Role of IoT in Transportation and Logistics: Benefits, Use Cases

Internet-of-Things (IoT) has seen tremendous success in the transportation industry. The integration of tracking devices & sensors is transforming the way logistics and transportation companies operate. It helps them to map the most efficient routes and maximize fuel usage, and logistics companies track and trace their shipments in real time.

In this article, we’ll explore the use cases of how IoT helps the industry, potential drivers, benefits & more.

Key Contents

• IoT in logistics and transportation: Key drivers
• The benefits of IoT in transportation & logistics
• IoT use cases in transportation & logistics
• Rishabh’s IoT Experience in the Transportation and Logistics Industry

It wouldn’t surprise you to learn that the logistics & transportation industry has been using connected ecosystems since the emergence of the “Internet of Things.” The reason being connected ecosystems make it possible to track delivery vehicles and monitor the delivery process. It is while helping to ensure timely shipment to remote locations.

Some Statistics:

• According to Allied Market Research IoT in Transportation Market to Reach $495.57 Bn, Globally, by 2030 at 19.9% CAGR
• Mordor Intelligence suggests that the North America region is expected to dominate the IoT in the transportation market. It is due to the strong presence of manufacturing and transportation and logistics industries with several technological advancements in the region. Also, government initiatives and regulations in various end-user industries are expected to further support the market growth in the region.

While the movement of goods from one point to another was the only goal of transportation & logistics companies then. However, increased competition and rising customer expectations have compelled the industry to focus on smart fleet management, real-time inventory tracking, faster deliveries, and flawless customer service.

Listed below are some of the key drivers of IoT for the logistics & transportation industry;

• Visibility across transportation processes
• Operational performance measurement
• Reducing downtime
• Decreasing operating costs
• Road traffic optimization

Being an essential part of modern-day fleet operations, IoT in logistics enables organizations to address some of their biggest challenges. And, if channeled correctly, it would reap the listed below benefits.

• Smart Management of vehicles, warehouses, and other assets: Helps streamline the storage of goods and Management of inventory levels. Radio frequency identification tags (RFID) and sensors allow fleet owners & managers to keep constant track of the stock levels & inventory items. And it eventually helps prevent losses, minimize handling errors, easily locate things, and ensure safe storage while reducing labor costs.
• Improved Driver Safety: Cameras equipped with the power of Artificial Intelligence can capture data and trigger audible notifications for truck drivers. These alerts are triggered for activities that include mobile phone use, speeding, seatbelt violations, tailgating and more.
• 360-degree Supply Chain Visibility: Constant monitoring and Management of delivery is a daunting task for the staff of transportation companies. By combining GPS sensors and Bluetooth low-energy (BLE) beacons, deliveries can be tracked remotely, enabling seamless collaboration between drivers and dispatchers. Logistics businesses can extend their services on a global scale with trucks, trailers, and ships carrying freight across international boundaries. It further reduces the risk of theft & cargo damage.
• Cost Reduction: Telematics solutions offer performance insights that enable fleet operators to optimize fuel usage with efficient routing & improved driver behavior. It allows them to cut the associated costs with manual administrative tasks and extend vehicle lifespan with timely & effective maintenance scheduling.
• Optimum Resource Utilization: The application of IoT in the transportation industry creates transparency and accountability among fleet drivers and managers. Based on the records & reports generated, fleet managers can precisely track driver activities, productivity, and fuel consumption parameters for the used vehicle. It would allow fleet managers to allocate work without risk of delays or violations.
• Enhanced Operational Efficiency: Helps eliminate paperwork and automate processes for both drivers and dispatchers. This enables freight management companies to respond to real-time issues, make informed decisions and facilitate on-time deliveries.
• Adherence to Regulatory Compliance: Fleet management systems with IoT capabilities can support managing regulatory compliance. The data captured from vehicle & driver tracking with parameters including hours of service, records of duty status, accurate fuel tax reporting, and driver vehicle inspection reports can be shared directly with the relevant authorities.
• Enhanced Customer Experience: On-time deliveries are a top priority for supply chain management and fleet handling companies. IoT sensors & tracking devices make it possible to stay on top of the assets & inventory in transit. Companies can provide accurate customer updates regarding delivery dates and times while ensuring early shipment and customer satisfaction.

As mentioned above, the use of IoT technology significantly impacts the connected ecosystem for the transportation sector. Listed below are some of the applications of how IoT is driving transformation across transportation supply chain processes, policies & procedures:

• Telematics for Fleet Management: Telematics helps retain & manage data from the sensors embedded in trucks – from driver behavior to vehicle performance. By processing & analyzing this information using predictive analytics, fleet management companies can optimize their maintenance schedules and improve the quality & service life of their fleet vehicles. The use of telematics also helps reduce the wear and tear of vehicles and increases fuel efficiency by tracking all the parameters that impact cargo delivery.
• Inventory and Warehouse Management: An IoT-enabled warehouse management system is designed to help you optimize limited storage space and quickly locate goods. RFID tags instantly send information to the database when a product leaves the shelf. And the smart sensors installed in the warehouse automatically create purchase orders when the stock levels are low.
• Supply Chain Optimization: IoT technology enables seamless data exchange via tracking devices and computer systems. With easy access to actionable information about the import and export processes, managers can easily track the location of goods in transit and immediately verify product details as soon as they arrive at the destination. IoT technology also enables predictive analysis for product loss, thefts or delays.
• GPS Fleet Tracking: Vehicle tracking systems help freight management companies to stay on top of their trucks and trailers, monitor driver behavior, and track idling time; distance traveled & fuel usage. They can use IoT-powered functionality to schedule trips, rest breaks for drivers, and automate alerts for speeding, accelerating & breaking violations.
• Predictive Maintenance & Breakdown Prevention: IoT-based predictive maintenance solutions in logistics industry are highly beneficial when it comes to finding and fixing bottlenecks to avert asset downtime and failure. Instead of being dependent on scheduled inspections, the transportation and logistics industries can leverage IoT technologies for performance analysis and predict patterns related to frequent repairs and engine failures. Notifications alert fleet managers of the probability of being prepared for unexpected breakdowns. This solution allow you to create effective repair and maintenance schedules, identify defects before they become costly and catastrophic, and improve decision-making.
• Delivery Tracking: Tracking a product right from when it arrives at the warehouse until it reaches the customer’s doorstep is a big challenge for logistics managers. By coupling IoT technology with GPS sensors and RFID tags, you can track any product with complete transparency, reduce the onus on your staff and enhance customer satisfaction with instant updates on every movement till the product is delivered without any hassles.
• Route Optimization & Location Tracking: Supply chain managers can track vehicle movement with location management solutions. Further, with geofencing & GPS tracking technologies, they can track; 1) routes taken by drivers, and 2) get updates on unforeseen events or unexpected anomalies. These features can significantly improve the Management of delivery schedules and ensure timely cargo deliveries.
• Toll and Ticketing: Traditional toll systems are prone to manual errors and have become inefficient at tackling the recent increase in vehicles on busy highways. Automated tools are equipped with RFID tags and IoT connectivity to detect vehicles from a distance and lift the barriers.

IoT is widely used in the transportation & logistics sector to minimize risks & costs while maximizing productivity & profits. We have experience providing custom software solutions to the logistics & SCM industry. We combine it with our Internet of Things development services to deliver technology solutions that meet the modern-day supply chain & logistics requirements.

If you have an IoT app idea to monitor and control your fleet vehicles remotely, our consultants and developers can help you build a custom solution. We use advanced connectivity technologies, IoT platforms, sensors, and supportive development frameworks & languages to successfully implement a connected ecosystem that drives the effective transformation of transportation processes.

Here’s how we helped a client leverage IoT capabilities to ensure compliance with fleet management regulations with live tracking of cargo & commercial drivers.

Case Study: ELD Fleet Management Mobile App Development

One of our clients – a US-based fleet management company- wanted to develop an Electronic Logging Device (ELD) mobile app with IoT capabilities. It would help them; 1) adhere to stringent compliance requirements rolled out by the Federal Motor Carrier Safety Administration (FMCSA), 2) get visibility on their cargo & commercial drivers.

We developed a mobile app that interacts with IoT sensors installed on the vehicle to send the required data on driver & vehicle performance. It eliminated their paper records with digital Records of Hours of Service (HOS) and Duty Status (RODS) for all commercial drivers.

It resulted in the following:

• 100% automation of the driver vehicle inspection reporting
• 2x increase in driver & fleet efficiency
• 62% increase in fleet profitability