HOW CAN THE INTERNET OF THINGS (IOT) IMPACT THE SUPPLY CHAIN EFFICIENCY OF THE EUROPEAN AUTOMOTIVE INDUSTRY?

• Main Author: Surya Irawan, Jobel
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/41633
• Institution: Institut Teknologi Bandung

The Internet of Things (IoT) is believed to be the next big thing in many industries. Much research has predicted that the number of IoT devices will increase steeply in the upcoming years and many businesses will immensely invest in this very technology. The IoT has given significant benefits in this modern industry, however, the possibility to utilize these devices in the supply chain, specifically in the European automotive industry has not been fully investigated. The automotive industry, with its extremely complex supply chain has the opportunity to benefit from the innovation. Therefore, this research paper will focus on the impact of the Internet of Things in improving the supply chain efficiency and how it can be integrated within the industry. The analysis of the automotive supply chain shows that communication between manufacturers or the OEMs and different level suppliers is still a major issue. As a result of this, the amount of data they collect and process is low. This occurring problem may lead to disruptions along the supply chains which may affect a company’s product, thus it is a huge threat to its profitability. Furthermore, the lacking of transparency between OEMs and multi-level suppliers make it difficult for automakers to achieve a leaner supply chain. Additionally, the analysis shows that the Internet of Things has great possibility in overcoming the current issue. With the help of sensors, data collecting devices, network, and user friendly software, car manufacturers as well as its different level suppliers can share the same information on a centralized system and done automatically by the IoT technology. As a result, automakers will have better communication and relationship with its suppliers. Thus, efficiency will be improved and leaner supply chain can be achieved. Finally, it can be concluded that the Internet of Things has great potential in improving the European automotive supply chain. This innovation provides a better transparency, flexibility and speed in the supply chain.