benefits of IoT in the logistics industry

In the past few decades, supply chains have turned more global and we can credit its glory to the increasing demand for online shopping. The rising global demand from the customers’ end has, in turn, enabled new growth channels to the logistics industry. But that comes with its own set of challenges. Some of the key challenges faced by logistics companies include shortage of staff, low margins, and a fragmented market.

As a result, it is important to identify solutions for optimizing the logistics operations in terms of load capacity, efficiency, planning, and load capacity. The modern technologies like IoT, cloud, and Blockchain play a key role in logistics.

What are the Major Challenges Encountered in Logistics Operations?

The evolving external factors along with the rising customer requirements create the need for the expansion of the current logistics operations. Below are some of the key challenges faced by the logistics companies:

  • Receiving Transport Orders:

Companies are getting more and more digitized in recent times. Though the operations are increasingly being undertaken electronically, the logistics service providers receive their orders through transportation, which are often long and analog channels.

  • Booking Time Windows:

In order to receive optimum benefits from yard planning, operational processes, and staff utilization, numerous clients across the globe are looking for a dedicated time window for picking up and delivering goods. The rigidity to pick up and deliver products can negatively impact the available loading capacity.

  • Scanning of Products:

Online shoppers are looking at reliable transparency pertaining to the status of their shipments from their eCommerce companies. However, the available transportation systems are not the best-suited for providing transparent shipping information.

How IoT in Logistics is Leading the Transformation?

Given the evolution led by consumers as avid online shoppers, there is another evolution necessary for the logistics industry. And, the evolution we are talking about is in the form of technology. Below are the key benefits of using IoT in logistics operations:

  • Communication Systems:

By using IoT in the logistics industry, you can enable a seamless communication between the truck drivers and logistics managers. With push notifications and triggers, logistic operators can strengthen their communication with the other departments and share information about the shipment.

  • Efficient Vehicle Tracking:

IoT offers efficient vehicle tracking solutions, which monitors the exact location of the delivery trucks. As a result, the logistics operators can identify how their fleet is performing. In addition to this, they can even create instances of saving time and fuel to optimize their overheads.

  • Better Visibility over the Supply Chain:

When it comes to the logistics industry, supply chain management is of key importance. Logistics management companies handle the overall supply chain operations by gathering new data about their operations. If this data is used for a greater cause, logistics managers can even draw key insights and make well-informed business decisions to create optimum value for their customers.

  • High-level Security:

When we talk about technology, security is an underlying expression that needs to be discussed. Since cyber threats are rising, it is crucial to focus on cybersecurity. Cybersecurity is key to saving your precious data from any kind of cyber attack.

Key Takeaway

Given the multiple benefits of IoT in the logistics industry, it is clear that its adoption is likely to grow at an exponential rate. Through the integration of integrated solutions of IoT, companies can leverage data and process it for deriving useful insights and improve the current operations. However, it is challenging to find the first area of automation with IoT in your logistics industry.

The best thing you can do is take a clear picture of your current operations and find what IoT application suits your business.

By Anurag Rathod

Anurag Rathod is an Editor of, who is passionate for app-based startup solutions and on-demand business ideas. He believes in spreading tech trends. He is an avid reader and loves thinking out of the box to promote new technologies.