Introduction
We all continuously hear all the hype about the growth of IoT or the internet of things with all the analysts predicting that there will be 20 billion networked things by the starting of 2021. Internet of things generates almost more than 20 trillion gigabytes of data per device. All of this is helping a lot in reducing the costs and improving the accessibility of new supply chain monitoring and tracking technologies. Besides, they are being closely looked at by all the top international shipping lines, major shippers, 3PLs, etc. IoT is changing the way everyone looks at everything from storing food at home and cooking to tracking the products that are moved from the factory to store shelves. So, now you must be thinking that how companies leverage this IoT technology into their businesses to make a positive impact on their supply chain as well as shipment tracking work?
About 10 years ago, many organizations and companies started investing in the tracking devices that were put on every cargo or container on a shipment basis. Nowadays, there are many providers of these kinds of devices, and that too at a relatively low cost. Some of these solutions only log data while others offer a lot more. Some of these devices are very advanced and thus provide real-time reporting with sensors to monitor the cargo and door opening along with container damage during transportation.
The demands and the expectations of customers are maturing with each passing day on the logistics. Shipping time, inventory flow, warehousing space, and real-time visibility are some of the advancements that have been made. The next section will cover the benefits of IoT in shipment tracking and supply chain.
Benefits of IoT
Improved inventory with IoT asset tracking
Inventory systems are specially designed to help the supervisors and all the business owners to keep a track of the products that they have on hand. But, there are a lot of things these systems can do only because they greatly rely on manual input to update the inventory numbers. However, IoT on the other hand takes the asset tracking job to another level by offering real-time location information for every item in the supply chain. It does so by simply adding a tiny Bluetooth tracker or RFID to the packaging.
Better supply chain transparency
Supply chain transparency has now become a growing concern for all the business owners as consumers and customers are making more environmentally friendly choices and they want to know where their products are coming from. They are willing to pay more for a particular product if that company is commits to environmental change. That’s why maintaining a transparent supply chain with the help of IoT helps in preventing such disruptions that can put the whole chain at risk. Through IoT, all the information is available at their fingertips as soon as the problem starts.
Real-time temperature tracking for cold chain transport
Cold chain transport is a very important part of the supply chain for chemicals, food, pharmaceuticals, beverages, etc. Every product or item needs to be kept below a specific temperature during storage and transport. With products like pharmaceuticals if the temperature varies fewer than 2 degrees then it can ruin the whole shipment. Adding IoT can provide real-time temperature tracking at the time of transport. So if there is any variation in temperature in the interior of trucks, it will alert the company owners.
Predictive maintenance to prevent downtime
Today, almost every warehouse and supply chain has established a maintenance schedule, taking all the pieces of equipment offline on a very strict schedule for inspecting and repairing it to keep it from falling at the time it is needed the most. This is a prevalent maintenance strategy but it’s not the best. IoT technology removes the need for preventive maintenance. Instead of allowing the organizations to predict when equipment might need work; IoT sensors check the health of every instrument or equipment and feed that data to the warehouse management software. This will eventually alert the supervisors and maintenance teams when something needs to be repaired. This greatly prevents costly downtime and failure of equipment.
Fleet Management
IoT can greatly help in the management of a business’s fleet if its warehouse is responsible for the fleet of vehicles. It can include trucks and vans for deliveries and cranes and forklifts within the facility. Equipping the fleet with IoT sensors can help in keeping a track of vehicle maintenance levels. It also alerts the owners if there is a problem or something needs a warm-up. These IoT sensors are also capable of tracking the fuel efficiency of the vehicle. And it can even track the behavior of the driver can be to ensure that the delivery drivers are safe.
Smoother last-mile deliveries
Last-mile deliveries are very challenging as they take up a lot of time. Most companies are looking for solutions that will improve this since the advent of e-commerce. So, IoT might prove to be the perfect solution. Both the GPS and the IoT can create optimized routes. They reduce fuel waste and time in traffic. All credit goes to real-time traffic analysis. This same technology that warehouses use can also help in improving customer package tracking and streamlining last-mile deliveries.
The bottom line
Internet of things is exponentially growing day by day. Supply chain, shipment tracking, and logistics are not the only industries that are benefitting from this technology. However, these industries are the ones where they might not be optional any longer. This sector heavily relies on GPS vehicle tracking for many of their fleet operations. The major benefit that these industries get is that they allow optimizing their cargo delivery operations offer customer-oriented services at the right time.