Tracking Everything Everywhere: How The Internet Of Things Is Changing The Logistics Industry 

That is the title of a Forbes article posted in November 2014

But lets start with the basic what does Logistics do?

Logistics is defined as a business planning framework for the management of material, service, information and capital flows. It includes the increasingly complex information, communication and control systems required in today's business environment. (Logistix Partners Oy, Helsinki, FI, 1996)

And what exactly is the Internet of Things (IoT)?

Techtarget.com defines it as folowing: “The Internet of Things (IoT) is a scenario in which objects, animals or people are provided with unique identifiers and the ability to transfer data over a network without requiring human-to-human or human-to-computer interaction. IoT has evolved from the convergence of wireless technologies, micro-electromechanical systems (MEMS) and the Internet.”

As Margit told us in class the information flow is a key element of the logistics plan for any company. Integrated technolgy information systems are used for an efficient information flow. These are ordering systems, which connect company, supplier and client.

The IoT does connect even more data as explained before linking physical and virtual objects through the exploitation of data capture and communication cpabilities.

So, how does the IoT change the Logistics Industry?

The article at Forbes says the following:

“Transport providers can provide not only real time information updates based on intelligence from the transport network, but also recommendations based on the other factors defining the “context” of the user. The most obvious of these is information on the location of the user, gathered through cell site triangulation, GPS or hyper proximity technology such as Bluetooth Low Energy. However the most effective personalized and targeted services will also take other factors into account, such as time of day or weather.

These contextualized services can help passengers navigate the complexities of multi-modal journeys, and help transport service providers limit the impact of disruptive information aggregators”

Fundamentally, transport service providers have two hugely valuable assets in today’s digital economy with which to play, passenger time and passenger context data. This creates the potential for contextual services that can both improve and differentiate the passenger experience and increase revenue per passenger journey. It is an opportunity that must not be ignored.”

To complement the statement above, C. Power comments at his article at ebnonline.com (March 2014):

“The IoT ultimately will enable companies and their staff on the ground to better access the information they need in order to prepare for and react to disruptions in real time.

To effectively embrace the IoT, successful companies will need to not only have the data streams from on-board vehicle sensors, tagged pallets and package barcodes, but also the capability to direct that information in a way that enables them to manage by exception in real time, while also viewing the data in aggregate across weeks and months to identify and prioritize solvable inefficiencies. "By 2020, component costs will have come down to the point that connectivity will become a standard feature, even for processors costing less than $1. This opens up the possibility of connecting just about anything," according to Gartner's research director Peter Middleton.

Looking ahead, as costs come down and technology improves, the industry is certain to see the IoT embedded in nearly every item that moves through the supply chain on a daily basis -- assets like pallets, boxes, trailers, etc. are likely to be among the items that will use same technology as consumer wearables do today -- making it easier to keep tabs on products from end to end. Companies will want to take all of the data from the technologies they have deployed to optimize the overall supply chain and identify weak links in the supply chain that can be improved.”

The FrauenhoferInstitute has developed some prototypes of future Logistics solutions:

In conclusion, these could the possible adjustments to the Internet of things concerning Logistics:

But the IoT is not only relevant for Logistics companies, but also an opportunity for new business solutions! Click here to see a great example of an intelligent fridge!  

If you want to keep reading about the change for Logistics companies thanks to the Internet of things, have a look at these sources: 

Techtarget.com

Forbes.com

Smart-system-integration.org 
Hbr.org 
Ebnonline.com 
Ft.com 
 
published by Susann Stenschke D6