The logistics industry, despite being more than trillions of dollar industry world-wide, is a laggard in adoption of technology. As a result, industry is yet to reap the full advantages of latest technologies including IoT , Big Data and Machine Learning & make it useful for the masses. The principal reasons for the extant situation are:
- Complicated to understand especially by MSME
- Complicated to use due to different technologies & scattered suppliers
- Large upfront investment for in-house development
- Lack of integrated view of the business
- Corrective in nature rather than preventive
Although the IoT technologies coupled with software applications are transforming the ways in which the businesses are being run and even spawning new businesses such as use of telematics in vehicle operations etc., the penetration of IoT and associated technologies in the logistics industry has barely scratched the surface.
benefits of IoT cannot be overemphasized as the testimonials from the users
have proved in our case. The business benefits are many and may be categorized
- Increased asset utilization : For example, Vehicle Telematics Solutions have enabled transport industry to not only track and trace the movements of goods and assets but also use the technology in newer ways. One instance of the new use can seen how our clients are using the solutions to give directions to driver in case the driver is confused or lost his way.
- Better control through automation : IoT bases solution can not only provide more data to the managers to control the operations , they can also automate the control and reduce human intervention substantially. For instance, our cold chain automation solution ICE( Improvement in Cold Chain Efficiency) can take away the control from warehouse managers and drivers an automate the entire operations based on the policies set.
- Reduced costs : There are tangible and significant reductions in costs of operations driven by suitable IoT solutions. The ROI from such solutions are more than 100 in most of the cases . In an example of our clients using the FIT ( Fuel-sensing through Intelligent Technology ) , our clients have witnessed cost reduction on fuel consumption just by better visibility and system based suggestions on filling strategy. The cost reduction witnessed by them is between 5-10% and improving.
- Enhanced employee satisfaction : IoT based system are proving to ease the pressure on the employees by curtailing the amount of repetitive and boring tasks. The employee satisfaction has gone up due to the high proportion of menaning work enabled by IoT
- Improved customer experience : IoT based system are enhancing the trust levels between logistics services providers and their customers. One of the principal problems affecting the client to obtain the updates through manual follow-ups
previously mentioned in order to reach the masses and hitherto fence sitters , IoT
solution providers need to :
- Help business in taking preventive measures rather than giving corrective inputs.
- Provide integrated view of business metrics combining different technologies with IoT rather than only operational health of different parts of the business using technologies in siloed manner.
- Address security risks as IoT devices may compromise clients’ operations by giving control to intruders, if not secured well.
- Provide the above solutions in a cost effective way.
- Train the customers and address the fear of changing the status quo.
- Introduce measures for trust building to allay fears of information / data leakage.
The use of IoT based operations in the logistics industry is going to disrupt the industry in fundamental ways. In this context, it is imperative and significant scope to develop every day solutions for masses. The situation presents both the challenge and the opportunity for the solution providers and entrepreneurs.
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