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IoT applications for Supply Chain
Andrej Planina
Spica International
Andrej.planina@spica.com
2 Andrej.Planina@Spica.Com
What is Supply Chain?
Manufacturing -> Distribution -> Transport -> Retail
IT systems
1. Ownership of goods changes through the chain
2. Information must be ahead of shipments
3 Andrej.Planina@Spica.Com
Spica Background
• Spica provides IT solution for regional
Supply Chain actors
• Team of 100 engineers in 6 countries
• 3.000 installations
• 20 years
• Consultants
4 Andrej.Planina@Spica.Com
Supply Chain Requirements
• Full visibility of:
• Products => item, batch number, expiry dates
• Capabilities (Assets) => supply & demand, cost
optimisation
• Connectivity
• Information exchange capabilities
• Standardisation
• GS1 standards
5 Andrej.Planina@Spica.Com
Visibility of Products
• Do we really need to track each item?
NO!
• Let‘s track packages!
• Package related problems:
• Single or mixed product?
• All items with same expiry date?
• There are many repackaging points in a
chain!
6 Andrej.Planina@Spica.Com
How to use IoT in Supply Chain?
• Sensor on each product? NO!
• What characteristics do we need to track?
1. Location
2. Temperature (product or environment?)
3. Acceleration (fragile products)
4. …
• How often do we need this data?
• Online (mobile connectivity)
• Offline and sensor with recording capability
7 Andrej.Planina@Spica.Com
Where to Put Sensors?
• Supply chain is very price sensitive!
• What is acceptable ratio between price of sensor per price of tracked
goods?
• Sensor on each product?
• RFID with price of 0,10 EUR per unit is not acceptable
• NO!
• Sensor on each similar product? (same batch)
• Pack of 20 units in a box.
• Can we achieve 2 € per IoT sensor per box?
• NO!
• Sensor on each pallet? (mixed products!)
• YES!
• Who will invest into IoT capabilities?
• The owner of products!
• But ownership changes over supply chain!
8 Andrej.Planina@Spica.Com
Do We Have Sensors Already on Items?
• The only standardised sensing technology in
supply chain is BARCODE!
• GS1 standards:
• Product level coding
• Additional product level coding (batch, expiry)
• Package level coding
• Data exchange technologies already heavily in
use
• RFID is standardized but very rarely in used
in a supply chain
• Only closed-loop applications exist
9 Andrej.Planina@Spica.Com
Closed Loop Applications
• Let‘s track our containers!
• Container loading and unloading needs to be
tracked with the use of bar-codes
• Container departure and arrival needs to be
tracked with IoT connected sensor (RFID)
• Additional information need to be collected
during container life
• Container with a sensor needs to return and to
be re-useable
10 Andrej.Planina@Spica.Com
Recap: IoT in Supply Chain
• Single item tracking? NO!
• Closed loop applications? YES!
• Barcode for items? YES!
• RFID container tracking? YES!
• Ownership problem
• Standardisation problem (GS1 needs to
lead!)
11 Andrej.Planina@Spica.Com
Thank you!
Implementing Agility into Supply Chain

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IoT applications for supply chain

  • 1. 1 IoT applications for Supply Chain Andrej Planina Spica International Andrej.planina@spica.com
  • 2. 2 Andrej.Planina@Spica.Com What is Supply Chain? Manufacturing -> Distribution -> Transport -> Retail IT systems 1. Ownership of goods changes through the chain 2. Information must be ahead of shipments
  • 3. 3 Andrej.Planina@Spica.Com Spica Background • Spica provides IT solution for regional Supply Chain actors • Team of 100 engineers in 6 countries • 3.000 installations • 20 years • Consultants
  • 4. 4 Andrej.Planina@Spica.Com Supply Chain Requirements • Full visibility of: • Products => item, batch number, expiry dates • Capabilities (Assets) => supply & demand, cost optimisation • Connectivity • Information exchange capabilities • Standardisation • GS1 standards
  • 5. 5 Andrej.Planina@Spica.Com Visibility of Products • Do we really need to track each item? NO! • Let‘s track packages! • Package related problems: • Single or mixed product? • All items with same expiry date? • There are many repackaging points in a chain!
  • 6. 6 Andrej.Planina@Spica.Com How to use IoT in Supply Chain? • Sensor on each product? NO! • What characteristics do we need to track? 1. Location 2. Temperature (product or environment?) 3. Acceleration (fragile products) 4. … • How often do we need this data? • Online (mobile connectivity) • Offline and sensor with recording capability
  • 7. 7 Andrej.Planina@Spica.Com Where to Put Sensors? • Supply chain is very price sensitive! • What is acceptable ratio between price of sensor per price of tracked goods? • Sensor on each product? • RFID with price of 0,10 EUR per unit is not acceptable • NO! • Sensor on each similar product? (same batch) • Pack of 20 units in a box. • Can we achieve 2 € per IoT sensor per box? • NO! • Sensor on each pallet? (mixed products!) • YES! • Who will invest into IoT capabilities? • The owner of products! • But ownership changes over supply chain!
  • 8. 8 Andrej.Planina@Spica.Com Do We Have Sensors Already on Items? • The only standardised sensing technology in supply chain is BARCODE! • GS1 standards: • Product level coding • Additional product level coding (batch, expiry) • Package level coding • Data exchange technologies already heavily in use • RFID is standardized but very rarely in used in a supply chain • Only closed-loop applications exist
  • 9. 9 Andrej.Planina@Spica.Com Closed Loop Applications • Let‘s track our containers! • Container loading and unloading needs to be tracked with the use of bar-codes • Container departure and arrival needs to be tracked with IoT connected sensor (RFID) • Additional information need to be collected during container life • Container with a sensor needs to return and to be re-useable
  • 10. 10 Andrej.Planina@Spica.Com Recap: IoT in Supply Chain • Single item tracking? NO! • Closed loop applications? YES! • Barcode for items? YES! • RFID container tracking? YES! • Ownership problem • Standardisation problem (GS1 needs to lead!)