IoT & Logistics: How the transport industry benefits from smart digital processes

 IoT & Logistik Wie die Transportbranche von smarten digitalen Prozessen profitiert

Our blog now contains many texts that show how the Internet of Things is driving digitalization and pushing smart business models. Today we are talking about the industry that will probably benefit from IoT solutions like no other: Logistics is the sector whose performance can reach a new level on a global scale that has hardly been possible before. Because supply chain management and intelligent networking - that's a real love marriage.

Many decision makers share this conviction: According to a recent study of 150 German, Swiss and Austrian companies by Pierre Audoin Consultants (PAC), 83 percent of managers in the transport and logistics industry said they wanted to increase their IoT investments in the coming years. The potential of IoT solutions for logistics, manufacturing and transport is immense: monitoring transports, mapping freight movements in real time, reducing delivery costs, tracing goods from the customer to the producer - all this can now be efficiently implemented. The Internet of Things makes logistics smart. Digital solutions enable the industry to synchronize global flows of goods and information, automate processes, network supply chains and secure transportation.


E-Commerce: Global growth challenges the logistics industry

In the current time of crisis, it is particularly clear: online trade is flourishing, the logistics and transport industry is profiting from the global flow of goods. Seventy percent of all Internet users in the EU now store online, and the trend is rising. These include not only private consumers, but also buyers from the procurement departments of the companies themselves. A current study expects e-commerce in the B2B and B2C sectors to grow from a total of 45.1 billion euros in 2020 to 74.7 billion euros in 2025. This growth also represents a major challenge for the entire industry: customers, consumers and buyers expect ever faster and more reliable transport for their orders. Eight out of ten online shoppers want to see a definite delivery date before they make a purchase - otherwise one in three will abandon the purchase. 

But speed and reliability are not the only dominant issues: Experts estimate that the worldwide transport volume will grow to around 92 billion tons by 2024 - by comparison: in 2015 this figure was still 55 billion tons. Purely analog supply chain management is increasingly coming up against its limits in this development. The solution: decentralized, multimodal and global transport chains based on digital technologies. In this context, IoT solutions are the ideal solution: they enable global goods movements to be tracked around the clock and processes to be intelligently automated.


Best Practice: How the Internet of Things makes logistics smart

The Internet of Things can ensure that flows of goods and information in complex supply chains move synchronously over the Internet. This is the basic prerequisite for more efficient processes in all areas of a globalized world of commerce. The reason for this is logical: Along a supply chain a huge amount of process data is created, all of which are interrelated. This is the optimal prerequisite for innovative IoT technologies that address precisely this problem. Because one thing is clear: a supply and transport chain is all the more efficient the more clearly structured and networked it is. IoT raises it to a new level and makes it digital and intelligent. 

More transparency and optimized distribution through digital tracking

The digitalization of logistics begins directly after production with so-called tracking or tracing: the goods are securely packed and then travel to their destination by truck, ship or plane. In the meantime they are permanently tracked. This guarantees the best possible transparency and security throughout the entire transport process, which should run as smoothly as possible. The recipient is always informed exactly where the goods are, whether they will arrive sooner or later or as planned. This knowledge also enables the recipient to plan the subsequent steps within the supply chain precisely, right up to the exact delivery information for the end customer. The advantages of digital tracking also come into play when something does not go as planned: If the recipient is informed of a delay in good time, he or she can take steps to limit the damage. Digitization thus transforms the entire distribution process into an efficiently controllable process that guarantees secure transportation.

Warehouse logistics: More efficiency through IoT

The Internet of Things also makes warehouse logistics smart: Digitalization in logistics allows the storage, sorting, picking and packing of products to be optimized in a meaningful way. The result is safer, cheaper and more effective warehouse logistics - indispensable in view of the increasing demand due to the expected growth in e-commerce.

Safety first: IoT makes logistics reliable

The use of intelligent IoT solutions makes many logistics processes safer and more reliable. It is not just a matter of avoiding downtime, because thanks to the comprehensive connectivity, goods can be tracked down easily and quickly. The functionality of all equipment and machines used can also be monitored - an important point that also means an immense improvement in employee safety in many areas. The best possible transparency offers immense potential, especially in the case of time-critical deliveries: for example, for medicines, donor organs or temperature-sensitive goods such as food, seamless cold chain monitoring is an absolute must. IoT solutions make this possible by ensuring a complete temperature check and enabling the transport company to comply exactly with all legal requirements. In the end, this security also benefits the end consumer. After all, these are areas that can have a strong impact on people's health - a positive one, if the logistics function reliably.

Sustainable waste disposal logistics

Digitalization in logistics also makes waste disposal smart and sustainable. The process often has to deal with changing influences: fluctuating manufacturing and ordering processes, seasonal and weather-related influences. Tailor-made disposal logistics is the solution: Waste containers are equipped with sensors and provide precise information about when they are really full. This networked information enables an optimal plan for removal. Unnecessary journeys are thus a thing of the past. Digitalization in logistics makes waste management a smart process that benefits the environment. 

The implementation: logistics solutions with smart RFID tags

IoT in logistics enables a holistic view of all warehouse, distribution and transport processes: Stocks, temperature conditions, transport routes - smart technology gives you immediate access to all important information, allows you to analyze it and make timely adjustments if necessary. All this together means a significant increase in operational efficiency: important for all logistics companies that have to work quickly and transparently in global competition. RFID technology provides perfect services: RFID tags establish a direct connection to the cloud and thus provide an optimal overview of the status of the logistics process already in the warehouse.


Conclusion: Smart, safe, reliable, sustainable - IoT solutions take logistics to a new level

The future of the logistics and transport industry is smart. Digital IoT solutions make the entire global supply chain management faster, safer, more reliable, more efficient, cleaner and therefore more sustainable. Everyone involved will benefit: suppliers, manufacturers, transport service providers, intermediaries and recipients. The future is the "New Digital Supply Chain Management", which combines all the advantages:

  • More efficient production through smart procurement logistics

  • Fast job preparation

  • Transparent transport

  • Error-free shipping

  • Flexible reaction to delivery delays

  • Sustainable waste management


veröffentlicht am : 2020-12-01 08:00