Published: May 2, 2022
12 min read
In this article, you'll learn:
1
🧱 5 Layers of IoT in the Transportation Industry
2
📈 Benefits of using IoT in Logistics & Transportation
3
🚛 IoT Use Cases in the Logistics Industry
4
🔧 IoT Challenges in Logistics Processes
5
💡 Takeaways
Let’s now find out what are the key benefits of adopting IoT in the logistics and transportation industry, along with the main use cases and challenges that companies may encounter in the supply chain process.
An IoT architecture in transportation presents 5 operational layers to set up a trustworthy system of goods shipment. These are:
Every piece of data requires proper communication to be delivered right into the service layer after being sensed and stored in an infrastructure layer. For a better understanding of the Internet of Things architecture in the transportation cycle, let’s have a brief acquaintance with these layers and their responsibilities:
Now that we are more familiar with the general advantages of adopting IoT in logistics and transportation, let’s see how it can be specifically implemented in different use cases.
Thanks to IoT systems, it’s easier to monitor the safety of goods as well as quickly locate required products across gigantic warehouses. Inventory tracking also minimizes human-storage interactions which affects the number of possible inaccuracies.
The most popular use for such smart labels comes when the goods require special conditions to be maintained for quality delivery. For example, constant monitoring of frozen edible goods helps to prevent company losses in case of unexpected malfunction during transportation services.
Also, by using the smart tags, logistics companies may even reduce financial damage from the goods being stolen, as labels’ GPS tracking capacities may become quite handy.
As an example, there is a case study that covers the implementation of IoT-CMS in AOC Limited that covers the cold chain logistics with Chevalier Cold Storage and Logistics Limited in Hong Kong. In a four-stage system implementation and a 10-day data gathering, AOC Limited became able to monitor cargo conditions along with providing quality storing in real-time.
Among all the IoT solutions for supply chains, adopting drones for the transportation process has the greatest potential. As timely delivery is a top priority, minimizing human and route factors with IoT technologies will definitely be beneficial. Drone-based delivery not only makes route optimization strategies easier but also significantly reduces operating costs for the service provider. Transportation IoT technologies such as drones are not yet ready for a complete adoption, however, some loud announcements have already been made.
So Amazon is already making progress in the eventual release of drone-based deliveries, and in the nearest future, we will see the beginning of the revolution in the transportation and logistics sector.
According to the Internet of things and its challenges in supply chain management research, adopting IoT comes with some challenges. Let’s take a look at the ones related to the supply chain process along with the issues that you shouldn’t ignore.
When we consider various potential challenges the first category to think of is definitely the integration part. What are the issues specifically related to integrating IoT features that shouldn’t be missed? Let’s find out the main ones.
This section of challenges consists of the issues related to operational processes. What points should be considered in order to set up the highest functioning level and what usually stops the successful adoption of IoT in logistics industries.
Challenges that come with IoT are not only about operational or integration issues. It’s important to be aware of the challenges that involve social interactions such as gaining trust or re-educating employees. Let’s take a deeper look at them.
After describing technical and social challenges we should also consider environmental awareness and the issues that lay beyond it. When it comes to the environment there are several challenges.
In conclusion, we can confidently state that adopting the Internet of Things for Logistics and Transportation businesses is significantly beneficial to improving safety, profit, and reliability. The number of possible use cases for IoT systems is game-changing, and shouldn’t be underestimated. If you choose a prosperity course for your logistics or transportation project — implementing IoT is definitely the most beneficial and reliable step you can take.
If you have any questions or need help with integrating IoT features into your logistics or transportation project, let us know. We will be happy to help you meet your business needs with an outstanding product!
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