From Warehouse to Delivery: The Impact of IoT on the Supply Chain

The supply chain has gotten more complex than ever; the global economy is moving quickly, and many organizations are striving for increased efficiency, visibility, and real-time decision-making. As a result, the Internet of Things (IoT) is emerging as a growth driver in the supply chain. From smart sensors in warehouses to real-time tracking of deliveries, the effect of IoT in supply chain management is evolving the process by which goods are stored, moved, and delivered.

At Gazelle, we help businesses leverage supply chain IoT to improve operational performance, lower costs, and meet customer expectations to a higher degree. Here is a further breakdown of the supply chain IoT and its evolution from warehouse to delivery.

What Is Supply Chain IoT?

Supply chain IoT is defined as the integration of Internet-connected sensors, devices, and software into the supply chain ecosystem. These technologies enable the collection and sharing of contextual data in real time, which greatly enhances the automation, visibility, and responsiveness of the logistics network.

Whether it’s partially or fully tracking inventory, monitoring environmental conditions, or capacity/budget optimization plans, supply chain IoT is engendering speed and accuracy of logistics operations.

The Importance of IoT in Logistics Operations

1. Warehouse Automation and Inventory Control

Internet of Things technologies, such as smart sensors and RFID tags, allow inventory levels to be monitored in real time, which leads to fewer counting errors and improved accuracy of inventory on the shelf. Warehouses that utilize Internet of Things supply chain technologies can automate stock counts, receive alerts when inventory reaches a low level, and even predict replenishment needs using historical data.

At Gazelle, we have seen customers reduce warehouse labor costs by twenty percent when implementing IoT-based solutions and see improvements in inventory accuracy to over 98%.

2. Real-Time Tracking of Shipments

Real-time tracking of shipments is one of the most notable areas where IoT has made an impact within logistics. Shipping companies can track shipments in real time, with GPS-enabled devices and smart sensors attached to shipments that monitor GPS location, temperature, humidity, and other key information. This is important for certain types of goods, such as perishable or sensitive goods (pharmaceuticals, electronics, food products).

The incorporation of the Internet of Things in logistics will allow companies to provide real-time updates to customers about how and where their products are being shipped and allow for immediate action in the case of interruptions such as shipment delays or damaged goods.

3. Predictive Maintenance of Fleet and Equipment

IoT devices in trucks and machinery can provide real-time monitoring for usage and fuel consumption, as well as wear and tear. Predictive maintenance models use usage data to anticipate when maintenance is suggested, before it’s too late. 

Predictive maintenance utilizes existing data and information to develop actionable insights into reducing downtime, extending the life of the asset, and ensuring on-time delivery – an important step in ensuring the success of IoT in supply chain management.

4. Improved Safety and Compliance

For certain companies, safety and compliance are paramount. Sensors can monitor environmental conditions during shipment, ensuring shipments are stored and transported at safe levels during transport. The important aspect of safety for shipping companies is mostly utilized in the context of regulatory compliance in health-related fields such as food and pharmaceuticals. 

IoT provides logistics companies opportunities to create automated reports to provide adequate audit trails or compliance with industry standards, reducing legal exposure, and building confidence with clients.

Advantages of IoT in the Supply Chain

The implementation of supply chain IoT has many advantages. You could have:

• Greater Visibility: Real-time visibility from warehouse to delivery.
• Reduced Operating Costs: Automated processes represent less manual labor and avoid inefficiencies.
• Higher Customer Satisfaction: Faster, reliable delivery and a level of tracking not even offered by 3PLs.
• Better Risk Management: Alerting you immediately to delays, theft, or environmental variances.
• Analytics-Driven Decisions: Historical data will allow forecasting, planning, and optimization.

At Gazelle, we can help organizations take advantage of IoT in logistics by integrating both cloud-based platforms and AI analytics, including services that offer security and provide an end-to-end process.

The Challenges in the Internet of Things in Logistics

The Internet of Things in logistics comes with challenges, too, including:

• Data Security: There will be a lot of devices connected to each system, creating more risks and holes.  
• Integration: Your existing platforms are most likely complex, and integrating these IoT systems can take a lot of time.
• Initial Investment: Setting up the IoT infrastructure entails costs on both hardware and training.

Therefore, Gazelle provides expert consulting and integration services, along with ongoing support to help organizations get through their IoT transformation.

Real-World Impact: IoT in Action

Here is a case study of how one of Gazelle’s clients, a global retail distributor, implemented an IoT-based fleet monitoring system that resulted in:

• a 40% reduction in delivery delays
• an 18% fuel reduction due to route optimization
• 25% increase in customer delivery satisfaction scores

This is one example of how IoT in supply chain management can directly improve performance and ROI.

Final thoughts

The future of supply chains is smart, connected and driven by data. IoT in logistics allows for full visibility, predictive insights, and unparalleled control and management over every part of their operations, from warehousing to the last mile of delivery. IoT is a necessity in our competitive economy. 

At Gazelle, we enable supply chain IoT for businesses of all shapes and sizes. If you want to digitize your logistics operations and future-proof your supply chain, speak to one of our experts today.

• Smarter logistics
• Real-time visibility
• Data-driven decision making 

Let Gazelle help you start your journey into the future of supply chain innovation.