businesses to adopt transparent workflow practices, the federal government can help drive 

economic growth and social responsibility while protecting against supply chain vulnerabilities and risks.

Recommendations to the Federal Government 
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) - April 18th and 19th 2023 

• Subsidize orchestrated value chain partnerships: The federal government can accelerate the creation of traceable 

supply chains by subsidizing orchestration of connected Private-Public Partnerships across complex value chains that 

digitalize portions of supply chains piecemeal using consistent methods of “receivables-process-deliverables”. This 

can help supply chain stakeholders to collaborate in parallel and accelerate adoption of traceability and be more 

efficient which will help businesses to drive economic growth while developing resilient and secure supply chains.

• Establish Data policies that drive economic growth: Monetization of data will require infrastructure for Security & 

Privacy, Data Sharing, Ownership and Control Frameworks, Identity and Access management (IAM), Data Protection, 

Sharing and Exchange, plus Data Analytics with AI to minimize supply chain risk and maximize economic value. 

Policies related to data can have a major impact on privacy, security, interoperability, transparency, accountability, 

innovation, and monetization, as it can fuel synergistic ecosystems and the future digital economies.

• Facilitate the Creation of Data-driven business ecosystems: The federal government should raise awareness about 

the New Gold, Data Monetization Strategies, Data Analytics for Insights, Trusted Data Marketplaces, Platform-based 

Business Ecosystems, Network effects, Digital Thread of Data in connected value chains, Data Regulations, and tools 

for Monitoring and Managing Data Marketplaces. Data-driven networks of interconnected businesses, technologies, 

and platforms can leverage synergies to create new revenue streams and enhance existing products and services.

Recommendations to the Federal Government 
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) - April 18th and 19th 2023 

Scope – Any Supply Chain Logistics & Traceability 
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) - April 18th and 19th 2023 29

Electronics Supply Chain Risks and IoT Edge Vulnerabilities

Lack of supply chain traceability threatens national security and economic prosperity

Chip Design Manufacturing Distribution Assembly System 

Trojans Gray Markets Counterfeits IP Theft Hacks/Malware

Hardware Bill of Materials Software

DDoS Attacks*

Environment 

Vulnerabilities Impact Reliability, Security, and Safety in the Field

Nation State Attacks

• Disaggregated electronics supply chain

• Over 65% of electronics assembled in Asia

• Ineffective sanctions and Customs controls

• Costly support, liabilities, loss of value 

• No policy* for IIoT Systems & Process Sensors 

• Silos and no visibility in IT/OT connectivity

• Limited real time visibility & control of security 

• Compromised equipment and human safety 

Edge Apps