Case Discussed: SmarTrucking by DHL
DHL introduced SmarTrucking, an innovative trucking solution by leveraging IoT Technology. This new solution is currently being rolled out across the road networks in India and trucks are now being equipped with Internet of Things sensors to provide a real-time data analysis regarding route optimization, reduction in transit times by 50% and providing reliability above 95% for real-time tracking.
The IoT sensors will be monitored through the company’s centralized control tower, which will provide real-time temperature and consignment tracking of the perishable goods. The information as well alerts are sent to the customers and DHL SmarTrucking operations teams by the means of a customer portal and a mobile app.
With greater efficiency from this solution, DHL expects to transport 100,000 tonnes of cargo covering a distance of nearly 4 million kilometres Pan-India on a daily basis. This system utilizes an agile which rotates the pre-determined stops of drivers located across the country, enabling the drivers to the return to their origin point with another truckload.
This solution was launched last year, in May 2018 post successful three-month plot that covered a road network of 2.7 million kilometres. The firm wishes to achieve a fleet of 10,000 enabled trucks by 2018.
IoT and Logistics Industry Ecosystem
In order to implement IoT in the logistics industry it is going to require a strong collaboration, besides high levels of participation taking place between the different players and competitors present in the supply chain with a common willingness of investing in IoT. The shared end goal would be creating a thriving IoT ecosystem. To achieve this end goal, the following are some key success factors-
A clear and standardized approach for using the unique identifiers for various types of assets within different industries on a global scale
- Seamless interoperability in order to exchange the sensor information within heterogeneous environments
- Establishing trust and ownership of data to overcome the privacy issues in an IoT-powered supply chain
- A clear focus on the reference architecture for IoT
- Changing the business mind-set for embracing the full calibre of IoT
The logistics companies are working on IoT technology in order to streamline their business processes and reducing visibility. IoT technology is playing an integral part in the growth of the logistics industry. It has provided smarter warehouse management which can by tightening the supply processes by the use of sensors and other intelligent devices.
IoT Use Cases in Logistics Industry
1. Location Management System
In the logistics industry, IoT helps in creating a smart location management system which can enable the companies to easily track the driver activities, location of the vehicle, and delivery status. Once the goods are delivered or arrive at a place, the manager can be notified by the means of a push message. This solution can be an irreplaceable assistant in planning the delivery as well as compilation and viewing schedules. All the changes can be detected instantly and reflected in real time. Thus, IoT technology can be used for improving location management and business process
2. Inventory Tracking and Warehousing
The concepts of inventory management and warehousing are one of the most important aspects of the connected logistics ecosystem. Placing small and inexpensive sensors are going to allow companies to easily track inventory items, monitor their status, and thus create a smart warehouse system. Using IoT technology, the employees can successfully prevent any sort of losses, ensuring safe storage of goods, as well as efficiently locating for a needed item. The minimization of human errors can be done using IoT
3. IoT and Predictive Analysis
Internet-enabled devices collect a large amount of data and transmit this data into a central for carrying out further analysis. IoT and predictive analysis can be applied for the route and planning of delivery as well as the identification of various defects before any malfunctioning. These results are a timely replacement of the machinery parts, preventing any kind of crashes and an efficient vehicle/equipment maintenance
4. IoT and Blockchain for Supply Chain
The blockchain technology solves many IoT security issues, which can add great value to the supply chains too. These two technologies when combined can provide the need for supply chain security, transparency as well as traceability
Placing the RFID tags and sensors allows the monitoring of various factors such as product and humidity, vehicle location along with the stages of transportation processes. This data is recorded and stored in the blockchain, where every product has been assigned a digital ID securing all the information about the product along with the product lifecycle
5. Self-driving Vehicles
In the coming future, the logistics industry will be the first one to integrate the self-driving vehicles for their business processes. The IoT devices are responsible for collecting a large amount of data and the analytics system will turn this data into smarter driving routes and directions. This way, the industry can reduce the number of car accidents, operating costs, and optimize the traffic on the road
6. Delivery by Drones
Drones ensure business process automation by providing smart inventory tracking, faster transportation of goods, and instant in-store delivery. The delivery made through drones is also going to enable the problems of last-mile delivery. Based on a Gartner forecasts, this market is expected to reach $11.2 bn by next year (2020).
How Does IoT Helps the Warehouses?
IoT technology helps the warehouses in the following ways-
Security plays a crucial role in warehouse management. IoT helps in enhancing the security of the warehouse. For instance, video surveillance cameras and sensors use the IoT technology for detecting any kind of theft in the warehouse. Remote alarm monitoring can help in monitoring the video data at any instance of time across various locations. Text message alert systems could also be used for notifying in case there is access to the restricted areas. This could be achieved using IoT
The safety of the employees is also an important aspect of warehouse management. Companies, however, are using IoT for protecting their staff and have managed to reduce the accidents to a greater extent. Using IoT can help in alerting the warehouse owners of any defect prior to the interaction with humans. This has reduced the accidents risks and ultimately improved the safety of workers in the warehouse
3. Improved Performance
IoT enables the interconnectivity of devices and the interconnected systems allow better management of the warehouses, which plays a key role in business growth. Companies using IoT have better control of their warehouses as they are able to have a full view of their business. The technology helps in having a full view of the warehouse and one can easily see the available inventory along with other activities taking place. IoT ensures the proper usage of resources of equipment in the warehouse, which ultimately helps the business to improve the productivity of warehouse
How Consumer Benefits from IoT?
Following are some ways in which the customers benefit from adopting IoT-
1. Improved Efficiency
IoT helps in boosting business growth by improving the efficiency of the customers. Customers use their mobile devices for making orders and payments. Such kind of technology helps the customers to do their businesses easier and thus promote repeat purchases
Transparency can help in enhancing the trust which in turn improves the business relationships. IoT gives the customer to track the movement of their goods from the time a purchase is made to the final delivery of their products. Real information regarding the customer’s delivery without any intervention of staff enhances the confidence in services that are being offered, finally leading to satisfied customers
Indian Logistics Market
The Indian logistics industry is on a rise and according to ICRA, the Indian logistics industry is expected to see a growth rate of 8-10%. There has been an improvement in the CAGR for the past 5 years, which was at 7.8% for this industry. Currently, the Indian logistics industry is valued at about $160 billion. Post-GST implementation, this value can reach !5 billion in a couple of years.
A lot of investment is being done in this industry and as a result of the transformation and changes caused due to these investments, this industry is stimulating job creations. The logistics industry today employs more than 22 million people and if the industry is further improved, then there would be a decrease of 10% in indirect costs, leading to a growth of 5-8% in exports.
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