A new trend report focusing on the Internet of Things has been developed by DHL and Cisco.
DHL and Cisco Consulting Services are also collaborating on a joint Internet of Things innovation project that will improve decision-making in warehouse operations through data analytics tools obtained in near real-time by connecting devices via Wi-Fi.
– The Deutsche Post DHL Group has a deeply rooted belief in the positive power of global trade. However, as our 2014 Global Connectedness Index shows, the overall level of global connectivity remains surprisingly low. There is huge potential for countries to further increase connectivity and prosperity through trade, integration, and technology. We believe that the Internet of Things will be a fundamental factor in this global transformation – said Ken Allen, CEO of DHL Express and Board Sponsor for Technology.
The trend report, which estimates that 50 billion devices will be connected to the Internet by 2020, compared to 15 billion today, analyzes the potential impact of this technological revolution on business. Economic value, i.e., the combination of revenue growth and lower costs generated or transferred between companies and industries after creating new connections, can demonstrate its huge potential when the Internet and networks reach warehouses, freight transport, and other elements of the supply chain. For any organization with a supply chain or logistics operations, the Internet of Things will bring consequences in the form of a changing business environment, ranging from creating more end-delivery options for customers to more efficient warehouse operations and freight transport.
According to an economic analysis conducted by Cisco, the Internet of Things will generate $8 trillion in economic value worldwide over the next decade. This value will come from five primary drivers: innovation and revenue ($2.1 trillion); asset utilization ($2.1 trillion); supply chain and logistics ($1.9 trillion); employee productivity improvements ($1.2 trillion); and enhanced customer and citizen experience ($700 billion).
– Digital disruption and digital transformation are all around us and have a huge impact on business. Digitization and the expansion of the Internet of Things are a catalyst for economic growth, which contributes to the creation of new economic models and enables organizations to remain competitive and keep pace with global changes. This report clearly shows that digitization and the Internet of Things will provide long-term benefits and development opportunities across a wide range of industries – commented Chris Dedicoat, President of EMEAR at Cisco.
According to the report, over the next decade, the logistics industry could achieve higher levels of operational efficiency because the Internet of Things will connect millions of shipments being transported, tracked, and stored every day in real-time. In warehouses, connecting pallets and inventory items will be an opportunity for smarter inventory management. In the field of freight transport, tracking goods will become faster, more accurate, with greater capabilities for prediction and security. At the same time, analytics of a connected fleet of transport vehicles will allow for predicting equipment failures and automatically scheduling maintenance. Finally, connecting delivery staff with nearby vehicles and people could become a way to monetize return trips and optimize them to increase efficiency and service in the last mile of delivery. For customers, this means that DHL can provide even faster, more reliable, and cost-effective service.
– The Internet of Things is the connection of almost everything – from packages to people – to the Internet via sensors. Both Cisco and DHL believe that this will revolutionize business processes across the entire value chain, including the supply chain and logistics. To achieve maximum global economic benefits, it will be necessary to understand how all elements in the value chain converge. This will require comprehensive cooperation, participation, and a willingness to invest to create a robust, ecological Internet of Things system for sustainable business processes. The new Trend Report is another step toward ensuring that DHL brings the benefits of the Internet of Things to our customers – said Markus Kückelhaus, Vice President of Innovation and Trend Research, DHL Customer Solutions & Innovations.
DHL and Cisco Consulting Services are currently also working on an Internet of Things innovation project that will improve decision-making in warehouse operations. This is possible thanks to near real-time data analytics tools based on location data of selected devices connected to the Wi-Fi network. This solution is based on Cisco’s Connected Mobile Experiences (CMX) platform, which uses a high-density wireless network to collect aggregated location data of devices connected to the Wi-Fi network.
Trend Report “Internet of Things in Logistics”