# Leveraging the Internet of Things and Blockchain Technology in Supply Chain Management
## 3 The Internet of Things and Its Application in Supply Chains
### IoT in Supply Chains: Levers and Application Scenarios  
The application of IoT promises significant improvements in supply chain performance and operational efficiency. The benefits result primarily from real-time information exchange, which can reduce time wastage caused by the bullwhip effect [50; 51]. Moreover, IoT can help to mitigate the risk of counterfeiting and illicit trade when combined with covert, overt or forensic security features on physical products. Thus, IoT is set to revolutionize supply chains by improving operational efficiencies and creating revenue opportunities [52]. Three of the areas that can benefit from IoT deployment include (1) inventory management and warehouse operations, (2) production and manufacturing operations, and (3) transportation operations (see Table 1). \begin{table}
\begin{tabular}{l l l} \hline \hline \multicolumn{2}{c}{Inventory Management and Warehouse Operations} \\ \hline \multicolumn{2}{c}{Enablers} & \multicolumn{2}{c}{Processes} \\ \hline  & - & Route optimization, elimination of in-process collisions \\  & - & Fast, cost-efficient, and flexible operations \\ - & Smart racks & - & Better handling of items that are hard to reach or ‘dark assets’ \\ - & Smart glasses & (i.e., items that are difficult to detect on the shelf or racks) \\ - & Monitoring cameras & - & Real-time visibility of inventory levels \\ - & Smart forklifts & - & Avoidance of stockouts \\ - & Smart warehouse & - & Agility and fast responsiveness to inadequacies \\ - & management system (WMS) & & (e.g., misplacement of items) \\  & - & Workspace monitoring (e.g., for security purposes) \\  & - & Stock keeping units (e.g., pallets) recognition and localization \\  & - & Simultaneous threat detection and scanning for imperfections \\ \hline \multicolumn{2}{c}{Production and Manufacturing Operations} \\ \hline \multicolumn{2}{c}{Enablers} & \multicolumn{2}{c}{Processes} \\ \hline  & - & Real-time condition monitoring \\  & - & Remote maintenance \\  & - & Predictive maintenance: Detection of physical stress levels, \\ - & Embedded machine sensors & pile-ups, and prevention of failures \\ - & Machine analytics & - & Improved measurement of throughput, setup-time, and \\  & & overall productivity \\  & - & Enhancement of both machine-to-machine and \\  & & machine-to-human interactions \\ \hline \multicolumn{2}{c}{Transportation Operations} \\ \hline  & Enablers & \multicolumn{2}{c}{Processes} \\ \hline  & - & Continuous visibility of products along the supply chain \\  & - & Real-time shipment tracking \\ - & GPRS sensors & - & Remote product sensing (e.g., temperature, humidity, vibrations) \\ - & RFID sensors & - & Protection and preservation of product quality \\ - & Routers & - & Improve activity bottlenecks and outdoor traffic, transport \\ - & GPS satellites & & mobility, road and driver safety \\  & - & Maximizing fuel efficiency and optimize routing strategies \\  & - & Improved service delivery \\ \hline \hline \end{tabular}
\end{table} 
Table 1: IoT Levers in Supply Chains. IoT paves the way for smarter inventory management where key processes in warehousing operations can be optimized, labour costs reduced, and throughput time improved [53]. Technical enablers include smart forklifts and racks but also novel usage of'smart glasses' (i.e., wearables devices equipped with sensors and camera technologies to locate objects in the warehouse), monitoring cameras, and warehousing software. Within warehouse operations, reusable assets such as inventory storage totes and pallets can be tagged with IoT enabled tags or devices that assist in guiding and directing the warehouse picker to their storage locations. IoT not only aids in automating aspects of warehousing activities (e.g., picking and packing) but also leads to efficiencies by reducing manual effort spent on locating the exact position of products and materials in warehouses.