How does Smart Supply Chain work? – Working of Smart Supply chain

Working of Smart supply chain


In the previous article, we discussed and understand about what is Smart Supply chain? and Its importance for Organizations growth. working of Smart supply chain.

Here we are going to discuss the working of Smart supply chain.

Working of Smart Supply chain:

The incredible parts of enabling the smart chain work are Radio-Frequency Identification (RFID) and Industrial Internet of Things (IIoT) which greatly makes network efficient in driving productivity and visibility for the organizations. RFID systems are made up of three components; RFID Readers, RFID tags and RFID antennas.

1. RFID Readers:

RFID readers are implemented to examine the data from the tags. They are capable to scan examine the various tags at a time under some distance.  A tag becomes able to transmit radio signals through its ID and they become possible due to the RFID reader. Besides, RFID readers are capable to convert radio waves into digital data and send it to the cloud for restoring the data to the company to analyze and execute.

2. RFID tags:

RFID tags are known as the microchips supporting encoded digital data about the connected articles. The most prevailing examples are RFID tags are; types, manufacturers, and description of the particular product. However, RFID tags may be passive and active both which are connected to the physical outside that starts from raw material to packaging and ends with boxes.

3. RFID antennas:

RFID antennas have the capability of capturing the radio waves that can supply the power for tags from there. They are enabled to give the classification of the data they have to the readers.

See alsoConnected Cars, Autonomous Vehicles and the Internet of Things


Industrial Internet of Things (IIoT):

For the supply chain processes, the Industrial Internet of Things (IIoT) helps in getting the great visibility needed by the companies to analyze the data obtained through sensors or RFID tags.

A warehouse worker can get accurate information about the stored products in ream-time after analyzing the data through RFID tags linked to the inventory products. Thus they also relay accurate information to the employees so that they can detect and execute quickly. Moreover, these sensors also inform workers about the inbound deliveries featuring insights into the implementation of the warehouse appliances.

With the assistance of advanced data science methods, the industrial internet of things provides a great method for automation during the supply chain processes. The industrial internet of things based supply chain management has the capability of making a prediction to detect the amount of inventory needed during the production cycle. Besides, it also supports accurate data of replenishment and thus automatically sends an order to fill it by the supplier.

Mutual data sharing also matters a lot for companies, where IIoT solutions would seem to combine enterprises like (Distributed control system) DCS, Enterprise resource planning (ERP), Military Engineer Services (MES), warehouse management system (WMS), Plant Information Management System (PIMS), etc.

Industrial internet of things (IIoT) is capable of accessing the data maintenance portfolio that ensures the condition of the shipping vehicle which is vital for the organization to provide accurate information with real-time information needed to make a positive report at the end of the year.


IoT sensors are best suited for tracking all the resources like petroleum, natural gas, electricity, and water. Advanced technology helps the organization in reducing waste and counter disaster.

Besides, IoT enabled devices also the critical elements for the operation of an energy grid to become smart for the future so the smart supply chain has also become a common enthusiasm for the investment of organizations.

See alsoWhat is Smart Grid?: Importance and Advantages of Smart Grids


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