Internet of things commonly put as IoT is a group of interconnected physical devices that are synchronized and can operate through the internet. Also, they can exchange information and data over the internet. These include small devices, sensors, and equipment, cameras etc. used for various operational activities.
Global spend on technologies related to IoTs is estimated to grow to $1.2T at 13.6%CAGR in 2022 as reported by IDC. The top two industries that would be adapting IoTs are transportation and manufacturing. By 2030, IoT is expected to go beyond $100billion in the global logistics industry advancing at 13.2% CAGR as per the market research report by Globe Newswire.
Transparency in operations
Measuring and controlling operational cost
Rethinking the traditional ways of operating businesses has become a necessity. Artificial intelligence, Machine learning, Blockchain, DigitalTwin, Virtual Reality, Augmented reality, Network design are some of the underlying technological advancements that have made the transition of supply chain inevitable.
GPS trackers and RFID tags help in tracking the shipments starting from the warehouse to the customers’ doorstep.The tracking of delivery agents is also possible because of the connected phone devices.
Monitoring the environment is something that can be taken care of by IoT powered devices. These connected devices can be used to track not only the locations of delivery but also the weather conditions throughout the route that can help in planning the delivery of temperature-sensitive products.
2. Advanced planning
IoT can provide valuable data in terms of operational activities like movement of inventory, delivery time, amount of product left etc. This can give important insights about the efficiency of processes at every level. This information can be used to evaluate and make necessary changes in the operations for better use of resources.
Route – planning is another important application of IoT in logistics that has enabled the service providers to determine the best route for the deliveries in terms of fuel-efficiency and shorter time period.
From tracking the individual items in a warehouse to the CCTV cameras in the warehouse premises, IoT – powered devices have an important role to play. The connected CCTVs, trackers, sensors, security doors all can be controlled through internet applications from anywhere.
The status of individual items and their conditions in the warehouse can be tracked which can help in avoiding accidents. Prior alert of any damage or destruction can be shared by real-time tracking of product conditions reducing risk. Wearable devices for employees in the warehouses can help detect their health conditions as well which can be monitored by warehouse management.
4.Digitalisation of processes
Digitalisation in logistics has transformed and upgraded many processes that are associated with the development of IoT devices. Digital bill of lading is a big shift indicating a new approach wherein both the parties involved in the shipment could track and monitor the temperature, humidity and location through real-time information.
The use of technologies like IoT has made the supply chains smarter and responsive. The conditions can be controlled and altered as per the requirements. Demand for application of IoT in the logistics industry is increasing with the expansion of e-commerce which demands cost reductions, quickness and higher accuracy in the shipments. In times when success of a business is dependent upon the efficiency of logistics, solutions like IoT prove to be drivers of transformation.