USING  M2M TECHNOLOGY  TO IMPROVE  SUPPLY CHAIN PERMORMANCE.

They may not recognize the term, but a lot of logistics and supply chain executives are concerned about “permanent volatility.”

They know, for example, that constant fuel-price swings compromise their ability to manage supply chain costs. They’re keenly aware that rapid globalization requires the frequent readjustment of supply chain strategies and supply chain resources.

It all falls under the banner of permanent volatility.

Leveraging wireless machine-to-machine (M2M) technology—automating information exchanges between pieces of equipment or with a control center—can be a great way to deal with permanent volatility. M2M is not new; in fact, factory control systems like programmable and numerical controllers , the automation of machine tools that are operated by precisely programmed commands encoded on a storage medium have been around for decades. However, there are many new reasons to include the technology.

Besides, M2M technology is a multi-faceted way to address supply chain management’s most pressing challenges and subsequently raise shareholder value in the following:

Fleet tracking

Ä  Monitoring fleet arrivals/departures and flagging exceptions can improve end-to-end visibility and improve planning.

Event-based monitoring of driver behavior

Ä  Documenting speed, idle time, and hard braking of delivery vehicles can reduce fuel and insurance costs, while increasing driver safety.

Field force management

Ä  Overseeing field-force activities from a centralized location can make it possible to practice real-time routing based on traffic information.

Inventory-level monitoring

Ä  Viewing and communicating inventory levels can help companies build automated replenishment programs and share information with suppliers.

Tagging high-value assets and inventory

Ä  M2M systems can help companies keep track of particularly valuable assets, such as computers, data-storage devices, consumer electronics, and ATMs.

Inventory-condition monitoring

Ä  By tracking inventory longevity as issues associated with humidity, temperature, pressure, and light, companies can do a better job of overseeing product shelf life and maximizing the efficiency of medicines.
Preventive maintenance

Ä  Monitoring equipment remotely and proactively improves an organization’s ability to prevent failures and improve scheduled (preventive) maintenance.

Smart warehouses/supply chain facilities

Ä  Through remote metering and control, companies can optimize energy use in warehouses, production facilities, and other locations, thus reducing operating costs.

The following high-level framework could help companies set the stage for a new or enhanced M2M capability:

1.      Understand the unique challenges and business requirements associated with your company’s supply chain.

2.      Develop an M2M strategy, needed to demonstrate how and at what cost this can be made to happen.

3.      Consider what supply chain modifications may be needed to maximize M2M’s contributions.

4.      Pick the right partners. A variety of collaborations across the value chain device,   network, application may be needed to ensure end-to-end coverage.

5.      Develop a detailed implementation plan.

Lastly, remember that today’s M2M goes far beyond the factory floor machines controlling machines. Huge improvements in wireless technology have helped make M2M an increasingly important information-management tool. It’s now a way to reduced costs and risks and add greater amounts of visibility, standardization, and predictability. As much, or more, than any other solution, M2M is a potential antidote to permanent volatility.