In recent years, Internet-of-Things technology (IoT) has been the subject of research in diverse fields of applications. IoT plays an essential role in transitioning enterprises towards a more interconnected paradigm of manufacturing, logistics, services, and business, known as Industry 4.0. This paper presents an operational concept for a system that implements IoT technology in pallets, which are used to move products along supply chains. These sensors will help us gain insight into the conditions experienced by products and unit loads. Having this capability will allow us to obtain the information necessary for better control of product distribution along the supply chain, and to design packaging that is more efficient and effective in protecting products during distribution. In this paper, we show how Model-Based Systems Engineering (MBSE) can be leveraged to create models that capture the required system behaviors, and we address the complexity of an IoT system within the domain of packaging and logistics applications.