Wireless Sensor Network for Intelligent Supply Chain
Management
Francis Pol Lim
Faculty of Busines Administration, AMA University
# 59, Panay Ave., Quezon City, Philippines
[email protected]
Abstract. This paper aims to discuss and inform the people regarding the
applications of Wireless Sensor Network (WSN) in the field of Supply Chain
Management (SCM). This furthermore discusses things about the basic
components of SCM and the factors to be considered when adapting technology
in this area. This paper also discussed related studies that were conducted
showing how WSN helps SCM. Lastly, this paper talked about the advantages
of using WSNs.
Keywords: Wireless Sensor Network, Supply Chain Management
1 Introduction
When you buy something in a super market, did you think of how these products
reach their respective shelves? Surely, these products have undergone many
processes and have been passed from one entity to another for multiple times. All
these products made available on their shelves are the result of the effort of the supply
chain.
In the advent of technology, supply chain management has changed into a more
efficient and effective one. The rise of Wireless Sensor Network (WSN) made the
processes involved a lot faster than before.
2 Supply Chain Management and the Wireless Sensor Networks
A supply chain is the collection of steps that a business entity takes to transform raw
components into the final product. Supply Chain Management (SCM) is simply the
administration of the flow of goods and services [1]. In a more defined statement,
this is the management of a network of interconnected businesses which are involved
in the ultimate provision of product and service packages which are required by end
customers. This includes all the movements of inventory including storage of raw
materials, the work-in-process inventory, and the finished goods from the point of
origin to the point of consumption [2-3]. Supply Chain Management has five basic
Advanced Science and Technology Letters Vol.139 (FGCN 2016), pp.191-196
http://dx.doi.org/10.14257/astl.2016.139.42
ISSN: 2287-1233 ASTL Copyright © 2016 SERSC
components that ensure efficient and cost-effective operations, and this is described in
Figure 1.
Fig. 1. Basic Components of Supply Chain Management
In planning, the manager must develop a strategy in order to address how a certain
good or service can meet the needs of the customers. Next is the development stage,
this is where strong relationships with suppliers are built. While methods for shipping
are being planned, managers must develop a set of pricing, delivery and payment
processes with suppliers. They can also put together processes for handling their
goods and services inventory, including receiving and verifying shipments,
transferring these things into the manufacturing facilities and authorizing supplier
payments. The third stage is the making or the manufacturing of the products. And
after that, these products are then being delivered to the customers. The final stage
deals with the monitoring of returns and feedback from the customers.
Integrating technologies in the supply chain activities creates a competitive
advantage for the business firm. But before this thing happens, many things must still
be considered as described by [4] in Figure 2.
Fig. 2. Factors to be considered in Supply Chain Technology Adoption
Supply Chain
Technology Adaption
Organizational Size
Decentralized Organizational Structure
Supply Chain Strategy Integration
Inter-organizational Factors
Environmental Uncertainty
Organizational Performance
Advanced Science and Technology Letters Vol.139 (FGCN 2016)
192 Copyright © 2016 SERSC
After considering the factors you may now, find the fittest piece of technology that
can surely make the business performance more effective. Some even have
customized systems for their business for we must consider that each business has a
different way of doing things.
The Wireless Sensor Networks create a great potential for the supply chain
management because the WSN nodes can be attached to crates, roll containers, pallets
and shipping containers to function as an active transport tracking device. These
devices has the ability to actively monitor the transportation processes, and verify
proper handling conditions of goods like temperature for fresh and perishable goods.
Furthermore, these devices can also help detect damage due to sudden shocks, or
opening of containers and other forms of contract breach. This also results in
significant quality of service improvements and greater efficiency which in turn lead
to lower transport cost [5].
Fig. 3. Overview of Wireless Sensor Application
Figure 3 shows two major wireless sensor applications. This includes tracking and
monitoring. Tracking deals with the maintenance of a constant difference in
frequency between two or more connected components while monitoring deals with
observing and checking the progress or quality of a thing over a period of time.
Tracking application involves human indoor or outdoor tracking, traffic and vehicle
tracking. Monitoring includes with inventory, structural, machine and chemical
monitoring.
Wireless
Sensor
Network
Tracking Monitoring
Business
Inventory Monitoring
Public/Industrial
Structural, Factory
Inventory, Machine &
Chemical Monitoring
Business
Human Tracking
Public/Industrial
Traffic Tracking
Vehicle Tracking
Advanced Science and Technology Letters Vol.139 (FGCN 2016)
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3 Related Literatures
The following are the literatures which were found helpful in this study. Since we are
talking about the supply chain, the main focus is with the inventories or goods.
Before goods are distributed, it is still being processed, made or manufactured.
Because the production management deals with very complex processes, the
researchers became more driven to design novel manufacturing execution system
architecture for intelligent monitoring system which is based on a wireless sensor
network. From a business perspective, their research paper explains the impact of
RFID investment on complex product by the establishment of a 3-stage supply chain
model that involves 2 suppliers. The results of their study have also contributed
significantly especially for people or entities who want decide whether to adopt or not
to adopt an RFID among its members in supply chain [9].
In the research of Mason et al. in 2010, they have applied a prototype of WSN in
the inventory management of packaged gas cylinders. Results show that they have
improved the efficiency of the business operations and have monitored the condition
of gas cylinders. In this way, people can be in safety with dealing with these kinds of
products by knowing their status while in shipment [6].
In China, researchers pointed out that environment monitoring is an essential thing
for perishable food supply chain management. So the solution applied here is the
development of a real-time perishable food supply chain monitoring system based on
ZigBee-standard wireless sensor network [7]. Another similar study in the
Netherlands also deals with real-time and continuous monitoring of goods [8]. In this
one, the researchers are concerned because the goods that are being monitored are of
high value. Wireless Sensor Networks offer technical capabilities for continuous
sense and respond capabilities. This furthermore offers complementary advantages
over the use of Radio Frequency Identification. This paper presents results of a
qualitative case study of the ongoing adoption of WSN in a Pharmaceutical Cold
Chain in order to prevent loss of high value shipments. Results on both studies show
that there is a highly significant success rate of data communication and that the
developed solution is effective and efficient.
With the focus on food security, the researchers in Zambia proposed a sensor
network that uses ZigBee Wireless Sensor Network, Radio Frequency Identification
and Cloud technologies in the development of an inventory management system for
farm grains. This is done in order to prevent post-harvest loses. The results of the
baseline study were analyzed and it was found out that when inventory is counted
manually, records are mostly kept on paper and thefts are experienced. These
findings were used to design automated Grain Inventory Management System models
with the goal of eliminating manual and paper based systems, and eliminating theft
altogether [10].
Advanced Science and Technology Letters Vol.139 (FGCN 2016)
194 Copyright © 2016 SERSC
4 Advantages of Adopting Wireless Sensor Networks in
Supply Chain Management
WSNs bring several advantages for SCM, these are expressed below
4.1 Wireless
As the term its self, it is a wireless technology so this can become handy and can be
installed in industrial devices to monitor the measurements such as proximity,
temperature, pressure, level, and power quality, and to transmit or receive control
signals for activating the device accordingly. Data can be easily transmitted without
many wires that are interconnected with the systems. If for instance these will be
attached to delivery vehicles, you can instantly obtain useful data for in inventory
management as long as the devises on the vehicles have already been detected
wirelessly.
4.2 Extendibility
Newly added devices can be installed at any location without running power supply
and data communication wires through concrete walls during factory expansion. The
overall coverage area of WSN is the union of several small coverage areas of low cost
sensors. So because of this, the coverage area can be conveniently adjusted or
expanded by moving the nodes or employing additional nodes.
4.3 Ease of Installation and Maintenance
Installation can be done in a minimal amount of time being spent. This wireless
device is almost care-free because only a battery change is necessary after years of
operation. In addition, it is also possible to relocate current wireless devices or deploy
additional wireless devices on the control system after it has been installed with
minimal changes to the existing configuration.
4.4 Reliability and Flexibility
The capability of a single sensor node is restricted but multiple sensors can provide
the fault tolerance and this makes the whole system robust and flexible. These things
are adaptable to changes in the configuration of the things where it is being attached.
When a sensor dies, other devices can help detect that problem.
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4.5 Improved Monitoring Capabilities
Industrial WSNs have the potential to beat the existing process control network. This
technology has higher data transmission speed. And has multiple wireless
communications that can act simultaneously if there is no mutual radio interference.
Lastly, this also have more sensors or data points that can be used to beat the
performance of traditional wired control system.
5 Conclusion
Wireless sensor networks can definitely help a lot in the supply chain management.
Processes which have been touched by this technology can be done in a more efficient
and a more effective manner. When we decide to use this, we must accept the fact
that very piece of technology has its own vulnerability. For the WSNs we may have
problems when it comes to security and the confidentiality, but you can still adapt
proper countermeasures to avoid these things. And again, WSNs are of great help for
many business entities when it comes to their supply chain management.
References
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(2013).
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6. Mason, e al., “Inventory management in the packaged gas industry using, wireless sensor
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Sensors in Supply Chains: A Process View Analysis of a Pharmaceutical Cold”, Journal of
Theoretical and Applied Electronic Commerce Research, vol.8, no.2, (2013), pp. 138-154.
9. Xu, W., Yang, Z., Wang, X.: “A Technical and Business Perspective on Wireless Sensor
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10. Muyunda, C. L., Phiri, J.: “A Wireless Sensor Network Based Grain Inventory
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Advanced Science and Technology Letters Vol.139 (FGCN 2016)
196 Copyright © 2016 SERSC
