Data Insights to Evolve the Troubled Logistics Game
Author: Sam Sharief, Chief Operations Officer, Thinxtra
The logistics management landscape is fraught with hurdles, many beyond the immediate control of companies. Despite the recovery of supply chains since the COVID-19 pandemic, the cost of doing business continues to rise due to increasing prices of raw materials, fuel, environmental obligations, and skilled labour. Unexpected interruptions, such as road closures or natural disasters, further add to operational and financial burdens.
These challenges aren’t going away soon, so companies must focus on areas they can control: their assets. Knowing the location, condition, and status of assets drives efficiencies and reduces losses. Over the past decade, there has been a shift from paper- based check-ins to ‘track and monitor’ technology, creating digital footprints for asset movements. This shift enhances operational efficiency, ensures regulatory compliance, and safeguards product quality. For instance, it ensures food safety and reduces waste in the f resh food sector, while guaranteeing the authenticity and safe delivery of pharmaceutical products.
Asset tracking also helps achieve sustainability metrics by improving logistics processes, reducing unnecessary trips, and minimising carbon emissions. However, most tracking is still limited to start and end points, missing insights into events during transit and specific items or containers. This gap can lead to significant losses, unnecessary asset replacements, and more vehicles on the road. Is the refrigeration in the back of a truck up to scratch? Have fragile deliveries moved safely? Are transport cages being returned by customers? The inability to answer these questions can generate significant losses, force unnecessary asset replacements, and put more vehicles on the road.
Beyond Data Basics
The Internet of Things (IoT) offers opportunities to remove ambiguity from logistics operations. Internet-connected devices fitted to transportation vehicles and high-value assets provide vast insights. These devices monitor location, idle status, high impact events, temperature, and humidity, recording asset health. This data, available remotely, ensures optimal transport conditions and prompt asset recovery. Beyond the immediate benefits, IoT-enabled tracking can help organisations achieve long-term sustainability goals. By understanding the condition and location of assets in real-time, companies can make informed decisions that extend asset life and reduce the environmental impact of logistics operations.
For example, Coles has fitted IoT-enabled trackers to 4,500 food bins transporting poultry, providing timely insights into geolocation, shock impact events, temperature, and bin status. This has reduced asset pool costs by 25% and tripled the number of empty bins returned. Additionally, the insights from the sensors create accountability and ensure compliance with government and industry regulations. Similarly, keg rental company Konvoy uses IoT sensors to track kegs, reducing ‘empty keg kilometres’ and enhancing sustainability by reducing unnecessary trips.
Data to Drive Change
IoT-enabled data strengthens logistics operations by improving asset management and identifying business and cultural change opportunities. CouriersPlease used insights from tracking parcel cages to introduce ‘cage champions’ responsible for recovering otherwise lost cages, minimising replacement costs, and understanding movement patterns. This proactive approach not only reduces costs but also fosters a culture of accountability and efficiency within the organisation. As logistics managers tackle challenges, optimising operations and driving company-wide change using data insights is vital. IoT provides new mechanisms to understand asset movements, helping organisations reduce costs, increase efficiency, and ripple benefits across their businesses. The future of logistics management lies in leveraging data to drive informed decisions and proactive strategies that mitigate risks and enhance overall operational resilience.
