Internet of Things: Digitization And Automation In Logistics

There is no doubt that digitization is completely changing the entire economy. Logistics in particular – storing, picking, packing, and transporting goods – is experiencing a major change due to forced digitization and automation. The Internet of Things (IoT) is therefore of central importance in this area. After all, the digital networking of physical objects offers many opportunities for logistics.

Logistics: A Prime Example Of The IoT

The Internet of Things has long played an important role not only in the industrial sector. In the meantime, the growing online shop logistics particularly benefit from the many possibilities that can be realized with the IoT. Whether goods are tracking, process automation, or transport monitoring: Digital IoT solutions make the entire supply chain faster, more efficient, and more reliable – beneficial for manufacturers, suppliers, and recipients.

The IoT and logistics go well together for a reason. In the logistics industry, individual processes have to be monitored to ensure that everything runs smoothly. The IoT concept is a promising solution for companies here – many logistics processes can be optimized as digitization progresses. Therefore, the future of the logistics industry is really smart – thanks to the Internet of Things.

Digital Tracking

With the Internet of Things, digitized logistics begins immediately after production with what is known as tracking. The delivery of the individual goods is tracked in the industry – increasingly using RFID technology – up to their destination in real-time. In this way, both the manufacturer and the end customer always know where the goods are currently being shipped.

With tracking, the manufacturer can better predict and plan the next steps within the supply chain – right down to the exact delivery information for the end-user. An insight into the goods transport route is also helpful for the end customer. In this way, the customer knows when his order will ultimately arrive and does not have to worry about a package being lost in the event of delays.

Efficient Warehouse Logistics

As soon as the goods have arrived in the warehouse, things can continue smartly. The Internet of Things also influences warehouse logistics. In this way, the goods’ storage, sorting, order picking, and packing can be significantly simplified. For example, intelligent transport robots can be used.

These machines are able, among other things, to remove products that are relatively high up on the shelf when an order is received – without an employee first having to climb a ladder. In this way, you can benefit not only from secure warehouse logistics but also from accelerated ones. Goods orders are processed more quickly by transport robots, and parcels are ready for delivery earlier – ideal, of course, when product demand increases!

Sustainable Disposal

The clean and sustainable disposal of waste products in the logistics industry can also be ensured with an IoT concept. The waste bins are equipped with special IoT waste sensors that collect various data. So it can always be seen from a distance .

  • how full the containers are
  • when they were last emptied
  • when they need to be emptied again.

This data can even be used to create automatic emptying plans. This means that unnecessary transports are a thing of the past, and CO2 emissions can be reduced. The disposal of waste products from a logistics company is much more environmentally friendly with the help of the IoT.

Reduced Number Of Fraud Attempts

Again and again, someone may give up programs under the wrong name. The order is executed, and the invoice is sent to the actual customer who did not know about the order. Fraudulent orders are not uncommon, but IoT in the logistics industry can help detect and contain fraud cases using predictive analytics .

A comprehensive fraud check is carried out with this analytical method as soon as a new order is received. The current order is compared with the previous shipping information for the same customer. If these do not match, the customer receives an inquiry about whether he has posted this shipment. In the event of fraud, the order will be automatically deleted. In this way, it can cost a verm egg and customer satisfaction safe place.

Accelerated Returns Processing

In the logistics industry, there are certain challenges in other areas of the economy, such as B. Returns. These cannot be planned, but companies still have to make them simple to build successful customer relationships. Using the Internet of Things helps to manage returns effectively.

All repair and return processes are automated to be carried out in the shortest possible time and with the highest quality. This significantly reduces the error rate when processing returns, the process takes less time, and customer satisfaction increases.

CO2-Saving Transport

Sustainability plays a not insignificant role nowadays – also with companies. So when a company strives for sustainable logistics, it has a significant advantage over its competition. After all, there are now many environmentally conscious people who support companies with a sustainability concept.

With the Internet of Things, emissions can be saved in the logistics industry. State-of-the-art vehicle technology with professional sensors and tracking systems can save fuel. The software analyzes the driving style and repeatedly makes suggestions for optimization.

Efficient Quality Management

For manufacturing companies, the inventory and quality of the goods and timely delivery are of central importance. With an IoT concept, transport containers containing the respective goods can be equipped with special sensors that support quality management.

The sensors detect when the container is exposed to harmful environmental influences during transport – it locks itself automatically. The company’s quality managers also receive a corresponding alert and thus know exactly which delivery should be checked for functionality before use.

Technology With Challenges

In theory, the Internet of Things in logistics already offers many advantages that can be realized with the current state of technology. In many cases, however, the cost factor still stands in the way of mass distribution. Sensors and corresponding reading devices are usually significantly more expensive than conventional devices such as classic barcode scanners. Another challenge is that for meaningful use all parties, from the supplier to the forwarding agent and shipping service provider to the warehouse logistics, would all have to be equipped with the appropriate devices to guarantee seamless tracking and along the entire value chain.


The Internet of Things is one of the most important technological innovations of recent years. Ultimately, this enables many processes to be implemented faster, more reliably, more efficiently, and in a more environmentally friendly manner. There is a lot of potential in logistics. Still, in many areas, the technologies such as RFID tags corresponding reading devices have to become significantly cheaper to replace conventional mechanisms such as working with classic EAN barcodes.

Also Read: 5G As A Driver For The Internet of Things

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