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Digital Supply Chain

 

Digital Transformation Potential in Digital Supply Chain

Ever higher demands are being placed on supply chains of all kinds driven by the emerging dominance of e-commerce and consumer (and regulator) requirements for new kinds of provenance information. Meanwhile, significant cost savings can be achieved in supply chains by better managing warehousing and inventory levels and delivery networks.

These same cost savings often correspond to significant sustainability benefits, helping to decarbonise digital supply chains. Meanwhile, condition monitoring of goods in the supply chain can reduce wastage, also unlocking significant cost and sustainability benefits. The digital transformation of supply chains should be a priority focus area for all organisations, large and small.

Seven key domains of change in Digital Supply Chain

Overall, we have identified seven key domains of change in the Digital Suply Chain sector that are enabled by digital transformation, as illustrated below.

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These domains of change are discussed in more detail in our report Digital Transformation in Transportation & Storage:

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The domains of change discussed in the report comprise:

  • Location Management and Route Optimisation refers to real-time monitoring of location of transportation vehicles (including trucks, ships and railway carriages) and supply chain assets (including containers, cages, and more) to make operations more efficient.
  • Condition Monitoring refers to monitoring of the condition of goods (especially, perishable and refrigerated goods) while they are in transit and after their arrival, to guard against theft, spoilage, and breakage.
  • Supply Chain Transparency refers to capturing and sharing of data across supply chains and logistical networks (potentially using permanent immutable records of goods) so that all participants (including end consumers) can have transparency into how goods have moved through a supply chain and also the origination of input components and raw materials.
  • Warehouse Management refers to technologies deployed in warehouses (including distribution centres and fulfilment centres) that make the processes automated, efficient and intelligent. This includes the use of automated guided vehicles (AGVs) and robots for automated picking, packing, sorting, and more.
  • Inventory Management refers to the use of technology (such as sensors, drones, and machine learning) for efficient tracking, monitoring, and storage of inventory in warehouses to ensure optimal inventory levels.
  • Last Mile Delivery considers the use of technologies to improve last-mile deliveries (the final step when the parcel is moved from distribution hubs to customers’ doorsteps). This includes smart parcel lockers, delivery drones, sidewalk robots, autonomous delivery vans and more.
  • Supply Chain Planning and Operations considers the use of digital technologies to support supply chain planning operations ranging from demand planning, supply planning and coordination, and alignment of supply chain decisions internally and externally. This solution area particularly focuses on the use of digital twins to support supply chain planning.

Collectively, the activities listed above will bring significant changes to the Digital Supply Chain sector.

IoT and Digital Supply Chain

IoT is one of the key technology groups impacting the Digital Supply Chain sector and further detail and analysis of key IoT applications for the Digital Supply Chain sector can be found in Transforma Insight’s Forecast Insight Reports. Some of these applications are directly relevant to the sector, whilst others are only indirectly related.

Directly related IoT applications and Forecast Insight Reports include:

  • Road Fleet Management – Road Fleet Management covers in-vehicle transportation logistics including job allocation, vehicle tracking, vehicle and driver monitoring, maintenance planning, safety compliance, fuel management, and incident management. It can be delivered as a service via a dedicated aftermarket device or through the factory-fit connectivity (accessed via the vehicle head unit). The forecast takes both heavy and light duty vehicles into consideration. It includes devices deployed in cars, vans, trucks and buses, along with heavy vehicles such as tractors, combine harvesters, pile drivers, tunnelling machines, cranes, and other off-road equipment. Fleet Management solutions are increasingly making use of in-vehicle cameras to monitor both outside the vehicle and within the cabin. These devices, and their consumer counterparts, can be found in the Dash Cams Application Group.
  • Smart Lockers – Smart Lockers refers to the use of connected parcel lockers used for self-service collection and drop-off of parcels and packages, as well as connected variants of conventional storage lockers.
  • Unmanned Aquatic & Aerial Vehicles (Drones) – This Application Group consists of two main categories. Unmanned Aerial Vehicles comprises fixed wing and propellor powered unmanned aerial vehicles (UAVs) for military, government consumer or commercial use. Unmanned Aquatic Vehicles comprise small underwater and surface vehicles, typically for military use or exploration. Neither vehicle is designed to carry humans; automation of vehicles that carry humans (e.g. full sized planes or ships in automation mode) is covered under autonomous vehicles.
  • Inventory Management & Monitoring – This Application Group pertains to the remote monitoring of volumes and inventory, including consumables, warehouse stock, retail stock, and refuse levels. It encompasses stock level and condition monitoring, such as specialist inventory systems, baggage handling systems, soap dispensers, toilet doors, pest control, and various other use cases. It also covers all types of electronic shelf labels. Additionally, this group includes warehouse management systems, which involve picking machinery and warehouse robots (unless counted in other autonomous vehicles or robotics categories as is the case for cobots and automated forklifts).
  • Autonomous Road Freight Vehicles – The vehicles included in this Application Group are used for transporting goods on the road in a commercial setting. To be counted as part of this Application Group vehicles must be capable of operating at Level 3 of the SAE levels of autonomy. This level of automation requires the vehicle to monitor the environment and requires “the driving mode-specific performance by an automated driving system of all aspects of the dynamic driving task. In this Application Group the number of autonomous vehicles is represented by RGUs only, the vehicles’ connections will be found in the Vehicle Head Unit Application Group.
  • Disposable Devices
  • Real Time Location Systems – Trackers attached to pieces of equipment for the purpose of locating them, typically with very great accuracy. Used within specific delimited areas (e.g. hospitals, building sites or factories), with dedicated infrastructure to support them.
  • Security Tracking – Includes a range of security-related applications such as for security guards, prison guards, and also offender tagging. Also includes ‘smart soldier’ equipment used by defence personnel in a military context.
  • Delivery Robots – This Application Group covers small (i.e. not capable of intercity travel or carrying passengers) fully autonomous vehicles that travel on road or pavement to deliver food, beverages, retail shopping, documents and other goods.
  • Asset Monitoring – This application group encompasses a variety of assets that are suitable for remote monitoring. This includes the monitoring of livestock and associated applications such as automated feeders. It also covers the monitoring of fitness equipment located in gyms and other shared contexts. Tracking and monitoring of equipment in ambulances is also incorporated as part of the healthcare vertical. Furthermore, this Application Group includes connected video gaming machines, gambling machines and other devices such as pachinko machines. Monitoring the condition, availability, and use of assets important to public health such as life rings and defibrillators is also present in this application group, including access to potentially dangerous infrastructure such as substations.
  • Air Transport – Covers connections to commercial cargo aircraft and passenger aircraft. Excludes in-aircraft connections (e.g. seat-back entertainment systems), which are considered as part of the aircraft system. Excludes infrastructure such as warehousing or airports.
  • Dash Cams – Aftermarket in-vehicle cameras used to record the interior or exterior of the vehicle, often to provide evidence in the event of a road accident.
  • Vending Machines – Two main categories are covered by this Application Group: goods vending machines and ticket vending machines. Goods vending machines dispense hot and cold drinks, prepared and semi-prepared food, cigarettes, electronics goods and sundry other items. Transport ticket machines cover bus, ferry and train stations for the purchase of tickets.
  • Container Tracking – Tracking of refrigerated (reefer) chilled and dry freight containers for the purpose of locating and monitoring the status of cargo. Covers only standardised containers; the tracking of other assets through the supply chain is covered separately as Track & Trace.
  • Track & Trace – The use of trackers to monitor the location (and potentially condition) of a particular item, which could include tools, manhole covers, goods in transit or almost anything else. Can be used for supply chain efficiency, theft detection and asset location monitoring. It includes all other location tracking not elsewhere covered. Excludes shipping containers.

Indirectly related IoT applications and Forecast Insight Reports include:

  • Global AIoT Forecast, 2023-2033
  • Autonomous Road Passenger Vehicles – Automated Road Passenger Vehicles contains autonomous vehicles primarily used to transport passengers on the road, this Application Group includes buses, coaches, minivans, as well as private vehicles. To be counted as part of this Application Group vehicles must be capable of operating at Level 3 of the SAE levels of autonomy. This level of automation requires the vehicle to monitor the environment and requires “the driving mode-specific performance by an automated driving system of all aspects of the dynamic driving task.” In this Application Group the number of autonomous vehicles is represented by RGUs only, the vehicles’ connections will be found in the Vehicle Head Unit Application Group.
  • CCTV – Connected video cameras used by governments for monitoring of streets and public places.
  • Global IoT Forecast Report, 2023-2033
  • Roadside Assistance – Application that notifies recovery services in the event of a vehicle breakdown. Diagnostics and location tracking may be included to improve efficiency. This application includes dedicated devices in addition to applications hosted on the vehicle head unit.
  • In-Vehicle Navigation – Built-in and discrete satellite navigation devices used to provide directions and routing to drivers. Built-in devices that rely on the vehicle head unit for a connection do not register as a discrete connection in our forecast.
  • Loss Prevention – Includes anti-theft solutions based on boundary control in retail contexts, and also goods location monitoring for specific goods in a retail context.
  • Personal Assistance Robots – This Application Group covers fully autonomous machines which undertake a diverse set of use cases including security monitoring, maintenance, human interaction, companionship and the performance of other tasks. This includes robotic pets, cleaning robots (e.g. Roomba), lawn mowers, exoskeletons, cooking robots, room and table delivery, and concierge services.
  • Remote Diagnostics & Maintenance – Remote monitoring of equipment to spot faults and predict requirements for maintenance. Particularly focused on factory machinery, healthcare devices and vertical transportation (elevators and escalators).
  • Real World 'Visualisation' – Includes the use of Human Machine Interface (HMI), Augmented Reality (AR), and Virtual Reality (VR) devices such as smart connected glasses, such as Microsoft’s Hololens, or Google Glass, used in either a consumer or enterprise context; standard and ruggedised tablets that can be used to access information about machinery and processes (and more); and large scale video walls, either in the context of control rooms, or to support immersive experiences. To be included in this forecast a device must be standalone, and not attached to a specific machine. Devices must also support some level of enhanced human interaction with machines (and other information, or content) rather than simply existing to relay information from a device or accept commands. Beyond this scope lie innumerable generic tablets, laptops, mobile phones, and other computing devices that can also support some aspects of HMI by simple installation of an application (or access to suitable web pages).
  • Trigger Devices – Devices that exist to be triggered to indicate an action needs to be taken, typically something has been filled and needs to be emptied, or something is empty and needs be filled. Examples include buttons for room service, table service, the replenishment of communal supplies, mail delivery and collection boxes, and customer voting buttons.
  • Worker Safety – Personal monitoring and support solutions for fire service, police, and emergency medical service personnel. Also includes lone worker safety in multiple vertical industrial contexts, particularly those involving dangerous environments such as logging and mining.
  • Sea & River Transport – Connected commercial ships/boats, including fishing boats (and all associated IoT solutions), passenger ferries and similar. Excludes infrastructure such as ports.
  • Rail Transport – Connected freight railway locomotives and carriages, connected passenger railway carriages and locomotives. Includes connectivity for both asset tracking and for the provision of onboard connectivity services. Excludes connected advertising screens, which are covered under the Public Information & Advertising Screens Application Group. Excludes infrastructure such as railway stations or tracks.

Other content and related analysis

Besides the detailed sector-focussed content described above, Transforma Insights offers an extensive range of thematic- and vendor-focussed research that will prove invaluable to any end-user seeking to leverage new and emerging digitally transformative technologies.

Of particular note are our Vendor Insight and CSP Peer Benchmarking reports, which provide detailed profiles of leading vendors who might be able to support a range of end-user digital transformation projects.

Our Key Topic Insight reports focus on the qualitative aspects of Digital Transformation, including investigation of interesting or noteworthy topics.

Detailed analysis of regulations that might apply to digitally transformative projects around the world can be found in our Regulatory Database. Meanwhile, our Case Study Database contains more than 1,000 case studies of technology implementations. Each case study contains detailed information on the specifics of the deployment. Used in aggregate it can provide unrivalled guidance on project prioritisation, best practice and vendor selection.

Sector Report

Related Reports

All Reports
REPORT | SEP 27, 2024 | Rohan Bansal ; Matt Arnott ; Suruchi Dhingra
This report provides Transforma Insights’ view on the Road Fleet Management market with a primary focus on Vehicle Telematics Devices. Road Fleet Management covers in-vehicle transportation logistics solutions including job allocation, vehicle tracking, vehicle and driver monitoring, maintenance planning, safety compliance, fuel management, and incident management. The segment also includes aftermarket Tire Pressure Monitoring Systems, In-cab Displays, and Electronic Logging Devices. Early examples of Road Fleet Management offered excellent return on investment, a situation that has been widely recognised within many industries resulting in widespread adoption. Fleet telematics providers frequently advertise fuel savings, lower mileage, reduced maintenance costs, and lower idle time as the main benefits of deploying these solutions. The report provides a detailed definition of the sector, analysis of market development and profiles of the key vendors in the space. It also provides a summary of the status of adoption and Transforma Insights’ ten-year forecasts for the market. The forecasts include analysis of the number of IoT connections by geography, the technologies used (including splits by 2G, 3G, 4G, 5G, LPWA, short range, satellite, and others), as well as the revenue split between module, value-added connectivity, and services. A full set of forecast data, including country-level forecasts, sector breakdowns and public/private network splits, is available through the IoT Forecast tool.
REPORT | SEP 26, 2024 | Rohan Bansal ; Matt Arnott
This report provides Transforma Insights’ view on the Smart Lockers market. Parcel deliveries have grown significantly over the years, and between 2014 and 2022, the volume of deliveries quadrupled. There is an increasing demand from customers for next-day or same-day deliveries which puts businesses under extreme pressure to expedite their last-mile processes. Parcel locker stations are being introduced to tackle last-mile delivery problems, especially in remote areas where daily deliveries are difficult. The growing need for parcel lockers has led to an increase in the need to connect these lockers to monitor them remotely and manage their efficiency. Lockers are equipped with a variety of communications technologies to ease their usage. Many functions use RFID tags or biometric scanners (such as fingerprint or face recognition). Short Range technologies such as Bluetooth and NFC, and long-range technologies such as LPWA and cellular are used to connect to the cloud. Many lockers can be operated via a smartphone application using Wi-Fi or Bluetooth connectivity. The report provides a detailed definition of the sector, analysis of market development and profiles of the key vendors in the space. It also provides a summary of the current status of adoption and Transforma Insights’ ten-year forecasts for the market. The forecasts include analysis of the number of IoT connections by geography, the technologies used (including splits by 2G, 3G, 4G, 5G, LPWA, short range, satellite, and others), as well as the revenue split between module, value-added connectivity, and services. A full set of forecast data, including country-level forecasts, sector break-downs and public/private network splits, is available through the IoT Forecast tool.
REPORT | JUN 05, 2024 | Suruchi Dhingra ; Matt Arnott
This report provides Transforma Insights’ view on the Inventory Management & Monitoring market. This segment comprises Stock Level Monitoring, Electronic Shelf Labels and Warehouse Management Systems. As is common for many commercial IoT applications efficiency improvements are the primary driver behind the adoption of Inventory Management & Monitoring solutions. There are considerable benefits for reducing the workload on employees, freeing them up for other higher skilled tasks and reducing the errors associated with manual inventory tracking. Greater knowledge of the stored quantity of goods and their flow enables the optimisation of inventories, allowing businesses to operate with a leaner inventory reducing the space and capital dedicated to inventory, or for a greater variety of goods for a given floor space. The growth of e-commerce has also put considerable pressure on improvements in logistics and supply chain processes with customers expecting greater speed of delivery and accelerated fulfilment times compelling companies to adopt inventory management and warehouse automation solutions. One obstacle to adoption is that many of the tasks that Inventory Management & Monitoring automate can be achieved by suitably equipped employees and extensive use of barcodes. Other IoT solutions such as drones and AI-based video monitoring solutions are also being increasingly used for inventory management, which will limit the market to an extent. The report provides a detailed definition of the sector, analysis of market development and profiles of the key vendors in the space. It also provides a summary of the current status of adoption and Transforma Insights’ ten-year forecasts for the market. The forecasts include analysis of the number of IoT connections by geography, the technologies used (including splits by 2G, 3G, 4G, 5G, LPWA, short range, satellite and others), as well as the revenue split between module, value-added connectivity and services. A full set of forecast data, including country-level forecasts, sector break-downs and public/private network splits, is available through the IoT Forecast tool.
REPORT | MAY 17, 2024 | Suruchi Dhingra
The concept of a circular economy is becoming a priority for governments and organisations as they become increasingly aware of the environmental consequences associated with traditional linear waste disposal processes. Although regulations supporting the transition towards a circular economy began to emerge in the early 1990s, it is only now that they have become more defined and have started incorporating the use of new digitally transformative technologies. Digital technologies hold tremendous potential to enable the circular economy objectives of governments and corporate and other organisations. From advanced techniques which optimise product designs (that reduce waste) to intelligent interconnected systems (that optimise resource use), the possibilities are endless. By integrating these technologies, businesses can benefit from improved resource management, extended life of products, increased degree of recycling and reuse, appropriate waste disposal practices at the end-of-life, and more. For example, by analysing datasets related to product design materials and recycling processes, AI algorithms can suggest product designs that are aligned with circular economy principles. In this report, we focus on the role of digital technologies such as IoT, AI, Distributed Ledger, Autonomous Robotic Systems, 3D Printing and Additive Manufacturing, and Data Sharing in enabling a circular economy transition. Solutions using these technologies will make business models, products, and manufacturing processes more circular by facilitating knowledge exchange and connecting different stakeholders in the value chain. By integrating these technologies, businesses can benefit from improved resource management, extended life of products, increased degree of recycling and reuse, appropriate waste disposal practices at the end-of-life, and more.
REPORT | MAY 01, 2024 | Suruchi Dhingra
Several new regulations are being introduced around the world to promote circular, sustainable, and responsible economies. The goals of these regulations are clear: businesses should deploy an efficient mechanism to review how they design, source, manufacture, dispose, reuse, and recycle products. Mechanisms often report carbon emitted at each stage to promote clean energy use, and also limit the use of harmful substances, increase the degree of reuse and recycling by material composition tracking, limit materials from certain countries, and ensure human rights obligations and thus, responsible sourcing. To track these metrics, most of these regulations stress the importance of visibility and traceability of products throughout the value chain. The accurate collection and reporting of data mandated by the regulations discussed in this report is impossible without employing digitally transformative technologies that enhance the tracking and traceability of the discussed elements. Intelligent track and trace that combines technologies such as distributed ledger, IoT, AI, and analytics will be essential to automate tracking, making it fast and efficient to trace products throughout their journey. The whole process is made efficient through the adoption of a range of techniques: Product identifiers: the key identifier information that a stakeholder needs to accurately identify a product and to access related information. Data sharing: a common standardised way to share information among all relevant stakeholders. Supply chain traceability: essential to prove provenance and qualifications by tracking the origin of materials and physical flow of goods through the value chain. IoT: all of the above drive the adoption of IoT as it enables accurate and efficient data collection. Digital supply chain twin: to virtually track journeys with change of state. Artificial intelligence: intersects with other technologies for additional insights. In this report, we discuss the major regulations (including the EU’s Batteries Regulation, Carbon Border Adjustment Mechanism, and End of Life Vehicles Directive and others and the USA’s Inflation Reduction Act, and various EV battery-related and other regulations from around the world) that are shaping the circular, ethical, and green economy. We also discuss the role technology plays in facilitating the requirements of supply chain transparency related regulations.
REPORT | FEB 21, 2024 | Matt Arnott ; Paras Sharma
This report provides Transforma Insights’ view on the Autonomous Road Freight Vehicles market. This segment comprises vehicles used for transporting goods on roads in a commercial setting. To be counted as part of this Application Group, vehicles must be capable of operating at Level 3 (L3) of the SAE levels of autonomy. The autonomous road freight vehicles market is at a nascent stage with an enormous potential to disrupt the road freight market. The adoption of L3 autonomous freight vehicles is gaining momentum with multiple governments around the world supporting the testing and commercialisation of autonomous vehicles on roads, although concerns around the safety and performance of these vehicles can act as a deterrence to the pace of mass adoption. The initial focus of most technology companies is proving the concept of commercial L3 vehicles and allowing shippers, carriers, and logistics companies to embrace and familiarise themselves with their usage. The report provides a detailed definition of the sector, analysis of market development and profiles of the key vendors in the space. It also provides a summary of the current status of adoption and Transforma Insights’ ten-year forecasts for the market. The forecasts include analysis of the number of IoT connections by geography, the technologies used (including splits by 2G, 3G, 4G, 5G, LPWA, short range, satellite, and others), as well as the revenue split between module, value-added connectivity and services. A full set of forecast data, including country-level forecasts, sector break-downs and public/private network splits, is available through the IoT Forecast tool.
REPORT | FEB 21, 2024 | Paras Sharma ; Matt Arnott
This report provides Transforma Insights’ view on the IoT market for Disposable Devices. This segment comprises the tracking of items with single-use connected devices. Typically, this is conducted by manufacturers tracking items through third parties’ supply chains or vendors tracking parcels through postal or courier services. Manufacturers often look to monitor and track their high-value and theft-prone goods during transport. This becomes important for indicating when goods are damaged, tampered with, lost, or stolen during transit leading to loss and product rejection. As a result of rejected shipments, businesses will not only owe financial compensation to their customers but also face a negative impact on their business reputation. The use of low-cost disposable trackers can help in overcoming these challenges and businesses can limit their dependency on logistics partners for real-time monitoring of their shipments. The report provides a detailed definition of the sector, an analysis of market development and profiles of the key vendors in the space. It also provides a summary of the current status of adoption and Transforma Insights’ ten-year forecasts for the market. The forecasts include analysis of the number of IoT connections by geography, the technologies used (including splits by 2G, 3G, 4G, 5G, LPWA, short range, satellite and others), as well as the revenue split between module, value-added connectivity and services. A full set of forecast data, including country-level forecasts, sector break-downs and public/private network splits, is available through the IoT Forecast tool.
REPORT | FEB 07, 2023 | Paras Sharma ; Matt Arnott
This report provides Transforma Insights’ view on the Container Tracking market. This includes the tracking of refrigerated (reefer) chilled and dry freight containers, and monitoring and management of goods transported in them. There are a number of motivations for connecting containers. Container tracking offers GPS-based tracking of location, supporting transportation businesses to optimise their logistic operations with timely information on container movement. Some of these tracking devices support transportation companies to monitor condition data (such as temperature data, or alignment of goods) of goods via continuous monitoring to comply with shipping regulations and maintain product quality. This is necessary specially for perishable goods requiring a minimum temperature to be maintained, ensuring this temperature is sustained can be particularly helpful in reducing issues with food wastage during transportation. Additional features allow these devices to help users to geofence a specific area to restrict goods movement in the specified territory only. IoT devices could also help in overcoming theft problems by instantly notifying on-site personnel about any intrusion into containers. The report provides a detailed definition of the sector, analysis of market development and profiles of the key vendors in the space. It also provides a summary of the current status of adoption and Transforma Insights’ ten-year forecasts for the market. The forecasts include analysis of the number of IoT connections by geography, the technologies used (including splits by 2G, 3G, 4G, 5G, LPWA, short range, satellite and others), as well as the revenue split between module, value-added connectivity and services. A full set of forecast data, including country-level forecasts, sector break-downs and public/private network splits, is available through the IoT Forecast tool.