Global supply chains are undergoing a massive Internet of Things (IoT) transformation that will generate huge economic value.
A new report by Business Insider says that new connected technology will unlock $1.9 trillion, citing estimates by Cisco Systems and logistics giant DHL.
Specifically, it is the advent of IoT devices and related asset tracking solutions that will spark a seismic shift in global supply chains.
IoT-powered asset tracking technology stands to generate massive value for the logistics sector because of its sheer versatility.
Among the many benefits for companies, the connected tracking tech creates cost savings at almost every stage in global supply chains. Such phases where IoT is saving money include extraction, production, storage, transportation and the ultimate delivery to the client.
As well, new asset tracking technology will improve compliance reporting and unlock new revenue-generating opportunities in the logistics sector.
Yet it’s not just the hardware sensors that is transforming the industry, but the data these sensors are producing. More importantly, it’s the valuable insight that logistics and supply chain operators can glean from this new torrent of data.
“Analyzing real-time tracking data for operational insights can deliver a wide range of benefits including decreased fuel and storage costs, the automation of inventory-related tasks to free up employees for more valuable assignments, improved compliance reporting, and new revenue opportunities,” said the Business Insider report.
Logistics firms need major upgrades
Researchers found that the advent of IoT-powered asset tracking is prompting logistics companies to undergo major technology upgrades.
“Legacy asset tracking technologies like barcode scanners are gradually being replaced with newer internet-connected tracking solutions that provide real-time tracking data, as well as other information on the condition of goods in transit,” said the report.
“Asset tracking solutions allow companies to completely overhaul their supply chain and logistics operations so they can deliver more goods faster and more cheaply.”
The report says that the leading sectors adopting the new asset tracking technology include: manufacturing, agriculture, retail and oil and gas.