A report released by Business Insider states that shippers could generate economic value of nearly $2 trillion simply by use of tags, sensors and a combination of other devices employing IoT in the tracking of goods. The report was commissioned by DHL, the biggest logistics provider in the world, and Cisco, a computer networking firm.
The huge economic value that could be generated arises from the various benefits accruing from the use of the technologies used in asset tracking. These technologies and solutions can, for instance, generate savings throughout the supply chain from the point of extraction or production to the point of delivery to the end-user. The report cited examples such as reducing the costs of transportation as well as storage. By automating tasks related to inventory, operators in the logistics sector would also be able to free up their employees for more productive and valuable tasks. The asset-tracking solutions and technologies can also generate savings by helping in the area of compliance reporting. This would consequently result in revenue opportunities that were previously untapped.
But it’s not only the sensors, tags, and other asset-tracking devices that are having a transformative and disruptive effect on the industry. The data these devices collect is also changing the sector. This data includes the physical location of the assets that are in transit or stored in a warehouse. The condition of the goods or assets, including the pressure, temperature, and state of the packaging can also be collected and transmitted in real time.
For players in the logistics sector to gain maximum benefits from these technologies and solutions, will need to undertake organizational changes. They will also need to employ other technologies and solutions that allow them to act on the data relayed to them in real time. Already, logistics firms are upgrading their technology in a big way. Technologies such as barcode scanners are, for instance, becoming redundant and being replaced with IoT solutions that transmit asset-tracking data in real time. Once the logistics operations and the supply chains are overhauled, organizations will then be able to more effectively move goods faster and at a fraction of the cost.