New research from the London-based world mobile satellite communications firm Inmarsat has found that Industrial Internet of Things (IIoT) technology is poised to transform supply relationship management and other core procurement functions. This will have a notable influence on cost reduction while significantly contributing to the global economy by 2023.
The study (IIoT on Land and at Sea) found that supply chain managers anticipate their annual revenues will surge by 10% over the coming five years thanks to IIoT tech.
The report, compiled by market researchers Vanson Bourne, polled 750 businesses which produce a combined turnover of $1.6tn per year. Respondents from a broad range of industries were surveyed, spanning the transport, mining, maritime, energy and agriculture sectors.
IIoT promises to deliver reliable and robust connectivity in the most remote regions or at sea. Even though terrestrial networks will not be available in these areas, they can now be brought into full alignment via satellite networks.
Inmarsat’s President, Paul Gudonis, said: “IIoT is emerging as a major force in the modern enterprise and it’s clear that businesses are prioritizing satellite technology to transform their operations and achieve competitive advantage.”
The IIoT infrastructure will, he said, deliver data capable of rendering the global supply chain far more transparent. This will help to transform supply relationship management and enable firms to automate many more processes due to the enhanced connectivity. In turn, businesses can expect lower operational waste, faster rates of production, higher revenues and substantial cost reductions.
Inmarsat’s Director of Transport, Mike Holdsworth, however, sounded a note of caution. Hackers, activists and hostile state agents are already intent on attacking aspects of the global supply chain, especially energy supplies and transport provision, and IIoT equipment may offer a backdoor for cyber-attacks on vital operations.
But, he added, the satellite-enabled connectivity that IIoT equipment brings with it can provide extraordinarily secure networks. When integrated with comms tech such as LoRaWAN, it can effectively guarantee end-to-end, secure and reliable data transmission wherever IIoT infrastructure is situated.
Steve has over 28 years of success as CPO, MD and Procurement BPO leader in a range of industries. Steve is COO at Odesma, responsible for Odesma’s delivery capability & infrastructure.