IOT Implementation - Dissertation (1-3)
IOT Implementation - Dissertation (1-3)
1.6 Summary..........................................................................................................................7
2.1 Introduction......................................................................................................................9
2.3 Using IoT for Warehousing Solutions: Man-Machine symbiosis and advanced
technology in Amazon fulfilment centres............................................................................10
2.6 Summary........................................................................................................................13
3.1 Introduction....................................................................................................................14
3.9 Summary........................................................................................................................19
Reference..................................................................................................................................20
Chapter 1: Introduction
1.1 Background of the research
The innovation of technologies and adoption of IoT in Amazon’s supply chain is the
central theme of this enquiry and the themes of exploration range across the entire supply
chain flow of Amazon which has resulted into better customer experience and a
transparent, reliable supply chain while minimizing waste. Amazon’s model of supply
chain is one of the largest and efficient supply chain operations in the globe (Schmidt et
al., 2022). The evolution of Amazon has continued through the years by embracing
change, innovating technologies and streamlining operations through rigorous investment
and research.
Amazon is one of the world’s largest online retailers. They are also a leading cloud
service provider which has integrated IoT technology. Amazon’s supply chain constitutes
the entire process of warehousing of products, management of inventories, pricing, as
well as delivery times. Amazon may become more effective if they act on the real-time
information and business insights provided by the IoT (Chakraborty and Das, 2021).
When considering an internet of things deployment, IT admin staff, developers,
designers, and CIOs must have a solid understanding of what the internet of things is used
for, what it requires, what trade-offs are involved, and how to put internet of things
devices and infrastructures into place. The IoT is a network of specialised devices that are
installed and utilised to collect and share real-world data across other networks or the
internet (Divesh et al., 2021). As an illustration, homes employ sensors for security and
home management chores including lighting and appliance control, with smartphone
applications serving as the primary means of status reporting and administration.
IoT devices and data analytics systems are used by managers to enhance the decision-
making process and boost the accuracy of delivery estimates. Real-time tracking enables
businesses to track products throughout shipping, anticipate delivery, and forecast and
lower the risk of delays. One of the top warehouse technology developments is the
integration of IoT-based supply chain management solutions (Jhala et al., 2019).
Numerous advantages include better inventory management, staff safety, and greater
warehouse process efficiency. On-site staff members can quickly discover products and
the right aisle for them. allows for smooth performance and workflow that is otherwise
unachievable.
1.2 Research Rationale
Asset management and monitoring are made easier by IoT solutions. Managers may
now completely rely on software to update the status of all assets, without the need for
human data entry or conventional inventory devices. Similar to retail asset monitoring,
linked technologies like sensors, RFID tags, beacons, and smart materials make it easy to
track every item and provide supply chain managers quick access to crucial information
about every delivery (Guo et al., 2019). For larger retail and logistics organisations,
managing enormous warehouses is where this technology's full potential is realised. For
larger retail and logistics organisations, managing enormous warehouses is where this
technology's full potential is realised.
The IoT's implementation can be costly. The strategy of creating IoT devices with a
centralised cloud-based business model has been embraced by many businesses. IoT
gives managers of Amazon thorough insights on the flow of commodities, which helps
merchants and supply chain managers determine how many units of each product to
purchase. Amazon maintain strategy by enhancing asset monitoring, shipping, and on-
road navigation with high precision, the IoT lessens the impact of human mistake as well
(Pratap and Pendyala, 2022). Sometime Amazon may establish effective strategies by
combining IoT and supply chain management to better understand their products,
consumers, and demand. Data gathered during the course of the product cycle aids in
market research and allows for product segmentation with the target market in mind.
Many linked platforms focused at employees are made possible by IoT.
Smart glasses and other tools make it easier for warehouse employees to get instruction so
they can complete tasks faster. IoT also collects data on efficiency and raises awareness
of resource and labour management. Supply chain managers will make sure that everyone
engaged in the delivery gives their best effort thanks to technology. Applications that are
connected make it easier to monitor who enters the warehouse at any one moment, trace
every item, and notify a company management if anything disappears (Sofiah and Aisyah,
2022). Integrated CCTVs, apps that let warehouse managers remotely control access to
the facility. Sometimes IoT logistic tracking systems that assist monitor deliveries, assets,
and more are examples of IoT-powered encryption methods.
1.3 Research Aims and Objectives
The main aim of the research study is to analysis different barriers faced by the company
Amazon while implementing IoT technology for maintaining supply chain and logistics
network.
Research Objective
To study different IoT devices utilised by the company Amazon for maintaining their
logistics and supply chain network
To study different type of barriers faced by Amazon while implementing IoT in their
logistics and supply chain networks
To analyse how Amazon has able to mitigate the barriers for implementing IoT in
maintaining logistics and supply chain networks
Research Question
1. What are the different IoT devices utilised by the company Amazon to maintain their
supply chain and logistics networks?
2. What is the different type of barriers faced by Amazon while implementing IoT to
maintain warehousing?
3. How Amazon has able to mitigate the barriers for implementing IoT in their business
while managing their supply chain networks and logistics?
Chapter 1 : Introduction
1.6 Summary
All of these elements are optimized at Amazon which ensures a well-functioning supply
chain. The large investments for reducing delivery times and introduction of same day
delivery acknowledges Amazon’s early recognition for the need of super-fast delivery
and fast commerce. This has been enabled by integration of IoT technologies to keep
Amazon’s supply chain process lean and efficient.
They can now receive a highly accurate view of how resources like power and water are
utilised, adapt green methods to fleet management and shipping, and integrate
environmental activities at scale thanks to various IoT sensors for supply chain
management and asset monitoring. The whole supply chain speed is significantly
increased by smart route-planning tools and IoT tracking systems. Sometimes by
incorporating these technologies into daily operations, managers may make decisions
more quickly and reduce the feedback loop (Arenkov et al., 2019). Comparatively
speaking, open platforms are quicker and simpler to use than closed ones. Amazon can
guarantee all stakeholders participating in the supply chain lifecycle will have access to
pertinent data and be able to quickly resolve concerns by developing a cloud-based IoT
solution.
Chapter 2: Literature Review
2.1 Introduction
2.2 Working of Amazon Supply Chain and integration of IoT
Amazon have developed a ordering service for consumer goods through a button called
DASH which is an adoption of Amazon voice controlled DASH ordering system that
enables users to speak for ordering. DASH can be used by customers to select bulk goods
via buttons connected to internet (Saibania et al., 2021). Amazon is using an end-to-end
integration of IoT in different stages of a customer’s order lifecycle, consequently
shaping the supply chain. The journey of IoT integration in Amazon’s supply chain starts
with the placement of an order by a customer after clicking the buy button.
When a customer places an order, Amazon fulfilment centre is placed on a standby. The
bar code of the order is checked with that of the product and the item is then placed in a
crate on the conveyor belt. Distribution centres receive this crate before they are sorted.
At this central juncture, the bar code of the product is again matched with the order.
These are automatically sorted before being boxed. The bar code contains the identity of
the customer’s order (Smith and Dhillon, 2019). The boxes are then packed, taped,
weighed before they are shipped.
These steps essentially follow the crucial elements of supply chain like warehousing,
delivery, technology, manufacturing, pricing and global reach which are all optimized at
Amazon increasing efficiency and smooth functioning.
A significant share of Amazon’s sales is made by third party sellers. Accordingly,
Amazon provides all its third-party sellers two fulfilment options – Fulfilment by
Amazon (FBA) and Fulfilment by Merchant (FBM) (Iddris, 2018). In FBA option,
Amazon takes care of the entire logistics and customer support which is helpful for sellers
who do not have the infrastructure at disposal. In FBM, third party sellers are responsible
for listing the products on Amazon and handling the storage and other fulfilment aspects
on their own.
This enquiry delves into how the Amazon fulfilment centres function and how IoT is
helping to adapt and enable change at every level of Amazon’s supply chain journey.
2.3 Using IoT for Warehousing Solutions: Man-Machine symbiosis and advanced
technology in Amazon fulfilment centres
Amazon fulfilment centres receive the products that come from an Amazon facility or
from third party sellers opting FBA. Products are then taken off by trailers. While
conventional warehouses store their items by certain classifications, Amazon stores them
randomly. The yellow tired bins with random items are all tracked by computers. These
bins are then sent to associates based on size of product. Once an order is placed, a robot
brings pods filled with products to the pick stations where associates retrieve the product
by reading the screen, and put them into yellow boxes called a tote.
While packaging orders, products are organized and scanned according to their shipment
and sent to the pack station (Ivankova et al., 2020). The recommendation system provides
the accurate box size and the measure of the amount of tape needed. Third-party seller
items are usually shipped in their own boxes but Amazon advises the vendors to minimize
packaging.
Embedding IoT sensors for monitoring warehouse facilities is helping businesses predict
downfalls before operations are impacted. This is quantifiably saving the organization
from operational failures, in turn saving time and money of retailers. Advanced
technology and IoTs is being effectively implemented at Amazon’s large fulfilment
warehouses in the US. Fleets of robots are working in these locations who gather
merchandise for orders.
Amazon Robotics, began in 2012 after Amazon acquired a start-up called Kiva Systems.
Kiva Systems had prepared a robotic system for office supplies retailer Staples. Those
bots are now devised to move racks of products around the warehouse helping to prepare
online orders. Web retailers commonly manage thousands of different products which
also reaches millions in case of Amazon (Bhat et al., 2021). They are of different sizes,
shapes and varying weights. The bots are fitted with two powered wheels that allow them
to rotate in place, Infrared to detect obstacles and floor cameras for reading QR codes on
the ground. The robots use these QR codes to determine the location and direction of
merchandise to be fetched. When working low on battery power, they can plug in to
power stations for charging. A centralized computer using secured network for
communication is used to control these robots.
Amazon processes thousands of orders requests every minute. An order consisting of
several products might be shipped from different locations depending on availability and
type of product. Assignment of priority is done depending on the delivery preference of
the customer like an Amazon Prime order has to be shipped on the same day while a
order in a super saver deal may wait for some time (Patidar et al., 2021). Determination
of this priority facilitates the robot to start to locate and fetch pods for the assigned
packing station before preparing the order for shipment.
It is to be noted that success of any robotic warehouse is not dependent on the robot itself,
but the mind behind the system. In Amazon, workers are encouraged to see bots as
companions. Every unit is given their individual name by an employee and the name is
inserted into the system. Hence, the workers at the workstation refer to the robots by their
name. This improves the man-machine association at workplace as the machines are no
longer referred to by serial numbers.
When humans and robots work together in cohesion, quality assurance needs to be
prioritized. There remains a need to check that physical location of the products are
matching the data in computer systems and whether the robots are functioning properly.
The need for fine tuning remains throughout the entire process to cater to dynamics and
technological innovations which are necessary in a large-scale supply chain system as that
of Amazon.
2.4 Tracking and Traceability of Supplies Using IoT-Enabled Blockchain on AWS
Today, it can be difficult for many businesses to protect their supply chains against
disruptions caused by geopolitical events, natural catastrophes, public health crises, and
other factors. These businesses frequently invest in client demand, material supply, and
logistical services in order to resist this upheaval. However, investments are failing
because of old, rigid systems and tactics, which are unable to appropriately give an end-
to-end picture across the dependencies both inside and outside the organisation. A fully
functional, adaptable technological platform is required for the implementation of
genuinely robust supply chain solutions, together with services that facilitate traceability
and transparency.
This can enable those involved in the supply chain to have access to the necessary
information and make decisions based on real-time data produced by distributed supply
networks.
Deploying durable, scalable technology that can dissolve technical and functional
divisions is one of the crucial factors in creating a successful supply chain network.
Effective solutions enable firms connect with their whole network for end-to-end
visibility, collaboration, agility, and optimization. They also boost visibility. The Deloitte
solution is built for quick addition of supply chain items, channels, and participants. It
also offers real-time visibility of product events and lowers business friction by
facilitating contract discussions between supply chain stakeholders.
Amazon is searching for solutions that allow for product monitoring while a package is in
route to guarantee that deliveries adhere to established guidelines. For many businesses that
depend on stringent quality control and precise product monitoring, such as manufacturing,
consumer packaged products, and retail, knowing the status of priority items is essential.
Accurately managing and tracking product status information may lead to real-time data
insights, quicker problem detection and resolution, and ultimately better decision-making and
operational efficacy. At certain points in the supply chain, tracking systems may use a variety
of IoT devices to deliver real-time product data, and integrated solutions can safely pull from
that data stream to alert the appropriate parties of any possible concerns. Customers and
sellers on Amazon today want a safe, dependable, enterprise-grade solution that can ingest
and store enormous volumes of IoT data, integrate it with data from other areas of the
company, and then analyse and apply advanced data science to set up alerts and give crucial
insights. It takes a lot of effort to create and integrate IoT devices with supply chain systems
that can track assets at scale. It might be challenging to examine IoT data using conventional
analytics and business intelligence tools since it can be very unstructured. Devices that
capture noisy processes, including temperature, motion, or sound, are a common source of
IoT data. Before appropriate analysis can be accomplished, this can frequently result in huge
data gaps, garbled signals, and misleading readings that need to be cleared out.
It is necessary to develop a sound research philosophy in order to carry out the goals and
objectives of the study and ensure its success. All three research philosophies may be used in
the research process. For instance, realism is one of the three research philosophies that might
help in acquiring objective information from the study findings (Mohajan, 2018). This
philosophy can assist in achieving the socially approved study objectives, making it more
appropriate in the situation of social reality. The ideas, conceptions, and models that already
exist in relation to the research issue can be analysed using positivist philosophy. The
researcher have opted for the interpretivism philosophy, which might encourage the
interpretation of results depending on the individual judgement perception.
Justification
The subjective research theory known as interpretivism requires to consider some biased
and value-laden results. This approach acknowledges that individuals have personal ideas and
mental processes that are incompatible with the methods used in scientific inquiry. Theory
could also show how normative analysis is done (Pandey et al., 2021). Applying this concept
can also help preserve the research study's validity and quality. In order for the researcher to
get unique findings from the systematic stages, the theory may also efficiently assess the
representativeness and reliability of the systematic research process. Some studies may
benefit from include emotional factors, particularly those that use secondary research
methodologies.
3.4 Research Design
Exploratory, descriptive, and explanatory are the three types of research designs that may be
used in research projects. The research study needed to match a specific research design with
the goals and objectives of the study in order to evaluate the data that was gathered. While an
exploratory research design necessitates the inclusion of psychological factors because it is
seen that a descriptive research design might assist in analysing the research's goals and
objectives (Snyder, 2019). Additionally, by linking concepts, elements, causes, and related
outcomes, the explanatory study design may analyse the interdependence relationship
between the two specified variables.
Justification
The researcher in this instance has opted for the explanatory research approach, which
enables the researcher to create a particular collection of topics that will be examined during
the data interpretation process. The literature-based search, focus group analysis, and case
analysis-based research are examples of explanatory research designs (Newman and Gough,
2020). The research study explains the pre-existing theories and models that may be used to
assess the data that has been collected. Increasing the comprehension of the engaged
researchers about a particular subjected issue and their connections calls for the use of an
explanatory research strategy.
3.5 Research Approach
Inductive and deductive research approaches are the two primary kinds. Another research
strategy known as abductive can be used in light of the most current evidence. Deductive
approach, one of these methods, is described as a component of research that focuses on
retaining or existing knowledge pertinent to the study issue. It was said that this was effective
because it was top-to-bottom, allowing the researcher help to formulate their research's
purpose and objectives by studying the literature (Dźwigoł and Dźwigoł-Barosz, 2018). The
development of fresh and untested hypotheses, which are mostly necessary when formulating
a hypothesis statement, can be supported by an inductive technique. Deductive procedures
may be used to interpret current models, whereas inductive approaches are better for
constructing new ideas.
Justification
While contrasting the two distinct research methodologies, the researcher decided to carry out
this study using a deductive methodology as the development of a new theory is not
necessary to achieve the study's goals. discussed how a deductive approach may help explain
how many theories and models that can be tailored to certain situations already exist. In
addition, the method may be used to investigate the causal link between the dependent and
independent variables.
3.6 Data Collection
The secondary data is material that has previously been published and is utilised as a source
of direction for the study. The information was gathered from a number of publications,
websites, and freely accessible online books. Since the publications cover the previous 10
years, the information is more current and in line with the relevant facts (Zangirolami-
Raimundo et al., 2018). The legitimacy and dependability of this data have received a lot of
emphasis and attention. The method for gathering secondary data is extremely important
because it is the foundation upon which the entire research topic is built.
The data that is electronically accessible and found on many websites has been used as a
variety of sources. Relevant publications journals from renowned international conferences
have also been chosen. These secondary data collecting strategies have also made advantage
of internet resources like Google Scholar (Bairagi and Munot, 2019). The majority of
secondary data uses actual figures, data, and scientific documents aid the researcher in
obtaining real, accurate, and trustworthy information. In order to get information, secondary
data have also been obtained from books and journals that have been published and heavily
cited.
The hypotheses that are already present in the data being used serve as the foundation for the
themes. Latent themes are employed in this study because semantic data themes are used for
surface analysis but give good hidden pattern and concepts that are available in secondary
research. Thematic analysis enables the researcher to comprehend and contextualise the
subject in order to provide the best possible explanations (Al-Ababneh, 2020). The accessible
secondary genuine data source is divided into topics to guarantee that the data is analysed
precisely and thoroughly. These are created using a step-by-step methodology to guarantee
that the data is obtained is examined in a methodical manner.
There should be reasonable attention made to ensure that the source is properly
credited in the case of freely accessible data found online.
There should not be any compulsion used to obtain the data.
After data has been obtained, it must be assured that it will not be misused, such as by
unauthorised sources gaining unauthorised access to material that has been obtained
through secondary sources and is of a confidential nature.
Precautions should be made to guarantee that data obtained is archived in a systematic
way without bias and that it is safeguarded to ensure that the data is secure.
3.9 Summary
The research is limited in that there are significant issues with relying solely on secondary
data for a topic that is so experience-oriented. There is a theory that substantial financial
constraints prevented many genuine but compensated sources from being obtained in the
transformational leadership experience from primary sources. Another factor contributing to
the lack of scope for a thorough examination was the short amount of research time available
(Patel et al., 2019). As a whole, it can be said that great care was made to guarantee that the
secondary data gathering and analysis procedure was carried out with strong analytical
thematic designs. In order to comprehend the core of the issue, all practicable steps have been
made to guarantee that data confidentiality has been preserved, and the study analysis has
also been done with all types of elements kept in mind.
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