Council of Supply Chain Management Professionals (CSCMP) Practice Exam 2025 - Free CSCMP Practice Questions and Study Guide

The primary function of the Internet of Things (IoT) in supply chains is to interconnect devices to send and receive data. This connectivity allows for real-time monitoring and management of supply chain operations, which enhances visibility and facilitates better decision-making. IoT devices, such as sensors and smart devices, collect data from various points in the supply chain—like tracking inventory levels, monitoring equipment performance, and observing environmental conditions. The data collected can be transmitted and analyzed, enabling organizations to increase efficiency, reduce costs, and respond proactively to changes in demand or supply conditions.

While other options might seem relevant in a broader context, they do not capture the essence of IoT's impact on supply chain management. For example, facilitating virtual meetings, storing large amounts of data, and providing customer service support are important functions, but they do not fundamentally define the role of IoT in supply chains. Instead, the interconnection of devices to transmit and receive data is what drives innovation and efficiency within supply chain operations, making option B the most accurate representation of the IoT's primary function in this context.