The COVID-19 pandemic has disrupted most industries such as logistics, manufacturing, and supply chain; technology seems to be a key component to technological advancements and business stability. IoT in logistics has brought transportation tech to a higher level by incorporating transparency to transportation processes, improving operational processes, and accelerating goods delivery.

At MOKOSmart, we offer software and hardware developments for internet-enabled smart devices that gather, send and work on information they obtain from their environs.

IoT Devices used in Logistics

Smart Plug

EV Charging

Power & Energy Meter

Bluetooth Beacon

LoRaWAN Sensor

Pillars of a connected logistics company

The connected ecosystem was established for logistics providers to track carriages from a remote area. It makes sure that goods arrive at the desired endpoint on time.

Use cases of IoT in logistics

Below are the top 5 use cases of IoT in logistics for efficient management of an end-to-end supply chain.

IoT inventory/Asset tracking

Asset tracking is the IoT’s most common use case in logistics and transportation is assets management. This application enables the user to remotely track inventory assets, monitor their position, and quickly acquire all the changes. Moreover, transport overload and underload can be avoided by embedding a vehicle with IoT sensors.

IoT route optimization

IoT systems provide real-time monitoring in the daily operations of a logistics company. Besides, they also enable the optimization of traffic routes and consider factors such as changing restrictions and policies.

IoT environment monitoring

IoT technology helps monitor, maintain, and adjust temperatures in a logistic system. This individual application is essential for use on perishable goods and pharmaceutical products. Sensors driven by the IoT technology collect environmental data, such as pressure, temperature, humidity, light exposure, and more, thus allowing easy remote monitoring and controlling of environmental conditions.

IoT predictive analytics

IoT logistic systems can gain different real-time metrics; they analyze the data collected and make predictive results. For instance, with the relentless flow of real-time data, logistic systems can plan smarter deliveries, adjust routes, and recognize weaknesses before something goes wrong. Moreover, they can predict incompetent equipment usage and accidents also.

IoT-powered location management

IoT sensors can be embedded in a transport system to send real-time information about the transportation process. Thus, an IoT system can track the position of deliveries down to single units and inform the users whenever unforeseen events such as road traffic or the vehicle location or status.

Advantages of IoT in logistics

IoT devices can gather and communicate data using sensors, scalable cloud solutions, and user-friendly communication systems. The advantages of IoT in logistics are;

Increased speed

IoT tracking solutions and tools for planning smart routes improve the overall supply chain speed.

Improved accuracy

It is easy and faster to access connected platforms than closed systems. When companies build a cloud-based IoT system, they ensure that every involved party in the supply chain can promptly address issues and access important data.

Enhanced flexibility

IoT gives logistic managers comprehensive perceptions of good turnover. This enables supply chain managers and sellers to determine the number of units every product should be ordered.

Better segmentation

Data gathered in a supply chain cycle enables managers to clearly understand the market and segment, considering the target audience.

Increased productivity

IoT enables numerous connected platforms to be geared towards workers. Tools such as smart glasses instruct warehouse employees, enabling them to spend minimal time finishing a task.

Reduced delivery cost

Processing automatic orders and updating status lowers the overall costs of operations as they enable companies to reduce the number of delivery staff.

Enhanced supply chain planning

IoT offers diverse data to businesses. Hence, logistic managers can apply the technology to accurately plan the operations of a supply chain and forecast the outcomes of business decisions.

Offers advanced analytics

Supply chain managers can use the broad range of IoT applications in logistics to view a big-picture of how operations should be handled.

Use cases of IoT in logistics

IoT devices can gather and communicate data using sensors, scalable cloud solutions, and user-friendly communication systems. The advantages of IoT in logistics are;

IoT solution development: from start to finish

At MOKOSmart, we provide IoT software development and consulting services to enable our customers to easily track and monitor their full logistics infrastructure. We offer custom IoT application development services to clients anticipating to apply fully-featured IoT in transportation platforms. Some IoT solution development solutions available at MOKOSmart include;

Hardware design

We assist our customers in selecting the technology that suits their needs. Moreover, we also provide assembling, designing, prototyping, and testing services to solutions that require custom hardware development.

Embedded software development

We provide rich-featured software for IoT and connected devices. Our systems meet the power consumption requirements and are well-improved for reliability and safety.

Data storage solution

We develop IoT gateway devices that systematically link the cloud and the field to local processing.

White-label solution

We offer a white-label solution with various white label products such as Bluetooth beacons, smart home devices, fitness trackers, etc., for the world smart device market.

IoT in the logistics market

IoT implementation in asset-intensive industries such as logistics, manufacturing, and transportation is relatively higher. From stationary to mobile accessories, all these assets are now emerging as part of a connected system, where they share and connect important information. Consignment vehicles such as trucks and ship vessels are mobile properties that are a key part of the IoT network. They are leaving an enduring cavity in the logistics and transportation industry.

Even before the emergence of the Internet of Things, the transportation, logistics, and warehousing industries were still the key driving forces that led to embedded connected systems. The existence of advanced telemetry skills and monitoring solutions of IoT in logistics have enabled the technology to evolve the industry vertically. Moreover, its world-connected market has developed at a quick pace. In 2016, the market’s global value stood at $10.04 billion, and it has currently reached a total market capitalization of $41.30 billion by the end of 2021. That is a collective yearly progress rate of over 32 percent. Without a doubt, the sector for IoT logistics is a blessing. Its enactment has allowed the logistics industry to transform its modus operandi. Besides, it has also gained higher results.

Current challenges of transportation

Supply chain integration

As the integration of supply chains not only constitutes adhering to the current trade policies, companies need to incorporate all the important plugs within a supply chain to evade data silos. With this, elevating flexibility remains one of the most substantial challenges experienced in the logistics industry. 

Altering customer expectations

Advanced technology has led to changes in client expectations.  Furthermore, when clients are well informed, they are certain that their logistics services keep them completely informed throughout the entire process.

Evolving digital requirements

When it comes to IT systems, many transport enterprises are still struggling. Besides, the major challenge linked to evolving digital requirements is broad. Most companies focus on shifting to the next digital bandwagon before solving earlier problems.

Digital transformations

Digital transformation involves reforming the models and approaches of doing business to stay fully economical in this digital era. However, failure to renovate logistics processes to match digital transformations causes fewer returns and profits due to insufficient opportunities to conduct business.

Core systems transformation

There is a need for transport companies to know their core systems. Before disrupting their businesses, these transport companies need to be aware of their core systems as they often develop exceptional architectures.

Proactive cyber security

Hacking in transportation companies happens so often, but most cyber-attacks occur from the inside. It is caused by employees providing internal open vulnerabilities. Employees who fail to follow the established cyber protocols cause these vulnerabilities.

Analog Channels

Logistic companies still often receive their orders over analog channels despite the ubiquitous digital technologies. Hence, it becomes more challenging to quickly and efficiently process their orders and record shipment details.

Challenges of IoT in logistics

Some of the challenges of IoT in logistics and transportation you have to keep in mind are;

Skill gap

It is sometimes challenging to find a skilled team that can create a solution that caters to the company. IoT in logistics lacks inadequate professional training. With the absence of global technology talent, hiring experienced professionals is time-consuming.

Increased data storage challenges

The strength of bulky data pools comes from obtaining adequate server power to analyze and store the data collected. Company logistics managers need to seek knowledge from data analysts to ensure that they drive the appropriate conclusions.

Security threats

Before shifting every process to connected platforms, supply chain managers need to build a secure architecture. The vulnerabilities for data processing and storage can increase the cost of failure and cause outside data attacks and leakages.

Connectivity issues

Stable internet connectivity is essential in all IoT activities. A reliable network is not always available because of the movement of fleets from one location to the other. With the rapid increase of internet coverage and the availability of the 5G network, it is more likely that the connectivity problem will mitigate itself.

Data managing and analyzing

The exponential vast amount of data IoT makes available is one of its main assets. As this data sometimes contains valuable information for the connected supply chain, it’s insufficient to collect without managing and analyzing it.

Operational management and IT teams internal struggle

The operations management and IT teams struggle internally to buy IoT devices for the connected supply chain. For instance, the IT team may want to obtain the latest IoT technology right after it hits the market, but the operations team may not be willing to spend extra coins.

Modern technologies that can help curb logistics challenges

The productivity in supply chains has rapidly increased due to advancements in technology. Moreover, improved technology in a company minimizes costs and errors. Here are five key modern advanced technologies that can help the logistics industry cope with its challenges.

Internet of Things (IoT)

The accuracy of IoT devices has radically improved since the establishment of the technology. It has helped improve the supply chain and helped frustrated, lost drivers. Advancements in GPS accuracy satisfy customers and increase productivity by tracking the cargo’s location. It also improves hauls over access to restructured traffic data.

Enhanced GPS accuracy

Internet of Things creates multiple supply chain opportunities like minimizing costs and avoiding risks. For instance, IoT devices such as sensors are mounted into cargo ships, cabs, trains, etc., and they assist in tracking and monitoring a cargo when the sensor is connected to an alarm system. The sensors analyze and communicate the data collected to a team that adds awareness to concealed threats. IoT drastically influences the future of logistics, even though it is not a relatively new technology. This allows for a more precise time of delivering goods and in-transit visibility.

Social media

The power of social media largely optimizes the logistics industry’s operations. These platforms enable companies to efficiently communicate with their clients and quickly send urgent information and customer feedback.

Shipment tracking systems

Initially, clients would book for deliveries, receive a likely delivery date, and then were left with no information about the shipment’s progress unless they asked the latter by making a phone call. At present, the advancements of the internet and software enable clients to access tracking and shipping systems easily. This saves time and money for the company and enhances the user’s experience.

Autonomous trucks and drones

Although it sounds like it is out of a movie to use a computer to drive from one point to another or get a package from a soaring midair vehicle, that is where we are heading. In reality, we have autonomous cars already in place, and trucks are not too far behind. Although autonomous cars are not completely driverless, this is a huge breakthrough technology that can maximize productivity in the delivery process.

Disadvantages of IoT in logistics

Since there are numerous green flags about IoT in logistics, it is important to consider a few concerns. The disadvantages of IoT in logistics are;
  1. Property damage – When an IoT device fails to work as anticipated, it can cause property risks such as physical injuries, loss of use, and personal property harm.
  2. Privacy and security – Most information is shared through the internet; hence it is prone to data theft and security breaches. Hence, it is important to prevent this situation by protecting the data with high-level security. More importantly, always consult an IT professional to help you protect your data by setting up all the necessary software.
  3. Technical complexity – Small businesses lack technical knowledge as IoT is tech-driven. Although the technology is complex, it is not time-consuming when digitizing supply chains.
  4. Expensive to implement – It is expensive to set up the direct cost of an IoT system. This becomes a major challenge to those who do not efficiently plan for their investments. Nonetheless, it is important to always negotiate with IT companies whenever they implement a new IoT technology.
  5. Bodily injuries – Whenever an IoT device fails to function perfectly well as publicized, the manufacturer is held liable for any injuries that may arise. IoT developers and software companies can face risks of bodily injury that can render them accountable in the event of a fault.

The success story of IoT in logistics

International brands are at the forefront of connecting the supply chain with the Internet of Things. Below are several examples of how IoT benefits large-scale corporations on an everyday basis:

Amazon

Amazon is well known for the excellent use of IoT devices in its supply chain. In 2012, the company incorporated numerous connected robots to manage their warehouses. Automated technology is responsible for scanning QR-codes to recognize the products on the parcel. Amazon implanted IoT devices that rely on the Low-Power Wide Area Network (LPWAN) in its warehouses to utilize the human workforce productively.

Volvo

The company monitors the deliveries of car parts from various countries using a connected cloud-based system. Volvo uses wireless IoT sensors that depend on cellular networks to track the delivery of vehicles to the company’s global suppliers.

Nissan

The Nissan Company has deployed the Bluetooth technology as a standard feature presented as part of Nissan Connect. Using Bluetooth support, you can now pair your smartphone with your car. It enables you to make hands-free calls and text messaging easily.

New Maersk Line

Maersk is a company to consider when looking for advanced supply chain IoT applications. It piloted the development of the Remote Container Management System that remotely monitors temperature and humidity levels in delivery containers via cellular or NB-IoT technologies. This minimizes wastage of resources and reduces food spoilage. The platform enables workers to monitor ecological conditions easily and enhances the accuracy of logistic implementation and planning.

Frequently Asked Questions

  1. What is the accuracy level of the system?
    If you require room-level accuracy or more detailed locating abilities, it is important to choose the appropriate type of system to use early enough. Locating accuracy can be improved when more control points are added in some systems.
  1. Which is the best infrastructure to install in my apartment?
    Install either infrared or Wi-Fi-based real-time location service (RTLS) system in new buildings. But you can choose to install an RTLS if you are retrofitting a system in an existing building.
  1. What is the ownership total cost?
    One essential factor developers consider implementing in tracking and monitoring IoT logistics solutions is the total ownership cost.
  1. How long does the battery of each tag last?
    The availability and performance of tags are affected by their battery life. For instance, tags do not transmit constantly; hence their lifetime is three times better than the lifetime of traditional BLE tags.
  1. How secure is the system?
    It is essential to first consider the data security of your network before deploying any IoT application on it. Some systems protect and keep their IT networks safe using multiple device layers. Modern AES TLS data transfer techniques can encrypt end-to-end BLE data. Besides, a cellular network that connects offline data networks can be used to minimize the exposure of the IT network.

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