We’re witnessing a technological revolution in real time. It’s interesting how the Internet of Things (IoT) is influencing many fields, specifically logistics. IoT in logistics has experienced a high market value in 2019, but it’s estimated that it’ll be at $63.7 billion in 2026. However, it’s no secret that logistics is a complex process because it involves people, places, and systems. To succeed, logistics companies must ensure seamless alignment of all components.
The major goal in utilising smart logistics solutions is to improve and transform supply chain management to provide better and satisfactory services. Be it a small business or a large-scale business, a reliable supply chain is what drives the force. It deals with almost everything, including material sourcing, manufacturing, to offering the products to the end customer. The overall procedure should be efficient, effective, and affordable.
Logistics often face challenges like delays and wastage due to the complexity of managing multiple areas. But with an IoT-powered supply chain such problems don’t make waves. In this article, let’s see the bigger picture of digital logistics transformation.
IoT vs. Logistics – How Do They Interconnect?
This is all about digital economy and logistics innovation because after integrating IoT with logistics, the industry growth has been monumental. In simple terms, transportation and logistics will deal with physical devices to enhance efficiency but without increasing the amount of manpower in the chain.
IoT offers devices, including vehicles, sensors, and other similar items that can be integrated with the internet to create a responsive, dynamic space for logistics and supply chains. Here are the major components:
- Sensors – logistics IoT sensors are used in order to gather information, including temperature, location, and speed.
- Connectivity – IoT-enabled devices need solid connections, so connectivity is about WiFi to cellular networks. This helps to receive real-time information from remote areas, globally!
- Data Analytics – The data gathered through these devices are important. Tools such as artificial intelligence (AI) and predictive analytics in logistics turn these data into actionable tips. This helps reduce manual reliance on maintenance requirements and route optimisation.
How to Use IoT in Logistics?
Logistics and supply chain efficiency with IoT is actually amazing because it offers several benefits –from customer satisfaction, and reduced costs, to boosted efficiency. But let’s see how IoT in transportation and logistics work:
Monitoring and Tracking
IoT-enabled real-time tracking through devices such as eSIM, radio-frequency identification (RFID) tags, and sensors provides companies with a chance to track and monitor. They can use these real-time data and insights to track shipments to check the temperature, humidity, or even the location. If they have the data, they can predict emergencies early on, so that they can do the needful to prevent such situations.
Inventory Management
Smart warehouses IoT can be enabled to achieve automated inventory with IoT. Through automated inventory management systems, logistic companies can track their inventory levels and product locations in real time. If you see the pattern of how IoT has integrated into logistics and supply chain management, you’ll see that it’s co-dependent on one another. However, the benefits of this codependency are higher than the cons, therefore, it’s best to utilise it.
Fleet Management
IoT for fleet management is important so that the company can derive real-time truck or trail weight, location, speed and the status of a certain vehicle. If this is implemented, companies can reduce the cost of unnecessary delays. They can schedule everything beforehand because of optimised routes gathered from IoT data. It can also help monitor drivers’ skills in driving to see if it’s safe or not. Therefore, IoT-enabled supply chain visibility helps improve performance and reduce costs.
Conclusion
IoT in logistics and supply chain is expected to grow further, therefore you’ll likely find more tools and trends that you have to adapt to the change. If you want to keep up with the market competition, it’s important to run faster. As you can see IoT in shipping and freight is more advanced than in any other sector, because it calls for such.