The fleet and logistics sector is one of the most important areas of today's economy. The operation of many other industries, most notably e-commerce, manufacturing, and retail, is highly dependent on the efficiency with which the logistics industry operates.
Since the start of the COVID pandemic, the pressure on logistics companies to be efficient has increased tremendously. To keep up with the demand, more and more companies in this sector are embracing digitalization and implementing digital technologies in their operations.
A technology commonly used by fleet and transportation companies is the Internet of Things (IoT). This technology has not only allowed fleet companies to automate their processes, but has also improved the experience and satisfaction of their customers with their digitized services.
Let's take a look at what IoT technology is and how it is used to increase efficiency in the logistics industry.
What is the Internet of Things?
IoT – A sophisticated technology best known for its intelligent ability to combine hardware with software and take processes to the next level of digital efficiency.
In simple terms, IoT is a network of objects and devices connected to sensors and equipped with digital technologies such as software. This network of technologies is useful for exchanging and even processing data on the wire.
Due to the enormous potential of this technology, IoT has become a household name for the current generation. Today, IoT-based solutions are used in many areas of our daily lives, from smart security to sensors and smart businesses to homes.
Businesses in industries such as healthcare, hospitality, retail, and agriculture were quick to recognize the potential of IoT technology and are already implementing it into their operations. However, it is safe to say that no other industry has benefited more from IoT technology than logistics and transportation.
The following section provides detailed information on the scope of IoT technology in the fleet and logistics sector.
IoT in the fleet and logistics industry
The logistics industry has undergone a significant revolution in recent years and has become smarter and more efficient than ever before. Thanks to the massive digitization of the industry since the recent pandemic, companies in this sector are learning to use technology to their advantage and gaining efficiency in their processes.
The Internet of Things undoubtedly plays a crucial role in this. This technology has enabled companies in the logistics industry to reduce staffing requirements, increase profitability, provide a superior customer experience, and most importantly, streamline processes to achieve overall operational efficiencies. Take a look at the chart below to understand the growing role of IoT technology in the logistics industry.
Due to all these advantages and many others, the size of the IoT technology market has surpassed the logistics industry.US$ 34,504.8 millionin 2019. It just goes to show that by implementing Internet of Things based solutions, logistics companies can easily increase their profitability and grow in the competitive market.
But what exactly is the use of IoT technology in the logistics industry and how does this technology help improve fleets and logistics companies? We will find the answer to that question in the next section.
8 Ways Fleet & Logistics Companies Are Benefiting From IoT
Warehouse management optimization
Warehouse and inventory management is one of the main tasks of all fleet and logistics companies. However, this is easier said than done, as businesses operating on a large scale often struggle to maintain optimal inventory control. This often leads to logistical errors that can cause delivery delays and even loss of tracking information for an item.
Therefore, it is imperative that all logistics companies integrate processes that increase warehouse efficiency and streamline warehouse management. One of the best ways to achieve this goal is by integrating IoT-based warehouse management solutions.
Today's IoT sensors are very efficient in automating inventory storage and management, providing all logistics needs from a single source. The IoT is capable of automating one of the most complicated warehouse processes, that is, updating logistics data. The technology uses smart sensors for this purpose and is often integrated with other cutting-edge technologies that make it easy to automatically upload and update data.
Absolute shipment tracking
We have already mentioned that the fleet and logistics sector plays a crucial role in the optimal functioning of various other sectors. One of the best examples of this role is in the e-commerce industry, where e-retailers partner with logistics and transportation companies to sell their products online and deliver them to customers' doors.
One of the most important aspects of online commerce is giving customers the ability to track their orders in real time. However, companies need to make extra efforts to offer this feature. This, of course, comes at the cost of more staff, costs, and infrastructure requirements. However, a company can easily avoid this by investing in IoT technology.
As a smart technology, IoT enables automated and continuous tracking of packages in real time. Furthermore, as the technology works on the basis of interconnected devices that exchange information, it enables effortless and error-free order tracking.
This aspect of IoT is not only useful for customers but also for logistics companies. This is because companies can easily track the location of the package in case it gets lost and prevent loss.
Vehicle tracking in real time
Just as order tracking is important to customers, vehicle tracking is vital to logistics companies throughout the delivery process. However, for companies that work with manual processes, tracking the exact geolocation of vehicles in real time is a great challenge.
One of the best solutions in this regard is to use IoT-based smart GPS solutions and integrate them into transport vehicles. These devices not only allow companies to track the location of vehicles in real time, but are also useful for monitoring other factors such as speed, estimated range, etc.
Advanced IoT vehicle tracking solutions also enable businesses to track whether or not transportation vehicles are taking the correct route.
first class analysis
Analytics is an essential part of any business. Today, most companies use historical analysis as the basis for strategic planning. Logistics and transport companies are no exception. Companies in this industry use analytics to reflect on their past performance, processes, and operations, and use the information to select future strategies. However, it is often difficult for companies to gain access to this analytical information without the use of digital technologies.
IoT technology is very useful for this purpose, being able to automatically record, store, process and present analytical data. Businesses can integrate IoT technology with other digital technologies such as cloud computing or blockchain to efficiently store and clarify analytical data.artificial intelligenceto turn that raw data into useful analysis.
What else? This entire process is automated and requires no human effort. This makes IoT implementation an ideal solution for logistics companies that want access to detailed and accurate analytics.
Advanced forecast of maintenance needs
In addition to the ideal location, each fleet and transport company also strives for the optimum quality of their vehicles. This factor is essential to guarantee that there are no delays in the delivery of the order or in the transport process due to vehicle breakdowns or unforeseen breakdowns.
However, for transport companies that operate on a large scale, this goal is often difficult to achieve. This is because these companies have to manage a large number of transport vehicles. When this happens, it can be impractical for companies to routinely inspect all vehicles. This is where IoT comes into play.
IoT is highly capable of automating vehicle testing and performance and can be easily used to predict a vehicle's maintenance needs. These devices activate a warning in case of expected failures and potential vehicle failures.
This feature of IoT-based fleet solutions makes it easy for companies to determine which vehicle should be used for transportation and which needs service and repair. With this feature, businesses can avoid delivery delays and avoid unforeseen shipping delays.
Today, people use fleet services to transport all kinds of goods and products. In many cases, certain goods require special handling, particularly fragile or perishable goods. However, due to the large scale of operations, fleet companies often fail to comply with this requirement, resulting in property damage.
In this case, it is in the interest of fleet and transportation companies to integrate IoT technology and make their charging smart. Explaining: the Internet of Things allows transport companies to differentiate normal merchandise from those that require special care and take measures to avoid damage to the merchandise.
IoT-enabled shipments are specifically designed to track and record situations that could damage goods. One of the best examples in this context are IoT sensors that register temperature changes or shocks, which are two common causes of damage and breakage during transport. These sensors can generate alerts for companies to take optimal measures and avoid losses.
Increased route efficiency
One of the most important aspects of transport efficiency is the optimization of the transport route. This can allow companies to reduce transit time and deliver products within the expected time frame. However, it is also well known that transportation is a process subject to delays, no matter how well planned.
Here, the use of IoT technology is a multi-billion dollar idea for companies to optimize the transportation route. Earlier, we mentioned the role of IoT in vehicle tracking and communication of optimal navigation. This IoT feature is extremely useful in optimizing transportation routes for fleet companies.
To explain it, IoT technology can efficiently inform the driver of the vehicle about the optimal transport route in real time and provide detailed navigation. This ensures that the driver follows the optimal schedule to transport goods efficiently from one place to another. The efficiency of a route is based on factors such as choosing the shortest route, avoiding routes with heavy traffic, avoiding blocked routes, etc.
In general, the use of IoT-based technology to communicate the route and transport of vehicles could be a revolutionary idea for transport companies to optimize transit time and save on fuel costs.
Increased driver safety
While it is important for transport companies to follow the correct itinerary for efficient transportation, there is no denying that driver safety is just as important, if not more. However, it is often a challenge for companies to ensure the safety of vehicle drivers. This leads to serious, sometimes fatal traffic accidents.
These accidents can be largely avoided using IoT technology. The IoT makes it easier for transport companies to ensure that the driver transporting the goods is safe and secure. To clarify: IoT-based sensors are useful for recording factors like driving speed, number of sudden stops, unstable driving, etc. This information is useful in training drivers to drive optimally, both for their safety and the safety of their property.
Furthermore, IoT-based solutions can also be used to integrate devices like smoke detectors, fire alarms, CCTV, etc. with vehicle machinery to effectively avoid and manage hazards. This aspect of IoT technology can save lives for drivers and be extremely useful for businesses.
These were the main advantages of integrating IoT technology into their fleet and aircraft carriers. However, you must be wondering how a fleet company can integrate IoT into their operations, right? The following section contains comprehensive information on this topic, so please read it carefully.
How do you implement IoT in your fleet and transportation business?
If you are a fleet company planning to go digital, let us tell you that now is the best time to embrace digitization and bring your business online. By now, we're sure you know why you should take advantage of cutting-edge technologies like IoT to optimize your transportation business.
However, to integrate IoT technology into its operations, a company must also use human-understandable technology. Mobile apps are the best option in this regard and are often integrated with IoT. The IoT+ mobile app duo is used by countless companies around the world. Industries that have embraced IoT technology are using mobile apps to take full advantage of the technology.
Mobile apps are extremely easy to use and technologically advanced, making them an ideal digital technology for IoT integration. Of course, this is associated with additional costs and time. A cutting-edge IoT application can cost between $50,000 and $80,000, with an average development time of 500 to 800 hours.
However, we would like to point out that these are only estimates. The final cost andYour app development timelineIt depends on various factors such as IoT hardware, network, infrastructure requirements, required resources, etc. Therefore, we recommend contacting an experienced development agency and getting their opinion on the project. You can also control these costs by creating a simple application that can cost anywhere from $30,000 to $40,000 or even less.
We hope you now understand why it's a good idea to integrate mobile apps into your IoT solutions.
The Internet of Things is a revolutionary technology with great potential for logistics and transportation companies. IoT technology has numerous implementations in this particular industry and has the potential to finally topple the fleet and logistics industry paradigm.
Process automation, increased security, and increased efficiency are just a few of the many ways transportation companies can benefit from implementing IoT technology. Additionally, a company can use technology to reduce operating costs and increase profitability.
All these factors make IoT an excellent technology for companies operating in the logistics and transportation sector. By realizing this potential of IoT in a timely manner and implementing the technology, you can be sure to get the most benefit from the technology. You can take your logistics and transportation business to the next level of success.
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