4 Ways Logistics Providers can Benefit from IoT to Cut Through Competition in 2018

Gartner is confident that supply chain management market will cruise past $13bn in terms of software revenue in 2018, as more and more logistics companies are firm on meeting digitization demands.

Enterprises within this niche have already started differentiating themselves by making considerable investments in latest technologies, such as smart machines, machine learning, and IoT-enabled devices.

Logistics providers have much to gain with IoT, such as by including and restrengthening transportation, warehouse capacity, labor management and safety.

1.Warehouse capacity

In the last quarter of 2016, industrial vacancy was 7.9% at a massive 17-year low. In the first half of 2017, the warehouse capacity dropped to 5.5%.

The constant nosedive can mainly be an influence of direct-to-consumer fulfillment and the strong demand it’s exerting on earlier vacant space.

As such, logistics and ecommerce distribution companies have signed more number of leases in buildings under construction, which gives a clear impression of the growth in the market, along with a new for fresh functional warehouse space. Most logistics services companies are in quest of more and more space.

Numerous enterprises are counting on IoT for effectively utilizing their warehouse space, as connected devices and machines help in optimizing inventory management and capacity.

The Grand View Research strongly believes that automated warehousing systems developed by IoT application development companies have surged warehousing capacities by a factor-of-hundreds as compared to traditional forklift operations.


Transportation services powered by IoT are one of the most glorious applications of the Internet of Things in the logistics market today. Public transportation vehicles can relay their positions using mobile apps and driverless vehicles can dot the city street corners. In addition, smart grids can help in optimizing traffic flows.

This innovation is destined to influence the movement of freights. Now, as transportation is one of the costliest variables in any supply chain, better understanding of optimizations in this domain can unearth massive cost-cutting opportunities in the following areas.

  • Freight forwarding
  • Trucking
  • Small parcel

This way, IoT can have a massive potential influence on transportation. The extent to which IoT can influencing transportation initiatives, however, will depend largely on how effectively businesses use the data for streamlining operations from the start to the finishing line.

3.Labor management and safety

The Internet of Things can help in improving labor optimization and increasing the safety in hazardous industrial settings. For example, radio frequency module-equipped utilities can easily track warehousing associates for better understanding the cadence of activities like shipment and receiving, thence making warehousing operations more productive.

Technology like pallet jacks, connected forklifts, and several other material-handling equipment can assist big time in identifying additional opportunities, and companies can then improve their processes and save money.

Other than upgrading labor efficiencies to IoT-based devices in logistics and warehouse environments, safety is another major concern.

In warehouse settings, both machines and men move quickly, and various types of heavy equipments are out there to produce a constant hum. IoT has a certain potential to upgrade the levels of workplace safety.

For example, an RF gun can be used for real-time tracking of associates’ movements to and from different picking and delivery pick locations.

4.IoT provides logistics providers a competitive edge

Transportation and logistics are not the only industries that are focusing on investments in the Internet of Things technology. Several other industries, including assisted living, construction as well as agriculture are also understanding the advantages of connected devices.

You now know that the advancement of IoT is creating a positive stir across the horizon. Numerous supply chain management companies and logistics services providers that deploy IoT devices will soon spot themselves getting ahead of the competition as the inclination towards IoT implementation intensifies.

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