Sustainability is one core component of an effective supply chain. Fortunately, modern tools, devices, and software, such as the Internet of Things (IoT) and blockchain, are streamlining how we balance these systems. With highly transparent and secure networks, we stand to improve the overall sustainability of supply chains for cleaner and more lucrative results.

The IoT and blockchain support sustainable supply chains in a variety of ways. By exploring these sustainable functions and how you might integrate them into your business processes, you can build the supply chain stability you’re looking for in an uncertain economy.

IoT provides data transparency that supports decision-making

The Internet of Things is the term given to devices that collect data and then communicate that data over the internet. IoT devices range from industrial sensors to wearable devices, all with various implications when it comes to the functionality of a supply chain. These implications are far-reaching across transportation and supply chains and would not be possible without the world of big data that the IoT taps into and makes useful.

IoT is instrumental, for instance, in developing eco-friendly, efficient fulfillment center strategies. That’s because these processes rely on the kind of big data transparency that only the IoT can offer on a scale that reverberates through the entire supply chain. The IoT enables accurate tracking methods, consistent protocols, and data analysis that all stand to change supply chain decision-making for the better.

Many companies have already experienced the sustainable benefits that come through industrial IoT. Shipping line giant Maersk, for example, built an infrastructure of sensors and mobile and satellite communication technology with the help of Ericsson to monitor its fleet of 300,000 refrigerated produce containers. The increase in transparency of container conditions led to a decrease in necessary inspections. This, Maersk says, means reduced resource use and even CO2 emissions.

As we have seen, the IoT supports supply chain flexibility in the following ways:

• By improving supply chain transparency
• By improving system efficiency
• By reducing resource consumption

As you explore the use of connected devices in your supply chain, consider these benefits. But also understand that with more connected devices, you present your company with more digital security risks.

Want to learn more about managing your company’s supply chain? Take the FITTskills Global Value Chain course here.

Blockchain protects data from interference

Connectivity offers us much in terms of actionable insight and effective communication. And yet, digital threats are a huge concern for supply chain companies. In one infamous example, Target became the subject of a data breach through its vendor and had to inform 110 million customers of their potentially stolen credit card data.

It is precisely attacks like these that make it necessary for supply chain companies to protect themselves against all the threats of the digital world. Malware opens up the gates to your data. From there, you stand to suffer incalculable losses from the damage to your reputation alone. Blockchain systems, however, are changing the playing field with enhanced security measures for protecting data.

Blockchains are decentralized data systems designed for cryptocurrencies like Bitcoin. They store data in nodes linked by cryptographic hashes. Now, blockchains are being integrated by companies like FedEx to improve the traceability of their packages because blockchain can store a (mostly) tamper-proof record of inventory locations and conditions.

With greater accuracy in a record, any data breach can be caught and prevented more efficiently. Simultaneously, these improvements offer much greater sustainability potential through their ability to pinpoint spoiled products or remove recalls with greater precision. Supply chain companies that can track inventory can more effectively reduce waste.

In this sense, blockchain and the IoT fulfill similar functions and offer similar benefits across a supply chain. In fact, utilizing these technologies in tandem can be a great way to maximize supply chain potential.

IoT and Blockchain streamline security and sustainability

The IoT offers unprecedented insight into business functions and supply chain conditions. But traditional networks for hosting this data present all kinds of digital threats. That’s where blockchain can come in to help improve the security of an IoT network and provide new business potential.

Blockchain is unique in its use of servers in various locations to host, protect, and backup data. To infiltrate such a system typically requires absurd amounts of computing power. By leveraging the power of the IoT to assemble supply chain insights, then protecting those insights on a blockchain, you can build greater accountability and security for your supply chain. From here, sustainability becomes easy.

That’s because sustainability means longevity without damage. Getting there requires insight only accurate data records can provide. Apply the IoT and blockchain as you assemble the information architecture needed to streamline a supply chain, and watch cost and resource-saving opportunities open up across your ventures.

Up until now, one obstacle standing in the way of more efficient transportation has been the state of traffic management. But, with recent technological advances in traffic data collection and management, information system specialists have managed to bring a new way of thinking about traffic management and global trade to the table.

The Innovations in Traffic Management

Although there are several solutions out there that combat the problems inherent in today’s traffic management systems, here are a few of the top, most promising innovations:

Making Use of Sensors

Before any traffic management innovation can take place, the precursor is generally installing sensors to monitor road conditions and traffic patterns. Traffic surveillance and monitoring are key to obtaining data unobtrusively, which experts can then use to expand upon existing traffic management systems.

These days, sensors come in a variety of shapes and sizes, from Bluetooth to loop detectors to even third-party data, like local weather forecasts and public holiday calendars. Sensors are also used to detect accidents on the road and record immediate conditions. Optical fibres are an example of new sensor technologies currently being tested before full-blown deployment.

Updated Traffic Lights

Since the 1920s, traffic lights have undergone relatively few upgrades. Many have recently begun to finally make the switch to LED bulbs, which are not only more environmentally friendly but also last longer. Because they fade rather than immediately burning out, they’re also simpler to replace before they start causing traffic issues.

LED lights can also be outfitted to square traffic lights, which are generally more visible and therefore present additional precautions when it comes to roadway safety.

Municipalities around the world are experimenting with countdown traffic lights, allowing drivers to better adjust their speeds and pedestrians theirs. Reducing driver doubt in the transition from green to red is essential to optimizing roadway safety. Some newer vehicles, like those manufactured by Audi, are even beginning to install in-car systems that communicate with infrastructure.

Smart Traffic Control

Once sensors are installed, smart traffic control becomes that much simpler. Roads detecting few cars can keep lights green, saving drivers fuel and time. Traffic lights and speed limits can therefore be adjusted accordingly (perhaps in partnership with smart vehicles) to maximize roadway efficiency and safety.

Although aided by cameras, sensors, and other technologies, for now, traffic management centers will play an important role in the implementation and wide-scale rollout of smart traffic control methodologies.

How These Innovations Could Improve Global Trade

The implications of these innovations create obvious time, fuel, and cost-saving advantages for those managing ground transportation supply chains. They also have far-reaching environmental benefits, potentially lowering carbon emissions through decreased driving and traffic times.

They also have implications for ground transportation risk mitigation strategies.

We’ve already seen the importance of risk mitigation within the shipping industry—especially with current COVID-19-related port congestion issues and delays and the past year’s Suez Canal Crisis—so, many businesses are also taking care to avoid costly lawsuits and PR disasters by mitigating product liability for ground transportation as well.

Safety concerns are becoming more palpable but also more measurable. Purchasing global insurance policies and investing in appropriate infrastructure is one way of handling liability concerns. Another is to invest time and energy in smarter vehicles and traffic management, reducing the risks involved with the respective parts of the supply chain.

Learn more about how to manage your company’s supply chain and reduce risks with the FITTskills Global Value Chain course.

The Intersection of Global Trade & Traffic Management

The more well-educated professionals who join the ranks of traffic management innovation, the faster the technologies will be able to progress and expand beyond their current reach. Information systems professionals entering top industries, ranging from air travel to manufacturing, are working to increase the efficiency of global trade alongside global traffic.

As a result, great strides have been made in the areas of real-time traffic feedback, Vehicle to Infrastructure (V2I) technology, and pedestrian tracking systems. Wyoming’s pilot V2I program communicates inclement weather conditions and road disruptions to drivers statewide, for instance. The positive impact of installing these systems in every freight vehicle is massive, not only potentially preventing devastating accidents and crises, but general delivery delays and traffic too.

The effects of these innovations in traffic management extend far beyond their initial scope. With wide-reaching economic to environmental impacts, traffic management is being used to address a myriad of issues, from lowering vehicular carbon emissions to increasing pedestrian safety to expediting the shipping processes of global trade. In addition to new practices that allow you to take control of your own supply chain and empower the planet, your import-export business and clientele are sure to benefit greatly from enhanced traffic management practices.

Did you know that the The International Chamber of Commerce Incoterms^® rules are used in contracts to clearly communicate the obligations, costs, and risks associated with the transportation and delivery of goods, providing clarity for sellers and buyers to help facilitate trade? Learn more with  The Incoterms^® 2020 online course, presented by FITT and the Canadian Chamber of Commerce (CCC) to fully understand how they work.