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What Is IOT?: Need For Logistics Solutions

The Internet of Things (IoT) refers to connecting physical objects through the internet to collect and exchange data. In logistics, IoT allows virtually anything to be connected to the internet, enabling data-driven processes and insights. IoT transforms logistics by connecting items like parcels and shipping containers with sensors to track locations in real-time and optimize operations. This drives over $1.9 trillion in value for supply chain and logistics companies through improved visibility, decision making, and predictive maintenance of assets.

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Akshansh Sharma
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68 views5 pages

What Is IOT?: Need For Logistics Solutions

The Internet of Things (IoT) refers to connecting physical objects through the internet to collect and exchange data. In logistics, IoT allows virtually anything to be connected to the internet, enabling data-driven processes and insights. IoT transforms logistics by connecting items like parcels and shipping containers with sensors to track locations in real-time and optimize operations. This drives over $1.9 trillion in value for supply chain and logistics companies through improved visibility, decision making, and predictive maintenance of assets.

Uploaded by

Akshansh Sharma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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What is IOT?

The Internet of Things is simply "A network of Internet connected objects able to
collect and exchange data." It is commonly abbreviated as IoT. ... In a simple way
to put it, you have "things" that sense and collect data and send it to the internet.
This data can be accessible by other "things" too.
In view of logistics The Internet of Things (IoT) has the potential to connect
virtually anything to the internet and accelerate data-driven logistics. Everyday
objects can now send, receive, process, and store information, and thus actively
participate in selfsteering, event-driven logistics processes. IoT promises far-
reaching payoffs for logistics providers; they can use the data from the connected
objects to generate actionable insights that drive change and new solutions.

WHY IOT IN LOGISTICS?


IoT is “sensing and sense making” in the world of logistics.
Need for Logistics Solutions
• High need for transparency and integrity control (right products, at the right
time, place, quantity, condition and at the right cost) along the supply chain
• End-consumers are asking for detailed shipment tracking to have
transparency in real time
• Business-Customers asking for integrity control especially for sensitive
goods
• Logistics companies need transparency of networks and assets being used
for ongoing optimization of efficiency and network utilization
Technology Push or Future technologies which will helpful in implementing
logistics IOT.
• Mobile computing growing steadily with more mobile phones expected in
2020 than people in the world
• Due to the consumerization of IT, sensor technology has become more
mature and affordable to be used for industry purposes in logistics
• With the move towards 5G, wireless communication will reach a new level
of maturity connecting everything anytime
• Cloud computing and big data technologies will enable new data based
services
The Internet of Things Transforms Logistics
The Internet of Things (IoT) is revolutionizing the logistics industry. By
connecting nearly everything from parcels to people, the IoT is enabling supply
chain and logistics companies to track and trace freight in real time, make data-
driven decisions that improve operational efficiency, perform predictive
maintenance on assets and infrastructure, and much more. In fact, industry experts
estimate the IoT will drive more than $1.9 trillion in value within supply chain and
logistics by 2020.

This value comes, in part, from the way the IoT helps converge information
technology (IT) with operational technology (OT). By deploying IoT-enabled
sensors and advanced analytics, supply chain and logistics companies can gain
real-time visibility into operations and insights on how to make improvements. For
example, global shipping line Maersk manages its far-flung collection of shipping
containers with sensors that monitor the location of containers and whether they
are full or empty, enabling the company to route them efficiently to where they
will be needed next. The system also tracks temperature, C02 and oxygen levels
inside refrigerated containers to maintain the integrity of the contents and make the
delivery and check-out process faster. This IoT-enabled strategy has so far saved
the company $100 million

Use cases of logistic IOT:


1). Optimized Mail/Parcel collection

Sensors in official and private post boxes can notify the customer whether a
package has been delivered and to the logistics provider whether a collection
needs to take place.

2). Automatic Replenishment

Intelligent products and home appliances as well as shelves at retailers


automatically schedule an order when a product is running low on stock. This
reduces lead time and avoids costly stock out situations.
3). Flexible Delivery and Pick-up

Smart homes detect whether the recipient is home or not and can allow secure
remote access for the delivery man. Logistics providers can also connect with
surrounding homes to provide ad hoc pick-up services.

Key success Factors for IOT in logistics


Clear and standardized approach for the use of unique identifiers for various
types of assets among different industries on a global scale.

Seamless interoperability for exchanging sensor.

Establishment of trust and ownership of data and overcoming privacy issues


in the supply chain

Change in business mindset to embrace the full potential of IoT in logistics

Challenges facing in logistics iot


1). Logistics is still a fragmented industry so end-to-end solutions often requires
cooperation of various logistics player along the Supply Chain.

2). Being such a networked business, implementing new solutions requires


adjustments for entire networks resulting in high investment needs.

3). Willingness to invest in new solutions for integrity control is still low and
limited to niche markets such as Life Science or High Value Goods.

4). Regulations (e.g. Aircraft) and lack of network availability (e.g. remote
locations on Oceans) limit the full usage of real time tracking.

Application of logistic Iot

Another application of IoT in logistics is Inventory Management System or


Warehouse Management System. Using IoT solutions in warehouse management,
businesses can improve the complete warehouse performance and workers’
productivity. The most important thing to boost warehouse efficiency is to manage
the storage space efficiently. With the help of smart systems or warehouse
management software, businesses can optimize the storage space and locate the
items at the most ideal place.

Installing smart sensors in the warehouse will be very helpful to automatically


create orders when there are fewer items left. Even if you have limited space in the
warehouse, you can store the items efficiently using smart sensors. Companies
often use RFID tags to manage their products and warehouses. These sensors
automatically send information to the database when the item has left the storage
house.

For the logistics companies that offer online transport service, it is important to
ensure that the goods are in the right trucks, the safety of goods in the right
warehouses, etc. It also takes a huge time as well as resources.

Smart sensors such as AIDC (automatic identification and data capture) and RFID
(radio-frequency identification) are helpful techniques to track the shipments and
manage them efficiently. Microchips in RFID sensors use radio waves to detect the
location of goods. These sensors provide you information not only about what the
product is but also, about its location and final destination. The major difference
between RFID and traditional scanning is that it is being processed wirelessly.
Additionally, data can be moved onto the database in real-time. Thereby, you can
access the information anywhere, anytime.

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