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How IoT is Transforming Transportation, Supply Chain, and Logistics by@daniel-moayanda

How IoT is Transforming Transportation, Supply Chain, and Logistics

Daniel Moayanda Hacker Noon profile picture

Daniel Moayanda

Writer, PR Expert, SEO Specialist: Contributor @ Info-Sec Magazine, Forbes, Adweek, MarketWatch, Etc

The problem facing market sectors and product supply is the inadequate management of supply chain distribution, effective monitoring, production error, outdated IT failures, and providing quality services. 

In 2020, total IoT spending in the Travel & Transportation industry was 40 billion US, while the total installed base of IoT-connected devices worldwide is projected to amount to 30.9 billion units by 2025, a sharp jump from the 13.8 billion units that are expected this year 2021 (According to Statista).

However, in today’s connected world IoT can speed up the rate of delivery actions of vehicles used for logistics and transportation purposes.

By providing numerous features and applications, IoT technology uses artificial intelligence as innovative solutions that are broadly introduced in the field of transport and logistics sector. 

The applications are supply chain monitoring and management, transportation and vehicle tracking system, inventory management system, and automation of operations. Which are the major IoT applications of logistic systems.

Below, therefore, is how IoT is transforming transportation, supply chain, and logistics sectors.

1. Smart inventory tracking management

Inventory tracking is one of the challenges that transportation, logistics, and fleet management companies need to overcome on a daily basis. It’s becoming really difficult to track trucks that are arriving for pick-up and delivery of goods. 

Most of the problems encountered during inventory tracking especially in large warehouses and stores is finding the right products at the right time. And here is where the real function of IoT comes in, IoT technology can solve the issue with a special functionality called Smart Shelf System. With smart shelf features, there is no need to waste time in finding the right product amongst all your inventories.

Not only will you be able to find products on time but also take advantage of small and low price sensors which will permit simple trace of inventory items, supervise the current status of items, condition of the items, the exact position of the items and build an intelligent warehouse system. 

With the use of IoT, technology workers can easily track any item and prevent any losses due to accidental damages and ensure safe storage of goods and minimize human errors in business operations.

2. Provision of real-time data

In the transportations and logistics industry, IoT can construct an intelligent smart location tracking management system that can be available by fleet managers and companies to easily track drivers’ time to time activities while they are in driving.

With a smart connected fleet and high-quality sensors, it becomes easy to get all the data related to your driver’s activities and your fleet condition. In fact, you also get notifications on goods delivery status and other situations like harsh acceleration, harsh braking, and low-pressure level in tires.

All the reports provided by IoT and smart sensors can significantly reduce the wastage of the transportation business. The fleet managers can not only reduce the operational cost but can even improve the driver’s efficiency by getting all these reports on time. 

However, a logistics company’s ability to deliver on time will be possible if th\ey take the advantage of IoT which will help them to thrive in this competitive environment.

3. Predictive analysis

Aside from smart inventory tracking and provision of data on the company's activities. It’s also important to get updates on the performance of every operation going on on a daily basis. This is where predictive analytics comes in. 

Predictive analytics is a central pillar and it acts as a central system and backbone to help the logistic industry to build effective business strategies to get better in the managerial process, promote smart business insight and managing risks, and many more.

However, with predictive analysis through IoT, monitoring and managing business operations and identification of different faults before happening in the system can easily be known. The outcomes are dynamic in real-time and it prevents earlier stages of any damage.

Fleet managers can know how smooth their delivery vehicles are running at a certain period. This means they can access every little detail about their fleets like coolant temperature, engine alerts, ignition period, inspection reminders, and so on.

And once every detail is known with the help of IoT technology fleet managers can easily make future preventive maintenance strategies. They can know the time to repair the fleet, change any part to secure unbearable loss.

4. Better partner and customers engagement 

Customers’ expectations are increasing every day as businesses strive to provide rapid on-demand services. After all, creating a good customer experience is a  major concern for any organization.

Having satisfied customers is important at all stages of the supply chain, both for B2B and B2C services. IoT enables enterprises to work and improve their process efficiency and experience – by providing real-time access to delivery information which helps to build trust in customers.

With the use of IoT in transportation and logistics, transporters can easily provide affordable services for customers. For example, IoT sensors are already being used to cut costs through the company's app to get discounts on every product/service ordered. In fact,  some cheap car shipping companies have started using this method to offer a 20 percent discount on every shipping process taken with them. 

The more sensors deployed in a given application – be it building management, patient monitoring, data center leak detection, or even truck track – the more opportunities companies have to identify trends, increase efficiency, and potentially create new revenue-generating services.


Modern technology unlocks truly ground-breaking capabilities and takes supply chain management to a whole new level. It is all about building omnichannel transparency through the delivery chain while enhancing engagement, awareness, and loyalty for all parties and partners.

Lead Image by Gerd Altmann from Pixabay. 

Daniel Moayanda Hacker Noon profile picture
by Daniel Moayanda @daniel-moayanda.Writer, PR Expert, SEO Specialist: Contributor @ Info-Sec Magazine, Forbes, Adweek, MarketWatch, Etc