Disrupting the manufacturing industry with DiscoveryIoT’s solution
Disparate suppliers, long lead times, various distribution channels and interconnected operations across multiple geographies, culminate into complex inventory levels that call the need for companies to establish a robust supply chain management strategy in place. DiscoveryIoT is building an innovative Smart Supply Chain Network that will allow companies to maintain a functional supply chain and take critical actions when unanticipated disruptions occur. The network will be comprised of three layers. The primary layer will be a miniaturized Internet of Things (IoT) based tag, called Cliot that will act as a data collection point. Cliot can be affixed to any product and is capable of containing the product type, its condition and location. Cliot works much in the same way as the digital barcodes and QR codes, with an exception that it will be able to give more data due to the sensors in it and it can transmit that data via WiFi or Bluetooth, therefore, acting like a passive GPS. The tag is being developed at a very low cost, making it an affordable solution for both large and small enterprises alike. The secondary layer will be a community of smartphone users. It is said that the current smartphones hold a processing power that is much greater in magnitude than all of NASA when it first sent men to the moon; however, its capacity remains vastly underutilized. DiscoveryIoT is set to change this by introducing a one-of-its-kind Distributed Computing to the commercial space for the network. The Cliot will transmit data to the smartphones in proximity that are registered on DiscoveryIoT’s network via WiFi or Bluetooth. This data is then processed on the smartphones and transmitted to the Cloud using the phone’s data network. The tertiary layer will consist of Data Analytics, at this stage various analytics tools are applied to gain insight into the data received from individual tags which companies can use to improve their business strategies.
It was reported that the manufacturing industry accounts for 16% of the global GDP which roughly equals $13 trillion. In addition, the industry is now entering into the next level of innovation space driven by the need for efficiency and visibility into the processes. It is estimated that the global Smart Manufacturing Market will reach $395 billion by 2025. Thus, DiscoveryIoT’s solution is being tailored to address a vast market with a potential to be disruptive. Following are the few instances how DiscoveryIoT’s smart supply chain can affect the manufacturing industry:
Reduced supplier lead time
A critical factor that decides the smoothness of production is the consistency of the supply of materials and components. When a manufacturer faces supply shortage, it can lead to enormous losses, such as in the case of BMW, where it lost millions of dollars because of a halt in the production of certain models due to shortage of systems from its supplier Bosch, which further relied on another sub-supplier. With DiscoveryIoT’s solution, each product will be tagged and companies will have complete visibility into inventory levels. This will assist in planning the procurement process efficiently and also in keeping track of the supplier deliverables. In addition, with DiscoveryIoT’s analytics, data insight on inventory forecast can be shared with suppliers that will allow them to anticipate the upcoming orders.
Improved demand forecasting
In sectors where the customer demand fluctuates widely, accurately forecasting the demand becomes essential to prevent any fluctuations in production. Therefore, to make reliable demand forecasting, data into product sellout is required based on which production can be efficiently maintained. DiscoveryIoT makes it possible to gain insight into retail sell out with Cliot tagged on every product. Manufacturers can make use of the data on inventory level at the retail end to estimate the performance of the product in the market, thereby, making it possible to plan production processes. This is particularly important for consumer packaged and consumer durable products that have a high volume of sales.
Improved supplier and customer relationship
When production is planned according to supply and demand, it prevents delivery delays and brings about a significant improvement in the customer satisfaction. This is crucial as it will add to the company’s business advantage and can ultimately drive more sales. Besides, having visibility into various channels involved in the supply chain enables effective decision making. Sharing forecasts with suppliers will augment clarity to the business, as stakeholders involved are aware of the targets required to be met.
Supply chain management is a major component of manufacturing industry since it forms a crucial part of its operations, from procurement of raw materials or components right until delivery. For industries such as automobile, aerospace etc., where manufacturing is reliant on a vast network of suppliers and sub-suppliers spread across the globe, even the minutest disruption can have large implications for productions that rely on constant supply. Thus, with a smart supply chain network, DiscoveryIoT ensures a disruptive growth for the manufacturing industry.