IoT and Transportation Logistics
Transportation logistics is the backbone of the economy of any country.
Whether the mode of transportation is by sea, air or land proper management of the system is crucial to the success of the business. Properly managed transportation and logistics system are crucial for the success of any organization. After seeing the enormous benefits of Internet of Things or IoT technology in other fields of life, transportation and logistics companies are also integrating this system into their setups. IoT has huge potential in this department and companies are currently at work into getting the most out of IoT for a better-managed system. By a network of centrally connected devices and sensors companies now have better visibility in terms of employees, equipment, and transactions which allows them to properly analyze this data in real time. This analysis ensures better productivity and increased efficiency for transportation businesses. According to a report published by a joint collaboration of Cisco and DHL, the IoT business can have an impact of more than $1.9 trillion in supply chain and logistics.
IoT has a number of applications in transportation logistics which are very beneficial for the business. Some of the most important applications in this setup are discussed below.
This is one of the most interesting applications of IoT and the one with maximum benefits too. Fleet management is known to play an important role in daily vehicle usage and maintenance and service schedules of these vehicles. With a smart IoT based fleet management system you can make sure that your vehicles are properly maintained which in return ensures minimum downtime for vehicles. This technology will allow you to easily monitor your vehicles. By giving you the ability to actively monitor your fleet performance in terms of speed, routes, and load carrying capacity you can make better business decisions to boost the efficiency of your fleet and make it more economical. According to a report by Business Insider, it is estimated that almost 90% of the total commercial transport vehicles in North America (approx. 180 million vehicles) will be connected by smart fleet management systems by 2020.
Warehouse management has changed dramatically because of IoT. Traditionally the work which was done by hand on registers is now being done using sensors and a centrally managed software-based system. With sensors and mobile devices continuously transmitting the information about the location of different products on a system through cloud computing companies are well aware of the location of their products. They have complete knowledge about where their product is and where it should be. Manual warehouse systems were prone to human error which greatly decreased the efficiency of transportation companies. With IoT based warehouse management systems this human error can be eradicated which results in decreased loss and damage of different items and overall increased efficiency.
This is also a very important application of IoT in transportation logistics because this application not only has financial benefits for the company but also environmental benefits for the whole world. With IoT optimized routes for the cars and trucks, you can significantly decrease the number of miles that any vehicle has to travel. This will not only result in fuel saving for the benefit of the company but will also decrease the carbon emissions in the environment by these vehicles. By connected all the vehicles in your fleet into an integrated system these vehicles can help each other by sharing critical information about certain areas such as traffic jams, damaged roads, weather conditions etc. other vehicles can then choose the best route depending on this information. This will not only save money in terms of fuel but also decrease the delivery time of products.
Capacity estimation is another important application of IoT which has great benefits especially for workers working in warehouses and storages of transportation companies. This application helps the workers in quickly performing stacking, loading and unloading operations. IoT also greatly reduces the error in these operations. By using barcodes and sensors we can have a clear idea of where an object should be placed in any container or how much capacity the container has.
Advancements in IoT technology is dramatically changing the way in which transportation logistics work. With a number of advantages, more companies are involving this technology in their business. It is estimated that IoT in transportation and logistics will be able to generate $1.9 trillion in terms of value within next decade. With attractive benefits such as better fleet management, smart warehouses, and increased visibility in real time companies are quickly adopting IoT.