As discussed in our recent blog IoT and the 4th Industrial Revolution, the transportation industry is the second- largest segment investing in the IoT (internet of things). The question now is, are these new mobile devices and technology advances helping prove their ROI?Banker, Cunnane, and Reiser recently published an article discussing how some of these technologies sound like great ideas, but create no real ROI. They describe it as “ideas that have much hype, but no real sense of actual profit”.
IoT can help in so many different ways, but what we really need to focus on are the ways it can impact how carriers, shippers, 3pl, and freight brokers will approach business moving forward. It’s all about the dollar signs. All the new “shiny” technology may sound exciting, but if the cost is more than it’s worth, what’s the point? What’s the point of looking smart if you go broke in the process?
Many products including AI, Blockchain, delivery by drone, and autonomous vehicles sound very impressive, but we need to dig deeper as Jeff Berman suggests.
Recent studies have shown that drone logistics is less than 5 years away from becoming a reality. The global drone logistic market is listed as a million US dollar value in 2019 and in 2025 as stated by Rohit. However, with winds, weather, algorithm, and outside error probabilities, the drone just looks promising. Promising meaning high in performance, but still too young to verify all the benefits as suggested by ARC’s 2020 Supply Chain Technology Maturity Curve.
Although we anticipate the IoT can make our lives much easier in the logistics world, we must truly evaluate weather we’ll receive a profit from these pricey technologies and in the meantime continue to fully utilize the traditional forms of business + impeccable customer service that has gotten us to where we are today in logistics.
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