Why IoT Is the New Era of Transportation and Logistics

The Internet of Things (IoT) is a specific combination of equipment, vehicles, and other objects in one environment, implemented using modern IT tools. Appropriate algorithms register and anticipate events and report them to the integrated system.

Nowadays, IoT is becoming more and more popular. An innovative business solution provider LeverX has delved into this tool to figure out how IoT can be applied to logistics and transportation, how it contributes to efficient transportation management, and what other business benefits this technology can bring to companies.

What Is IoT in Transportation & Logistics?

According to MarketsandMarkets, the IoT market value will increase by a quarter in the next few years, reaching $640 billion (IHS Markit estimates that the number of devices connected to the network will be 20 billion). The business benefits associated with implementing IoT solutions have already been opened by the manufacturing, retail, logistics, and transportation industries.


In the logistics industry, it is extremely important to control several types of activities at once (warehousing, supply chain management, etc.) since all of them being integrated can ensure the efficiency of companies.

Many companies use IoT tools for logistics process management. Its implementation in the infrastructure allows reducing the cost of transporting goods, minimizing unforeseen situations, making it convenient to monitor goods in the warehouse, etc. Let’s look at other main advantages of this technology.

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IoT Helps Boost Major Logistics Processes. What Are They?

  • Indoor location tracking

With navigation systems and IoT equipment, you can monitor indoor objects and get a complete picture of the implementation of logistics operations. Tracking helps to solve a wide range of tasks:

  1. Access to advanced analytics. The Internet of Things provides a holistic approach to managing logistics processes. With its help, you can control the volume of products in warehouses, determine the storage conditions for goods (temperature, humidity, etc.), and evaluate the performance and availability of equipment and personnel.
  2. Inventory monitoring. IoT systems allow you to easily control the amount of products in warehouses and more rationally allocate the budget.
  • Transport and traffic monitoring

At the moment, many efforts are targeted at the development of intelligent transport technologies in cars, which reduces the number of accidents, and increases environmental performance and travel comfort. And IoT is one of the best solutions for this. In addition, the use of IoT technologies increases the efficiency of traffic control.

How? Traffic management systems use data from streets, surveillance cameras, traffic detectors, vehicles, etc. All these help logistics companies forecast traffic, set up the optimal transportation schedule, and as a result, improve the quality of services provided.

  • Creating optimal routes

Another good advantage follows from the previous one: thanks to monitoring and navigation systems, it is possible to build effective transport routes inside a warehouse and in/ between logistics centers. This approach helps managers improve control over vehicles’ operation and minimize the impact on operations of the human factor.

  • Supply chain monitoring
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Another area of application for IoT is supply chain monitoring. For example, Rogue Ale, based in Newport, Oregon, is implementing the Internet of Things to track the supply chain and manage the transportation of perishable goods.

Rogue produces hops that are used for brewing beers. Due to the nature of beer, hops must be supplied directly to breweries. Delivery of hops must be carried out within 12 hours; otherwise, the beer will be of poor quality.

To preserve the properties of raw materials, Rogue uses IoT-based sensors that collect temperature and humidity data while transporting raw materials to the brewery.

What Benefits Can You Receive After the Introduction of IoT?

IoT is an essential part of modern-day logistics operations and, when harnessed effectively, provides the following benefits:

  • Efficiency improvement
  • Cost savings
  • Increased level of security
  • Regulatory compliance
  • Resource optimization
  • Reduced manual data processing to improve accuracy and reduce time
  • Improved quality of customer service
  • Real-time data analysis for correct decision-making
  • Identification of new opportunities based on the study of consumer behavior patterns.

IoT definitely occupies an essential place in the logistics ecosystem and, according to many experts, is slowly becoming a new reality for logistics companies that want to develop and increase their potential in the industry.

If you are one of those companies, now is the time to transform your business through innovation. Investing in technology today means having many competitive advantages tomorrow. Step into it tomorrow right now. However, don’t forget to turn to a trusted technology partner!


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