Impact of IoT on Supply Chain Performance

Main Article Content

Mario M Monsreal, PhD
Rafael Bernardo Carmona Benitez, PhD


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.



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.
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