Internet Of Things.This seems to be the hot word these day. Internet Of Things (or IOT) is a proposed development of the Internet in which everyday objects have network connectivity, allowing them to send and receive data. Many companies, around the world, are making this their forefront for innovation in regards to their growth and development. Just recently SAP, a global pioneer in Supply Chain, has announced a $2.2 Billion Dollar investment into IOT. Its unclear on what route SAP wants to go with the big investment, but many reports say that SAP is looking to build IOT related add-ons and applications

 

I personally like the idea. Given the expenses that typical consumer goods companies spend on a daily basis to optimize their supply chain, I think that this will help production costs and anticipate future issues. One idea SAP has played around with in the past is integrating 3D Printing and their standard MRP interface. If SAP includes IOT into the mix of things, the idea of having a full autonomous supply chain can become a reality.

A basic layout can look somewhat like the below:

1.) Consumer buys goods from online eCommerce site

2.) Company becomes low in their stock cover and is forced into an out-of-stock situation

3.) SAPS MRP then becomes receptive to the sale and the OOS situation

4.) Communication is automatically sent to the 3D printer to produce more units

5.) Once units are produced the freight forwarder and brokers are notified on the MRP that goods will be shipped soon and to anticipate the shipment to the warehouse

6.) Goods are received in full and warehouse becomes fully replenished

 

 

 

 

 

 

 

 

 

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