Improving Logistics with IoT

The Advantages of IoT for Logistics

IoT devices can collect and transmit data via sensors and actuators, scalable cloud solutions, and user-friendly communication networks. The advantages of IoT technologies for the logistics sector are:

• monitoring the state of a driver and vehicle

• real-time object identification and tracking

• ensuring proper storage conditions and product safety

• effective data transmission

• avoiding media breaks thanks to extensive digitization

• delivery time estimation

• remote control of the transportation process.

With IoT, old-fashioned supply chain patterns are left behind and the operational efficiency of the sector is increased. In terms of communication, there will be no more media breaks thanks to extensive usage of real-time digital interaction instead of such analog methods as phone, paper and fax. As a result, the transportation costs, resource allocation and the entire shipment process are significantly optimized.

There are four major aspects of the connected ecosystem:

1) Communication System

The communication system facilitates continuous communication between drivers and managers. Usually, the main means of interaction between them are cell phones, which often lack the appropriate quality of connection.

2) Location Tracking

GPS devices are used to track the specific location of vehicles at a given moment in time. These tracking tools help logistics industries calculate the estimated delivery time and monitor the tracks on the way to the warehouse, port, or ultimate destination.

3) Monitoring of the Supply Chain

Supply chain real-time monitoring systems play an important role in the industry. These instruments help companies streamline the entire supply chain process, including acquisition of raw stuff and shipping of ready-to-use products.

4) Cybersecurity

The transportation industry has to handle various IT security threats, the number of which has amplified recently. Hacker attacks on confidential data can affect not only companies, but also third-party vendors and the end clients.

Applications of IoT in Logistics

Location Tracking

A real-time location system (RTLS) is used to track the delivery of materials from each vendor to the producer. It is especially beneficial where there are multiple vendors — if the delivery from one vendor is postponed, you can substitute it with another vendor’s services.

Deliveries to the Manufacturing Facility

With RTLS, it is easier for truck drivers to unload the products at the correct place, avoiding product loss and wrong delivery. Similarly, for the manufacturer, it is easier to locate and pick up the products.

Tracking at the Manufacturing Facility

When materials arrive at the factory, they can be mixed up by mistake, which can lead to long cycle times and disrupted production. Thanks to RTLS, it is always possible to tell the exact location of the tagged goods and ensure correct manufacturing procedures.

Environment Sensors

To keep sensitive goods fresh and maintain their quality, certain environmental requirements need to be fulfilled. There are special IoT apps that help tag products and monitor a number of environmental characteristics. For example, they can check the humidity, light, and temperature, as well as shock and vibration exposure during transportation to and from the port, manufacturer, or warehouse. This data can be used to notify the managers of damaged goods before they reach the factory or end customer.

Data Analysis

Sensors collect huge amounts of data on a daily basis. To structure and analyze this data properly, IoT tools can be used. With these instruments, managers can implement predictive maintenance, make more efficient decisions, and improve the warehousing and shipping process.

Fleet Management

Timely updates on the driver’s health, vehicle state and traffic conditions give insight into how to improve fleet management strategies. Thanks to this information, specialists can get a clear view of how the resources are used and create new ways to increase efficiency. Implementation of IoT can help reduce delivery time, fuel costs, and streamline car maintenance.

Demand Forecast

The application of IoT in logistics can also help keep up with demand, which facilitates effective supply chain management. Smart technologies can predict demand based on a comprehensive analysis of multiple factors such as user behavior, current market trends, customer intention and preferences, the reasons why the buyers make the purchases, and how they use the goods afterward.

Inventory Tracking

With IoT technologies, you can create a smart warehouse with the ability to remotely control inventory assets. These capabilities help prevent under- or overloading, monitor the fuel level and the condition of goods, and can easily locate the goods on their way to the warehouse, port, or end customer.