# Leveraging the Internet of Things and Blockchain Technology in Supply Chain Management
## 3 The Internet of Things and Its Application in Supply Chains  
The concept of the \"Internet of Things\" (IoT) was first coined in 1999 by British entrepreneur and startup-founder [PERSON] [38]. In essence, IoT refers to an information network that connects sensors on or in physical objects ('things') ranging from consumer goods, pallets of goods to everyday tools, household appliances, and industrial machinery. Furthermore, cloud computing and the more recent concept of fog computing (i.e., a decentralized computing structure, extending the concept of cloud computing through the local performance of computation, storage and communication through so-called 'edge devices') provide computing resources and scalability to connect, store and analyze IoT data (often labeled as big data) received from connected devices and sources including WSNs, global positioning systems (GPS), GPRS, and geographic information systems (GIS). The analysis of IoT data can assist firms to sense and then respond to situations in real-time and may lead to automation or value-creating predictive analytics capabilities [26]. Moreover, through the connection of a heterogeneous set of hardware devices (e.g., sensors) IoT streamlines critical business processes through the capture of data, such as the identification of human operators and environmental variables (e.g., temperature, humidity, vibration, air currents). IoT devices are often deployed to sense the physical world, communicate over a wireless signal and to actuate based on predefined conditions. According to [PERSON] et al. [39] the three distinguishing features of IoT are context, omnipresence and optimization. The context describes the capability of IoT to provide real-time monitoring, to interact, and to enable an instant response to specific situations that are controlled. Omnipresence lies in the pervasiveness of the technology and its broad applicability, while optimization refers to the specific functionalities and characteristics each physical object has [40]. These features pave the way for novel and innovative IoT use cases among exchange partners within both simple and complex supply chains and open up new business opportunities. With the shift towards 5G technology with faster data transmission rates, IoT is expected to mature rapidly with pervasive integration into society. Cisco, a leading network technology provider, predicts that the number of IoT devices connected to the internet will reach 500 billion by 2030 [41]. Additionally, IoT has a wide range of potential applications and use cases across multiple sectors, including healthcare, automotive, industrial activities, smart homes, agriculture, and construction [42]. According to [PERSON] and [PERSON] [43], there are five crucial IoT technologies predominately used in supply chains and logistics. They include RFID, wireless sensor networks (WSN), middleware, cloud computing, and IoT application software. RFID is a technology used in many supply chain activities (i.e., warehousing, manufacturing, transportation) [44]. Passive RFID tags (without a power source) in modern supply chains utilize the GS1 Electronic Product Code (EPC) UHF Gen 2 industry standard (see [[https://www.gs1.org/sites/default/files/docs/epc/GS1_EPC_TDS_i1_12.pdf](https://www.gs1.org/sites/default/files/docs/epc/GS1_EPC_TDS_i1_12.pdf)]([https://www.gs1.org/sites/default/files/docs/epc/GS1_EPC_TDS_i1_12.pdf](https://www.gs1.org/sites/default/files/docs/epc/GS1_EPC_TDS_i1_12.pdf))). Passive tags rely on wireless radio waves from a reader/antenna to identify physical objects that the tags are attached to or associated with without the need for line of sight between the reader/antennae and the tags [45]. Some unique applications of UHF Gen 2 tags may extend the tag read range up to 300'. RFID tags can also be'semi-active' with a power source and send an intermittent signal to a network or signal when physically moved (e.g., attached to a high-value asset).