IoT logistics moves from connected fleet to connected things
The 21 century saw the inception of the internet of things. Many industries adopted IoT to improve efficiencies and meet increasing customer demands by using real-time data for prompt decision-making.
IoT began its journey on the factory shop floor with technologies like RFID helping to advance the manufacturing process. Then came consumer IoT applications, where homes started seeing a huge level of automation with lights or air conditioners operating remotely. After shop floors and homes, IoT was examined to help improve processes in the enterprise supply chain.
Initially, supply chain professionals and IoT technologists believed that by connecting goods-carrying fleet around the world, they could obtain real-time visibility of their shipments. Therefore, the first move in IoT supply chain was to develop technologies to track “vehicles.”
GPS vehicle tracking became the preferred method to gain shipment visibility, causing thousands of companies to launch with new technologies in this space. Wired to the vehicles’ batteries, GPS trackers provide data analytics about the fleets’ locations and movements.
GPS tracking analytics include location, speed, route, acceleration and driving patterns. However, you cannot obtain data on the condition of your goods — and this is a major limitation with fleet management systems.
While GPS vehicle tracking works well for personal cars and car services, the “connected fleet” approach is not effective for supply chain professionals wanting to stay abreast about the holistic health of their goods, and it poses several challenges: 1. Inability to monitor LTL shipments and market vehicles Whether the shipper is a large multinational or a small business, companies rarely ship goods using their own vehicles — especially on intercity and transnational routes. Typically, companies use logistics service providers (3PLs) to arrange for a pickup at the origin. The 3PL then sources a vehicle on a by-trip basis to haul the goods to its destination. This type of vehicle, known as a market vehicle, constitutes more than 80% of surface hauls around the world. Since market vehicles seldom return to the shipment origin after delivering the consignment to the destination because they are likely sourced by another 3PL for another shipper, it’s extremely difficult to secure the visibility of goods. You will have no insight into whether the market vehicle has a GPS tracker. Even if it does, you would need to obtain the data from the truck owner which is difficult, time-consuming and often impossible. 2. Inability to track multi-modal and trans-shipped cargo A large percent of shipments in the world travel through more than one mode of transport during transit. A shipment can move by surface, then by rail and even hop on a vessel for a journey across the ocean. By tracking the vehicle alone, you cannot monitor your goods’ journey end to end. 3.
