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How Shippers Can Leverage IoT Technology Solutions in Their Supply Chains

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Archives, Global Shippers 101, Global Trade Daily

How Shippers Can Leverage IoT Technology Solutions in Their Supply Chains

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At one time, managing supply chain logistics was among the most difficult challenges that existed for a shipping company. Previously, the shippers with the best operational management programs sat at the head of the pack by default. Today, with increased automation and near-instantaneous data availability, controlling logistics has never been easier, and just about everyone is at least competent at handling their supply chains. This is a very positive thing for consumers; however, it also means that for companies to be able to innovate, grow and maintain a competitive edge, just being “good” at supply chains isn’t enough–these days, to achieve long-term success, you have to be great.

Here are five steps shippers can take to leverage IoT technology solutions in their supply chains:

1. Map out your existing process

Knowing what you are starting with is one of the most important steps in the entire process. Map out your existing process with fine, granular detail. If you have access to a Six Sigma expert, bring them in. When you have your current process defined, then, and only then, are you prepared to further enhance and improve your supply chain with IoT solutions.

2. Build a dedicated team to implement new IoT solutions

Ensure you have a chairperson, as well as enough allocated resources with “skin in the game,” to spearhead the implementation process. Nothing will throw sand in the gears faster than a team that has minimal direction and does not have any incentive to push things forward quickly and efficiently. Identify these people, have regular meetings with them and work together on S.M.A.R.T. type goals.

3. Know your competition

Study your peers and competitors to see what they are or are not doing. It’s highly probable that their struggles are also your struggles. However, don’t just follow your biggest competitor blindly, but rather study what they’re doing and develop a competitive edge based on their weaknesses. Map out their processes, see where they have implemented IoT technology, ask the ‘why’ and then take the best parts to incorporate into your own unique strategy.

4. Ask an expert

Consultants are experts for a reason. They’ve done this before and know what works and does not work. Developing an IoT solution is no easy task, so picking your consultant is an important step. Speak to multiple experts to gain multiple, educated opinions on how to proceed. Use the task force you created earlier and choose the best path for your organization that will have the greatest ROI.

5. Study your results and constantly evolve

Once you have mapped out your existing process, built your team, studied your competition, enlisted the help of experts, calculated your ROI and implemented your IoT technology solutions – don’t stop! IoT technology is ever-changing and learning, constantly collecting and analyzing granular data for your use. The more time and data that is dedicated to this process, the sharper your process will become. This access to information will open doors to opportunities for efficiency and possibly new markets in your supply chain.

What all of this translates to is a potential market that is broader than ever before. However, as new tech continues to narrow traditional gaps in efficiency, it also means that companies are now battling one another on that basis – when competing in an environment where customers can compare shipping speed and choose accordingly, getting package there faster is of paramount importance.

Companies need to find ways of protecting current market share while expanding into other areas. In this regard, IoT technology becomes especially valuable. IoT allows businesses to be more adaptable and make decisions on-the-fly, in addition to minimizing costly errors. Data collection also gives unprecedented perspective on customer needs as well as behaviors, allowing companies to innovate based on sound evidence – all of which creates opportunity for increased revenues.

The bottom line: technology is the way forward for just about every aspect of supply chain development. As always, innovation is an ongoing process and in the pursuit of greatness there’s simply no solution for investment and creativity. With all the tools that IoT provides, and these actionable steps, the possibilities truly are endless.

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Archives, Global Logistics, Global Trade Daily

The Advent of Smart Vehicles & Drones in Delivery

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Consumers will almost always pick the company that delivers faster. Having the most efficient supply chain is now, more than ever, the key differentiator that sets companies apart from their competitors. But more than this, companies that can predict behavior are the ones that will stand out ahead of the pack.

Since the early 2000s, logistics, freight, delivery and service companies have been outfitting their fleets with GPS tracking systems to monitor the location, movement and status of their fleets. For many companies, GPS tracking is where logistics technology begins and ends, with businesses investing thousands of dollars into monitoring their vehicles and reacting to ‘what happened’. But companies that are positioning themselves for the future recognize that the real value lies not in just determining what happened, but rather in using data obtained through intelligent logistics solutions to predict future scenarios, mitigate risks and avoid adverse outcomes altogether.

By accessing data in real-time through internet of things (IoT) technology, businesses can anticipate their customers’ needs and desires before they do, enabling them to deploy resources more strategically and sharpening their competitive edge. Using the real-time data collected, which helps identify where to trim the fat or drop what’s not working, companies are now able to make quicker, bolder and more informed business decisions. And beyond helping companies streamline their logistical processes and distribution networks, IoT technology is also driving their expansion into new untapped markets with the advent of smart vehicles and drones.

Using smart vehicles and drones to expedite delivery

One of the key – and arguably most important – innovations in intelligent logistics is the development of the delivery drone. The immediate and obvious benefit of drones is faster delivery, enabling consumers to speedily receive products from vendors like Amazon, Sam’s Club and Whole Foods. Drones allow for expedited deployments; waiting for trucks to dispatch takes significantly longer. However, even more important is the impact drones are making on reaching developing societies that, up to now, have missed out on decades of infrastructure development.

Drones using IoT technology are connecting developing countries with limited infrastructure to the global village, thus enabling them to participate in the global economy. This is opening new markets for business that were previously closed to them in the past.

Smart logistics in vehicle fleet management

Delivery vehicles that get caught in traffic or take convoluted routes to their locations can cost businesses hours of lost productivity. But by using Real-Time Location System (RTLS) technology, IoT devices allow businesses to easily and precisely track driver locations.

Smart trucks that implement IoT tech do more than ensuring the driver is on task, on time and performing safely at optimum levels. IoT devices are also enabling businesses and their delivery fleets to gather even more valuable data, such as identifying the fastest route to avoid traffic, knowing when the trailer is unhitched or when the recipient has opened a dispatched package. Companies like McDonald’s are experimenting with delivery trucks that can map the fastest and most efficient routes on their own, thereby reducing emissions and speeding up delivery.

Drivers, too, benefit from IoT tech in their vehicles. Smart logistics tech can also monitor the environment on all four sides of a vehicle, which helps prevent costly mistakes and accidents.

By leveraging IoT technology, companies can now execute every step of the delivery process on-site. For a happy ending, wireless sensors notify companies when the order was opened, allowing company representatives to ‘wow’ customers with a text alert saying, “did you enjoy the product?”

Driverless vehicles: how can they help me?

Back in 2017, an English online grocery chain named Ocado released a self-driving delivery truck into the backstreets of London. The little truck was accompanied by two human monitors and delivered goods to London residents over the course of ten days, all by using its onboard IoT mapping software.

Ocado’s mini-truck was unable to carry as much cargo as its bigger, 18-wheeler brothers, but it did arrive at customer houses faster and with less hassle than larger vehicles could have. Online buyers, meanwhile, could use Ocado’s smartphone app to track their delivery and receive updates right as the Ocado van pulled up to their place of residence.

The Ocado van was the first in a continuing development of vehicles that can deliver goods quicker than traditional freighters, with more cost savings. Additionally, autonomous delivery vehicles can be scaled up more quickly; it’s easier to fit 20 small vans on the streets versus 20 diesel trucks.

IoT technology is future-proofing businesses for long-term returns

To today’s businesses, with the advent of smart vehicles and drones integrating IoT tech into supply chains may seem costly or even risky. But its striking long-term benefits and savings far outweigh the initial costs. Companies deploying intelligent logistics technologies within their fleets have fewer safety concerns, less staff compensation claims and more satisfied customers. With an eye on the long game, smart companies are employing IoT solutions to go beyond merely being ‘good’ at logistics: by mining IoT data, they’re investing in long-term returns for their businesses.

Gregg Abbate is the iLogistics key account manager of Advantech.

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Archives, Commentary, Global Logistics

The Utilization of IoT Technology in Smart Logistics

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With the new IoT-powered supply chain, the industry can now track goods from anywhere, at any time, on a global scale, transforming the modern supply chain as we know it.

We live in a complex, global world, and few industries better illustrate this complexity than logistics. In this multifaceted landscape, missteps along the supply chain are unavoidable. Most consumer goods travel thousands of miles, changing hands multiple times, before reaching their final destinations. Yet, no matter how solid the logistics network for a moving asset is, at some point a truck will get stuck in traffic, a crate will be delayed at a warehouse or an asset will go missing altogether.

Most parcels languish for much of their time in transit dead-zones; goods are first logged at factories, warehouses and delivery depots, but little real-time data exists during the journey between these points. Although radio-frequency identification (RFID) tags help track goods as they reach their destination, when it comes to following mobile assets, traditional RFID technology falls short. They give no information on what happens ‘in between’, leaving logistics managers largely in the dark about the state of the goods they’re charged with moving safely, and quickly, through a complex supply chain.

With traditional supply chain management solutions, logistics managers often only learn about delayed or misrouted assets after they arrive hours late—or not at all—at their destinations. These hours in limbo translate into lost productivity, delayed production and broken client relationships.

IoT technology unlocks the value in supply chains

Using the real-time data collected by IoT sensors, companies are now able to identify where to trim the fat and make quicker, bolder and more informed business decisions that sharpen their competitive edge. It also gives unmatched insights on customer behaviors, enabling them to innovate based on sound evidence. And by accessing data in real-time, businesses can anticipate their customers’ needs and desires before they do, enabling them to deploy resources more strategically and be more adaptable.

Real-time asset tracking streamlines field operations

As a tracking tool, IoT technology sharpens efficiencies between warehouses and distributors, giving customers clearer visibility of their deliveries. But more than this, real-time tracking provides data with fine-grain accuracy, hyper-speed connectivity, low-latency (less downtime), and deep coverage.

In contrast to RFID-based scan points, the IoT smart tracking device securely transmits real-time information about the exact location of those goods at any point along the supply chain, enabling businesses to minimize costly errors or avoid disruptive bottlenecks quickly.

Unlike most first-generation smart devices, assets connected to the IoT network don’t rely on WiFi or 4G, so connectivity issues are lessened, regardless of where the asset travels. IoT devices also benefit from deeper coverage in traditionally low-connectivity areas such as garages and basements.

Cameras installed on multiple parts of delivery vehicles give a 360° view of the travelling environment, while LTE signals in vehicles make for better GPS tracking. The quality and quantity of granular data that these intelligent devices can collect and organize is unprecedented. Thanks to this new level of information, global companies are beginning to see their supply chains become leaner and more efficient. 

Reducing delay-related costs with improved speed and accuracy

As goods make their way through the supply chain, IoT sensors return information about journey times, traffic surge spots, warehouse delays, network gaps or a change in ambient temperature. These up-to-the-minute alerts allow companies to mobilize quickly across a complex, global transportation network. Delayed assets can cause major disruptions further down the supply chain, but smart logistics turns potentially costly disruptions into a minor hiccup.

Building a lean supply chain

As our global economy becomes even more interconnected, investing in IoT-powered smart logistics solutions has no longer become a ‘nice to have’ option, but a critical necessity, giving the industry all the tools it needs to remain at the forefront of agile innovation in an everchanging world. 

 

Gregg Abbate is the iLogistics key account manager of Advantech.