Innovation in logistics and supply chain management: the internet of things

Innovation in logistics and
supply chain management: the
Internet of Things
By: Ainsley Brown

The Internet of Things (IOT)
• What is it?
• What is its connection to logistics and supply chain management?
• Why is it so revolutionary?

The Internet of Things (IOT): what is it?
• Simply put, this is the concept of basically connecting any device with an on
and off switch to the Internet (and/or to each other). This includes everything
from cellphones, coffee makers, washing machines, headphones, lamps, wearable
devices and almost anything else you can think of.
Forbes: A Simple Explanation Of 'The Internet Of Things'
https://www.forbes.com/sites/jacobmorgan/2014/05/13/simple-explanation-
internet-things-that-anyone-can-understand/#3051cc2f1d09

A giant network
• The IoT is a giant network of connected "things" (which also includes
people). The relationship will be between people-people, people-things, and
things-things.
Forbes: A Simple Explanation Of 'The Internet Of Things'
https://www.forbes.com/sites/jacobmorgan/2014/05/13/simple-explanation-
internet-things-that-anyone-can-understand/#3051cc2f1d09

The Internet of Things
The Internet of Things (IoT) – essential IoT business guide
https://www.i-scoop.eu/internet-of-things-guide/

On and off switch
• This also applies to components of machines, for example a jet engine of an
airplane or the drill of an oil rig…..if it has an on and off switch then
chances are it can be a part of the IoT.
Forbes: A Simple Explanation Of 'The Internet Of Things‘
https://www.forbes.com/sites/jacobmorgan/2014/05/13/simple-
explanation-internet-things-that-anyone-can-understand/#3051cc2f1d09

The Internet of Things (IOT): examples
• Say for example you are on your way to a meeting; your car could have access
to your calendar and already know the best route to take. If the traffic is
heavy your car might send a text to the other party notifying them that you
will be late.

IOT example: alarm clock
• What if your alarm clock wakes up you at 6 a.m. and then notifies your
coffee maker to start brewing coffee for you?

IOT example: office equipment
• What if your office equipment knew when it was running low on supplies
and automatically re-ordered more?

IOT example: work productivity
• What if the wearable device you used in the workplace could tell you when
and where you were most active and productive and shared that information
with other devices that you used while working?

IOT: Security & Privacy
• Security and privacy are big issues that have emerged with the IOT and
understandably so.
• With so many devices being connected, estimates project in the billions
(Gartner ,the analyst firm, says that by 2020 there will be over 26 billion
connected devices), what can be done to make sure that the information
being generated and passing between these devices remain secure
• Will it be possible to hack one devise which may have lower security, e.g. a
coffe maker, and thereby gain access to the entire network?

• As devices become more connected thanks to the IoT, security and privacy have
become the primary concern among consumers and businesses. In fact, the
protection of sensitive data ranked as the top concern (at 36% of those polled)
among enterprises, according to the 2016 Vormetric Data Threat Report.
Business Insider: What is the Internet of Things (IoT)?
http://www.businessinsider.com/what-is-the-internet-of-things-definition-2016-8

• Cyber attacks are also a growing threat as more connected devices pop up around
the globe. Hackers could penetrate connected cars, critical infrastructure, and even
people's homes. As a result, several tech companies are focusing on cyber security in
order to secure the privacy and safety of all this data.
Business Insider: What is the Internet of Things (IoT)?
http://www.businessinsider.com/what-is-the-internet-of-things-definition-2016-8

The Internet of Things (IOT): industries
• Manufacturing
• Food Services
• Utilities
• Healthcare
• Transportation
• Logistics
• Agriculture
• Infrastructure
• Retail

IOT and Logistics: What is its connection to
logistics and supply chain management?
• 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.
How IoT logistics will revolutionize supply chain management
http://www.businessinsider.com/internet-of-things-logistics-supply-chain-
management-2016-10

IOT and Logistics
• 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.
http://www.businessinsider.com/internet-of-things-logistics-supply-chain-management-2016-
10

IOT and Logistics: Supply Chain Management
• 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.
management-2016-10

IOT and Logistics: Supply Chain Management
• 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
offer much more vital and usable data, especially when paired with other IoT
technologies.
management-2016-10

IOT and Logistics: Inventory & Warehouse
Management
• 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. The main difference between the two is that passive tags
have an RFID antenna and a microchip for storing information, while active tags
have their own battery power and can sometimes include additional sensors.
management-2016-10

Management
• Internet-connected trackers use long-range networks or Low Power Wide Area
Networks (LPWANs) to let companies track specific items throughout their delivery
journeys. In the same vein, satellite trackers provide location data on an item almost
anywhere on the planet, even in areas that do not have cellular coverage.
management-2016-10

Management
• Bluetooth tags and beacons offer tracking data in smaller, more confined
areas, and companies most often use them in retail stores to monitor
customer traffic and offer marketing messages to said customers.
management-2016-10

IOT and Logistics: Fleet Management
• Companies and even governments that operate vast numbers of vehicles are more
frequently using connected fleet management solutions to make the process more
efficient. Much like inventory and warehouse management, these solutions use GPS
and other tracking technologies to gather data in real time on the locations and
operations of their vehicles.
management-2016-10

IOT and Logistics: Fleet Management
• Physical asset movement and delivery: This includes fleets of largely semi-trailer trucks that
transport goods to fulfill consumers' or business' orders. These fleets can handle long-haul or
last-mile delivery.
• Consumer transportation: This includes governments and businesses that use vehicles to
transport people from one destination to another.
• Field-service vehicles: This includes vehicles operated mostly by businesses to transport
employees as they perform their job functions.
http://www.businessinsider.com/internet-of-things-logistics-supply-chain-management-2016-10

IOT logistics application: DHL example, the
revolution is here

DHL example
• On a very large scale, the Internet of Things can help a great deal with
logistics. For example, DHL provides shipping, warehousing, distribution,
and supply chain management all over the world, and this requires a huge
amount of communication.
15 Examples of Internet of Things Technology in Use Today
https://beebom.com/examples-of-internet-of-things-technology/

DHL example
• DHL released a report detailing some potential uses of IoT technology that
includes vehicle monitoring and maintenance, real-time tracking of packages,
environmental sensors in shipping containers, information-gathering on employees
and tools, and a number of safety-enhancing features for vehicles and people. While
it may take a while for all of these kinds of technologies to emerge, the efficiency
of logistics and shipping could be significantly increased if they work as expected.
15 Examples of Internet of Things Technology in Use Today
https://beebom.com/examples-of-internet-of-things-technology/

DHL example
• 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.
http://www.businessinsider.com/internet-of-things-logistics-supply-chain-management-2016-10

IOT: summary
The Internet of Things (IoT) – essential IoT business guide
https://www.i-scoop.eu/internet-of-things-guide/

Innovation in logistics and supply chain management: the internet of things

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Innovation in logistics and supply chain management: the internet of things