IoT in logistics applications continues to appear as a concept that increases its importance and impact day by day. The application of the Internet of things (IoT) is relatively higher in asset-intensive industries such as manufacturing, transportation, and utilities. IoT in logistics and transportation applications, on the other hand, aims to establish a system where assets can interact with each other and enable accurate data transfer.
IoT in logistics industry creates a system that targets transportation vehicles such as trucks, forklifts, AGVs, trucks, commercial vehicles, ships, and trains. Such assets, which are important in the transportation field of the logistics sector, should be constantly analyzed in terms of efficiency and performance.
When we look at the IoT in logistics market size figures, it is possible to observe that the importance of these applications increases day by day.
According to a study by Prescient and Strategic Intelligence:
The global internet of things (IoT) in the logistics market had a value of $34,504.8 million in 2019. However, this value will show a growth of 13.2% in terms of CAGR in the 2020-2030 forecast period.
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Benefits of IoT in Logistics Applications
Various kinds of research show that the usage rate of IoT technology in the logistics sector has increased. In this sense, it is not difficult to observe that IoT technology is a savior for the logistics industry. Thanks to the IoT logistics application, a business can change the way it works for maximum efficiency. IoT in logistics applications can enable companies to gain efficiency in the following aspects.
- Uninterrupted Communication: Thanks to the solutions created by IoT logistics companies, internal communication is maximized. For example, it becomes possible for communication between managers and vehicle operators to continue uninterrupted regardless of the conditions.
- Fleet Tracking: IoT in shipping and logistics applications make it possible to reach accurate information in fleet tracking. Vehicle tracking solutions continuously monitor the current location of assets. It is possible to monitor location indoors and outdoors thanks to GPS and BLE-based zone sensors.
- Supply Chain Monitoring: Thanks to asset tracking systems, all processes of all assets that are critical for companies, from production to distribution, become traceable.
Advantages of IoT in Logistics Applications
The application of IoT in the logistics industry can be evaluated from different perspectives and examined in terms of its advantages. Here, the sector area also plays a major role in determining the advantages. However, when we look at it in general, the following are the prominent logistics advantages of IoT.
Route Tracking and Optimization
Transport vehicles are one of the primary components of any logistics company. It plays an active role in the creation of processes such as distribution and shipment. Companies may need a variety of systems to manage the operations of vehicles. At this point, the route tracking and optimization created by the IoT come into play.
Route tracking and optimization is generally a location-based system. Allowing real-time asset tracking, this technology uses various techniques such as GPS, BLE, and geofencing. The system, which makes it possible to monitor remote locations, also allows operations to be carried out smoothly. The IoT in logistics and transportation applications streamlines business processes, improves customer satisfaction, and warns authorities about potential problems in advance.
Comprehensive Warehouse Management
IoT in logistics applications develops systems that enable comprehensive warehouse management as well as asset tracking. It provides maximum efficiency and convenience in management processes such as storing goods and monitoring stock levels. IoT in logistics and supply chain management, which achieves high success in inventory organization, is preferred by many different sectors.
IoT devices used in the field of logistics manage to develop a system that makes comprehensive warehouse management possible. In doing so, technology using RFID tags allows companies to create an inventory organization. Thanks to the use of RFID tags, it becomes possible for companies to prevent losses, ensure safe storage of goods, and use needed assets efficiently. In addition, it is possible to reduce costs by providing high efficiency in personnel management.
Challenges of IoT in Logistics
The IoT in logistics applications brings with it many different advantages. However, as with every new technology, there may be certain difficulties in the logistics application of IoT. First of all, you may need to train all your staff about the new technology you are applying to your workplace. In addition, switching from the current system to a new system can create a challenging and demotivating environment for employees. Maintaining the balance between the old system and the new system can be challenging for managers.
However, all these difficulties can be easily overcome as long as a correct and effective process is followed. When the advantages and disadvantages of IoT logistics applications are compared, it is observed that the advantages stand out by a wide margin. You can get consultancy from companies that are experts in their fields to create an IoT management organization compatible with your industry.
Contact Boni Global and get detailed information about IoT solutions!