Affects of IoT on OEM Logistics

Jan. 29, 2014
ARC Advisory Group Reports on the Benefits of the Internet of Things for OEMs and Customers

The introduction of the Internet of Things (IoT) into the manufacturing sector can significantly change logistics for an OEM's spare parts supply chain.

IoT technology can help end users improve equipment reliability, reduce spare parts inventories and help OEMs sell more services at higher margin, according to a recent report from ARC Advisory Group.

Manufacturers who incorporate IoT in condition monitoring, spare parts and equipment repair services are able to remotely monitor the health of their customers' plants, predict failures, more effectively order parts and anticipate repairs before a failure occurs. OEMs can improve their revenue streams, while enhancing customer uptime and satisfaction.

IoT enables OEMs to reduce the number of unplanned failures by improving spare parts inventory for faster responses to emergency repairs. Fewer emergency calls lead to more centrally-located inventory, opposed to regional or local locations.

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