IoT’s Impact On Supply Chains And Security

This week, along with Amazon’s announcement about new Echo devices and Alexa’s celebrity voices, came news of Amazon Sidewalk, a new wireless protocol that uses low bandwidth to extend the distance at which IoT devices can be controlled and requires less power than Wi-Fi.

This seemingly small move signals Amazon’s faith in the growth of the Internet of Things (IoT), however.

The latest IoT Tracker delves into new applications for IoT, as well as its limitations, with a focus on supply chains and security.

Many developments are being driven by the impending arrival of fifth-generation (5G) networks, which will offer higher data processing, lower latencies and more reliable connectivity. This, in turn, will support Intelligence of Things (IoT) applications that require vast amounts of data to be processed rapidly.

Supply Chains and IoT

IoT consumer applications can be exciting: voice-powered microwaves, smart mailboxes, weather-sensitive lawn sprinklers. But IoT is also transforming the way goods get from point A to point B, processes that aren’t always visible to consumers.

In an interview with PYMNTS, rfxcel Co-Founder and CEO Glenn Abood talked about how IoT, blockchain, smart contracts and other emerging technologies have the potential to strengthen track and trace capabilities.

Supply chain participants, including buyers, suppliers and logistics service providers, are now able to integrate their back-end platforms directly with each other. This, combined with the adoption of tools like IoT and smart sensors, is enabling real-time visibility like never before.

A recent survey by Honeywell found that 70 percent of senior business professionals have already invested “significant” amounts in industrial IoT, and over two-thirds of this group plans to increase their investment within the next three years.

Why so bullish? The vast majority (82 percent) said that existing investments in industrial IoT had already either strongly improved or somewhat improved their supply chain issues, and 92 percent believe that industrial IoT will help manage the supply chain to be more efficient and profitable.

In a separate survey by Software AG, roughly 80 percent of manufacturers said they believe connecting processes using industrial IoT data is the new arena for competition.

Over 55 percent stated integration as a key inhibitor to achieving full value and scale with industrial IoT deployments, though. Additionally, 72 percent said they are not effectively connecting industrial IoT platforms to their supply chains, which could open up opportunities for manufacturers.

All of this innovation is also benefiting the cold chain market, which is expected to be worth $447.5 billion by 2025. Technological advancements in packaging, processing and storage of seafood products are expected to drive the growth.

Digital platforms manufacturer Intel has been testing tracking and condition monitoring with blueberry farms in Oregon. Sensors are attached to pallets to monitor factors like light, humidity, temperature, location and tilt shock.

Blueberries need to remain at very low temperatures and can be in shipment for weeks at a time. Obviously, this test case was with one type of produce, but findings can have implications for multiple perishable goods.

What About Security?

5G promises a more Internet of Things-friendly ecosystem with vast improvements over the current 4G capabilities. However, the combination of 5G with IoT will also raise cybersecurity concerns.

According to ABI Research, approximately $135 billion is expected to be spent worldwide on critical infrastructure for cybersecurity in 2024. Even so, the firm recently warned that many smart cities may not be investing enough in cybersecurity efforts to safeguard their growing IoT deployments.

Many cities turn to networks with low bandwidth costs, wide coverage areas and low latency, but that may not be particularly suited to handling cyberattacks, they said.

A survey by digital platform security firm Irdeto found that 80 percent of organizations’ IoT devices that they manufacture or use have experienced a cyberattack in the past 12 months. Manufacturing and production (79 percent) and connected transport (77 percent) were in line with the average.

Cyberattacks against IoT devices cost connected transport organizations an average of $352,639 per incident, and 95 percent of that sector said their IoT devices would benefit from some amount of improvements.