Dive Brief:
- Spending on connected logistics solutions has risen, and will continue to rise steadily according to a Business Insider Intelligence analysis. Total spending on these solutions is expected to reach $20 billion by 2020.
- A recent survey by GT Nexus and Capgemini reveals 70% of retail and manufacturing companies are updating their digital tracking capabilities, boosting the need for connected technologies. These technologies include active and passive RFID tags, tags that rely on atennas or microchips, bluetooth tags, beacons and near field connected tags.
- Fleet management, too, is becoming increasingly connected through the implementation of GPS and other tracking technologies. Over 180 million commercial vehicles, or 90% of the market, are expected to include this technology by 2020.
Dive Insight:
The Internet of Things and cloud technology is transforming supply chain visibility from a dream into a near-reality. Whereas Bluetooth, GPS, and other IoT have long been available, the trend towards software integration through the cloud — which can constantly collect and update data — makes real-time tracking within facilities possible.
The most recent updates of many TMS systems now include this possibility, often taking advantage of trucker's cell-phone app-enabled GPS systems in order to track the cargo as it travels. Similarly, Maersk Line recently adopted a cloud-based system using decades-old Satellite AIS data to engage real-time with their vessels.
In other words, the growth of connected supply chains is not necessarily being driven by new technology, but rather by the growing tools provided by SaaS companies to fulfill the dream of end-to-end visibility.
