IoT in Logistics

IoT in Logistics: 5 Uses Cases of How It Can Benefit Your Business

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IoT is hot right now. It’s become a nascent technology to be associated with if you’re managing a logistics company. As the logistics industry’s reliance on automation and visibility deepens, significant role is played by IoT, which gives logistics companies greater flexibility and control. The Brainy Insights forecasted the IoT-powered logistics market will expand to $146.1 billion by 2033.

Thanks to the IoT, today we have the ability to turn shipping containers, warehouses and transportation vehicles into nodes of a large and powerful information network. What this has enabled is a more responsive and efficient global logistics ecosystem. This technological integration enables enhanced communication and connectivity that seemed unattainable only a few years ago. In this post below, we’ll take an in-depth look at IoT applications in logistics and transportation.

What is IoT in logistics?

IoT in logistics means connecting the physical objects involved in logistics and transportation to the Internet. When you add IoT devices to these objects, they can talk to each other in real-time. This makes the whole logistics system way more connected and able to react faster. These devices gather data and share it, which helps make logistics operations smarter and work better. Thanks to wireless connectivity, we can now connect pretty much “dumb” logistics objects, be it a shipping container or even an entire fleet, to an IoT logistics network.

How IoT in logistics works

Start from basic IoT hardware devices such as trackers, sensors, and gateways, as they are the building blocks of the IoT system. Sensors and trackers are the end IoT devices to collect data such as location, temperature, humidity, shock, door status, and more. Gateways act as the central points that collect data from the end devices and send it to the cloud platform. Downlink commands can also be sent back to the end devices via the gateways.

To make sure that all IoT devices can communicate and connect smoothly, they must employ robust and stable connectivity. Common options include cellular networks (4G, 5G), Bluetooth, Wi-Fi, LoRaWAN and NB-IoT. With these technologies, IoT devices can exchange data remotely and even globally.

The huge amount of data can then be transformed into actionable insights through analytics platforms. Ultimately, the logistics companies can make data-driven decisions to reduce costs, avoid delays, and provide better services.

Top 5 use cases of IoT in transportation and logistics

The essence of IoT in logistics is about visibility and optimization. It is transforming what was previously complicated, opaque supply chain into transparent and real-time network of connected devices and systems. Check out these top 5 IoT applications in logistics:

Shipment Tracking and Monitoring

Shipping tracking and monitoring devices such as trackers, beacons, and sensors are widely used in logistics. With IoT trackers, it’s easy to enable seamless geo-location tracking of shipping assets across or between regions or countries. Wireless beacons and tags attached to the assets can provide up-to-date location data. Smart sensors enhance monitoring by detecting conditions like vibrations in fragile goods, ensuring their safety during transit.

Door sensors also track vehicle door status and send alerts if an unexpected opening occurs. These sensors transmit data directly to GPS trackers and thus form a connected network to proactively address potential problems.

Inventory and Warehouse Management

Bluetooth beacons and RFID tags are placed on forklifts, pallets, and individual items to gather data on stock levels, location, and product movement. The data helps in the real-time monitoring of inventory conditions. It is also possible to manage storage allocation based on demand: as for products with higher turnover, their position can be optimized for easier access.

Smart warehouse management systems quickly detect inventory discrepancies or misplaced items and notify warehouse managers and logistics teams through mobile dashboards or apps.

Smart picking systems are aimed at helping warehouse workers locate items faster. Some solutions allow managers to visualize heat maps of warehouse activity so that there would be guaranteed efficiency in operations.

Vehicle Tracking

A logistics company’s fleet of transportation assets is the backbone of its operations. Trackers with GPS, Bluetooth, and other tech are attached to delivery trucks, freight vehicles, and shipping containers to monitor their location in real-time. This data goes to a central logistics management system where operators can see vehicle positions, speeds, and routes.

IoT enables real-time information sharing between supply chain partners through logistics information systems. Businesses receive timely updates on shipment locations, estimated arrival times, and delays, enabling them to adjust operations efficiently.

Driver Safety ＆ Identification

Driver safety and identification systems help ensure secure and responsible vehicle use in logistics. Drivers have identification tags that let them access vehicles securely. This improves security by stopping unauthorized people from driving.

In some countries, drivers have to record their distance traveled, speed alongside their driving activities for safety and compliance. Telematics systems can monitor driving behavior, detecting harsh braking, sudden acceleration, or signs of fatigue. The integrated emergency buttons enable drivers to reach out for help during accidents and urgent road situations thus enhancing road safety.

Cold Chain Monitoring

IoT sensors are super important for cold chain logistics, making sure temperature-sensitive items like medicine, meat, and dairy stay at the right temperature. These devices keep track of temperature, humidity, and other factors in refrigerated trucks and storage areas. If the temperature gets too high or too low, the system sends out an alert right away so they can fix the problem before the products get ruined.

During transport, temperature loggers record all the data, which can be downloaded later for review and to show compliance. This helps companies follow strict rules from places like the FDA and EU GDP while making sure products stay fresh and safe for people to use.

The key benefits of IoT in logistics

IoT gives logistics operations end-to-end visibility, which gets rid of blind spots in the supply chain. Businesses that opt to bring IoT technology into their logistics operations will be able to enjoy real advantages. Here’s how it makes a difference

Live Tracking and Monitoring

Moving vehicles and goods are easy to monitor and track in real time by placing IoT devices on them. Logistics managers can quickly spot when routes are changed, check on sensitive goods, or find potential safety problems. The entire transportation journey is monitored so as to ensure timely delivery and proper condition.

Improved Transparency and Efficiency

Real-time supply chain visibility is made possible by IoT logistics solutions. Connected sensors and devices let stakeholders immediately access important info about where shipments are, environmental conditions, and inventory levels. This better transparency helps people make decisions before problems happen, avoid distribution disruptions, and improve operational efficiency.

Customer Satisfaction

With logistics being so transparent now, customers can check where their stuff is in real time, which takes away the uncertainty. More accurate delivery dates and monitoring of cargo condition make sure goods arrive on time and in good shape.

Enhanced safety and compliance

The emergency button is your best security partner. Networked sensors can detect when drivers are tired, brakes are faulty, or cargo is being tampered with, and send alerts right away. Analyzing all the collected data can be turned into safety protocols that actually work, which really cuts down on accident risks and protects both lives and profits.

Costs Savings

Automatic inventory management can keep track of inventory levels to prevent having too much stock or running out, which reduces inventory costs. Route optimization cuts down on delivery time and fuel use, which further reduces transportation costs.

Options for IoT connectivity in transportation and logistics

Logistic companies should choose the right connectivity that fits their needs, balancing range, bandwidth speed, power consumption, etc. While an effective IoT connectivity solutions usually involve integrating multiple technologies to cover the whole supply chain process. These are the top options used today.

Cellular Networks (4G/5G)

4G/5G Cellular networks are renowned for their extensive coverage, reliability, and high data rate capabilities. They rely on the operator’s base station network to provide stable connectivity, covering cities, highways, and remote areas. This connectivity is suitable for fleet management and video surveillance. However, companies need to pay telecom operators for continuous connectivity based on traffic usage or the number of devices.

Low-Power Wide-Area Networks (LPWAN)

Low-Power Wide-Area Networks (LPWAN), like LoRaWAN and NB-IoT, are wireless network technologies for low-power, long-distance communication between IoT devices. Among them, NB-IoT uses the existing cellular network infrastructure to provide connectivity for IoT devices, but charges for connectivity based on data traffic or the number of devices. LoRaWAN uses unlicensed frequency bands to connect devices and network servers through LoRa gateway deployment.

Satellite Connectivity

Satellite connectivity gives you crazy wide coverage, letting you track and communicate from literally anywhere on Earth. GPS provides an expansive-coverage, high-accuracy solution for outdoor locations, specifically for navigation and asset tracking.

However, GPS position accuracy and reliability are greatly affected in indoor (such as warehouses and factories) or building-concentrated environments, since the signal will be obstructed. Usually, we combine GPS and other short-range wireless tech such as Bluetooth and WiFi to provide seamless and more accurate hybrid positionig solution. This helps achieve end-to-end visibility across the supply chain.

Bluetooth and WiFi

Bluetooth and WiFi are short-range wireless positioning technologies, which are particularly suitable for deployment in limited areas such as warehouses or distribution centers. They’re great for super accurate indoor positioning, tracking your assets, and managing inventory. In addition, Bluetooth and WiFi can connect with the tracker installed on the vehicle to build an end-to-end cargo tracking system, thereby achieving full visibility of cargo in indoor and outdoor environments.

Potential challenges of implementing IoT in logistics

While IoT is a game-changer for logistics, its adoption comes with several challenges. The following are the details:

Implementation Cost. Deploying IoT solutions costs a ton upfront for hardware, software, and infrastructure. Plus, you’ve got all these ongoing expenses for system upgrades, maintenance, and training that just keep adding up.

Data Security and Privacy. IoT networks and devices are vulnerable to cyber attacks, which might leak or lose your sensitive data.

Infrastructure and Integration. The new IoT solutions don’t work with older systems, so you’re forced to shell out for expensive infrastructure upgrades and middleware solutions.

Scalability.The explosion of IoT devices overwhelms existing systems, causing data delays and storage bottlenecks. You need scalability, like cloud-based solutions, to handle all that growing data.

Advancing logistics with MOKOSmart

The integration of IoT in logistics is not only about tracking but also connects drivers, vehicles, containers, and shipping assets to gain better insights. As a professional IoT device manufacturer, MOKOSmart provides IoT trackers, sensors, beacons, and gateways to help build innovative IoT solutions in logistics, transportation, and warehouse sector. Contact us to get further information about IoT devices in logistics and how they can benefit your business.