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The Internet of Things: Paving the Way for a More Efficient Transportation and Logistics Industry

Posted by Juan Carlos Garcia

December 8, 2014 at 9:37 AM

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Supply chains are under more pressure than ever. From unpredictable fuel costs and increased traffic to rising labor rates and a changing regulatory environment, a number of outside forces stand to disrupt productivity. The Internet of Things (IoT) couldn’t come at a better time.

You’ve already heard a lot about the IoT, but what does it really mean for transportation and logistics? A lot. The IoT means gaining end-to-end visibility across the supply chain. It means creating a fully integrated warehouse and yard. It means reducing fleet downtime. And it means gaining real-time actionable insight. This enhanced business knowledge, or Enterprise Asset Intelligence™, is what enables businesses to improve operational efficiency and performance across their organization.

With end-to-end visibility, companies can detect issues more quickly, enabling more timely and informed decisions and reducing delays.

Shipment delays can cost enterprises a fortune. Luckily, mobile devices like radio frequency identification (RFID), barcode scanners and mobile computers are already offering real-time visibility into supply chain operations. As a result, many enterprises are reaching nearly 100 percent shipping and receiving accuracy and 99.5 percent inventory accuracy. And with IoT technologies delivering asset intelligence—and ultimately, predictive analytics—businesses can make even more informed decisions, right when they can have the biggest impact.                    

A fully integrated warehouse and yard means products are always right where they need to be.

In transportation and logistics, success hinges on the operational efficiency of the warehouse and/or yard. Mobile tracking devices automate many of the processes—such as inventory tracking—minimizing human error and allowing organizations to capture and share data over the cloud. This ensures products are in the right place at the right time. In the IoT of the near future, the data captured from these devices could be transformed into sophisticated analytics that predict opportunities and risks, enabling the warehouse and yard to proactively improve operations.

Reducing fleet downtime keeps the entire supply chain on track.

Traffic. Bad weather. A malfunctioning brake light. When it comes to fleet—that ever-critical link in the supply chain—there’s a lot that can go wrong. And when it does, it threatens to derail the entire endeavor. However, due to a convergence of communications and Enterprise Asset Intelligence, issues can be dealt with proactively. A driver can be warned about a road closure and select another route. Technicians can be notified that it’s time for new brakes—and put in orders anytime, anywhere—before it’s too late. 

Want to learn more about how the IoT is transforming transportation and logistics? 

 

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Topics: Internet of Things, Visible Value Chain, APAC, North America, Latin America, EMEA, T&L