Internet of Things in Freight Forwarding
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What would happen if you attached an intelligent sensor to a shipment and then found a way for this sensor to connect with other devices and systems to exchange information over the internet?
Each asset would now be capable of communicating with the rest of the world. That, in a nutshell, is the Internet of Things (IoT) – a global network of physical objects inserted with smart sensors, software, or other mechanisms to connect over the internet.
How is IoT Useful for Freight Forwarding?
This is useful for freight forwarding because you can now turn traditionally unconnected assets and objects into tools for creating innovative solutions that benefit the entire supply chain. Once there is communication and information exchange between assets, shipments, and inventory – in other words, supply chain connectivity – you can feed this data into specific platforms and databases, enabling information analysis and visualization, along with predictive analytics.
What Applications are Useful for Shippers?
There are various categories of IoT applications. Asset tracking is one of these, enabling location tracking, resource optimization, and loss prevention. Another is shipment monitoring, which is essential for multi-modal tracking, real-time monitoring of high-value goods, and shipment security. Radio-frequency identification (RFID) tags, eSIM cards, global positioning system (GPS) sensors, and other wireless devices enable logistics managers to track the location of each shipment. At the same time, AI algorithms can process this data to optimize route management and more.
Condition monitoring is an important category for overseeing the pharmaceutical cold chain and for goods quality monitoring – particularly monitoring temperature, relative humidity, and other real-time conditions – as well as CO2 and air quality monitoring. If a smart sensor shows an excursion (deviation) from a preset optimal range, including location or condition – for example, the temperature is too high or low – the IoT system generates an alert to take corrective action. A further category is inventory tracking, enabling automatic stocktaking, real-time localization systems, and equipment monitoring. Companies can put RFID tags on individual items shelved in a warehouse to track their locations and overall inventory levels in real time. With automatic collection of this inventory data, it is easier to optimize stock levels.
In addition, there is the IoT application category of predictive analytics. Data collected from IoT devices can help identify patterns and predict future states. Examples of predictive analytics applications include better inventory forecasting, energy optimization at facilities, predictive equipment maintenance, and data-driven asset management.
Checklist: Top Tips for an Optimal IoT-based Shipment Tracking Solution
Learn how to choose an IoT tracking solution that ensures connectivity, scalability, and security—while setting your business up for future growth.
Roadblocks to IoT in Freight Forwarding
Data security is a key challenge, as IoT devices and networks are prone to cyberattack , particularly when there is global supply chain connectivity. However, with thorough security assessments and robust security measures, companies can protect their data and unauthorized access. In addition, if the data collected by IoT devices will be used to make business-critical decisions and predictions, it’s essential to have effective data quality checks, validation, and predictive analytics processes in place.
Another challenge is that smart sensors and system implementation come at a cost. This is currently slowing IoT uptake in the logistics industry. However, prices are gradually falling. A further potential roadblock is poor interoperability between devices and platforms, so it is important to ensure IoT solutions are developed using open standards to achieve supply chain connectivity.
Challenges could also arise considering the world’s oceans and their large areas without cellular network coverage. Because of this, the IoT sensors and other devices used to track ocean freight may stop transmitting during part of a sea voyage. An excellent solution is smart sensors and other devices that are capable of recording data in these dead zones, ready to submit everything once the vessel returns within cellular range. In future, satellite connections will also be used to solve this problem.
For air freight, sensitive cargo is typically equipped with passive sensors. This type of sensor is designed to collect but not transmit all vital data. Instead, when the cargo is delivered from a flight, the collected information can be accessed, giving a clear picture of cargo conditions throughout the journey. But today, more and more active solutions are coming onto the market to provide real-time information, automate the process of you getting data on shipment status, and ensure shipment visibility.
What IoT Solutions does DHL Provide?
To answer customer demand for greater shipment visibility and predictive analytics of ocean, road, and rail freight, we offer a range of IoT-based shipment tracking solutions with smart sensors and container security devices.
We use open-standard, active smart sensors. Depending on your requirements, these sensors can monitor temperature, relative humidity, shock, and other parameters during transportation. Some customers use their own data loggers, in which case our container security devices provide an additional level of shipment visibility along with the ability to cross-check data from both sources. If, for example, there is any discrepancy between your data logger and DHL’s security device, this is immediately obvious and can be promptly investigated.
Information from these smart sensors and container security devices is transmitted to the DHL IoT platform. We can then keep you informed about each shipment and enable shipment visibility. You can follow the progress of your cargo in near-real time via the DHL Global Forwarding digital platform, myDHLi.
As this pyramid graphic illustrates, DHL uses various technical layers to connect physical “things” to the latest digital applications and predictive analytics solutions. This enables understanding and provides insights into the future – predicting what could happen and prescribing possible next steps.
Cost of IoT-Based Shipment Tracking Solution
Freight forwarders usually provide options, allowing you to buy or rent the required solution for your shipments. With DHL Global Forwarding, every solution includes full implementation and testing along with near-real time cargo visibility on our digital platform. For your high-value, fragile, or time-critical shipments, you have the option to also use DHL’s global control tower services.
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IoT Shipment Tracking Developments on the Horizon
More and more reusable sensors and other devices are becoming available, helping to achieve sustainable IoT shipment tracking solutions. Another interesting development is the growing number of solutions that enable estimated time of arrival (ETA) calculations. DHL already offers this capability for ocean freight shipments, often providing a more accurate indication of the timeline than the carrier’s ETA, and we are further exploring better predictions by combining ETA calculations with real-time data from IoT sensors.
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