The IoT’s Impact On Logistics

Featured article by Charles Bell, Independent Technology Author

The IoT, for those who may not be familiar with the term just yet, stands for the Internet of Things, and some believe it’s the most significant technological development since the Internet itself. It’s essentially the automatic connection of devices and systems around the world for purposes of recording data and improving operations. Everything we use in a given day, from fitness wristbands to vehicles, is being connected in order to help us optimize how we manage day-to-day life. And in many cases, IoT developments can also help to conserve energy and improve safety.

But as much as the expanding IoT figures to impact individuals on a day-to-day basis, its biggest applications tend to be in companies with operations to keep track of around a whole country or even abroad. Many large companies have unthinkably large numbers of things to keep track of, including the creation of its product, the shipping of that product to distribution centers and retail stores, and the monitoring of inventory at those locations. It’s a huge task that in the past has called for accountability on the part of everyone from factory managers to retail employees, and many in between. But thanks to the IoT, many of the logistical concerns related to these aspects of business are being automated, and business practices are becoming faster and more effective.

Let’s look at a few different aspects of shipping and supply chain logistics to see how, exactly, the IoT is changing the landscape for large businesses. Specifically we’ll look at production in factories, management of shipping practices, and monitoring of product inventory at the warehouse and store levels.

Changing Factory Conditions

Manufacturing and technology have been closely tied for as long as factories have existed, in that we’ve always looked to develop new tools and systems to speed up the process. Indeed, in some ways that’s the very definition of a factory. But while there are plenty of modern tools that have been used to speed up production, the advent of “smart” systems in production facilities is essentially brand new, and brings product creation into the IoT.

IndustryWeek explains what exactly this means by stating that smart tech in production facilities is turning “batch-level” visibility into “unit-level” visibility. What this means is that smart sensors and tracking systems can make each individual unit of production “seen” at every stage of the process, from inception to the point at which it’s ready to be shipped. It’s explained that many companies admit that most of their production processes remain completely offline, but it’s expected that in a matter of years the number of facilities managing production offline will drop to zero.

With this improving visibility of the manufacturing process, factory managers and other company officials can gain new, deeper perspective on the whole process. Timing for new product to be shipped can be made more precise, management of worker shifts can be done more effectively, and the whole process can be made to generate more product with less waste. And this is all merely with regard to the product itself. There are other aspects of IoT installment in production facilities that can make environments safer and more comfortable for workers as well. But where logistics are concerned, the impact of the IoT is pretty simple: product is created and shipped out more efficiently.

Improving Shipping Practices

Once product is created, the challenge becomes helping it reach retail locations as quickly and safely as possible. Naturally if production is being improved, shipping needs become greater. The more product is being made, the more smoothly shipping divisions need to operate to handle it. And as with other aspects of supply chain logistics, the IoT is helping shipping divisions and fleet managers to meet the demands.
Networkfleet describes how the IoT is changing things for shipping fleets, with a specific focus on WiFi-enabled vehicles and advanced GPS technology. Specifically, WiFi sensors and GPS trackers can essentially link every aspect of a fleet vehicle to a company system that can be monitored by a fleet manager. Vehicle diagnostics, routing information, and even data about safe driving can all be tracked automatically, so that a fleet manager can react accordingly. That means managing schedules, figuring out the most efficient routing, and helping drivers to perform as safely and quickly as possible.

This type of oversight simply didn’t exist for shipping fleet managers a few years ago. There might have been shipping schedules, updated vehicle information, and even regular reports from drivers making deliveries or reaching checkpoints. But now these measurements are all automatic and much more exact, allowing a fleet manager to gain a full picture of the process with very little effort. The whole thing is helping product reach retail locations safe, sound, and on time.

Automated Inventory Tracking

In some instances, the process of automated inventory tracking actually begins in production facilities and doesn’t stop until sale. As mentioned, IoT changes in production are bringing companies to a point of “unit-level” visibility, which means having an eye on each individual piece of product that’s produced. In some cases, that can mean a tracker of some sort that stays with that unit through shipping and even onto retail shelves. However, there are also other ways in which the IoT can assist with inventory tracking.

Inbound Logistics, in looking at several aspects of the IoT’s impact on supply chains, touches on the idea of monitoring inventory, stating that automatic, WiFi-enabled sensors can monitor on-shelf inventory to avoid out-of-stock situations. This simply means that devices can be put in place that send automatic alerts to warehouse managers (or directly to relevant company officials) before product actually runs out, so that production and shipping processes can be set in motion as needed. This is as opposed to warehouse inventory being monitored by a manager or employee directly, which naturally provides more potential for a mistake or for general negligence.

The same sort of inventory tracking can also take place on store shelves, rather than in a warehouse. Typically product might either be re-stocked on a continual, scheduled basis or else provided as needed based on the reports of a store manager. However, with IoT sensors in place and inventory appropriately stored, a dwindling supply can be reported automatically so that product arrives when needed, without an employee or store manager lifting a finger. It’s an unprecedented level of convenience for retail locations, and more importantly it can potentially stop such locations altogether from missing sales due to inadequate supplies. This is also the aspect of the IoT’s impact on supply chains that is most visible to consumers, who may soon view out-of-stock situations as a thing of the past.

Within these trends, there are plenty of specific efforts taking place, and the ways in which IoT systems are being implemented differ from one company to another. On a broad scale, however, it’s clear that there is huge potential for IoT technologies to alter the ways in which product is made, shipped, monitored, and even ordered within businesses.