As the world of trade gets smarter, the logistics business will increasingly rely upon IoT apparatus to maintain the agile and data-driven approach that today’s businesses need.

The Internet of Things (IoT) has the capability to create a smarter and more connected world of trade. With the increased importance of supply chains and warehousing into eCommerce and global trade, there’s never been a better time to check at adding IoT capabilities to your logistics facilities.

Here are five benefits that your supply chain can capture by implementing targeted IoT solutions. From real-time stock tracking to the management of surety bonds and other paperwork, an IoT-enhanced distribution chain can take your logistics operational capacities to the next level.

Real-Time Tracking

Transparency and accountability are the foundations of a functional supply chain, and real-time tracking provides equally. IoT devices such as GPS monitors can currently track everything from a shipment’s location to its current temperature, providing up-to-the-minute facts that help logistics professionals really understand how their supply chains operate.

Real-time tracking is particularly useful for high-value items and temperature-sensitive goods. Every stage of a shipment’s chain of custody can be mapped and verified via the utilization of IoT data and device check-ins. As just 1 example, IoT apparatus can automatically flag prices that have left a safe temperature zone, helping to protect consumers from spoiled goods.

This allows accountability to be assigned in the correct places and for targeted improvements to be made from the distribution chain elements where they’re needed . Increased transparency creates a virtuous cycle where all stakeholders are more cognizant of and much more accountable for their responsibilities.

Forecasting Accuracy

A properly employed IoT system can help improve a business’s demand forecasting. By automatically collecting data, IoT methods improve data accuracy and supply supply chain managers better materials with which to function in creating demand forecasts.

IoT enhances data collection practices in a variety of ways. First, it substantially lessens the influence of human error in data collection. It gives data an opportunity to be collected at all times or at specified intervals and saves labor hours spent manually collecting data. Finally, it can allow businesses to gather data that could be difficult or not possible to collect manually.

But, it’s pivotal to remember that IoT solutions have to be accompanied by compatible backend and software solutions. Logistics professionals must design their IoT systems in tandem with their logistics and demand forecasting software to make sure that their IoT data is usable and that their analysis is focused on the ideal factors.

Inventory Control

Inventory control is a critical part of warehouse and supply chain management, and IoT can offer benefits in this area as well. By applying advanced IoT sensors that automatically track and analyze inventory positions and inventory levels, supply chain professionals can create an accurate and up-to-the-minute stock tracking system.

A handful of IoT inventory control systems automatically reconcile their stock counts using records, making laborious hand counts unnecessary and enhancing consistency and reliability. 

The systems’ sensors also gather data that can be analyzed through IoT-enabled warehouse management software to identify bottleneck points and track the minute-by-minute motions of stock that determine a warehouse’s operational efficiency.

IoT inventory control technology such as smart shelves and RFID scanners are already in widespread usage. RFID has become particularly popular as a method for tracking high-value inventory, and it can also provide increased efficiency over traditional barcodes. Perhaps most exciting of all, even more advanced technologies such as stock scanning drones are all on the horizon.


Supply chain automation will continue growing in importance through the 2020s, particularly in the warehouse. As businesses automate increasing amounts of warehouse tasks, they’ll require accurate and immediately available data to power their automated systems.

Take this example: A customer places an internet order using a business that has automated its warehouse operations. Before the customer ordered, the warehouse’s smart shelving system had noticed the product’s stock status via a weight plate, so there’s no danger of a backorder. 

An automated picking system gets the choice order from the computer, and a mechanical system moves the item on a conveyor belt into a packaging station. While the package is in transit to the customer, an IoT sensor tracks it and guarantees that it is handled with appropriate care.

While most supply chains won’t go straight to such an advanced level of automation, almost every platform can benefit from at least one of the many innovations of the IoT enhanced supply chain. The trick is to find an automation system that is suitable for your logistics applications and execute it in a way that achieves your business goals.

Paperwork Management

Paperwork management is essential for easy distribution chain operation, but it is also a common employee pain point, particularly when the accountability falls upon employees such as truckers. 

By applying smart logistics solutions, businesses can automate their cumbersome paperwork tasks, such as verifying a trucker’s freight broker bond or processing a bill of lading.

It is all made possible via the tools of electronic data interchange (EDI). EDI methods utilize standardized data formats to automatically exchange data with trading partners. When paired with properly implemented IoT, EDI systems can be an extremely effective tool for streamlining the data exchanges that maintain trade moving.


Of course, capturing these benefits is determined by a thorough and well-considered implementation of IoT best practices. Adding IoT apparatus to your own networks without properly procuring and integrating them erectile dysfunction at best and disaster at worst. Always follow the key safety practices advocated by IoT professionals, such as regularly checking for IoT software updates and changing passwords.

But when implemented correctly, IoT enhancements can be transformative factors for a distribution chain. As the world of trade gets smarter, the logistics industry will increasingly rely on these devices to maintain the agile and data-driven approach that today’s businesses demand.

About the Author

Cesar Agostino

Hardware and Software Design Leader in 4i Platform.

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