Application and Impact of IoT in Logistics Industry
Internet-of-things technology is around for over a decade but its widespread impact is beginning to appear now. Almost every industry is incorporating innovations relating to this technology and their associated mobile apps. However, IoT in logistics provides the most notable use cases.
IoT Applications in logistics
IoT has a wide-ranging application in the delivery and logistics industry. Arguably, logistics companies are the most gaining beneficiaries. This industry, including its sub-domains of on-demand and supply chain, is the first one to have used IoT technology. Many analysts are of the view that the term “IoT” is many years younger than the initial IoT use cases in logistics.
Following are some of the cases where this innovation is leaving its significant mark.
Warehouse Management and Inventory Tracking
With IoT devices connected to a smartphone app, you do not need to scan the shipping units manually. Instead, you may put tags on the units and a purpose-built device will scan them once under observations object moves in front of the device.
You will receive the results of this scan on your smartphone. There is no need to be present on-site. The smartphone will display the results regardless of your current location.
Besides tracking the inventory, you may also ensure effective warehouse management. IoT can help you replenish the stores, make aggregate planning, and locate any item in a moment.
Blockchain for Seamless and Transparent Payment Verification
A decade back, containers carrying goods overseas and in-land would require payment verifications on multiple occasions during the same journey. This remains a challenge even now for most of the delivery companies who are reluctant to incorporate Blockchain.
This technology was originally meant for cryptocurrencies. However, some of the logistics industry leaders applied it in their business after assessing its significance.
Blockchain drastically reduces the time in delivering goods by eliminating most of the verification blockers. It provides a transparent system where every stakeholder can view the same piece of information. Moreover, it disallows making any amendments to prevent attempts of manipulating the record.
IoT in the supply chain may not be new but the application of Blockchain is quite recent. Nevertheless, the outcome is remarkable. Apart from time, companies are also able to minimize operational costs substantially.
Vehicle Monitoring and Surveillance
The mobilization of goods through trucks and ships may take days and weeks to reach the destination. It is essential for the managers to ensure that the temperature of the container remains reasonable. Besides, the managers need to keep surveillance of vehicles in real-time and stay in contact with drivers.
IoT devices do not only share these details with managers in real-time through smartphone apps but also provide predictive analytics. These include, for instance, the number of miles a truck traveled and the corresponding consumption of fuel
Mini-drones for Delivery
Mini-drones are becoming arguably the finest application of IoT in logistics. In overly congested urban areas and widespread suburban regions, land-based vehicles can be costly. Moreover, the challenges of last-mile make it even tougher.
Drones can be a very effective replacement. All they cost after purchase is a battery and an IoT-based app which can provide connectivity.
However, we are yet to see a regulatory framework which ensures drone-based delivery services on a larger scale.
Unhindered Vehicle Mobility
The IoT-based sensors keep feeding the autonomous vehicles with the information of surroundings. This ability ensures a seamless experience. The vehicles stay in motion even in busy junctions because the devices calculate the precise distance of a self-driving car from every nearby object.
For these capabilities, analysts forecast driverless vehicles to become the primary choice of logistics operators in a few years.
Impact of IoT in the transportation and logistics Industry
- Transparency and Unambiguity
- Significant Cost Reduction
- Drastic improvement in last-mile delivery
- Facilitating customers, drivers, and business management staff
- Monitoring and surveillance creating safe logistics operation
- Separation of concerns
- Fulfilling social responsibilities without additional costs
- Future planning by observing the historical data
The logistics, delivery, and supply chain businesses can earn a remarkable sum by incorporating IoT. There are working case studies of businesses gaining a huge return on investment. Particularly, the aforementioned use cases define the future of IoT in logistics.
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