As with many other areas of the economy, the digital revolution is having a profound effect on delivery logistics.
The combination of mobile computing, analytics, and cloud services, all of which are fueled by the Internet of Things (IoT), is changing how delivery and fulfillment companies are conducting their operations.
One of the most popular methods for fulfilling deliveries today is through third-party logistics, which involves any company that provides outsourced services to move products and resources from one area to another. Third-party logistics, or 3PL, can be one service, such as transportation or a warehouse, or an entire system that maintains the whole supply chain.
But the IoT is going to change how this process operates. Below, we've outlined the impact of IoT on supply chain, and how IoT management will transform inventory, logistics, and more.
One of the biggest trends poised to upend supply chain management is asset tracking, which gives companies a way to totally overhaul their supply chain and logistics operations by giving them the tools to make better decisions and save time and money. Delivery company DHL and tech giant Cisco estimated in 2015 that IoT technologies such as asset tracking solutions could have an impact of more than $1.9 trillion in the supply chain and logistics sector.
And this transformation is already underway. A recent survey by GT Nexus and Capgemini found that 70% of retail and manufacturing companies have already started a digital transformation project in their supply chain and logistics operations.
Asset tracking is not new by any means. Freight and shipping companies have used barcode scanners to track and manage their inventory. But new developments are making these scanners obsolete, as they can only collect data on broad types of items, rather than the location or condition of specific items. Newer asset tracking solutions (which we'll get into shortly in the next section) offer much more vital and usable data, especially when paired with other IoT technologies.
There are several new pieces of technology that are already changing how logistics companies work. First is active and passive RFID tags, which provide data on items to which they're attached.