The Internet of Things (IoT) is gaining ground in both popularity and awareness, but the latest advantage companies are finding in it are improvements to their supply chain.

According to EBN Online, IoT is delivering significant support to supply chain management 2.0 – a major overhaul in how the supply chain operates in manufacturing and other sectors. This is due to the fact that manufacturing ERP software is evolving to incorporate IoT and mobility, and the wide-spread proliferation of IoT thanks to massive mobile device adoption in the workplace. In fact, Gartner recently noted that there will be a 30-fold increase in internet-connected devices by 2020, driving significant changes to how the supply chains operate.

"It's important to put IoT maturity into perspective, because of the fast pace at which it is emerging, so supply chain strategists need to be looking at its potential now," said Michael Burkett, managing vice president at Gartner. "Some IoT devices are more mature, such as commercial telematics now used in trucking fleets to improve logistics efficiency. Some, such as smart fabrics that use sensors within clothing and industrial fabrics to monitor human health or manufacturing processes, are just emerging."

IoT is expected to bring about "enhanced solutions that intelligently connect people, processes, data, and things via devices and sensors," EBN Online noted. This, for manufacturers, will be supply chain management 2.0 – a different way to looking at supply chain data intelligently, utilizing analytics and automation to boost visibility and manufacturing efficiency.

From reducing asset loss to improving stock management, these changes will deliver key opportunities for companies looking to optimize inventory management and other back office processes. By investing in the right business management software, IoT and mobility will be able to be harnesses for maximum effect.