MarketLine Case Study

IoT in Logistics
Technologies and Usage Cases
Reference Code: ML00028-074

Publication Date: December 2018

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OVERVIEW
Catalyst
Internet of Things (IoT) is redefining logistics and fleet management with its ubiquitously connecting capabilities. IoT is
set to change the structure of the supply chain from a linear, well defined process, to a consistent, data driven one,
adapting to the needs of the business and its customer. The application of IoT in Logistics covers all the industry’s
processes providing information on individuals, devices & sensors, and vehicles creating a centralized insight framework
for business owners to both improve their own efficiency and provide opportunities for new revenue streams.

Summary
 In the logistics sector, keeping track of the current location of the vehicle and parcel has always been a major
challenge. Consequently, internet of things (IoT) is redefining next generation logistics and fleet management
with its ubiquitously connecting capabilities. IoT can enable organizations to accomplish transparency,
efficiency, maintenance, automation, and cost optimization all throughout supply chain processes.

 According to GlobalData, the global IoT devices market in the logistics sector is expected to grow from $90m in
2015 to $2,438m by 2020. During the same period, the number of IoT connections within the industry is
expected to increase from 15 million to 255.5 million by 2020.

 North America is the clear leader when it comes to IoT software and services revenue in the logistics sector with
more than 50% of the revenue coming from this region in 2015.Asia-Pacific and Western Europe are the second
and third largest regions with combined revenue of more than $184 million in 2015.

 Technological advancements are opening up a range of new opportunities for logistics companies, as IoT
solutions for the logistics sector are more affordable and useful. IoT is playing a great role in logistics by tracking
and tracing products to provide complete visibility into operation and monitor everything in real time.

 Integration of IoT and Big Data in logistics is expected to be a game changer that can enhance the accuracy of
demand forecasts, discover new demand patterns, and develop new services by sharing data with partners
across the supply chain. In addition, they can increase asset uptime and throughput, engage in preventive
maintenance and conduct close to real-time supply planning utilizing dynamic data feeds from production
sensors and the IoT.

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TABLE OF CONTENTS
Overview ............................................................................................................................................................................. 2

Catalyst............................................................................................................................................................................ 2

Summary ......................................................................................................................................................................... 2

IoT technologies and opportunities ..................................................................................................................................... 7

Real-time fleet management is the largest use case ....................................................................................................... 7

Predictive maintenance allows for proactive asset care .................................................................................................. 7

Warehouse management helps streamline the planning and ordering pattern ................................................................ 8

Logistics usage cases are numerous and now in evidence................................................................................................. 9

NB-IoT technology for DHL supply chain ......................................................................................................................... 9

Digital transformation of the Port of Rotterdam .............................................................................................................. 10

Leveraging digital solutions to transform cargo handling operation of Cargotec ............................................................ 10

IoT in logistics set to grow rapidly ..................................................................................................................................... 11

Logistics IoT connections to see strong growth in all segments .................................................................................... 11

Logistics IoT devices revenue will soar by 2020 ............................................................................................................ 11

North America is the clear leader .................................................................................................................................. 11

Key market drivers and inhibitors ...................................................................................................................................... 13

Key Market Drivers ........................................................................................................................................................ 13

Improved logistics operations ..................................................................................................................................... 13

Gain real-time visibility into connected assets ............................................................................................................ 13

Low-cost technology enabling IoT in logistics ............................................................................................................ 14

Key Market Inhibitors ..................................................................................................................................................... 14

Lack of skilled workforce ............................................................................................................................................ 14

Lack of substantial business cases ............................................................................................................................ 15

Connectivity challenges ............................................................................................................................................. 15

Security and privacy issues ........................................................................................................................................ 15

Future Outlook: IoT and Big Data can combine to revolutionize the industry .................................................................... 16

Assimilation of IoT and big data in logistics can change the game ................................................................................ 16

Conclusions....................................................................................................................................................................... 17

IoT will become commonplace in the logistics industry.................................................................................................. 17

Appendix ........................................................................................................................................................................... 18

Definitions ...................................................................................................................................................................... 18

Sources ......................................................................................................................................................................... 18

Further Reading ............................................................................................................................................................. 18

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 Ask the analyst .............................................................................................................................................................. 19

About MarketLine .......................................................................................................................................................... 19

Disclaimer ...................................................................................................................................................................... 19

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LIST OF TABLES
Table 1: IoT connections in logistics – global forecast by type of connectivity, millions .................................................... 11

Table 2: Logistics – global IoT devices revenue forecasts, US$ million ............................................................................ 11

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LIST OF FIGURES
Figure 1: IoT use cases in the global logistics industry ....................................................................................................... 9

Figure 2: Key market drivers and inhibitors impacting the IoT adoption in the logistics market......................................... 13

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IOT TECHNOLOGIES AND OPPORTUNITIES
The logistics industry is poised to benefit from the IoT revolution. In logistics, IoT can associate distinctive resources
along a supply chain in a significant way, and after that examine the data produced from these connections to capture
new bits of information. Consequently, IoT empowers logistics supplier to unravel more elevated amounts of operational
efficiency while creating customized, dynamic, and automated services for the clients.

Real-time fleet management is the largest use case

By far the largest use case, real-time fleet management and telematics play a vital role in handling maintenance
schedules, vehicle usage, and suggest routes. This application is one of the mature across the IoT market. Growing
emphasis on energy savings, reducing overall fleet budgets including maintenance costs and fuel spend is pushing the
logistics operators to implement fleet management solution to improve the efficiency and safety of fleet operations.

Fleet management encompasses live fleet monitoring, smart deliveries, fuel cost monitoring, diagnostic, and preventive
maintenance to driver behavior improvement. Real-time visibility into driver and vehicle performance is critical to increase
the safety of technicians, reduce inventory damage, and decrease insurance-related costs. Additionally, with real-time
insight, technicians and drivers can respond to customer service inquiries on time.

With IoT, organizations can increase intelligence remotely around the assets in the field, allowing field service
technicians to facilitate need-based maintenance and eliminating unnecessary or reactive responses. Fleet management
solutions constantly monitor vehicle health, thereby enable fleet operators to schedule oil changes and other preventative
maintenance tasks as needed, rather than relying on mileage alone.

IoT connected fleet management solutions allow fleet owners to understand the total cost of ownership (TCO) of each
type of vehicle and makes it easier to decide on the best long-term strategy for the overall fleet. Fleet management
solutions collect performance metrics, analyzes current and historical trends for both fleets and individual vehicles, and
provides data that optimizes logistics and ensures compliance with environmental and safety regulations.

Predictive maintenance allows for proactive asset care

Predictive maintenance allows logistics organization to monitor machines, predict quality issues, and proactive asset
maintenance or repair on schedule to help minimize disruptions to normal operations instead of forcing the organization
to react to sudden, unexpected breakdowns.

Predictive maintenance enables logistics organizations’ to maximize asset performance and productivity by reducing
maintenance costs or expenses. Predictive maintenance helps to gain better insight into when and where parts are
needed, thereby helps to reduce expensive expedited shipping costs for spares making it easier to preserve capital by
reducing the number of spare parts required.

Predictive maintenance can also help to reduce overtime expenses by providing precise insights into probable upcoming
issues by scheduling more accurately and necessary skilled personnel. By reducing time-consuming routine
maintenance, predictive maintenance systems can increase fleet availability. Moreover by triggering specific
maintenance operations, predictive maintenance helps optimize maintenance planning and allocation of capacity to
reduce maintenance labor costs.

With a predictive maintenance solution in place, logistics organizations can negotiate with a supplier in a stronger
position by providing the data necessary to make better decisions. It can provide the procurement team and the
suppliers’ demand forecasting teams with clean historical data, warranty information, traceability, and anticipated request
which can be valuable for best pricing and term for the new contract time frame.

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Warehouse management helps streamline the planning and
ordering pattern
IoT plays an important role in warehouse management as it provides visibility to the third-party logistics providers and
customer regarding the transit and cargo available in the warehouse, which helps them streamline the planning and
ordering pattern. Greater stock visibility will minimize theft from warehouses and track the movements, which might even
prevent the occurrence of accidents.

IoT enables warehouse managers to pinpoint the exact location and progress of any item at any given time. Real time
tracking and monitoring can majorly enhance warehouse efficiency by reducing manual labor intervention, increase the
speed of operation, and shipping accuracy to create smart warehouse. IoT technology can empower smarter way to
manage warehouses to ensure compliance and satisfy regulators and auditors.

IoT is set to transform warehouses that implement intelligent devices, sensors, and radio -frequency identification (RFID),
enabling them to be more proficient, cost-effective, and productive. Application of IoT in warehouse operations involves
monitoring the status of equipment, inventory, pallets, and people in real-time to identify areas of improvement.
Monitoring equipment and people to increase safety and predict equipment failures can improve asset utilization in the
warehouse.

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LOGISTICS USAGE CASES ARE NUMEROUS AND
NOW IN EVIDENCE
Logistics use cases are numerous and range from fleet management to equipment process & management, and from
building management to infotainment systems and smart signage. GlobalData data shows that fleet management &
telematics is the largest use case (57%) followed by equipment process & management. The “fleet management &
telematics” applications offer a number of smart features like exact information on location, tracking, route, fuel level,
engine idling, delivery status of goods, and timely alerts for crucial parameters including over speeding, unscheduled
diversions, accidents and incidents, maintenance status, and improper driver behavior that the logistics domain can use
to empower the business.

Figure 1: IoT use cases in the global logistics industry

60% 57%

50%

40%
% of respondents

32%
30% 28% 27%
25%

20%

10%
2% 2%
0%
Fleet Equipment Building Infotainment Smart Smart City Smart
Management Process & Management Systems & Payment Metering
& Telematics Management Smart Signage Systems

SOURCE: GlobalData, End-User Survey Results

MARKETLINE

Figure 1 shows use case frequency among respondents surveyed by GlobalData. Large companies and government
authorities are now adopting these technologies and this section looks at concrete examples of IoT in action in the
logistics industry.

NB-IoT technology for DHL supply chain

DHL Supply Chain, in association with Huawei technologies designed and developed a Narrowband Internet of Things
(NB-IoT) solution to facilitate and streamline yard management for inbound-to-manufacturing logistics, leading to
noteworthy improvements in inbound processing time at the site.

DHL together with Huawei integrated NB-IoT chipsets, which use common cellular telecommunications bands such as
LTE, enabling a simple and cost-effective implementation. By deploying the NB-IoT solution, DHL Supply Chain is now
able to automatically collect dock availability data in real-time, which in return provides visibility to the dispatcher and
drivers. The yard management system then automatically screens the docks for the availability, providing each driver
with real-time status updates visible via the app. A driver is notified to proceed accordingly as per the availability via the
app.

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The NB-IoT solution helps inbound trucks to prioritize the needs of the manufacturing site and help shipments to be
unloaded at the appropriate dock. Furthermore, it reduces waiting time for drivers by 50% from an average waiting time
of 40 minutes, thereby reducing the risks of manufacturing delays as materials arrive in time and resources are optimized
appropriately.

Digital transformation of the Port of Rotterdam

The Port of Rotterdam, the Dutch port, which handles over 461 million tons of cargo, wanted to optimize traffic
management to improve efficiency and become the model for ports of the future.

The Port of Rotterdam implemented IBM’s IoT and artificial intelligence (AI) technologies to collect water and weather
data, as well as information about docking berths. Sensors are being deployed across 42 kilometers of land and sea to
collect and process the information through a centralized dashboard application. The data collected will be analyzed by
IBM’s cloud-based IoT technology to manage vessel traffic efficiently in order to maximize cargo loading.

IoT will also connect ship captains with the port and operators of the arrival terminals and monitor the communications
data. With the solution, the port expects the reduction in time spent berthed by the ship in port which will in turn reduce
the cost by about $ 80,000 an hour. Furthermore, 3D metal printing in the shipyards of RDM Rotterdam will use cognitive
IoT technology from IBM in a production process that will create ship components such as propellers in just 200 hours,
rather than over six weeks.

Leveraging digital solutions to transform cargo handling

operation of Cargotec
Cargotec, a Finnish company that makes cargo-handling machinery for ships, ports, terminals, and local distribution with
a vision to be the leader in intelligent cargo handling plan to connect its entire fleet and achieves comprehensive data
analytics capabilities.

Tata Consultancy Services (TCS) working with Cargotec developed an IoT platform to collect, store, and analyze sensory
data. Data Lake and Big Data platform enable storage and reporting of large quantities of data, algorithm driven actions,
business process automation, and data publication through APIs. Web portals and business intelligence (BI) based
reports for KPIs, alerts, notifications, and performance-related metrics provide internal and external support to clients.

TCS facilitated process automation, operational lifetime value, cargo flow optimization, predictive maintenance,
diagnostics, and new advisory services. Cargotec were able to improve productivity and machine utilization, leading to
cost savings which enabled Cargotec to deliver unique value to customers.

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IOT IN LOGISTICS SET TO GROW RAPIDLY
As logistics companies begin to understand and see the benefits of IoT solutions, adoption will increase and GlobalData
forecasts that the use of such solutions will grow rapidly in both revenue terms and in terms of connections.

Logistics IoT connections to see strong growth in all segments

GlobalData forecast that in 2020 the logistics market will be supported by 255.5 million connections worldwide compared
to a baseline of 15.0 million connections in 2015. Over 85% of these connections will neither be cellular nor Low Power
Wide Area Network (LPWAN). Instead short range or other connectivity for example Satellite is expected to be the
primary connection mode to support the IoT solutions deployed for fleet management and tracking and monitoring
applications.

However, the fastest growing IoT connectivity solution in the logistics industry is the LPWAN, which is expected to grow
at a CAGR of 132.1% from 2016 to 2020. LPWAN technology is an ideal wireless link solution for smart supply chain and
logistics IoT applications that features long-range and low-power capabilities that can monitor in-motion assets with real-
time location tracking. With LPWAN, organizations can reduce cost by keeping the items in the field longer with better
visibility for maintenance issues and close monitoring of real-time location.

Table 1: IoT connections in logistics – global forecast by type of connectivity, millions

2015 2016 2017 2018 2019 2020 CAGR 2016-2020 (%)

Cellular 10.9 13 16 19.7 24.3 28.9 34.5%
LPWAN 0.1 0.3 0.5 1.9 4.6 8.7 31.6%
Other 4 21.9 48.3 87.7 142.9 218 37.8%
Total 15.0 35.2 64.8 109.3 171.8 255.6 34.1%

SOURCE: GlobalData MARKETLINE

Logistics IoT devices revenue will soar by 2020

GlobalData forecasts that the global IoT devices market in the logistics sector is expected to grow from US$90 million in
2015 to US$2,438 million by 2020, at a CAGR of 93.5% from 2016 to 2020. For IoT players, these represent a direct
growth opportunity to improve the revenue and encourage them to create new business avenues for the customers. The
IoT in logistics is a multi-billion market, as companies are looking to invest in IoT solutions to improve the visibility and
bring transparency in their logistics operations and route optimization which helps them to reduce the carbon footprint
and fuel requirements.

Table 2: Logistics – global IoT devices revenue forecasts, US$ million

2015 2016 2017 2018 2019 2020 CAGR 2016-2020 (%)

Logistics 90 614 908 1,334 1,853 2,438 93.5%

SOURCE: GlobalData MARKETLINE

North America is the clear leader

North America is the clear leader when it comes to IoT software and services spending in logistics with more than 50% of
the worldwide revenue coming from this region in 2015. The strong financial position allows countries such as the US
and Canada to invest heavily in leading tools and technologies in the logistics market. Asia-Pacific and Western Europe
are the second and third largest regions with combined spending of more than $184 million in 2015.

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The regions that will experience the fastest growth in IoT software and services spending in the logistics sector over the
five-year forecast period is Middle East & Africa (45.4% CAGR), followed by Western Europe, and Asia-Pacific.

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KEY MARKET DRIVERS AND INHIBITORS
There is very real demand for IoT within the logistics industry as companies are keen to harness its power to reduce
costs and boost efficiency. Improved operations and real time insights are key drivers but there are also inhibitors, with a
lack of skilled workforce, security issues, and connectivity problems all needing to be overcome.

Figure 2: Key market drivers and inhibitors impacting the IoT adoption in the logistics market

SOURCE: GlobalData
MARKETLINE

Key Market Drivers

Improved logistics operations
The IoT presents unprecedented opportunities to digitally transform the entire supply chain in order to drive greater
operational efficiency by optimizing asset utilization. In logistics, IoT can also provide additional benefits to prevailing
supply chain processes spanning asset utilization, warehouse space optimization, and production planning.

With IoT, enterprises can accelerate efficiency, effectiveness, and operations by connecting, capturing and sharing
critical results to gain real-time visibility of the operations. IoT promises an extensive impact on logistics operations by
monitoring the status of assets, packages, and people in real-time throughout the value chain. An organization can
measure how the assets are performing and can incorporate changes for the future task. IoT can also automate business
processes to reduce manual interventions, improve quality, and lower costs to enhance logistics operations.

To optimize logistics operations and enhance supply chain efficiency, Parekh Integrated services, a logistics and supply
chain service provider in India, implemented online remote monitoring and management solutions to monitor operations
in real-time and gets timely alerts in case of any deviations. Since they offer different services to multiple industries it
becomes critical especially for perishable goods like food and more importantly pharmaceuticals drugs to avoid wastage
by incorporating end-to-end visibility in cold chain logistics operations.

Gain real-time visibility into connected assets

With the advent of IoT in logistics, the organizations can track the assets in real-time from any devices which will enable
them to gain valuable insight about the current status of the assets and how they are being transported.

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Tracking assets remotely at each level across the organization, supply chain, or in the fields are enabling logistics
companies to improve operational efficiency, enhance agility, and improve customer experience.

IoT enables organizations to enhance processes by understanding the locations and state of all the equipment and other
assets to manage inventory, monitor equipment, comprehend usage, and schedule and monitor workers. Logistics
companies can also acquire real-time insights about the fleet performance which will empower them to enhance
customer experience with an improved estimated time of arrival visibility, and reduce downtime costs by tracking driver’s
behaviors and applying data analytics to accomplish predictive maintenance. Organizations can make informed decisions
and leverage predictive intelligence to streamline the supply chains by gaining profound information related to the
logistics processes.

In order to improve operations and service to customers, DHL, a German logistics company providing international
courier, parcel, and express mail services leveraged Internet of Everything (IoE) to connect people, process, data, and
things across the entire supply chain to speed efficiency, accuracy, and ultimately customer satisfaction. DHL in
collaboration with Cisco deployed Connected Mobile Experiences (CMX) to track the location of all people and assets
along the supply chain in real-time to improve decision-making in warehouse operations. The high-density wireless
network collects aggregate location data on the Wi-Fi connected devices that include pallets, packages, conveyor belts,
vehicles, and more. This data will improve overall decision making in warehouse operations with real-time data analytics.
It also enables DHL to provide faster, more reliable and cost-effective services for the customers.

Low-cost technology enabling IoT in logistics

Technological advancements are opening up many opportunities as IoT solutions being deployed in the logistics sector
are becoming more affordable and useful. IoT is a major driver of digital transformation in the logistics industry.
Organizations are better able to connect individuals, procedures, and information by means of devices and sensors to
enhance the supply chains, particularly in the space of logistics and transportation management.

IoT is playing a significant role in logistics by tracking and tracing the products to provide complete visibility into operation
with falling prices of sensors and RFID to monitor everything in real- time. Currently, organizations can utilize IoT
technology to monitor temperature or any other environmental condition inside the vehicles to ensure product safety of
perishable goods. IoT empowers the platform to associate directly with sensors or asset to bring down the expenses than
previous solutions which used to be high priced.

For instance, Dependable Auto Shippers (DAS) deployed ThingLogix solution to migrate its legacy system to a cloud-
based Salesforce platform that incorporated automated processes to help the company track its logistics and manage
digital inspection reports, saving the company time and money.

Key Market Inhibitors

Lack of skilled workforce
With emerging global economy and rising customer demands for speedy delivery, the cost of carrying and distributing
inventory poses a constant challenge for logistic organizations and supply chain. Regardless of these issues, near
perfect logistics execution has turned into an expectation of both consumers and management despite the fact that it's
more difficult than ever to accomplish.

IoT advancement presents incredible opportunities for logistics organizations in addressing consumers’ needs. IoT
technology has enhanced transparency, traceability, and operational effectiveness. Increasing accessibility of IoT
technology is being harnessed to better comprehend, predict, and meet customer demands to create a competitive
advantage.

Thus, these entire circumstances put pressure on the organizations to ensure the workforce is set up to assist tomorrow's
development. The organization lacks skilled workforces who understand the complete end-to-end logistic process as well
as able to manage the details of IoT technologies to achieve required outcomes. Since IoT offer tremendous value,
tapping the potential will require a new level of capabilities and system to unlock the value of the organization.

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For instance, sensors will generate the flood of data every second, which will require strong capabilities and skillset to
manage IoT complexity as well as data management to generate useful insight. Therefore, organizations will need to
develop and invest in professional development, encourage employees to pursue certifications, and reward individuals
for bringing additional value to the organization’s operations

Lack of substantial business cases

Employing IoT solutions for improving business process has enabled organizations to save cost and achieve operational
efficiency. But organizations are struggling to pinpoint exactly where the value of IoT lies for them. Therefore, despite the
hype and application of IoT in logistics many organizations are uncertain to devise a clear roadmap for IoT deployment.

While most organizations believe in the potential of IoT, lack of quantifiable use cases is an important roadblock for IoT
adoption. Also, many logistics organizations do not see a business value and are concerned about the return on
investment (ROI) which is restricting the wider adoption of IoT among enterprises. It is believed that a business case is
important to the success of projects which any stakeholders buy into, therefore lack of substantial business cases make it
difficult for IoT implementation. Furthermore, many current IoT uses cases appears to revolve around cost saving, and
very few cases highlight new sources of revenues from IoT and its decision making capabilities.

GlobalData believes that vendors can play an important role by providing investment case studies as well as the bigger
picture in figuring out how to implement IoT to get the projected ROIs and what areas of business where IoT could make
the biggest impact to gain the confidence of the customers.

Connectivity challenges
Connectivity is an important part of IoT because it plays a vital role in the transport of data from the sensors to the
actuators. Unreliable communication networks could mean logistics businesses are unable to capture full value from the
IoT. Without ubiquitous global connectivity, the IoT sensors are not able to act efficiently due to which global logistics are
not able to analyze the behaviors of freight vehicles and cargo, therefore reducing the ability of businesses to efficiently
orchestrate their supply chains.

One of the major connectivity challenge logistics organizations often faces extreme environmental conditions, for
example, logistics containers that spend weeks at sea. Therefore, enterprises need to make sure their connectivity
solution can withstand such factors so they do not lose contact with assets due to malfunctions in the connectivity
solution.

In an increasingly interconnected world, more cargo is moving through more geographies and more modes of transport
to reach its destinations which bring more complexity with added risk and uncertainties which creates a pressing need for
logistics businesses to increase their visibility over the supply chain and make efficiencies, which is where IoT can help.

Security and privacy issues

The IoT offers a tremendous opportunity to revolutionize everything from farming to logistics. To accomplish its vision, an
intensive effort should be made to address the security and privacy issues, otherwise it will be a concept with potential,
instead of a true revolution.

Security and privacy protocols are a critical issue with regards to the IoT space. One important perspective in IoT is a
large number of devices being connected with the Internet, each one exchanging data. With billions of Internet-connected
devices, it will be a challenge to keep every bit of information streaming between and among gadgets absolutely secure.
Valuable data gathered over the expensive range of entry points and a growing number of human-less, independent
devices create opportunities for hackers.

For example, connected cars can be easily compromised by hackers as they are more prone to attack by altering the
setting, remotely controlling, and tempering devices, among others. Another important aspect where customers are
expressing concern over is the personal information data that IoT collects in logistics. GlobalData believes organizations
should be proactive to the system settings for IoT devices and, where conceivable, isolate them from access to the web
and to other gadgets. Also, the gateways and Edge components that connect IoT devices to networks and the cloud
need to be secured as well as the devices themselves.

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FUTURE OUTLOOK: IOT AND BIG DATA CAN
COMBINE TO REVOLUTIONIZE THE INDUSTRY
IoT in logistics is lighting the vision of technology enthusiasts and visionary supply chain pioneers. The conspicuous role
of IoT in logistics and warehouse management is gauged with a large number of shipments that are moved every day,
either through machines or individuals. Connecting diverse assets of the supply chain in an organized way, IoT has
ended up being an ideal match for this industry.

Assimilation of IoT and big data in logistics can change the

game
IoT presents many opportunities for automation, and this is likely to change how some logistics jobs are performed.
Organizations’ capable of integrating these technologies can completely optimize distribution, logistics, and production
with the help of powerful data-processing and analysis capabilities.

IoT in logistics can bring various kinds of structured and unstructured data together by interconnectivity of gadgets,
sensors, and frameworks. Big data provides the capability to understand historical data and anticipate potential situations
and results.

Organizations can also enhance the accuracy of the demand forecasts, discover new demand patterns, and develop new
services by sharing data with partners across the supply chain. This will enable the companies to increase asset uptime
and throughput, engage in preventive maintenance, and conduct near real-time supply planning, by utilizing dynamic
data feeds from production sensors and the IoT.

The capacity to utilize IoT to gain information, pooled with telematics information from the vehicle and driver generated
data, for example, the status of work assignments and hard braking cases, can enable organizations to make informed
decisions. Although, this technology offers an extensive competitive advantage for client today, GlobalData anticipate
that these tools will be the standard in the coming year and something that each transportation and logistics organization
will keep on building forth.

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CONCLUSIONS
IoT will become commonplace in the logistics industry
Logistics companies are starting to better understand the internet of things and are increasingly keen to harness its
power. IoT solutions can improve efficiency, cut costs, and improve customer experience. These factors will lead to
heavy investment in IoT solutions going forward and opportunities abound for companies offering them.

There are also inhibitors, with a lack of skilled workforce, security issues, and connectivity problems all needing to be
overcome, but this is starting to happen and this will further boost IoT’s appeal.

IoT in logistics is lighting the vision of technology enthusiasts and visionary supply chain pioneers. The conspicuous role
of IoT in logistics and warehouse management is gauged with a large number of shipments that are moved every day,
either through machines or individuals. Connecting diverse assets of the supply chain in an organized way, IoT has
ended up being an ideal match for this industry. The assimilation of IoT and Big Data to this end will change the industry
beyond recognition.

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APPENDIX
Definitions
Internet of Things (IoT) – A network of physical objects that contain embedded technology to communicate and sense or
interact with the internal states or the external environment.

IoT devices - Any nonstandard computing device that connects wirelessly to a network and has the ability to transmit
data. IoT devices include thermostats, RFID, sensors, semiconductor chips, and among others.

Business intelligence (BI) - Includes applications which enhance enterprises' decision making capabilities by retrieving,
storing, and analyzing the data stored within an enterprise. These tools also help in data interpretation and provide visual
analytics for representing data in different formats.

Artificial intelligence (AI) - The theory and development of computer systems able to perform tasks normally requiring
human intelligence, such as visual perception, speech recognition, decision-making, and translation between languages.

Connectivity technologies - This refers to the ability of a software application or piece of equipment to connect to another
application or piece of equipment. The main constituents of the connectivity technology in this survey include:

 Cellular – SIM-based machine-to-machine (M2M), licensed spectrum, includes 2G, 3G, LTE, and 5G

 Low Power Wide Area Network (LPWAN) – covering both SIM- and non-SIM-based M2M using licensed and
unlicensed spectrum, includes EC-GPRS, LTE-M, NB-IoT, RPMA (Ingenu), SigFox, LoRa, Weightless, and
among others.

Narrowband IoT (NB-IoT) - It is a Low Power Wide Area Network (LPWAN) radio technology standard developed to
enable a wide range of devices and services to be connected using cellular telecommunications bands. NB-IoT is a
narrowband radio technology designed for the Internet of Things (IoT) and is one of a range of Mobile IoT (MIoT)
technologies standardized by the 3rd Generation Partnership Project (3GPP).

Sources
GlobalData Technology Intelligence Center

Further Reading
The Future of the Telecoms Industry: How to navigate in a climate of intense disruption and change – MarketLine Theme
Report

Global Transportation Services – MarketLine Industry Profile

Transportation Services in Asia-Pacific – MarketLine Industry Profile

Transportation Services in Europe – MarketLine Industry Profile

Transportation Services in North America – MarketLine Industry Profile

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