Internet of Things predicted to generate $1.9 trillion boost to supply chain and logistics operations

DHL and Cisco jointly released a new Trend Report focused on the Internet of Things (IoT). According to the report, IoT will generate $8 trillion worldwide in Value at Stake over the next decade.

This will come from five primary drivers: innovation and revenue ($2.1 trillion); asset utilization ($2.1 trillion); supply chain and logistics S$1.9 trillion); employee productivity improvements ($1.2 trillion); and enhanced customer and citizen experience ($700 billion).

“Bountiful opportunities exist for logistics providers to leverage IoT in their organizations in order to increase productivity, reengineer existing processes and provide new services that challenge traditional business models. However to derive significant commercial value from IoT will ultimately depend on how well connected assets, such as containers or parcels, are networked along the entire supply chain. This of course entails close cooperation and collaboration between all players in the logistics industry,” says Rob Siegers, President Global Technology at DHL Customer Solutions & Innovation.

For any organization with supply chain or logistics operations, IoT will have game-changing consequences, from creating more ‘last mile’ delivery options for customers, to more efficient warehousing operations and freight transportation.

According to the report, over the next decade, the logistics industry could unlock higher levels of operational efficiency as the IoT connects in real time millions of shipments being moved, tracked and stored each day.

In warehousing, connected pallets and items will be a driver for smarter inventory management. In freight transportation, tracking and tracing of goods becomes faster, more accurate, predictive and secure while analytics of a connected fleet can help to predict asset failure and to schedule maintenance checks automatically.

Finally, connecting delivery personnel with surrounding vehicles and people can become a way of monetizing and optimizing the return trip to improve efficiency and service in last mile delivery. For customers, this means shippers can provide an faster, more reliable and cost-effective service.

Cisco Consulting Services and DHL are also collaborating on a joint IoT innovation project to improve decision-making in warehouse operations through near real-time data analytics based on Wi-Fi location data of selected devices.

The Trend Report “Internet of Things in Logistics” is available online at www.dhl.com/internetofthings.

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