The mechanics behind IoT in the logistics industry
LOGISTICS companies have been struggling to cope with consumer demands as far as providing real-time tracking of international shipments is concerned, and find it hard to provide new insights to businesses looking to do more with their logistics partners.
The internet of things (IoT) is going to change that. In fact, the technology is expected to transform the industry entirely by sharing constant real-time data on everything related to the cargo.
According to a report, the global logistics industry is valued at US$8.2 trillion in 2015 (11 percent of global GDP). This is projected to touch US$15.5 trillion by 2023 at a CAGR of 7.5 percent.
Asia-Pacific countries, especially China, India, Singapore, Indonesia, Japan, and Malaysia, led the global logistics market with 47 percent of global share in 2015.
With such sizeable load on the move, there’s probably no stakeholder that faces traffic challenges as intense as logistics companies.
Currently, we have apps that are able to tell the traffic conditions in real-time. However, data collected regarding traffic incidents, speed limits, speed traps, and other information are the contribution of road users.
Here’s how the connectedness of IoT could move logistics through fast-changing traffic and business patterns.
Data will be collected from the smart sensors, cameras, and GPS devices located all around. Such data will then be shared with navigation software on autonomous vehicles.
AI-enabled navigation software can then process the real-time traffic data and produce analytics that will travel the quickest route.
Logistics companies benefit the most from an IoT-based traffic management system.
Time is money, but time in traffic also lowers ratings and loses productivity hours for businesses.
Logistics companies move their units of products and services by the bulk.
Effective automated responses to reroute when more efficient access is calculated would affect the operations at large.
With a reduced amount of time in commute, logistics companies will be able to make more trips in a day. This will convert to a significantly larger number of sales fulfilled.
In the long run, it would be possible for the logistics companies to better manage the workforce as well. Eventually, IoT will lower the cost margin for businesses entirely.
Big data is transforming logistics companies in all ways. But IoT in transportation is going to be a game-changer like no other.