The Role of IoT in Enhancing Sustainable Supply Chain Management in MSMEs

This paper explores the transformative role of IoT implementation in enhancing sustainable supply chain management (SCM) for Micro, Small, and Medium Enterprises (MSMEs), addressing resource optimization and environmental responsibility. It delves into how the adoption of IoT fosters operational efficiency and sustainability by enabling data-driven decision-making and reducing environmental footprints. Using a case study approach, the research examines the practices of a dominant parcel service in India’s logistics sector, showcasing how IoT integration has optimized operations. We will go on to use a case study approach to find out how the dominant 3PL service in India implements IoT and how it has optimized its operations by showing how IoT integration helps them optimize logistics, improves real-time tracking, and transforms towards paperless and greener practices in support of sustainability goals. Such innovative systems, using GPS, QR codes, and ERP systems, have helped the betterment of routing schedules, predictive maintenance, and customer satisfaction with data transparency in real time. The paper is written with the data of a leading 3PL service in India, an MSME utilizing IoT in its SSCM, to effectively describe the operational challenges without IoT such as inefficiency, lack of visibility, and higher costs. The study highlights the operational challenges faced without IoT inefficiencies, lack of visibility, and higher costs—and presents a comparative analysis of operations before and after IoT adoption. The findings reveal significant improvements in delivery speed, cost efficiency, and sustainability, demonstrating how IoT empowers MSMEs to overcome resource constraints, enhance competitiveness, and achieve environmentally responsible operations.