Impact Publications : Aircargo_236
Page 30 • AirCArgo AsiA-PACifiC • APRIL-MAY 2015 DHL report highlights IoT’s business potential Global logistics company DHL has released a report at its Global Technology Confer- ence in Dubai focused on the Internet of Things (IoT). DHL and Cisco Consulting Services are collaborating on a joint IoT innova- tion project aimed at improving deci- sion-making in warehouse operations with near real-time data analytics based on wifi-connected devices. Ken Allen, chief executive DHL Express and Board Sponsor Technol- ogy said: “Our Global Connectedness Index 2014 ( an analysis of the state of globalisation around the world showing global connectedness) revealed the overall level of global connectedness remains surprisingly limited. There is huge potential for countries to further increase their connectedness and prosper through trade, integration and technology. We believe the Internet of Things will be a primary enabler of this global transformation.” The Trend Report, which estimates that there will be 50 billion devices connected to the Internet by 2020 compared to 15 billion today, looks at the potential impact this technological revolution will have on business. DHL says the value at stake, the combination of increased revenues and the lower costs that are created or will migrate among companies and industries when new connections are made, reveals the huge potential when the Internet and networks expand their connections to warehousing, freight transportation and other elements of the supply chain. For any organisation with supply chain or logistics operations, IoT will have game-changing consequences, from creating more ‘last mile’ delivery op- tions for customers, to more efficient warehousing operations and freight transportation. According to Cisco’s economic analysis, IoT will generate US$8 trillion worldwide in Value at Stake over the next decade. This will come from five primary drivers: Innovation and revenue (US$2.1 trillion); asset utilisation (US$2.1 trillion); supply chain and logistics (US$1.9 trillion); employee productiv- ity improvements (US$1.2 trillion) and enhanced customer and citizen experi- ences (US$700 billion). “Digital disruption is all around us and it’s having massive implications for business. Digitisation and the expansion of the Internet of Things is a catalyst for growth, which is driving new economic models and enabling organisations to remain competitive and embrace the pace of change happening globally. This report clearly demonstrates that digitisation and the IoT will deliver long term efficiencies and growth opportuni- ties across a wide range of industries,” said Chris Dedicoat, president, EMEAR for Cisco. According to the report, over the next decade, the logistics industry could unlock higher levels of operational efficiency as the IoT connects in real time millions of shipments being moved, tracked and stowed each day. In ware- housing, connected pallets and items will be a driver for smarter inventory management. In freight transportation, tracking and tracing of goods becomes faster, more accurate, predictive and secure while analytics of a connected fleet can help to predict asset failure and to schedule maintenance checks au- tomatically. Finally, connecting delivery personnel with surrounding vehicles and people can become a way of monet- ising and optimising the return trip to improve efficiency and service in last mile delivery. For customers, this means DHL can provide an even faster, more reliable and cost-effective service. “The Internet of Things is the connec- tion of almost anything -- from parcels to people -- via sensor technology to the web and both Cisco and DHL believe this will revolutionise business processes across the entire value chain including supply chain and logistics. To get the maximum global economic benefit, we’ll need to understand how all components in the value chain converge and this will require a comprehensive collaboration, participation and the willingness to invest to create a thriving IoT ecosystem for sustainable business processes,” said Markus Kuckelhaus, vice president Innovation and Trend Research, DHL Customer Solutions and Innovation. The Trend Report “Internet of Things in Logistics” is available online at www. dhl.com/internetofthings DHL and IoT are collaborating in an innovation project that aims to improve decision-making in warehouse operations ....