Amity Journal of Computational Sciences (AJCS) Volume 2 Issue 1 ISSN: 2456-6616(Online) www.amity.edu/ajcs 46 Transforming Supply Chains by Internet of Things:A Review of Scope and Challenges Mahendra Singh School of Management Sciences Central University of Jharkhand Ranchi, India mahendra.singh@cuj.ac.in Dr. Rajkiran Prabhakar Institute of Management Studies Banaras Hindu University Varanasi, India Abstract—supply chain of a product is integration of systems used for transforming raw material to finished product and ensuring its availability to end user. Supply chain involves three basic flows of material, money and information. Information flow has become more advanced with respect to application of technology (Information system). Internet has been pivotal in transmission of information in all business decision links. Internet of things (IoT) is advancement in technology and its pattern projected in form ofnetwork of machines, system and toolsconnected one to another other for information sharing. Supply chains are seen as wide area of management where IoT may work as transformative force for advancing performances of supply chains. In present paper we had done a review of scope and challenges in transforming supply chains with help of IoT. This paper discussed how IoT can be used for transforming various supply chain activities like plan, make, source and deliver. Further review of various challenges of privacy and implementation are critically done. Keywords—Supply Chain, Internet of Things, Security, Information Sharing I. INTRODUCTION Journey of a product from raw material supplier to customer have several stages which are linked together in a chain called supply chain in management. The supply chain of a product is integration of systems used for transforming raw material to finished product and ensuring its availability to end user. In a supply chain, there are physical, financial, and informational flows among different firms [1]. Efficient supply chain management (SCM) is a potentially valuable way of securing a competitive advantage and improving organizational performance [2]. The growth of usage of information technology (IT) in SCMis reasonforbetter output andgrowth symbols for companies [3].An Inter-organizational Information System (IOIS) is an application of enterprise level IT. IOIS supports in reframingexchanges with partnering organizations [4]. Involvement of different companies is difficult activity. IT provides support to management of such complex supply chain processes. There are several IT tools and techniques which sare application for facilitating, streamlining, and increasing the smoothness of communication in supply chain. Lambert & Cooper [5] insisted on integrating external and internal processes. For integration of such processes wide and advanced IT applications are well known. IT connects internet and things. Today such combination of internet and things is broad term called internet of things (IoT). IoT may be understood as ever- changing worldwide infrastructure of network which is self- configured, which have standard and cross-operating communication facilities, as suggested by ITU and IERC [6] based on standard [7] and interoperable communication protocols. Here physical and virtual ‘things’ are identified as different sources or ports and they are connected to each one. Application potential of IoT is wide across the industries and functions. Present practices of IoT ensure about future applications in all around and will be key enabler for competitive advantages. The case becomes more direct in SCM where IoT technologies give room for wider application [8]. With support of IOT, controlling and monitoring is possible in complex environment also. IoT amalgamates all needed information for set up of business chain, analyses the mutual- dependencies between those parts of information instantaneously, and analytics strongly usage it for optimizing supply chain functions.The internet has helped the world in connecting individuals at very high speed and with high coverage. The next level of advancement is interconnections of various things for better exchange of information. As it looks that IoT may work as transformative force in making of competitive supply chains; its scope widens all around. But the same there is extreme need to understand how IoT can be utilized well without lesser security and privacy loopholes for organizations. II. LITERATURE REVIEW Supply chain management is function of operations management which is responsible for all kind of ‘supplies’ in chain of efforts for satisfying customers. Supply chain is interlinking of different functions like procuring, manufacturing, storing and delivering. SCM is about managing three important flows of material, finance and information within and wide the organizations. There are number of works done in area of SCM, IT and IoT. We are discussing here important works done in the above areas to understand how IoT can work as transforming force for supply chains:,"Internet of Things" indicates towards future direction of machines, how they are being used for working and automation, and their intelligence and capabilities to receive stimuli and respond to