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Exploring the Impact of IoT in Logistics and Supply Chain

IoT in logistics and supply chain

Exploring the Impact of IoT in Logistics and Supply Chain | Image source: Pexels

The Internet of Things is sparking a global technology revolution. Numerous industries are being affected, including IoT logistics, which offers more effectiveness, lower costs, and fewer supply chain failures overall.

The notion of IoT in logistics, its effects, advantages in various industry operations, implementation challenges, and trends will all be covered in this article.

To find the answers to your questions and stay up to date on this topic, which is extremely important to businesses and industry experts, keep reading.

Read also: Everything You Need to Know About On-demand Warehousing

What is IoT?

The Internet of Things is referred to by its abbreviation, IoT, as we have already discussed. It’s a technology that uses the Internet to link many kinds of gadgets together.

These days, this functionality is even available for home equipment like refrigerators, vacuum cleaners, lamps, etc. This enables the use of voice commands, sensors, and smartphones to operate the equipment.

IoT can improve a number of business operations, in addition to being very useful for daily tasks at home. After all, workers will have more time to devote to strategic and difficult tasks thanks to task automation.

How is IoT revolutionizing the logistics sector?

Previously, logistical activities were limited to computers that were connected. However, with the Internet of Things, other devices can now be connected to the network as well. This comprises:

  • Barcode scanners that gather data and transfer it to a system;
  • Sensors that gather information;
  • Smart shelves that, among other pertinent information,
  • Recognize when a particular item is about to run out;
  • Labels that provide details on each volume and enable GPS tracking;
  • Gadgets that allow the car to be online and gather information on its location, driving mode, etc.;
  • Vehicle cameras with artificial intelligence that detect unsafe driver behavior.

With the abundance of IoT resources available in logistics, businesses can now operate at a level of efficiency that was previously unattainable. Automation, predictability, and prompt action upon problem detection are, after all, their allies.

Benefits of adopting IoT in supply chain management

The implementation of IoT in logistics offers various advantages, including:

  • Having the ability to locate volumes;
  • Tracking environmental factors, including humidity and temperature, while in transit;
  • Identifying prospective issues so that they might be avoided;
  • Inventory management automation, preventing losses;
  • Enhanced operational safety;
  • More command over the fleet;
  • Decrease in fuel usage and improvement of vehicle maintenance.

As you can see, IoT has several advantages in logistics, from lowering operating costs to boosting efficiency and safety.

Role of IoT in optimizing logistics processes

Logistics procedures can be optimized thanks to the information sharing between devices. For example, stock checks and manual counting don’t require human labor because smart shelves take care of these tasks automatically.

Companies benefit in numerous ways from this, not the least of which is that decision-making becomes even more strategic. Managers will ultimately rely on information that provides them with a comprehensive and unbiased picture of the business.

How does IoT impact vehicle and cargo tracking?

Vehicles play a vital role in logistics because they enable resources and goods to be moved. As soon as they are linked to a network, the following is feasible:

  • Being able to track the whereabouts of fleet cars in real time;
  • Track how drivers behave when operating a vehicle;
  • Apply artificial intelligence to prevent collisions;
  • Examine the driving styles of team members.
  • Apply intelligent routing by using predefined criteria;
  • When an attempted theft is detected, block the vehicle.

How does IoT impact the optimization of vehicle maintenance?

Another essential phase in logistics procedures is maintenance. After all, in order to convey goods, vehicles must be in flawless condition.

IoT in logistics

Exploring the Impact of IoT in Logistics and Supply Chain | Image source: Pexels

Nonetheless, overseeing the regular maintenance of every vehicle in a sizable fleet is a challenging task. IoT is used to enable this monitoring with capabilities like:

  • Utilizing pattern recognition to find problems early;
  • The ability to strategically schedule maintenance without sacrificing output;
  • Keeping an eye on the wheels’ condition and functional life to make necessary changes on time;
  • Lowering the number of repairs brought on by mishaps by implementing IoT-based preventive measures;
  • Predictive and preventive maintenance can reduce costs more effectively than corrective maintenance, on average.

Challenges of implementing IoT in logistics

Follow along as the application of IoT in logistics provides benefits in addition to its many advantages.


IoT devices are vulnerable to cyberattacks since they are internet-connected. However, by implementing security measures, this problem can be resolved.

Integration between systems

Software from several suppliers is required by an organization in order to maintain equipment connectivity. Integration can be difficult depending on each trait. Before investing in a new solution, it is essential to examine the characteristics in order to prevent the issue.

Team adaptation

Technology has shown to be valuable, benefiting not just customers but also staff members. To ensure that everyone can utilize the technologies effectively and realize their full potential, training expenditures are necessary.

Quality of collected data

When it comes to data, size is what matters most. However, not every kind of information is beneficial to a business. As a result, it’s critical to assess the quality of the data gathered, paying particular attention to those that are actually important to the company.


Scalability is an organization’s capacity to expand. It’s important to consider how simple it will be to expand a firm using an IoT-based solution before making an investment.

IoT trends in logistics

The benefits of IoT are being expanded for the logistics industry by a number of technologies being developed in tandem with it, including:

  • expansion of 5G technology, which enhances device speed and connectivity;
    self-driving automobiles, which boost the effectiveness and speed of logistical operations;
    intelligent warehouses, where procedures are becoming more automated;
    Blockchain, to maintain a safe, unchangeable record of data collected by IoT devices. Learn more about blockchain in logistics.

IoT is predicted to increase significantly in the logistics industry, thus businesses must invest more in this kind of technology to be competitive and keep up with the industry’s pace.

Did you find this content useful? Check out this and other explanations about logistics and fleet management issues on the 3PL Links blog.

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