IoT is going to be God’s gift to the world because it’ll make inanimate objects talk — no matter where they are in the world — with whoever they have permission to talk to.
But the devil is in the detail. Unlike all of the other new and emerging technologies such as cloud, big data analytics, artificial intelligence, and even quantum computing, IoT does something nobody could ever imagine before.
IoT gives businesses, whether they’re shipping lines, airlines, railway companies, regulators, or anybody else, control over their assets and it makes it possible for them to stay informed about the condition of those assets, no matter where they go.
That means, a refrigerated container carrying medicines, set to maintain the temperature at two-degrees centigrade for the duration of the journey from Canada to Sri Lanka, can tell the shipping line owner if there’s a power failure and the generator fails to kick in, if the insulation fails and the temperature cannot be maintained, or if there are any other eventualities whatsoever — all so that necessary action can be taken, immediately.
If you’re a visual learner, here’s a video to reinforce what we just discussed:
Now, before we dive further into why the internet of things (IoT) is such a boon to the world of logistics, let’s learn what IoT is in the first place.
Drilling into the internet of things (IoT)
IoT, or the internet of things, is a simple technology that uses sensors (often inexpensive sensors) to transmit information about objects back to the owner.
Usually, it can relay back its own GPS location, the temperature, pressure, and other characteristic details about itself, and changes in those characteristic data points.
This holds true for any kind of cargo on any mode of transport. Whether by road, rail, sea, or air, sensors can transmit critical information that can help keep tabs on the object.
Now, it’s important to highlight that the sensors don’t always come bundled up together. So, if you want to track the pressure in a certain container or cabin, you’ll need a pressure sensor. If you want to track the temperature, you’ll need a sensor to track the temperature. And so on and so forth.
However, given the trillions of dollars involved in the logistics business, there are some vendors who are creating specialized all-in-one trackers to make IoT easier to use — but many are still in the early stages.
Hence, pioneers such as DHL and Maersk are building up their IoT capabilities using the decades of business and industry knowledge they have to build the solutions they need.
Challenges associated with the internet of things
Connectivity and cybersecurity are two of the biggest concerns when it comes to IoT.
When we’re talking about sensors relaying back information, it’s obvious that there has to be a way for them to send that information back to the company or business that owns the asset/object.
In the case of a connected car or a smart camera installed in your office, that connectivity is easier than it is on a ship or an aircraft. There are many reasons for this, but it all boils down to the size, cost, and life of the sensor.
Sensors that are able to use existing technologies such as 3G/4G and WiFi signals often need their batteries to be charged frequently, and are usually larger. If they’re to use other modes of communication — such as satellite communication — their cost of operation increases drastically.
The solution? Well, it might be 5G. Experts believe 5G will democratize IoT in new and exciting ways. The truth is, there’s no commercial solution in the market that has enough data to prove that 5G can make IoT a reality in the world of logistics.
Next comes cybersecurity. Sensors gather, collect, and transmit data. That data, if intercepted by unauthorized persons, can cause tremendous harm to the industry.
Say, for example, pirates engage the services of hackers on the black market online to gain access to information on various ships, they can target ships with high value items and will know the exact location, speed, and condition of the shipment — all of which can help them orchestrate an attack on the vessel and cause significant damage.
Securing IoT sensors isn’t an easy task either. In order to protect them, the communication has to be encoded and encoding isn’t cheap. Further, encoding takes time and changes data in ways that have an impact on how it is processed and used.
The fact is, we don’t have an answer to either of these problems right now. However, the logistics industry is resiliant. In 2020, IoT has become a commercially feasible solution that revolutionizes the logistics industry.