Five Reasons Why Supply Chain Stakeholders Need To Invest In IoT

Internet of Things (IoT) is about connectivity, smart management, and operational optimization. Like other industries, IoT is revolutionizing the logistics industry by critical aspects of supply chain management like warehousing, inventory, routing, tracking shipments, and more. 

The innumerable benefits IoT renders to this industry is one of the reasons behind its increasing adoption. The global IoT in the logistics market is expected to increase to $100,984.5 million by 2030. This market growth will advance at a CAGR of 13% from  2020 to 2030. Let’s dig deeper into how this technology is helping logistics companies to achieve success by improving their logistics operations. 

Applications of IoT in The Logistics Industry

Check out these amazing use cases of IoT in the logistics industry

1. Accessing Real-time Updated Routes and Understanding Driver Behavior

Internet of Things or IoT-based tracking systems and devices facilitate detecting vehicles and road conditions for the market vehicles. The data collected from IoT sensors, integrated into different vehicles, help make decisions to reduce in-transit damages. These systems can even record drivers exhibiting aggressive behavior to take action if needed. 

2. Real-time tracking

Devices enabled with the Internet of Things capture and transit data through various communication networks. IoT sensors, including Radio Frequency Identification (RFID), Automatic Identification, and Data Capture (AIDC), are an excellent way to track goods in real-time. These sensors locate the position of goods through integrated microchips with the help of radio waves. The main advantage of RFID tags is that they allow wireless scanning and provide accurate information on the product type, current location, and the destination it is supposed to be shipped. Since these sensors update the database in real time, e-retailers and 3PLs can make the most of this data to improve their last-mile processes. 

3. Inventory Management

Warehousing and Inventory management plays a significant role in any business’s logistics success. Smart warehouse and inventory management ensures fast and easy delivery of goods from the source to the destination. IoT-enabled intelligent systems and sensors can help achieve this goal effortlessly. Such systems help optimize space, locate packages, and automatically create new orders before the stock runs out. Apart from this, RFID tags update the database immediately as soon as a product leaves the warehouse.

4. Improved Shipment Security

IoT sensors allow complete control over each process from shipment pick up to its final delivery. With the help of RFID sensors, logistics managers can even determine the exact position of the goods in the container. These sensors send an immediate alert if the shipment goes missing or is not where it is supposed to be. In short, the technology contributes a lot to improving shipment security. 

5. Offers Advanced Analytics

Analytics help improve logistics management. Technologies such as IoT make the most of available data and provide a broader view that can help improve the way a company performs and manages its logistics operations. It helps with keeping a record of the inventory, maintaining warehouses, knowing road conditions during delivery, location mapping, improving ETAs, creating daily trip reports, and ensuring employee safety.

IoT’s increasing use and implementation in the logistics world is a boon for retailers, e-commerce firms, and third-party logistics providers. The technology creates a win-win situation where the organizations benefit in terms of costs, time, and customer satisfaction, and the end-customer benefits by getting complete transparency and tracking.