Dive Brief:
- Deutsche Post DHL Group and Huawei Technologies recently signed a memorandum of understanding (MOU), announcing their intent to join forces in a large-scale IoT project, American Shipper reported Thursday.
- Under the terms of the MOU, Huawei has agreed to provide the group with IoT devices, connectivity experts, and network infrastructure as the German logistics company works to populate its freight, warehousing, and last-mile delivery services with sensors.
- The collaboration is believed by both to potentially enhance the safety and efficiency exemplified by high-functioning global supply chains.
Dive Insight:
The IoT in the form of sensors is rapidly appearing within the supply chain, creating countless opportunities for data collection and the fine-tuning it allows.
Within logistics, the IoT enables a stunning reduction in the time between purchase and delivery. The increasingly rapid and efficient conveyance of goods made possible by the acquisition of real-time data helps vendors meet and exceed consumer demand. The IoT also permits immediate and accurate tracking so that customers not only know where their order is at any given time, but also exactly when it will arrive — to the minute.
Logistics providers can also use IoT technology to limit loss. The application of sensors allows for tracing those items that allegedly disappear. Should a package be misdelivered, a sensor can accurately pinpoint its destination, allowing for reclamation and correction. This is an area where human error can quickly be remedied, and disputes may be easily resolved.
