From around the world, 84 food and grocery businesses and service providers have been questioned as a part of IGD’s Supply Chain Analysis. The results suggest that an IoT revolution in this industry is just around the corner.
Specifically, they were asked about the potential opportunity to digitally transform their supply chains with the help of IoT. A total of 37% of them are saying that they have already successfully deployed IoT products or services (like smart fridges and smart heating systems), and researchers say that a further 58% of them are willing to invest more funds into working more closely with technology providers so they can create additional IoT opportunities.
As for the reasons why businesses are willing to invest more funds into IoT technology:
– 61% of respondents listed “improved understanding of customers”
– 53% of respondents listed “reduced costs and increased efficiencies”
– 51% of respondents listed “development of new business models”
Chris Irish, IGD’s supply chain insight manager, explained that IoT allows for monitoring and tracking of each unique product, which opens up the possibility of personalisation, as well as real time data-sharing, and new ways for companies to conduct their businesses.
Irish has suggested that product sensors are going to change the playing field, since they contain live consumer feedback. However, he warns that consumers are not likely to pay more for products to become IoT ready, therefore the retailers will need to provide value by offering additional services alongside their products, as well as using the generated data in a manner that is most effective.