This article is part of the “Logistics of the Future” series looking at the best logistics startups today.
Everything is connected. In fact, there are currently over 26 billion connected devices in the world today, and that number is only expected to skyrocket further to 75 billion by 2025. So what do all of these connected devices mean for the world of logistics? Quite a lot, actually. By using connected devices, logistics companies can offer better location tracking, improved environment sensing, transparent fleet management, and eco-friendly shipping, to name a few. In fact, Cisco and DHL estimated that IoT technologies could create $1.9 trillion in economic value for the global supply chain and logistics sector.
Why has IoT made such a big impact on the logistics industry in such a short time? One big reason comes from the increasing popularity of third-party logistics companies in recent years, which offer an easier way to maintain the entire supply chain. To manage logistics from the outside, these third-party companies are using asset tracking through connected devices to make the process smooth and seamless. Tagged parcels and containers allow warehouses to track inventory, vehicles, and equipment through cloud services. Fleet management also becomes easier through real-time monitoring of vehicle and driver performance, using collected data to improve operations. This includes increasing fuel efficiency, implementing preventative maintenance and making operations proactive instead of reactive.
IoT sensor technology is also vital for the logistics companies of today: with sensors allowing full visibility inside shipments while they’re in motion, helping to ensure they reach their destination in the customer’s anticipated condition. The Internet of Things contains a multitude of possibilities which logistics tech startups are now taking advantage of: In 2018, 60% of global manufacturers used analytics data recorded from connected devices to review their processes and identify optimization possibilities. And according to General Electric, the implementation of these IoT devices will add $10 to $15 trillion to worldwide gross domestic product growth by 2030 – the equivalent of China’s entire current economy.
Companies from around the globe are discovering more exciting ways to exploit the Internet of Things for additional efficiency and productivity. Here are some of the most exciting IoT logistics startups in the game today.