Internet of Things in transportation and logistics operations

Key Takeaways

  • IoT helps logistics businesses provide real-time shipment tracking, accurate delivery estimates, and live updates to customers, enhancing customer satisfaction.
  • Trucks equipped with sensors can monitor fuel levels, engine performance, and driver behavior, contributing to supply chain visibility.
  • In 2024, the IoT logistics sector is valued at $53.25 billion and is forecasted to attain $119.68 billion by 2030.

The beauty of the Internet of Things in transportation operations is revolutionizing various sectors by enhancing connectivity, streamlining automation processes, and facilitating data analysis. With the many parts of logistics, IoT presents significant opportunities to improve efficiency, visibility, and responsiveness within intricate global supply chains.

As the digitalized logistics landscape gets more reliant on automation and visibility, IoT empowers logistics firms with enhanced control and flexibility. In 2023, Gartner predicted half of the world’s major corporations would have integrated IoT into their supply chain operations.

On a mission to revolutionize our clients’ supply chain routine, Acropolium has been crafting highly technological logistics software. In this article, we’re taking a deep look at the IoT transportation perspective, sharing our experience in integrating the technology into modern businesses.

What is IoT in Logistics?

IoT, or the Internet of Things in logistics, refers to integrating collective automation and monitoring technology and devices within supply chain management processes. Encompassing the leading logistics tech trends, these technologies enable data collection, monitoring, and analysis from various sources throughout the supply chain.

IoT logistics devices like sensors, RFID (radio-frequency identification tags), GPS trackers, and cameras are deployed to gather real-time information. This data is usually collected from vehicles, shipping containers, warehouses, and distribution centers.

Such trackers collect data about the movement, condition, and status of delivery. Then, the information is transmitted to centralized systems where it can be analyzed and used to optimize operations.

Usually combined and integrated with transportation management systems or automated warehousing tools, IoT improves efficiency, enhances visibility, and ensures the timely delivery of goods.

The Global IoT Logistics Market Size

IoT logistics market size and statistics

As the logistics industry undergoes rapid evolution with technological advancements and shifting market requirements, the Internet of Things has become a driving force for transformation.

Thus, the market size of the IoT logistics sector was valued at $46.57 billion in 2023 and $53.25 billion in 2024. Projected to have a CAGR of 14.43%, it’s estimated to reach $119.68 billion by 2030.

Advantages of Using IoT in Transport and Logistics

advantages of using the Internet of Things in logistics

Logistics IoT solutions are crucial in tackling current obstacles within the logistics sector and fostering operational enhancements. By establishing a digital infrastructure, IoT empowers logistics firms to augment supply chain transparency, monitor shipments in real-time, and optimize fleet management.

At the same time, it can mitigate losses and boost customer loyalty with timely deliveries and real-time updates. Let’s explore more potential advantages companies can experience after investing in IoT.

Real-time Monitoring

Real-time monitoring in the logistics transportation industries allows for immediate access to critical data and valuable insights. This ensures timely interventions, such as rerouting deliveries to avoid delays or addressing maintenance issues promptly, optimizing operational efficiency and minimizing disruptions.

Better Inventory Management

Inventory management optimization is a common application of IoT in logistics, where companies gain real-time insights into inventory levels, locations, and movement.

By automating inventory tracking and replenishment processes, businesses can prevent stockouts, reduce excess inventory, and streamline order fulfillment. Ultimately, this allows for improved accuracy and better resource planning.

Enhanced Visibility

IoT for the logistics industry enhanced visibility across the supply chain by providing stakeholders with live information on the status and location of goods and assets. This transparency enables better decision-making, improved coordination between stakeholders, and the ability to address potential bottlenecks or disruptions proactively.

Improved Efficiency

IoT-driven automation and optimization of various processes, such as route planning, vehicle maintenance, and warehouse operations. By leveraging IoT data and supply chain analytics, companies can identify inefficiencies and streamline workflows.

The automation is usually achieved by connecting your existing system with live-tracking and analytics tools through logistics APIs. When integrated right, IoT optimizes resource allocation, resulting in reduced lead times, lower operating costs, and improved overall productivity.

Cost Reduction

Businesses can significantly cut expenses by leveraging IoT in the transportation industry for instant monitoring, predictive maintenance, and inventory optimization. With data being automatically collected, sorted, and processed, the technology improves operational efficiency and service quality.

Customer Satisfaction

Not every IoT transportation and logistics tool guarantees that your business benefits from them in all the abovementioned ways. However, automation surely has the power to enhance customer experience.

Companies can build trust and loyalty by meeting and exceeding customer expectations for transparency, timeliness, and reliability, leading to long-term customer satisfaction and retention.

Use Cases and Applications of IoT Solutions for Transportation and Logistics

Speaking of IoT use cases in transportation operations, many giant companies and large enterprises have embraced the technology as an integral part of their operations. Like with AI being introduced into workflows across various industries, IoT applies to many processes, including crucial logistics activities.

Shipment Tracking and Monitoring

IoT use cases in logistics real-time tracking

IoT enables real-time tracking of shipments, allowing logistics companies to monitor their location, condition, and status throughout the supply chain. For example, FedEx utilizes IoT sensors to track packages, providing customers with precise shipment status updates and enhancing transparency.

Inventory Management and Warehousing

IoT sensors and RFID tags facilitate automated inventory tracking and management in warehouses. For example, Amazon uses IoT warehouse robotics in its fulfillment centers. This way, the company optimizes inventory storage and retrieval processes, ensuring efficient warehouse operations and minimizing errors.

Fleet Management

IoT devices installed in vehicles provide valuable data on vehicle location, performance, and driver behavior. UPS utilizes telematics IoT solutions for logistics to monitor its fleet, optimize routes, and improve fuel efficiency, resulting in cost savings and enhanced delivery performance.

Predictive Maintenance

IoT sensors collect data on equipment condition and performance, enabling predictive maintenance to prevent breakdowns and optimize maintenance schedules.

Maersk Line, for instance, employs IoT-based predictive maintenance to monitor the condition of its shipping containers. This helps the shipper reduce maintenance costs and minimize the risk of equipment failures.

Real-time Data Analysis and Route Optimization

IoT in transport and logistics use cases

IoT data analysis enables dynamic route planning based on real-time traffic conditions, weather forecasts, and delivery priorities. DHL leverages IoT-based route optimization algorithms to optimize delivery routes, reducing fuel consumption, emissions, and delivery times.

Cold Chain Monitoring

Advanced cold chain monitoring stands as one of the best IoT shipping industry best practices. It aids in monitoring temperature, humidity, and other conditions in refrigerated transport vehicles and storage facilities. Thus, Walmart uses IoT sensors to ensure the integrity of perishable goods during transit, reducing spoilage and ensuring product quality.

Challenges and Considerations in Implementing IoT Transportation Solutions

Internet of Things in the transportation industry implementation challenges

Integrating the Internet of Things in transportation and logistics management offers immense potential for optimizing efficiency. However, this transformative endeavor comes with challenges for you to consider. From ensuring data security to addressing interoperability issues, you need to discuss the following aspects with your tech vendor:

  • Data Security. The implementation of IoT requires robust measures to secure the vast amount of data collected from IoT devices. End-to-end encryption, stringent access controls, and regular security updates are essential to protect sensitive information from cyber threats and unauthorized access.

  • Interoperability. Integrating IoT devices from various manufacturers and systems can pose interoperability challenges due to differences in communication protocols and data formats. Standardization and open-source platforms can facilitate seamless communication and integration between IoT devices and existing systems. Make sure that your logistics IoT solutions provider includes interoperability testing in their project estimation.

  • Scalability. With the proliferation of IoT devices, scalability becomes a critical consideration in logistics and transportation. Cloud-based IoT platforms, scalable architectures, and infrastructure upgrades are vital to managing increasing data volumes. It helps to ensure network bandwidth and maintain system performance as IoT deployments expand.

  • Regulatory Compliance. Adhering to data privacy rules and industry regulations is a paramount software requirement in IoT implementations. One must adhere to rules governing data protection, privacy, security, and industry-specific requirements for data handling and storage. A reliable, certified development partner would provide regular audits.

Why Choose Acropolium?

With a proven track record of 80+ cooperations with logistics companies, Acropolium brings extensive expertise in delivering secure software solutions. Our dedicated teams follow ISO-certified processes to craft GDPR-compliant software that caters to specific business needs.

Acropolium Case Studies

In the last few years, we have been trusted with IoT projects of different complexities. Among them, you can see the discursive potential of integrating IoT in transportation and fleet management systems.

Transportation IoT solutions: A Fleet-Tracking App

IoT case study on transportation software development

One of our logistics partners wanted to develop an IoT-based fleet-tracking solution. The client tasked us with creating an IoT vehicle tracking system to collect and display vehicle data on a map. The system had to be based on connected devices for real-time updates on vehicle metrics like location, speed, fuel usage, driving time, and camera footage.

The solution was also supposed to allow dispatchers to manage data history, generate reports, and monitor events. At once, we had to ensure remote device control, billing handling, and access fleet management features via mobile or laptop.

Challenge

The main challenge was centered around a lack of documentation — the client’s PoC wasn’t documented at all. Our task was to deliver a testing prototype of a GPS tracking app, transforming the client’s initial system, which lacked scalability and integration features.

Solution

  • Our team improved the integration of the client’s GPS fleet management solution using a Node.js-based IoT signal parser.
  • Acropolium’s developers optimized backend code to establish a stable core for further development and feature implementation.
  • The dedicated team implemented tracking and fleet management features. This included continuous reception of vehicle data (speed, time on the road, fuel level, GPS position, tire pressure, and camera streaming) from connected tracking devices.
  • We also visualized collected data through web reports and interactive maps.
  • Finally, we optimized code for enhanced stability, allowing simultaneous display of multiple trucks on a map.

Result

Having employed the IoT transportation solution in their operations, the client experienced:

  • Seamless integration with approximately 1000 IoT devices, including GPS trackers from various manufacturers.
  • Introduction of new features such as video streaming from cameras and remote command processing.
  • Expansion in the number of trucks displayed on the map from 100 to 1000 objects.
  • Real-time visualization of smooth truck movements, a significant improvement from previous updates occurring every 5-10 seconds.

IoT-Based CRM: EV Charging App Development

IoT use cases in transportation and automotive activities

During another exciting IoT journey, we were asked to build a CRM solution with a mobile application for charging stations. The automotive company with 1000+ charging points wanted to offer a new experience to its users with a brand-new CRM and a mobile app.

Challenge

The CRM system had to ensure efficient management of charging points, rates, customer communication, and transactions. Additionally, it had to comprise comprehensive revenue and energy usage reports, with data exported to CSV and PDF formats. Our challenge was to connect the IoT system to the client’s existing assets, ensuring 100% connectivity.

Prioritizing extensive functionality and an intuitive interface, we had to provide the integration of loyalty programs within the app. We also had to make sure that users could easily find nearby charging points and activate them via QR code.

Solution

  • We utilized the AWS cloud platform for a scalable and secure EV charging station app capable of handling data from 1000 stations, employees, and users.
  • For constant signal processing and real-time data visualization, our dedicated team used Node.js and React.js for smooth IoT integration with the charging points.
  • Acropolium delivered a user-centric web-based app to facilitate employee management of new points, registering them as IoT devices for data capture.
  • Our developers made sure the app presents data in web and map formats, exportable to .csv or .pdf.
  • We built a system where users can replenish balances, pay for services, activate points via QR code, and create support tickets for high-quality feedback.

Result

  • An intuitive EV charging app featuring a loyalty program boosted customer retention and loyal user count by 50%.
  • The usage of charging points through the platform increased revenue by 45%.
  • The introduction of a user-friendly platform for managing charging needs led to a 25% rise in daily transactions.

Final Thoughts

The future of transportation lies in a seamlessly connected and transparent supply chain ecosystem, driving innovation and delivering value to businesses and their customers.

When embracing IoT in transportation and logistics to bolster supply chain visibility, businesses can transform their operations with enhanced efficiency and competitiveness. With real-time insights, optimized routes, and proactive disruptions monitoring, companies can significantly lower operational risks.

And Acropolium is no stranger to implementing these transformative features. From TMS modernization to comprehensive logistics management software development, we have witnessed how process automation translates to business growth.

In every project, we prioritize clients’ goals and budgets, offering a flexible subscription-based cooperation model. Contact us to explore new opportunities for your business: let’s talk about digitizing your operations!

Sources of Information