Internet of Things (IoT) Utilization to Improve Performance and Productivity of Internal Supply Chain

Abstract

The inevitable transformations brought about by the rapidly changing Internet of Things (IoT) impact all aspects of life today, including management and businesses. Specifically, areas of businesses depending mainly on internal supply chain capacity are experiencing a paradigm shift to ensure effective company performance regarding purchases, production, company sales, and product distribution. This shift means that challenges faced by the internal chain supply unit can be solved by adopting and adapting IoT as a new way to minimize work delays and save time. Moreover, IoT automatically leads to performance and productivity increases. Therefore, the present paper aims to justify adopting and adapting IoT applications in Indonesian companies, including retail businesses. Most companies’ internal supply chain units face several difficulties during and after the devastating peak of COVID-19, which has led to a total global lockdown. These problems' complexity is exponential and requires innovative ways to solve their prevailing challenges. This study used observation, interview, and documentary research methods through a large-scale survey. The survey obtained the necessary information regarding how companies utilize IoT to improve their performance and productivity without hindering their internal supply chain and production units. The study concluded that the adoption of IoT, if well implemented, leads to a sustainable company and uninterrupted supply chain performance, indicating the proper performance of the organization. Doi: 10.28991/esj-2021-SP1-017 Full Text: PDF