IoT is Transforming the Electronics Supply Chain

By Kelsie McMillin | September 16, 2025

The Covid-19 pandemic brought about a reexamination of the global electronics supply chain. New strategies were needed to ensure timely access to critical supplies. Now, sensors, the IoT, and AI are helping connector suppliers get products to their customers.

During the Covid-19 pandemic, shortages of critical supplies, including electronic components needed for ventilators and other medical equipment, were a wakeup call that supply chain reform was needed. Since then, the global electronics supply chain has transformed significantly with the integration of the Internet of Things (IoT) and AI. The ability to monitor the movement of shipments down to individual packages or parts has been transformative.

Beyond tracking shipments, connected technologies can offer a rich array of data. IoT devices and sensors enable real-time monitoring of production processes, facilitate predictive maintenance, and improve overall supply chain efficiency. This information is the result of innovative sensor technologies that collect data that benefits manufacturers, distributors, and buyers through optimization that begins at the warehouse and continues to the destination of every product.

Sensors offer increased visibility

A smooth warehouse experience is the starting point for an effective supply chain. Sensors positioned through the warehouse improve the flow of materials and products as they move through production, storage, and distribution. Utilizing sensor data allows manufacturers to make well-informed decisions, whether in the warehouse or remotely monitoring the system. Asset trackers and sensors are becoming less expensive, so they are more widespread in manufacturing and warehousing facilities.

Facilities use Wi-Fi, Bluetooth low energy (BLE), or cellular to collect and communicate data. Positioning sensors such as accelerometers and gyroscope sensors can track a product’s position and orientation. Beyond item movement, sensors can monitor environmental factors, including temperature or humidity, to initiate predictive maintenance on warehouse machinery. Data collected by IoT sensors can be stored, analyzed, and interpreted to identify areas for improvement or solutions for issues that may arise. With the increasing number of sensors available, data management becomes more important.

Sensors improve product traceability

Sensors play an important role in inventory management and traceability. Sensors connected to barcodes automatically log items in and out to ensure reliable stock levels. Barcode scanners with image sensors from suppliers like onsemi also provide valuable, real-time visibility throughout a product’s journey through the supply chain.

In the past, camera sensors were only utilized to take pictures, but now they can be used to track objects, monitor for quality control, and ensure accurate orders. With the addition of IoT to warehouses, sensors and the corresponding data can be sent to the cloud and stored for future needs in case of possible defects or recalls.

Advanced traceability solutions are essential for a well-developed supply chain and optimized warehouse functionality. With enhanced scanners and camera options from suppliers like Omron Automation, customers can improve their warehouse capabilities for full operational transparency and traceability. Traceability scanners minimize manual checks and add efficiency by viewing multiple items simultaneously, aiding in quality control, packaging, and accuracy for orders.

Automation enhances supply chain efficiency

Advanced robotic systems can perform tasks along the supply chain with greater precision and complexity. Collaborative robots (cobots), autonomous mobile robots (AMRs), and automated guided vehicles (AGVs) help optimize supply chain efficiency. AMRs work around tight spaces where toxic chemicals and heavy machinery can be a danger to humans. Utilizing sensors, machine vision, and AI, AMRs can navigate accurately and completely independent of human control. AGVs are a great solution for material handling in warehouses and distribution facilities. They move on pre-programmed paths through software programming using sensors such as lidar and handle basic tasks such as moving pallets or removing trash.

Cobots are robots designed to work alongside their human counterparts. They handle menial and even dangerous tasks to free up people to work on more complicated tasks. Cobots are equipped with an array of sensors to detect the presence of people or obstacles. Utilizing laser scanners, cobots will reduce speed by predetermined zones to ensure workers’ safety. With IoT, all the information collected can be sent to the cloud and analyzed to ensure that advanced robotic systems function at full capacity and perform as intended.

Enhanced connectivity

Through 5G, Wi-Fi, and BLE connectivity, more effective data transmissions are improving warehouse processes. The future of the supply chain depends on real-time data collection, predictive analysis, and end-to-end visibility, all of which rely on a strong connective platform across the supply chain.

See DigiKey’s Supply Chain Transformed series to learn more about sensor-rich applications for warehouse and supply chain optimization.