In this paper, the IoT concept is examined and its potential effects on traditional supply chain management appraised, with particular emphasis on the automotive industry.
The Internet of Things (IoT), comprising millions of interconnecting communication devices, linked via the internet, and enabling information sharing globally (Davenport, 2013), is a growing reality and one likely to change the shape of supply chain management.
A report by Gartner (2014) predicts that IoT, a disruptive technology (Christensen, 2015), will completely transform logistics, and the report forecasts a thirty-fold increase in internet-connected physical devices by 2020. IoT will support the assembly and communication of supply chains in previously unknown ways, and therefore impact on how information is accessed and shared by supply chain managers, according to Gartner (2014).
Table of Contents
1. Introduction
2. The Internet of Things
3. The Automotive Supply Chain
4. Conclusion
Research Objectives and Key Topics
The primary objective of this paper is to examine the concept of the Internet of Things (IoT) and evaluate its potential effects on traditional supply chain management, with a specific focus on the transformations occurring within the automotive industry.
- Fundamental definitions and elements of IoT technology.
- The evolution of supply chain management through sensor-based data collection.
- Strategic shifts and business model transformations in the automotive sector.
- Challenges related to collaboration, data security, and workforce skills.
- Future integration of IoT in vehicle design and logistics processes.
Excerpt from the Book
The Automotive Supply Chain
The IoT is considered to be far wider reaching than information sharing between a few firms involved in a single supply chain, and to provide opportunities for firms to operate business models that involve a network of firms, an ecosystem of business partners (Turber et al. 2014). The transactions between firms are enabled by means of a technological platform that links the businesses together and connects them to the end user by means of the smart objects they have purchased (Keskin and Kennedy, 2015); the system also has the capacity to be cloud based, which reduces cost and improves speed and ease of integration (Chen, Chen and Tsu, 2014). In the automotive sector, the impact of IoT therefore embraces information sharing between the manufacturers, which have previously competed fiercely and retained market position by retaining secrecy regarding innovation, for instance. Hence exploiting the advantages of IoT, implies that a new mind-set will be required.
Every new car is expected to be a part of the IoT by 2017 (Scardilli, 2014) and the industry forecast envisages vehicles communicating with each other, and sending and receiving data via cloud; the technology already exist for lane compliance, parallel parking and setting insurance premiums according to driver capability. In addition, using data gathered in this way, enables manufacturers to improve product design, efficiency and safety (CG, 2015; Schutte, 2014). The design of new vehicles, will be driven by consumer demand to link vehicles and other devices in their homes and offices with the technology in the vehicle, according to Schmid (2014). These and other developments integrate the principle of creating customer value through co-creation of vehicles of the future, promoted by Gronroos and Ravald (2011), and represent new revenue streams for manufacturers (Ravi, 2015).
Summary of Chapters
1. Introduction: This chapter introduces the IoT as a disruptive technology expected to fundamentally change supply chain management by increasing the density of internet-connected physical devices.
2. The Internet of Things: This section details the technological transition from traditional database management to real-time information systems using sensors, including the role of RFID and the four core elements of IoT: things, the internet, platform, and hardware.
3. The Automotive Supply Chain: This chapter analyzes how IoT necessitates a shift from competitive secrecy to collaboration, highlighting how smart vehicles and data ecosystems improve manufacturing design and safety.
4. Conclusion: This chapter summarizes the transformative potential of IoT while emphasizing that realizing these benefits requires overcoming organizational, human, and security-related barriers.
Keywords
Internet of Things, IoT, Supply Chain Management, Automotive Industry, RFID, Smart Objects, Cloud Computing, Data Sharing, Business Models, Digital Transformation, Sensor Technology, Industrial Innovation, Connectivity, Collaborative Networks, ADAS.
Frequently Asked Questions
What is the primary focus of this paper?
The paper examines the Internet of Things (IoT) concept and assesses its transformative impact on traditional supply chain management, specifically within the context of the automotive industry.
Which central topics are discussed?
The core themes include the definition and architecture of IoT, the evolution of sensor-based data collection, the shift in automotive manufacturing business models, and the challenges of industry-wide collaboration.
What is the main goal of the research?
The goal is to determine how IoT technology affects supply chain visibility and to appraise its potential for improving efficiency and product design in the automotive sector.
What research methodology is applied?
The work employs a literature-based analysis, synthesizing reports and academic studies from 2010 to 2015 regarding IoT, RFID, and automotive technological advancements.
What does the main body cover?
The main body covers the technical components of IoT, the application of RFID in logistics, the role of Advanced Driver Assistance Systems (ADAS), and the necessity of shifting towards collaborative, cloud-based business models.
Which keywords best characterize the work?
Key terms include IoT, Supply Chain Management, Automotive Industry, Sensor Technology, Digital Innovation, and Business Model Transformation.
How does the author define the four elements of the IoT?
The author identifies these as things (everyday objects), the internet (communication medium), hardware (enabling devices like sensors), and the platform (logic and intelligence for decision making).
Why is a new mind-set required for automotive manufacturers?
Manufacturers must move away from historical competition and secrecy regarding innovation toward collaboration and common standards to successfully integrate into the IoT ecosystem.
What role do sensors play in the future of the automotive industry?
Sensors are critical for generating vast amounts of data used for product design, driver safety, cost control, and overall operational visibility throughout the supply chain.
What are the identified risks associated with IoT in cars?
Key concerns include potential cybersecurity threats, such as hackers accessing car systems, and a shortage of skilled personnel capable of managing and maintaining these advanced electronic systems.
- Quote paper
- Dipl.-Ing. Martin Greiner (Author), 2015, Automotive Supply Chain Management in the Internet of Things, Munich, GRIN Verlag, https://www.grin.com/document/308583
