Jeremy Ferrer
Webinar :
Afterwork Achats d'Antananarivo
Jeudi 05 Décembre à 17h
The place of technology in the company's internal processes is well established. We currently have numerous solutions responsible for the digital transformation of businesses, including the Internet of Things or connected objects. These are bringing the Purchasing function into the all-connected era. What if the robots themselves triggered the placing of the order according to the volume of goods or parts available in stock? So far, the smart home automation objects are the best known. But the application of this technology does not end there. We are at the heart of a revolution of connected objects or IoT whose future promises a multitude of opportunities and possibilities. Purchasing departments are among the new beneficiaries of this technology. It allows them better stock management and better monitoring of the supply chain. In this article, find out if the possibilities offered by connected objects in the Purchasing function are a reality or a myth.
Before going any further, let's first start by defining What are connected objects ?
The Internet of Thing (IoT) or Internet of Things refers to all the equipment or Internet-connected objects as well as related applications (networks and software). By extension, a connected object refers to any object that can be connected via the Internet to transmit and receive data.
We can also define connected objects as being physical terminals or objects that are equipped with sensors or software through which they can connect to other terminals or systems on the Internet in order to exchange data. These terminals can be simple domestic devices or even complex industrial equipment.
If the “mainstream” applications of connected objects are already widely known, such as connected health objects, the smart home automation objects And the Sport connected objects, this technology also offers enormous potential to organizations and businesses by simplifying their various processes. IoT allows Purchasing departments to be more efficient and efficient by automating procurement processes.
In recent years, the connected objects or IoT have experienced considerable growth. They occupy an increasingly important place in the daily lives of individuals and professionals by making it possible to streamline communications between people, processes and objects. If the number of connected objects was valued at over 7 billion in 2010, experts estimate that they will be at over 150 billion in 2025 and that there will be billions of users all over the world.
IoT is therefore poised to become one of the most important technologies of the century and the new millennium. It allows the physical world to meet the digital world and to cooperate. Thanks to the contribution of various technologies, including the cloud, big data, machine learning, analytics and artificial intelligence, simple objects can now make it possible to share and collect important data, with a minimum of human intervention. Thanks to the interactions between these connected objects, we are entering a hyperconnected world.
The ability of the Internet of Things to provide information from integrated sensors and to allow objects to communicate with each other makes possible a wide variety of applications. Here are some of the best known applications of connected objects :
Les industrial connected objects allow machines to be monitored constantly and their capacities to be analyzed for optimal functioning. They also make it possible to monitor the quality of products in real time in order to detect a potential defect early enough.
IoT also allows businesses to quickly locate and track an asset to protect it from being kidnapped or stolen.
Les connected health objects are also experiencing remarkable growth nowadays. They allow users to better understand their health or that of their loved one. Thanks to them, doctors can also monitor their patients remotely. Les connected health objects can also be used in businesses. They allow managers to monitor the health and ensure the safety of their employees. They are particularly useful on construction sites or in factories where working conditions are dangerous.
One of the best known examples of the application of connected objects within companies is the management of the car fleet. They make it possible to increase the efficiency of teams by improving the vehicle fleet management process.
IoT also makes it possible to monitor the condition of machines remotely and to trigger predictive maintenance in time.
According to many observers, the massive entry of connected objects within companies will upset all processes, including the Purchasing process. It is one of the branches of business that can take advantage of the benefits of the Internet of Things today.
A service company has dozens of photocopiers located in their buildings.
Thanks to connected objects, it would be very possible to obtain the consumption of each machine in real time and to be able to readjust contracts as is the case for the car fleet — or to be able to relocate photocopiers annually to avoid end-of-contract penalties in case of under/over-consumption.
In the case of industrial consumables, industrial connected objects can report consumption and production data in real time and link them together to make predictions.
The use of tools, or personal protective equipment, could be adapted to production in real time.
The aim is for the buyer to have sufficient visibility of the needs to adapt their strategy accordingly.
However, two major challenges remain:
There is also no single use of connected objects as explained on the Recode site.
Today, fleet management is ahead of the curve on the subject. Vehicles are increasingly connected, which allows companies to have a real-time vision of the fuel consumption and driving uses of each driver and, therefore, to be able to define a training policy for these drivers.
For the time being, the hardware and software needs to process Big Data are still very specific.
Tomorrow, imagine the field of possibility for industrial companies providing equipment (small or large) such as electricity, personal protective equipment, office supplies or food.
BME is in the process of modeling the architecture of its Sourcing Force solution to adapt it to Big Data Purchasing.
The idea is that in the long term, via APIs, it will be possible to receive very important data, structure it and exploit it without excessive server consumption to define efficient eProcurement strategies. The future is already tomorrow!
When doing research on connected objects and their impact on the Purchasing function and the Supply Chain, we have access to statistics that say a lot about the changes they are bringing. Faced with this revolution, companies must now identify the challenges and opportunities they offer, in particular for Purchasing function.
The connection between connected objects and the exploitation of data in real time should make it possible to automate some or all of the steps of the Purchasing process, including the ordering of consumables, the ordering of services in the event of a failure or the ordering of spare parts following a diagnosis. As purchase orders and invoices are drawn up digitally, the risks of errors and processing times are reduced. On a technical level, the use ofconnected objects or IoT makes it possible to prevent breakdowns that are likely to cause a halt in production and to extend the life of the equipment.
Les connected objects allow Purchasing teams to have better traceability throughout the supply and Purchasing chain by digitizing the various stages punctuating the manufacture of a product, including the origin of raw materials, logistical conditions, manufacturing times, etc.
Thanks to the information collected by the connected objects and analyzed via the Big data purchases, buyers can anticipate and make the best decisions. They can also better manage supplier risks and improve the company's image by adopting strategies, such as responsible purchasing...
The Internet of Things allows buyers and procurement and procurement managers to manage processes in real time. In addition to allowing tracking, connected objects or IoT optimize decision-making concerning the management of product flows and stocks. By doing so, they improve the agility of the supply chain and the purchasing function.
In the age of digital and big data, business managers are always looking to gather as much information as possible in order to be more responsive, profitable and obtain new contracts. Les connected objects are part of this logic. Thanks to their ability to record numerous parameters and information (place and date of manufacture and delivery, duration of transport, conditions of the storage location, etc.), they allow managers to be more reactive by anticipating and understanding new needs in time and by communicating better.
The Internet of Things is a revolution that has only just begun. More than just an object, The connected object has become a smart gadget that can handle problems for the user. Since it can detect the maintenance needs of equipment in real time, it can take care of contacting the repair service itself or even automatically placing an order for consumables as the stock nears exhaustion.
In the near future,The connected object itself will become inseparable from the services associated with it to facilitate the task of buyers or supply chain managers.
In recent years, the Internet of Things or Connected objects have become a trending word in business, commerce, and technology. With artificial intelligence and blockchain, they are at the forefront of the digital transformation of businesses. If on the consumer side, the connected objects are already widely used to improve their daily lives, their use is still relatively rare in the internal processes of companies. And yet, this technology brings added value to businesses. Recognizing the enormous potential it offers, more and more companies are incorporating it into their business processes, including the Purchasing process.
The procurement sector is particularly interested in the Internet of Things. Indeed, it allows them to have better visibility of costs and to better understand the challenges related to procurement and storage. One of the examples of the use of connected objects in the supply chain is inventory monitoring. Thanks to a device that is reactive to the weight placed on the warehouse floor, logistics managers can immediately detect a drop in stocks. Alerts can therefore be given to indicate a need for replenishment.
The IoT therefore makes it possible to ensure that the quantity of goods needed is always available at all times. It can also assist in taking orders, or even placing them automatically.
Connected or intelligent objects offer numerous advantages to procurement departments:
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