How IoT Is Reinventing The Entire Procurement Industry Ecosystem

Editor - CyberMedia Research

Editor - CyberMedia Research

Ever since automation and robotics entered the procurement industry, it opened up the door for more next-gen tech to become a part of the current supply chains. The most promising among these is the Internet of Things (IoT), a network of connected physical and digital devices that have the potential to usher in a new era.

IoT has been one of the key components of bringing automation into industries that have historically shied away from modern tech. But, for the procurement industry, it can mean much more. From introducing automation within every possible process to unlocking a whole new level of analytical data, the uses of IoT in the procurement process are many.

Data is ultimately the central focus of any procurement ecosystem, and the more the data the better an IoT system can operate. Considering the vastness of the Indian supply chains, IoT can be nothing short of revolutionary for procurement officers.

Strategic Applications of IoT in The Indian Procurement Sector

One of the key functions of IoT is to provide real-time updates. Throughout the supply chains, real-time updates can be received from shipment vehicles, factory devices, automated equipment and much more. Through this process, a clear end-to-end picture can be provided to the procurement officer. Instead of simply marking a process as ‘in transit’, a much more detailed update can be provided.

When it comes to industries that deal with more complex procurement systems, IoT can provide added value to all communications by breaking down large volumes of data into easily digestible information. So, a vendor without the know-how of the entire supply chain can be quickly updated about their role in the system, thereby avoiding bottlenecks.

IoT-aided systems will also allow for better accuracy in delivering customer satisfaction. The procurement sector is highly dependent on buyer behaviour, and with the help of IoT-aided systems, a much larger amount of customer data can be quickly analyzed in real time to make future procurement decisions.

This combination of Big Data analytics and real-time monitoring can ultimately solve many more issues that plague the Indian procurement sector – such as inventory management, compliance practices, sensitive goods delivery, improved customer service, etc.

IoT is the Ultimate Edge to Any System That Relies on Data

The power of visibility over any supply chain is the ultimate need of the hour. While automation and robotics can help increase the output levels of any supply chain, it is with IoT that the entire system can be upgraded to provide better products, services, and customer experience.

While IoT and other Industry 4.0 tech in the Indian procurement sector is still in its nascent stage, there is a large scope for growth if adopted by some of the larger procurement houses.