5 Ways the IoT Is Improving the Shipping Industry Now
The Internet of Things (IoT) encompasses a massive range of connected products and applications, ranging from smart speakers to intelligent security systems. It’s no surprise that business leaders are eager to take advantage of such innovations to improve their operations. Here are five ways the IoT is making the shipping industry better.
1. Monitoring Environments Associated With Temperature-Sensitive Goods
Appropriate temperature controls are essential for some specific product categories, such as delicate medications or perishable consumables. If those products are put in places that do not meet their temperature range requirements, they could become ineffective or dangerous to use.
People often discuss sensors and IoT products together. Many connected gadgets can detect adverse environmental conditions, such as prolonged warmth or moisture. They then alert the relevant people to problems that could affect the quality of shipped goods.
One solution intended for shipped pharmaceuticals collects data from 8,000 wireless mobile sensors and makes the information available to people via smartphones. Besides giving temperature statistics, it also detects potential tampering and can even remind the end-user to take their medication after receiving it.
Such solutions also give companies more visibility. If a customer complains about spoiled goods, the parties that shipped them to their destination can look through the supply chain and use data from remote sensors to verify where things went wrong.
2. Saving Fuel in Cargo Vehicles
Fuel savings in vehicles used to transport shipped goods could help companies’ bottom lines. IoT equipment could remove much of the guesswork associated with what shipping companies should do to reduce the amount of fuel required for operations.
One approach is for land-based fleet companies to invest in sensor-driven performance monitoring solutions. They could pick up on driver habits such as stopping and starting too fast, gunning the engine and driving around corners with excessive speed. These behaviours can negatively impact gas mileage. Plus, they may increase dangers for others on the road. Identifying those issues is the first step to corrective coaching.
Another IoT option that saves fuel involves improving the engine management for cargo ships. One possibility integrates with the vessel’s propulsion control system and causes an average of 10-15% in fuel savings per day after a business completes an initial period to calibrate the system. That solution combines the IoT with big data and artificial intelligence algorithms.
Reducing fuel usage is only one potential way for a shipping company to save money, but it’s crucial. Advanced IoT technology can tweak the engine performance to match environmental conditions like road traffic or higher-than-average ocean waves. That means company leaders may also avoid issues such as mechanical failures due to operator errors.
3. Improving Parcel Tracking
Research shows that global e-commerce transactions experienced a 19% increase in July 2020 compared to a year earlier. More people are buying things online, and that trend keeps shipping companies in high demand. However, some shoppers are not satisfied with vague updates about when to expect parcels. They prefer timelier updates. That’s why FedEx underwent a substantial digital transformation that provided customers with more transparency, among other perks.
Rob Carter, the company’s chief information officer, explained, “We’ve been very busy over the last couple of years building out what we call sensor-based logistics. The criticality of the shipment today may be what warrants a sensor being embedded that allows you to actively track that shipment throughout its journey.
