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“Big Blue” supply chain woes lead to IOT solutions

Wireless connectivity allows IBM to monitor condition of mainframe shipments, not just location. Battery life still an issue.

“Big Blue” supply chain woes lead to IOT solutions
“Big Blue” supply chain woes lead to IOT solutions

In November and December of 2017, ground handlers in Germany went on strike in Bremen, Cologne, Frankfurt and Munich. A shipment of IBM mainframe computers was stranded at the Frankfurt airport, and IBM logistics figured it was stored in one of the airport warehouses. Little did they know the million-dollar shipment of hardware was sitting on the tarmac for 25 days in blizzard conditions!

Even with plastic wrapping to prevent moisture from getting in the product, the protective packaging layer was not adequate. The crates were delivered with 4 inches of standing water in the bottom. Needless to say, the shipment was a total loss and resulted in a very unhappy customer. IBM management was even more upset than the client.

Shifting weather patterns have played havoc with IBM shipments. One rack system was moved inside directly from sub-zero temperatures, and condensation formed inside the hardware for another total loss. At times, crates would fall over but not appear damaged from the outside. Hidden damage causes a lot of finger pointing, and no one in the supply chain is willing to admit fault. Visible damage to the outer package of electronics or software, even if the contents are unharmed, causes worry for the customer as well. Insurance claims for expensive damage have been denied because IBM could not prove provenance at the time of damage.

Now the logistics and packaging team use the Internet of Things to track the hardware shipments.

There are 10 billion devices connected to the internet today, according to IBM’s Senior Technical Staff Member for Packaging Technology, William Green. And that number is expected to grow to 70 billion in the next decade, says Green.

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