Impact of IoT on Supply Chain Performance

Main Article Content

Mario M Monsreal, PhD
Rafael Bernardo Carmona Benitez, PhD
https://orcid.org/0000-0002-8369-2748

Abstract

Purpose: To increase the understanding of the IoT by demonstrating its impacts and benefits on supply chain performance.


Design/methodology/approach: System dynamic simulation modeling to estimate IoT impacts on supply chain performance, based on a previously proposed framework and its propositions.


Findings: In general, simulation results show a positive impact on the supply chain activities where the propositions targeted. Specifically:


P2: better decision-making. – The study case shows better asset utilization, and reduced shipping time. However, transportation costs increase because of the lack of a decision-making system.


P3: enhanced supply chain connectivity/collaboration/integration. – The study case shows that benefits of supply chain integration through demand planning can be obtained.


P5: reduced lead-time. – The study Case shows a reduced shipping time when location technology and when all technologies are combined.


P6: better asset utilization. – The study Case shows a higher utilization factor, hinting a better asset utilization even without a decision-making system.


Research limitations/implications: The models here presented are based on merged data from different sources: Primary and secondary sources, and estimates based on assumptions. The mere nature of the base-data limits the precision of results.


Practical implications: The implementation of data collection or data transmission technologies alone is not sufficient to obtain full benefits. A decision-making processing system, that integrates the complete array of appropriated technologies, should also be implemented. This the underlying concept and the contribution of the IoT.

 

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Article Details

How to Cite
Monsreal, M., & Carmona Benitez, R. (2022). Impact of IoT on Supply Chain Performance. Journal of Applied Research and Technology, 20(5), 584-593. https://doi.org/10.22201/icat.24486736e.2022.20.5.1957
Author Biographies

Mario M Monsreal, PhD, Texas A&M, Transportation Institute (TTI)

Dr. Mario M. Monsreal

Transportation Institute (TTI)

Texas A&M

Rafael Bernardo Carmona Benitez, PhD, Universidad Anáhuac México

Prof. Dr. Rafael Bernardo Carmona Benitez

Facultad de Economía y Negocios

Universidad Anahuac México