Supply Chain Process Optimization with IoT Technology to Improve Logistics Efficiency

Ishaq Rahman

Authors

Ishaq Rahman Faculty of Engineering, Muhammadiyah University of Makassar

Keywords:

Internet of Things, Supply Chain Optimization, Logistics Efficiency, Performance Metrics

Abstract

The integration of Internet of Things (IoT) technology into supply chain operations has the potential to significantly enhance logistics efficiency. This study investigates the impact of IoT on logistics optimization by focusing on key performance metrics such as on-time delivery, inventory accuracy, and fuel consumption. Data from various companies that have implemented IoT solutions in their logistics operations were analyzed. The results reveal a substantial improvement in on-time delivery (from 75% to 95%), inventory accuracy (from 80% to 98%), and a 20% reduction in fuel consumption. However, challenges such as high initial costs, system integration difficulties, and data security concerns were also identified. The findings confirm that while IoT offers considerable benefits in terms of operational efficiency and cost reduction, successful adoption requires overcoming technical and organizational barriers. This study contributes to the growing body of literature on IoT applications in logistics and provides valuable insights for companies considering IoT-driven supply chain optimization.

References

Ahn, K., & Rakha, H. (2008). The effects of route choice decisions on vehicle energy consumption and emissions. Transportation Research Part D: transport and environment, 13(3), 151-167. https://doi.org/10.1016/j.trd.2008.01.005

Allioui, H., Allioui, A., & Mourdi, Y. (2024). Maintaining effective logistics management during and after COVID 19 pandemic: survey on the importance of artificial intelligence to enhance recovery strategies. OPSEARCH, 1-45. https://doi.org/10.1007/s12597-023-00728-y

Alsudani, M. Q., Jaber, M. M., Ali, M. H., Abd, S. K., Alkhayyat, A., Kareem, Z. H., & Mohhan, A. R. (2023). RETRACTED ARTICLE: Smart logistics with IoT-based enterprise management system using global manufacturing. Journal of combinatorial optimization, 45(2), 57. https://doi.org/10.1007/s10878-022-00977-5

Anozie, U. C., DADA, S. A., Okonkwo, F. C., & Oluremi, O. (2024). The convergence of edge computing and supply chain resilience in retail marketing. International Journal of Science and Research Archive, 12(2), 2769-2779.

Balamurugan, S., Ayyasamy, A., & Joseph, K. S. (2022). IoT-Blockchain driven traceability techniques for improved safety measures in food supply chain. International Journal of Information Technology, 14(2), 1087-1098. https://doi.org/10.1007/s41870-020-00581-y

Chakravarty, A. K. (2014). Supply chain transformation. Ed. Springer, Boston, USA, 93.

Gharaibeh, A., Salahuddin, M. A., Hussini, S. J., Khreishah, A., Khalil, I., Guizani, M., & Al-Fuqaha, A. (2017). Smart cities: A survey on data management, security, and enabling technologies. IEEE Communications Surveys & Tutorials, 19(4), 2456-2501. https://doi.org/10.1109/COMST.2017.2736886

Haddud, A., DeSouza, A., Khare, A., & Lee, H. (2017). Examining potential benefits and challenges associated with the Internet of Things integration in supply chains. Journal of Manufacturing Technology Management, 28(8), 1055-1085. https://doi.org/10.1108/JMTM-05-2017-0094

He, X., & Chen, W. (2024). Digital Transformation and Environmental, Social, and Governance Performance from a Human Capital Perspective. Sustainability, 16(11), 4737. https://doi.org/10.3390/su16114737

Ikevuje, A. H., Anaba, D. C., & Iheanyichukwu, U. T. (2024). Optimizing supply chain operations using IoT devices and data analytics for improved efficiency. Magna Scientia Advanced Research and Reviews, 11(2), 070-079. https://doi.org/10.30574/msarr.2024.11.2.0107

Kache, F., & Seuring, S. (2017). Challenges and opportunities of digital information at the intersection of Big Data Analytics and supply chain management. International journal of operations & production management, 37(1), 10-36. https://doi.org/10.1108/IJOPM-02-2015-0078

Krishnan, R., Perumal, E., Govindaraj, M., & Kandasamy, L. (2024). Enhancing Logistics Operations Through Technological Advancements for Superior Service Efficiency. In Innovative Technologies for Increasing Service Productivity (pp. 61-82). IGI Global. https://doi.org/10.4018/979-8-3693-2019-8.ch004

Lee, J., Ni, J., Singh, J., Jiang, B., Azamfar, M., & Feng, J. (2020). Intelligent maintenance systems and predictive manufacturing. Journal of Manufacturing Science and Engineering, 142(11), 110805. https://doi.org/10.1115/1.4047856

Masip-Bruin, X., Marín-Tordera, E., Ruiz, J., Jukan, A., Trakadas, P., Cernivec, A., ... & Kalogiannis, G. (2021). Cybersecurity in ICT supply chains: key challenges and a relevant architecture. Sensors, 21(18), 6057. https://doi.org/10.3390/s21186057

McNeill, D. (2015). Global firms and smart technologies: IBM and the reduction of cities. Transactions of the institute of British geographers, 40(4), 562-574. https://doi.org/10.1111/tran.12098

Nath, S. V., Van Schalkwyk, P., & Isaacs, D. (2021). Building industrial digital twins: Design, develop, and deploy digital twin solutions for real-world industries using Azure digital twins. Packt Publishing Ltd.

Paramesha, M., Rane, N. L., & Rane, J. (2024). Big data analytics, artificial intelligence, machine learning, internet of things, and blockchain for enhanced business intelligence. Partners Universal Multidisciplinary Research Journal, 1(2), 110-133. https://doi.org/10.5281/zenodo.12827323

Parashar, A. (2023). Cybersecurity Threats In The Internet Of Things (Iot). IOSR Journal of Computer Engineering (IOSR-JCE), 1-8.

Rane, N., Choudhary, S., & Rane, J. (2024). Artificial intelligence and machine learning for resilient and sustainable logistics and supply chain management. Available at SSRN 4847087.

Sallam, K., Mohamed, M., & Mohamed, A. W. (2023). Internet of Things (IoT) in supply chain management: challenges, opportunities, and best practices. Sustainable Machine Intelligence Journal, 2, 3-1. https://doi.org/10.61185/SMIJ.2023.22103

Singh, J., & Singh, S. P. (2019). Damage reduction to food products during transportation and handling. In Handbook of Farm, Dairy and Food Machinery Engineering (pp. 741-770). Academic Press. https://doi.org/10.1016/B978-0-12-814803-7.00028-2

Sobb, T., Turnbull, B., & Moustafa, N. (2020). Supply chain 4.0: A survey of cyber security challenges, solutions and future directions. Electronics, 9(11), 1864. https://doi.org/10.3390/electronics9111864

Temer, E., & Pehl, H. J. (2017, November). Moving toward smart monitoring and predictive maintenance of downhole tools using the industrial Internet of Things IIoT. In Abu Dhabi International Petroleum Exhibition and Conference (p. D031S065R004). SPE. https://doi.org/10.2118/188382-MS

Torchio, F. (2023). Survey on automated systems for smart warehouses (Doctoral dissertation, Politecnico di Torino).