Interoperability in IoT-Integrated Smart Packaging for Inventory Tracking: Challenges, Opportunities, and Operational Impact

The evolution of inventory tracking from manual methods to advanced IoT-enabled smart packaging has significantly improved accuracy and efficiency in supply chain management. However, the integration of these technologies presents interoperability challenges, particularly due to the coexistence of legacy and modern inventory systems. This study examines the impact of interoperability challenges on inventory tracking performance and operational efficiency, as well as the role of standardization in mitigating these challenges. A mixed-methods approach is employed, combining a quantitative survey of 160 industry professionals and qualitative insights from 10 expert interviews. We propose a Structural Equation Model (SEM) to analyze the relationships between interoperability, inventory tracking, and operational efficiency. The findings confirm that interoperability challenges negatively affect inventory tracking accuracy and operational efficiency. The results confirm that interoperability challenges significantly hinder the implementation success of IoT-enabled smart packaging. However, standardization efforts appear to play a moderating role by mitigating the adverse effects of interoperability challenges and facilitating smoother integration between systems. The qualitative analysis provides additional insights into real-world challenges, including system integration difficulties, data synchronization issues, and cybersecurity risks. Participants highlighted potential solutions such as middleware integration, cloud-based platforms, and industry-wide standardization efforts. This study contributes to the growing body of research on IoT-enabled inventory tracking by offering empirical evidence on the role of interoperability and providing actionable insights for overcoming integration barriers.