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Home > Posts > IoT Changes Logistics for the OEM Spare Parts Supply Chain
January 23

IoT Changes Logistics for the OEM Spare Parts Supply Chain

Keywords: Internet of Things (IoT), Predictive Maintenance, Logistics, Spare Parts, Depot, OEM.

Suppose you're in logistics for an equipment manufacturer or a maintenance manager in an operating plant, and a geek in your office keeps talking about the Internet of Things (IoT). Here is why you should listen:

  • The underlying technologies are available with no needed break-throughs
  • Major companies such as IBM, Cisco, GE have IoT programs with product development and marketing campaigns
  • The potential business benefits for OEMs and end users are strong. The technology could help end users improve equipment reliability and reduce spare parts inventories, and help OEMs sell more services at higher margin


By offering IoT-enabled condition monitoring, spare parts, and equipment repair services, equipment OEMs can remotely monitor asset health in their customers' plants, anticipate failures, order the parts, and often execute repairs before the failure occurs. This provides an ongoing, services-based revenue stream for OEMs, while enhancing customer uptime and overall satisfaction.

Fewer unplanned equipment failures mean the OEM doesn't have to keep as much spare parts inventory on hand for quick response to emergency repairs. Also, fewer emergency calls mean more spare parts inventory can be in a centrally located warehouse, rather than in regional or local depots.

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