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How the IoT is Changing Logistics
The IoT, or the Internet of Things, is a relatively new period of the internet. No longer are PCs, smartphones, laptops, and tablets the only devices being connected to a network. From the smartPORT of Hamburg Germany to DHL’s SmartSensor technology, originally unconnected physical objects are communicating with the internet. These objects are not only communicating but using the information they gather to help logistics companies make decisions and improve the process.
Some say the IoT originated with MIT's Kevin Ashton. In a 1999 presentation titled “Internet of Things,” Ashton pitched his idea of RFID tagging in the supply chain to Proctor and Gamble. As internet and technology grew, so did the use of internet connected things in supply chain and logistics. Featured below are three current use cases of the IoT in logistics.
Hamburg Port Authority (HPA) – smartPORT
The Port of Hamburg is forecast to double its traffic by 2025, but because of the ports urban location, it is challenged with limited space to handle increased traffic. Therefore, the HPA turned to technology to increase operational and environmental efficiency. The Port Monitor is an application used for vessel traffic services. The application provides digital maps and information on vessels such as location, sea levels and berths. In addition to vessel monitoring, the port has an application that monitors road and rail traffic. The sensors provide data about traffic surrounding the port, which allows the HPA to manage traffic flow and idle time. All the sensors communicate with a cloud platform, which enables various businesses and stakeholders to stay connected and make decisions in real time.
Driver Safety Systems (DSS) – Fatigue and Real-time Maintenance Monitoring
Commercial trucking accidents cost an estimate of $12.4 billion a year. In a study by the DOT, 87 percent of trucking accidents occurred because of driver fatigue. To combat this problem, several technology companies have developed facial recognition software to detect driver fatigue. The software uses an algorithm to analyze the eye, eyelid and head position. The onboard computer will sound an alarm if it detects sleep or drowsiness. The computer also sends the information to dispatching, as well as GPS location, speed, and braking. Another DSS uses sensors to monitor truck maintenance. It identifies parts and components that could fail, resulting in damaged cargo and personal. Using cloud computing and internet connected sensors, trucking companies can improve safety and save money.
DHL SmartSensor GSM
DHL has developed a sensor which provides advanced track and trace information. The black iPhone sized sensor provides real-time visibility of the cargos humidity, shock and light level, location and proof of delivery. The sensor is a standalone device which communicates cargo data to a web and mobile portal. The portal allows users to view cargo status and to set cargo condition alerts via email and SMS. The technology can be used in warehousing, trucking, rail, air, and vessel transportation.
According to a DHL and Cisco estimate, the IoT has a potential impact of $1.9 trillion on supply chain and logistics. Although the industry has already seen an impact from the IoT, it is just the beginning. To achieve maximum use of the IoT in logistics, there is several key factors pointed out by the DHL/Cisco study. Companies must achieve a standardized approach for tagging and identifying assets (cargo, trucks, vessels, etc.). In addition, companies must share the information gathered to make better decisions and drive efficiency. Overcoming these challenges will create a completely connected supply chain, and save billions of dollars.
Contributor: Mitchell Turiel
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Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North America, Europe, and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, Florida, U.S.A., Shanghai, P.R. China and Prague, Czech Republic. For more information, visit www.allynintl.com.