How IoT-enhanced warehouses are changing the supply chain management – Part 3

IoT-based warehouse management, like any other emerging technology, also comes with a few challenges/drawbacks of its own. This is why, despite all the advantages and acceptance by the likes of Amazon, Ocado, and Alibaba, many 3PL companies are still hesitant to adopt this technology, says Jaykishan Panchal, a content marketing strategist at MoveoApps. Also, we discussed about Highly Effective Technologies used in IoT & technologies of warehousing previously.

  • Lack of IoT standards and regulations

Neither the internet nor the cloud comes under the jurisdiction of one country or authority. As a result, IoT regulations remain virtually nonexistent. Regulating IoT devices is also difficult owing to their diverse origins.

From local to global, many vendors and manufacturers launch new IoT devices in the market every day, making it almost impossible for local authorities to regulate their standards.

There are no legal rules about how these devices should exchange information, and access or store user data. This often leads to serious security concerns for businesses and consumers alike. The global tech community and authorities need to come together to put forth regulations and set standards for the IoT industry.

  • Security concerns

Although the internet has become more secure, it still remains susceptible to cyber attacks. Exchange of sensitive data is at the heart of IoT-based warehouse management systems. Unfortunately, the growing number of IoT-connected devices is likely to provide more opportunities to cybercriminals.

The cost of an average data breach to companies worldwide is around $3.86 million (€3.37 million) with an average 196 days required to identify a data breach. Reports also state that cybercriminals are likely to steal an estimated 33 billion personal records by 2023.

  • Data management

IoT-based warehouses will generate large amounts of data. To obtain vital insights, however, this data will need to be analyzed and sorted into easy-to-understand chunks. It all needs to be done in real time.

In other words, without efficient data handling experts and processes in place, the data will be a meaningless pile of bits and bytes. 3PL companies will need to hire technicians with relevant IoT qualifications and training before setting out for warehouse automation.

Jaykishan Panchal
  • Infrastructure

To handle the enormous volumes of data generated by IoT devices, you will require a sound infrastructure with necessary network hardware including sensors, cables, mPOS, computers, wearables, and cobots or robots.

The more advanced the system is, the higher the infrastructure cost will be. Not many small and medium logistics companies can raise billions of dollars for smart warehouses, although the ROI is reasonably quick.

Future outlook

Despite all these challenges, however, the smart warehouse technology is rapidly evolving. AI development is proving to be a game changer for the logistics industry in particular.

Using AI, this industry aims to –

  1. Predictive analytics

With the help of advanced AI algorithms, retailers can create customized predictive analytics models to process the big data collected from the supply chain. The hyper-efficient warehouses in the near-future will be able to regulate everything, from the HVAC system to the inventory, in real time using advanced predictive analytics.

  1. Responsive supply chain

The next level of automation and hyper-connectivity will lead to the creation of a responsive and profoundly intelligent supply chain. It will accurately locate, track and measure the movement of each item from manufacturing till it reaches the end-consumer. Manufacturers will be able to speed up or slow down their production, while warehouses will optimize their storage based on user demand.

  1. Unmanned Aerial Vehicles (UAVs) for deliveries

In the not-so-distant future, Unmanned Aerial Vehicles (UAVs) or drones will be used to make same-day or express deliveries, particularly in big cities. Many companies have already started using UAVs.

Amazon is testing Prime Air in different locations to bring down their delivery time to 30 minutes or less. Using the top of its vans as a mini-helipad, UPS has also started experimenting with drone deliveries. They will soon become an essential part of smart warehouses and supply chain management.

The author of this blog is Jaykishan Panchal, a content marketing strategist at MoveoApps

Comment on this article below or via Twitter: @IoTNow_OR @jcIoTnow

RECENT ARTICLES

DANA bolsters financial inclusion in Indonesia with HERE Technologies

Posted on: August 9, 2022

Jakarta, Indonesia. 04 August, 2022 – HERE Technologies, the location data and technology platform, announced that DANA, one of Indonesia’s digital wallet services, is utilising HERE location services to bolster inclusive financial services in the country.

Read more

Putting fleets in the fast lane: AT&T Fleet Complete launches FC Hub, a suite of next-gen fleet management tools

Posted on: August 9, 2022

Dallas, United States. 05 August, 2022 – Fleet Complete is introducing AT&T Fleet Complete FC insights solution suite, a big data IoT platform with web and mobile apps for fleets to monitor and manage all aspects of their mobile operations.

Read more
FEATURED IoT STORIES

9 IoT applications that will change everything

Posted on: September 1, 2021

Whether you are a future-minded CEO, tech-driven CEO or IT leader, you’ve come across the term IoT before. It’s often used alongside superlatives regarding how it will revolutionize the way you work, play, and live. But is it just another buzzword, or is it the as-promised technological holy grail? The truth is that Internet of

Read more

Which IoT Platform 2021? IoT Now Enterprise Buyers’ Guide

Posted on: August 30, 2021

There are several different parts in a complete IoT solution, all of which must work together to get the result needed, write IoT Now Enterprise Buyers’ Guide – Which IoT Platform 2021? authors Robin Duke-Woolley, the CEO and Bill Ingle, a senior analyst, at Beecham Research. Figure 1 shows these parts and, although not all

Read more

CAT-M1 vs NB-IoT – examining the real differences

Posted on: June 21, 2021

As industry players look to provide the next generation of IoT connectivity, two different standards have emerged under release 13 of 3GPP – CAT-M1 and NB-IoT.

Read more

IoT and home automation: What does the future hold?

Posted on: June 10, 2020

Once a dream, home automation using iot is slowly but steadily becoming a part of daily lives around the world. In fact, it is believed that the global market for smart home automation will reach $40 billion by 2020.

Read more

5 challenges still facing the Internet of Things

Posted on: June 3, 2020

The Internet of Things (IoT) has quickly become a huge part of how people live, communicate and do business. All around the world, web-enabled devices are turning our world into a more switched-on place to live.

Read more

What is IoT?

Posted on: July 7, 2019

What is IoT Data as a new oil IoT connectivity What is IoT video So what’s IoT? The phrase ‘Internet of Things’ (IoT) is officially everywhere. It constantly shows up in my Google news feed, the weekend tech supplements are waxing lyrical about it and the volume of marketing emails I receive advertising ‘smart, connected

Read more
IoT Newsletter

Join the IoT Now online community for FREE, to receive: Exclusive offers for entry to all the IoT events that matter, round the world

Free access to a huge selection of the latest IoT analyst reports and industry whitepapers

The latest IoT news, as it breaks, to your inbox