IoT in the logistics and distribution industry

Internet of Things (IoT) is a booming technological domain that turns any electronic device into a smarter one which is drawing industry's recognition to embrace this technology in their operations to enhance their productivity and improve efficiency. Even in our home, from washing machines to air conditioners, IoT technology is effecting a large number of day-to-day objects into the digital fold to make them cleverer. With such a spreading rate of IoT in several fields, it is surprisingly lacking in the logistics and distribution industry which can raise some questions: -Why IoT growth is slow in the logistics and distribution industry? How important is IoT in the logistics and distribution industry? 

Types of Warehouse IoT

1) Autonomous picking robots

In this collaborative robots or cobots will work alongside a human workforce, rather than replacing them to improve picking efficiency.
 

2) Autonomous vehicles

Vehicles are automated guided vehicles or AGVs, for illustration, a pallet jack without a driver, rather, it can go to a particular spot, automatically pick up the pallet and move it reliably and efficiently, easing the work of the employees.
  

3) Warehouse management systems

IoT system with RFID sensors helps in tracking inventory location and movement in real-time which enables the supervisor or team leader to analyze the floor’s productivity and efficiency with a few keystrokes instead of spending hours reading reports. It also helps in analyzing its health and alert maintenance staff if there’s a problem.

Benefits of IoT in the Warehouse

How important is IoT in the logistics and distribution industry?

1) Inventory Management

We have also discussed it earlier that IoT with RFID trackers keeps track of inventory location and movement in real-time from the moment it enters the warehouse to the moment it ships out. During out of stock, an IoT system can inform administrators or sometimes place an order directly to a supplier.

2) Provides Efficiency

IoT enabled Mobile computers allows team members of the warehouse management system to complete their job anytime from anywhere without interrupting their workflow

3) Remove manual mistakes of shipping

IoT enabled packaging prevents the shipping of customers to the wrong customers. 

4) Provides Security 

IoT monitors on everything that comes in or goes out of the warehouse which helps in cutting off theft-related losses

It can also cut theft-related losses.

5) Good customer engagement

Since IoT provides real-time insight into inventory, you can integrate this information to your website enables the customers to see whether the item they want is in the stock or not.

With so many benefits points to one question, Why IoT growth is slow in the logistics and distribution industry?

CHALLENGES

1) High initial investment

The equipment, practice, and new team essential to unite these new devices to a warehouse are costly which leads to loss of interest of small logistics organizations in IoT.

2) Threat of micromanagement

Sometimes in the making of the job more efficient leads to the threat of micromanagement.

Amazon released a plan of making wearable rackers mandatory for its picking teams which received the rage of employees.

3) Security Problem

As it is a networked system, it is exposed to some unauthorized user's attack, which could put protected customer or client information at risk. You should address this problem before introducing any new IoT technologies to a warehouse.

CONCLUSION

Warehouses and the logistics industry as a whole have been sluggish to utilize the Internet of Things, but a revolution is coming. As the competition is increasing day by day, companies will need to adjust to keep up or get left back as the world advances without them.