IoT Knowledge Center
Do IoT influence transportation and supply chain
The Internet of Things (IoT) is a new generation of embedded ICT systems connected to the Internet in a digital environment that seamlessly integrates supply chain and logistics processes. The integration of emerging IoT projects into today's advanced systems can be unique due to its intelligent, autonomous, and ubiquitous applications.
A connected ecosystem for the logistics industry with IoT:
IoT implementation is relatively high in asset-intensive industries such as manufacturing, transportation, and utilities. Whether stationary or mobile, these assets are now part of a connected ecosystem, where they can interact and share vital information. Expedition vehicles such as trucks and ships are mobile assets that become a crucial part of the IoT network and leave a lasting dent in the logistics and transportation industry. This early adoption has allowed these sectors to thrive and empower other industry segments to revamp their supply chain management and other end-to-end processes.
Do IoT Redefine Transport Sector?
If you've ever traveled on public transport, you know how painful it can be. Waiting for the bus to arrive, jumping on an already loaded bus with passengers, traffic jams, quality ticketing systems are just some of the hardships we face regularly. With the implementation of IoT, all of that is about to change for the better.
The expected benefits include:
- Logistics and transportation have always been areas of risk due to a lack of control over weather conditions, high probabilities of scams, and a wide range of assets to manage. In a nutshell, here are the benefits of using the Internet of Things in transport:
Reliable vehicle tracking:
The Internet of Things careers also helps businesses track the location and compare the most economical route taken by a driver.
Reduce shipping costs:
Improve supply chain planning:
The Internet of Things provides businesses with multifaceted data: how long it takes to sell a given amount of product in inventory, ways to optimize deliveries, which employees have the best track records on the distribution that have higher conversions. As a result, business leaders can plan operations and predict the outcome of business decisions quite accurately.
For some managers, such in-depth monitoring may be overkill. However, it does give you a better understanding of employee motivation and time management skills. Prevent product theft and monitor transport conditions.
1. Improved security and theft detection:
2. Increased employee safety:
Unreliable machines expose companies to the risk of endangering the lives of their staff. The effects of the Internet of Things on logistics include protecting employees by detecting equipment problems long before a human interacts with a tool. IoT sensors dramatically increase response time, in case something happens to an employee. A laptop immediately detects a critical change in items and transfers data to a dedicated platform that alerts the manager and even calls an ambulance.
3. End-to-end product tracking
It also builds customer confidence in the brand and saves support agents a lot of time as customers no longer disturb customer support with delivery status update requests.
4. Provide business leaders with advanced analytics:
With a wide range of applications, the Internet of Things gives business managers a holistic view of managing the operations.
1. Site management systems:
In logistics, IoT devices can create an intelligent location management system that will allow businesses easy track driver activities, vehicle location, and delivery status. Once the goods are delivered or arrived, a manager notified by a push message.
2. Inventory tracking and warehousing
Allow businesses to track items to monitor their condition and position, and create a smart warehouse system. The minimization of human errors is also becoming possible thanks to IoT.
3. IoT technology and predictive analytics
To improve the decision-making process, gain intelligent business insights, manage risk, and more again. Internet-enabled devices collect large amounts of data and transmit it to the central system for further analysis. IoT solution applied for planning routes and deliveries and identifying various faults before something goes wrong.
4. IoT supply chain management
Supply chain management involves a variety of challenges, from illegal food practices to compliance with product conditions. While blockchain can solve many IoT security issues, it can also add value to supply chains. By walking hand in hand, they can meet the need for supply chain security, transparency, and traceability. The data recorded and saved in the blockchain. IoT companies and their customer’s ability to follow the product lifecycle - from the origin of goods to their transport to the hand's customer.
Four pillars of a connected logistics company
This ecosystem developed a need for the industry to track their delivery vehicles from remote locations and ensure timely delivery of the desired destination. Due to this need, four aspects or systems of the logistics industry have been reorganized and considered to its four main pillars. They are:
1) Communication systems:
2) Vehicle tracking:
3) Supply chain monitoring systems:
4) IT security:
IoT applications in the logistics industry are now emerging at an unprecedented rate. IoT companies can develop data and process it to create useful information, which further increases the mobility and speed of goods transport. IoT for logistics will act as a new pillar and improve its existing rudimentary aspects. The elements of the supply chain that contribute to the success of any industrial organization. IoT infrastructures are classified into four layers; the perception layer, the transmission layer, the compute layer, and the application layer.
Future research should implement this framework on a real warehouse and compare the benefits expected from this proposal with the actual results; a simulation model developed to show the benefits of applying this framework.