The Internet of Things (IoT) is used in various ways in logistics services to help offering solutions that improve the productivity of supply chains and, therefore, the profitability of companies.
Technology has revolutionized the way people live, study, have fun, and work so, why wouldn’t the same happen to businesses? For example, in logistics, the introduction of the IoT in tasks and processes has contributed greatly to the value of supply chains.
Using technology, we can now not only detect problems and find solutions for transport, storage, and distribution processes, but foresee them thanks to the constant gathering of information that allows us to predict trends, patterns, and inconsistencies in planning.
In fact, the digitalization of the logistics services’ industry has grown faster with the application of the IoT, which allows for the organization, automation, and remote control of processes using any device connected to the internet.
By definition, an efficient supply chain is tasked with delivering goods, from manufacturer to end client, at the agreed time and meeting the specified conditions. By using the IoT throughout the whole process, we can monitor each of its phases in real time, boosting the speed and efficiency of automated processes that save time and costs and free the involved staff to create value for the company.
In this manner, technologies like sensors, readers or scanners, and data storage systems on the cloud enable the connectivity of "things" (warehouses, vehicles, or goods) to the internet so the manufacturer, logistics supplier, and final client always know the status of their goods, their location, and estimated times of delivery.
The benefits of the IoT in logistics are shown by savings in time and costs, the eradication of errors, and on customer satisfaction.
The IoT creates infinite possibilities; real time location systems (RTLS) coupled with wireless mobile devices let us have a complete visibility on goods throughout the supply chain, from the moment they depart the suppliers’ doors to the moment they are received by clients, thus increasing the offered value.
The efficiency reached by incorporating GPS, smart sensors, mobile apps and wearables optimizes the use of resources, automates processes, ensures a better and immediate control of inventories, reduces losses caused by damage to goods, and improves delivery times by offering increased productivity and, therefore increasing the profitability of companies.
Because of this, by incorporating the Internet of Things to logistics processes, the design of distribution networks becomes increasingly more complex and supply chains increasingly more demanding. The competitiveness of manufacturers and logistics suppliers somewhat depends on how quickly they implement this technology.
*This blog was originally published on May 23 2019 and modified on May 15 2022.