Smart is the Future: How technology is shaping the world of smart logistics
The intervention of technology is revolutionizing the logistics sector in India, modifying the fundamental ways in which we look and define logistics.
Posted on : 27 Jun, 2019
The intervention of technology is revolutionizing the logistics sector in India, modifying the fundamental ways in which we look and define logistics. Among many forms of technology that are influencing logistics, Internet of Things (IoT) takes the dominant share. Among the many forms of technology that are taking over and changing the narrative of logistics management in the country, are digital sensors and the Internet of Things.
Digital Sensors in Logistics
Also known as smart-sensors, digital sensors can create additional value across the supply chain. Digital sensors when paired with IoT technology yield wonders in our day-to-day tasks. For example, our smart trucks, embedded with IoT technology are capable of regulating temperature, tracking cargo and promote anti-theft measures by sending data in real-time. These are made possible by digital sensors that can sense temperature, movement, vibration, tampering, speed, surveillance, location etc. In short, it ensures observation control decision making for all devices and machines making them better, simpler and easier to track.
Smart sensors create visibility across the supply chain by arming our clients with information that is up-to-the-minute, real-time, encompassing information about inventory, materials movement, etc. Smart sensors enable greater visibility across the supply-chain and bolster analytics, enabling data to be used more accurately to anticipate and comprehend demand better, optimize sourcing as well as driving high-value decisions related to production and manufacturing.
Internet of Things (IoT)
Although IoT is gaining widespread prominence and applicability, the idea was conceptualized as early as 2000 when a car microprocessor yielded data related to car servicing. However, this lacked the real-time aspect, which was fulfilled by IoT. Today, a lot of companies are using real-time data monitoring to acquire and service customers better. An example of this is the connected car concept which is becoming popular among masses.
IoT has accelerated productivity by connecting all devices to a centralized cloud network, thereby sharing crucial information to render greater operational efficiency and overall customer satisfaction. Bolstered by technologies of faster cellular connectivity, IoT can transmit faster data and support more connections, thus simplifying device interconnectivity and its management.
Logistics Challenges in India
Considering a marketplace like India where logistics sector is highly unorganized, promoting IoT is a major challenge. The huge workforce in the largely unorganized sector needs to be trained to handle IoT. Moreover, IoT is very much dependent on geo-climate conditions. Since DHL SmarTRuckings trucks travel even in extreme weather conditions of the Himalayas and the Thar Desert, they have to endure fluctuating climatic conditions. At the same time, India is an extremely cost sensitive market, where one needs to leverage IoT to reduce the cost of fuel via route optimization and fuel pilferage reduction mechanisms.
How can Technology overcome Logistics Challenges
DHL SmarTrucking has invested heavily on technology innovation in the areas like 24x7 visibility, satellite technology, temperature proximity sensors and traffic data, thus changing the market perspective from reactive to proactive. Climate and terrain-wise, India is such a diverse country that one can test all possible scenarios. India is economically diverse too, where a Mercedes car, as well as 25 USD 4G, enabled feature phone both are at heart internet-connected devices and both are a runaway hit amongst the population.
The future of logistics will be driven by technology such as IoT, Analytics and AI which will drive efficiency across the value chain from manufacturing to last-mile delivery. These technologies make logistics services more predictable and help drive pro-active measures to reduce inefficiency and unplanned downtime leading to strong growth in logistics, which in turn will help drive the economy on a stronger growth trajectory.
To Sum Up
The applications of digital sensors powered by IoT are causing unprecedented transformation in the world of logistics management by creating new models of business operations that are reshaping businesses and marketplace. As a result, better services can be delivered in areas like manufacturing, operations, warehousing, freight transportation and last-mile delivery among others. Finally, the person who is benefiting the most due to these technological innovations is the customer. Data is the new oil but what you do with that data will essentially change the game in the logistics sector. Using customer data can further increase customer satisfaction which is inevitably the key to the success of every business firm.
The unorganized road transport sector in India, accounts for about 85% of the industry and is riddled with inefficiencies – foremost among them being the lack of communication flow, the lack of harn...