How IoT Is Transforming Transportation, Supply Chain, and Logistics

Just as the Internet has made a huge impact on how we live, the Internet of Things (IoT) has proven to be vital for the commercial industries. One key example of this transformation led by IoT is visible in logistics, transportation, and supply chain. 

The Internet of Things has helped build secure transportation systems, automate repetitive logistics processes, and has helped improve supply chain visibility. 

People and companies using IoT in logistics are better off today as they have better knowledge and access to the systems. Things like receiving real-time updates via IoT give its stakeholders the power to make quick and effective decisions.

IoT Forecast For Logistic & Transportation

IoT’s potential impact on different industries, including transportation, logistics, supply chain, retail, vehicles, fitness, energy, etc., is predicted to be between $3.9 to $11.1 trillion by 2025. 

We are looking at a technology that can fundamentally change the manner in which we interact with everything and everyone around us.

Let’s explore the potential of IoT in logistics, transportation, and supply chain in more detail. 

IoT in Logistics and Transportation

Change is inevitable, but that does not mean that every type of change is good. Some changes are evolutionary, meaning they are necessary, while others revolutionary, they come with an ambition to alter everything. For an industry like logistics and transportation, IoT is one of those revolutionary technologies. 

With the coming of IoT in logistics and transportation, we have seen new players entering the market, the customer’s expectations are changing, and with them, the business models. Here’s how IoT is sponsoring a revolutionary change in logistics and transportation. 

1. Manage Traffic Flow

70% of the commuting time in large and metropolitan cities is actually the buffer time. This is the time people reserve to reach the station and wait for their ride to arrive. With IoT integrated into the public transportation system, we can reduce this buffer time. 

The cost savings equivalent to the saved time amounts to $60 billion per year. These systems will work on collecting actual real-time traffic data and sending situational reports to the commuters. 

2. Location Management

The first benefit of IoT in logistics is that it offers comprehensive visibility of every item and its movements. Organizations like Amazon have implemented a similar system to track every package and send updates to the customers. 

In location management, the vehicles have sensors that send real-time data, including the location. It also accounts for unexpected stops and events, which can delay the shipment. 

For more sophisticated items transportation management, the vehicles have specific sensors that send situational alerts like the temperature, access logs, etc. 

3. Managing the Fleet

Another benefit of IoT in logistics stems from its impact on fleet management. Fleet managers can harness IoT-enabled systems to take care of the fleets, ensure vehicle maintenance, optimize fuel efficiency, and reduce operational costs. 

For instance, by calculating the vehicle idle time and getting a predictive route analysis, they can instruct the vehicles to take the necessary steps and stop wasting fuel on such activities. 

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In addition to this, with IoT systems integrated into fleet management practices, the organization can automate some of the tasks like notifying the stakeholders about delays and sending messages to the towing services or nearby drivers of the same fleet about the current conditions. 

4. Predictive Analysis

With IoT coming into transportation, we can predict several events and take preventive actions. For instance, Intel is using a system called Connected Logistics Platform to prevent cargo theft. 

The IoT peripherals collect and share vast amounts of data, giving higher visibility into the shipments and the vehicles carrying the cargo. The smart IoT sensors analyze the data to share predictions of possible thefts, accidents, or unexpected stoppages. 

The cumulative impact of these applications and many more like them has made transportation and logistics more efficient, responsive, and optimal for businesses. A report by McKinsey predicts that by 2025, between $560 to $850 billion will be invested into this industry to improve its systems and workings. 

Applications of IoT in Supply Chain

Supply chain management means taking care of the flow of goods and services among different locations. These locations can be for businesses or individual customers. 

Customers’ expectations regarding a company’s supply chain management have increased as they now demand more sustainable supply chains. They need fast-tracked documents and payments processing to receive the goods or services they want as soon as possible. 

Similar to IoT in logistics, supply chain management can also benefit from this technology. Here’s how. 

– Asset Tracking with RFID Tags

Similar to the inventory tracking and management points discussed above in logistics management, asset tracking is bigger and more sophisticated. 

With the help of RFID tags, IoT-enabled asset tracking systems can help know the accurate location. The items packed inside big containers anywhere in the world. 

Precise tracking can help avoid human counting and manual errors, costing the organization money and its reputation. 

– Automated Tasks

Automating the repetitive tasks in the workings of supply chain management includes optimizing the warehouse operations and condition monitoring.

With sensitive items shipped across the seas via vessels and an IoT system can help preserve the item’s condition without human intervention. It reduces the margin for error and ensures the perfect delivery of products and items. 

– Transparency

This works with IoT in logistics and supply chain management. IoT-enabled connectivity creates a smooth communication channel between every stakeholder of the supply chain. 

Intelligent systems can send and interpret messages sent by sensors, trackers, and other devices. As everyone involved in the supply chain will get timely notifications. It will create a more cohesive working environment and help provide personalized service when needed. 

Conclusion

With machines, vehicles, and systems undergoing digital transformation, we are ushering into a new era of possibilities. IoT has only started to change things around us. The benefits of the same are proving to be profitable for everyone. 

The inclusion of IoT in transportation, supply chain, and logistics is still at its nascent stage. We are experiencing an overhaul in the way of doing things. As a technology, IoT has huge potential, which we are still exploring. While working on these systems look forward to the future applications of IoT and its impact on the industry.