by Jennifer Hart Yim | Jun 5, 2018 | Blog, Content Marketing, Data/Analytics, Internet of Things, Logistics, Manufacturing & Distribution, Marketing, Strategy, Supply Chain
The Internet of Things is revolutionizing manufacturing and supply chain. Is your organization prepared?
This article is part of a series of articles written by MBA students and graduates from the University of New Hampshire Peter T. Paul College of Business and Economics.
“If you think that the internet has changed your life, think again. The Internet of Things (IoT) is about to change it all over again!”
This famous quote from co-founder of Aria Systems, Brendan O’Brien, sums up the significant role that the Internet of Things is playing now, and also its unlimited potential in the near future. The technology can be defined as the networked connection of physical objects.
[bctt tweet=”More than 1.2 trillion items on earth now have the potential to join the IoT network, but less than one percent of them are connected to the internet.” username=”Fronetics”]
Since 2014, Internet of Things is no longer a new term for most companies. However, this is just the beginning of the IoT revolution. More than 1.2 trillion items on earth now have the potential to join the IoT network, but less than one percent of them are connected to the internet.
And if we look at estimated worldwide spending on IoT through 2020, manufacturing, logistics and utilities are the industries that will spend the most money on this technology. This is partially due to their reliance on supply chain management. In addition, their supply chain networks are usually much more complex then companies from other industries.
The real value of Internet of Things is the data captured during the process, instead of the devices themselves. Nowadays customers are expecting higher quality products delivered in the shortest amount of time. That trend requires companies to have a more efficient supply chain in order to fulfill the demand. Brand matters less as it did a decade ago.
How to move products from the factory to consumers’ hands more efficiently becomes the new challenge for all players across all industries. Meanwhile, saving cost, adding asset velocity through enhanced transparency, as well as visibility are also the potential benefits by embracing the Internet of Things.
There are a number of IoT practices in supply chain:
Operational efficiency
Warehouses always play a vital role in a supply chain. It is also an area where IoT technology shows its magic by providing competitive advantages through data acquired from sensor networks. And generally, it can be improved from four aspects:
- Manufacturing maintenance – Sensors and robots linked to the internet increase up-times, reduce operational costs, and improve overall service quality. By visualizing and collecting data — such as temperature and equipment malfunction — managers are able to see and control operations on the floor in a real-time manner. Data collected in the IoT process can also be used in setting alerts for predictive maintenance. It works like HP Instant Ink, which will automatically order new ink when you the printer is about to run out of the old one.
- Inventory forecasting – As Vice President of IT at DHL Supply Chain Javier Esplugas said: managers no longer have to wait for weeks or months to get a report to have an understanding what happened during the last quarter. Instead, managers can make decisions on things that are happening now. Even companies using a 3PL can closely monitor the distribution centers and warehouses so that they can avoid prolonged cycle times and receive warnings in advance.
- Asset tracking – In a warehouse, scales and visual sensors can alert workers about fulfillment needs. The IoT also reduces human error for inbound and outbound records, requiring less human capital for one warehouse.
- Freight transportation – Logistics also holds a great potential for IoT networks. Today, sensors can track and monitor a container in a freighter in the middle of the sea or on a cargo flight. In the future, IoT will also be used to provide a more secure freight transportation environment. In 2016, around $3.7 million worth of consumable goods was stolen in cargo thefts in the U.S. The number of incidents reported in 2016 was 692. Through IoT technology, owners will have access to real-time information on the movement of goods.
Real-world examples
We’ve already seen leading car manufacturer BMW using IoT to improve its product lines efficiency. That is the most basic level of optimization within a warehouse.
A more thorough example would come from DHL. This global company actively involves IoT in different stages of its logistics process.
The journey of a package at DHL starts at the time it’s received by a carrier. By scanning the bar code or QR code on the package, it is formally recorded in the company’s system.
When the package arrives at the warehouse, basic information such as height, weight, and goods type will be collected as it enters the gate, providing accurate inventory control for workers. Sensors in the facility will be constantly monitoring the condition, as well as location of the items, giving workers a visual graph on the computer. When the package leaves the warehouse or sorting center, sensors built in the gate will collect information again for outbound items. Cameras attached to the gateways could also be used for damage detection.
They call the warehouse with all those systems the Smart Warehouse. And now they are testing the solution in multiple locations.
Due to the fact that DHL has been focusing on global logistics, its activities always include freight transportation. To reduce the inventory delays as well as the cost of stolen goods, DHL expects to set up location and condition monitoring through IoT. Ultimately, transport visibility and security functions will be enhanced.
What’s more, DHL’s Supply Chain segment is developing a software that gives clients a way to manage global supply chain risk by providing alternatives. The tool can find other optimized solutions by leveraging data collected from connected objectives.
Last-mile delivery
It makes a lot of sense to introduce IoT to warehouse management or freight transportation. However, for last-mile delivery, it can be a very different story. This final part is highly dependent on labor.
Carriers use data collected from vehicles for road condition in order to optimize the route. Before delivery, they would send notification to the end-customer, who has the choice to either accept the scheduled delivery time or re-schedule the delivery.
The future
By the year of 2020, the number of devices connected to the IoT will be over 50 billion. But that’s still just 3 percent of the number of all things on earth.
JDA’s Intelligent Manufacturing Survey discovered that 57 percent of manufacturers were going to incorporate IoT into their digital supply chain strategy. However, according to an Accenture report, up until the beginning of 2017, 88 percent of manufacturing executives were not prepared to adopt the technology. This is going to benefit companies that are willing to be the first movers and create barriers for the rest to catch up.
So, is your company ready for the digital revolution?
About the author
Xiaoxue Liu, originally from China, is a current MBA student at University of New Hampshire, with a huge interest in supply chain digitalization.
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by Fronetics | Aug 6, 2014 | Blog, Logistics, Marketing, Social Media, Strategy, Supply Chain, Transportation & Trucking
Keychain Logistics has made two bold promises. The company has promised truckers that they will never drive empty again and has promised shippers that Keychain will improve their bottom line.
Can the company deliver on these promises?
Who is Keychain Logistics?
Keychain is a leading transportation provider enabling businesses to directly engage carriers, track shipments, and monitor its logistics needs online.
According to Bryan Beshore, the company’s founder, Keychain grew out of the idea that a technology driven marketplace could operate with significantly lower overhead than a manual, human powered brokerage:
“My initial contact with the industry was in 2000. I have researched, analyzed, and thought about the industry ever since. Keychain is a product in understanding the fundamental efficiency problems the third party logistics industry has faced for a long time.”
Beshore goes on to point out that while building a technology company is tough, building Keychain was easier than anticipated:
“With Keychain it was a natural process and easier than I had imagined. I believe the reason for this is twofold: the challenges this industry faces are huge, and the solutions we are building to meet those problems are really fun to solve. Because our work directly affects the wallets of our users (increased pay for drivers, better rates for shippers), we are effectively helping people create better lifestyles for themselves and their families, and that’s really rewarding.”
The company was slated to be built in 2007; however, the timing was not right given the low proliferation of internet-connected mobile devices (500 million). Beshore waited. In 2012 he decided to move forward with the launch of the company (the number of internet connected devices reached 8.7 billion in 2012).
How does it work?
One can draw a parallel between Keychain and Uber – the company removes the broker and connects truckers directly with shippers therefore enabling truckers to focus on driving and shippers to focus on selling products.
Keychain is a marketplace for truckers to book commercial shipments directly with shippers. The company’s technology matches owner operator drivers (and small fleets) with shippers who rely on Keychain Logistics to find the ideal carrier for their freight.
The core of the company’s platform is their network of ten-of-thousands of carriers throughout the US who are connected 24/7/365 via Keychain’s iOS, Android, and Windows phone apps. Keychain can instantly communicate load opportunities to independent owner-operators, 97 percent of whom operate in fleets of 20 trucks or less, and small carrier fleets.
Too good to be true?
One of the biggest challenges the company has faced is that it is perceived as being “too good to be true.” Beshore:
“The transportation industry is traditional and technologically far behind. Because of this, the inherent challenge to sharing our offering is overcoming the “too good to be true” bias. While many of our potential customers have wanted a product like ours for a while, they either don’t know how to articulate it in a Google search or are skeptical that tech companies like Keychain are committed to solving their problems.”
Solving immediate need
Keychain has been working to overcome the perception of being too good to be true. It has been talking to current users, and has honed in on developing a solid marketing message. The message – we can solve your immediate need.
Not expressing the full-vision up front has been a challenge when Keychain reaches out to companies with whom they have little or no relationship; however, they have found that solving an immediate need is what gets companies excited.
What immediate need(s) can the company address? According to Beshore: “For shippers, this is getting them access to trucks, sometimes within just minutes of our first contact. For drivers, this means getting them a paying load when they’re stuck at a rest stop, are far from home, or simply need a line-haul out.”
Leveraging social media to grow the company
The company has found that one of the best ways to use social media is for listening. Rather than spend time and money putting together and distributing sales literature, the company searches for relevant industry hashtags (i.e.: #trucking) to see what people are talking about, and more importantly what they care about. By using social media this way, Keychain is an audience to users instead of the other way around. This has enabled the company to shape their offering with a solid understanding of what people want from a transportation provider.
“From phone calls to interviews, crowdfunded campaign partnerships, and beyond, social media has certainly helped us grow our business,” says Beshore.
Can they deliver?
Can Keychain deliver on their bold promises? Their customers believe so. Here is what three customers say about the company:
“With Keychain I no longer have to waste hours on logistics. Their platform makes it easy to quickly enter shipment details and receive the most competitive rates available.” Marc DeVidts, Double Robotics
“Keychain gives us instant access to thousands of reliable carriers nationwide. It’s the most efficient and cost effective tool we’ve found.” Nathan Brown, Reclaimed American Hardwood
“Within minutes I can enter my shipment details and Keychain handles the rest. Annoying phone calls and exorbitant broker fees are over.” Ad Sachan, Treeline Woodworks.
by Fronetics | Aug 6, 2014 | Blog, Logistics, Marketing, Social Media, Strategy, Supply Chain, Transportation & Trucking
Keychain Logistics has made two bold promises. The company has promised truckers that they will never drive empty again and has promised shippers that Keychain will improve their bottom line.
Can the company deliver on these promises?
Who is Keychain Logistics?
Keychain is a leading transportation provider enabling businesses to directly engage carriers, track shipments, and monitor its logistics needs online.
According to Bryan Beshore, the company’s founder, Keychain grew out of the idea that a technology driven marketplace could operate with significantly lower overhead than a manual, human powered brokerage:
“My initial contact with the industry was in 2000. I have researched, analyzed, and thought about the industry ever since. Keychain is a product in understanding the fundamental efficiency problems the third party logistics industry has faced for a long time.”
Beshore goes on to point out that while building a technology company is tough, building Keychain was easier than anticipated:
“With Keychain it was a natural process and easier than I had imagined. I believe the reason for this is twofold: the challenges this industry faces are huge, and the solutions we are building to meet those problems are really fun to solve. Because our work directly affects the wallets of our users (increased pay for drivers, better rates for shippers), we are effectively helping people create better lifestyles for themselves and their families, and that’s really rewarding.”
The company was slated to be built in 2007; however, the timing was not right given the low proliferation of internet-connected mobile devices (500 million). Beshore waited. In 2012 he decided to move forward with the launch of the company (the number of internet connected devices reached 8.7 billion in 2012).
How does it work?
One can draw a parallel between Keychain and Uber – the company removes the broker and connects truckers directly with shippers therefore enabling truckers to focus on driving and shippers to focus on selling products.
Keychain is a marketplace for truckers to book commercial shipments directly with shippers. The company’s technology matches owner operator drivers (and small fleets) with shippers who rely on Keychain Logistics to find the ideal carrier for their freight.
The core of the company’s platform is their network of ten-of-thousands of carriers throughout the US who are connected 24/7/365 via Keychain’s iOS, Android, and Windows phone apps. Keychain can instantly communicate load opportunities to independent owner-operators, 97 percent of whom operate in fleets of 20 trucks or less, and small carrier fleets.
Too good to be true?
One of the biggest challenges the company has faced is that it is perceived as being “too good to be true.” Beshore:
“The transportation industry is traditional and technologically far behind. Because of this, the inherent challenge to sharing our offering is overcoming the “too good to be true” bias. While many of our potential customers have wanted a product like ours for a while, they either don’t know how to articulate it in a Google search or are skeptical that tech companies like Keychain are committed to solving their problems.”
Solving immediate need
Keychain has been working to overcome the perception of being too good to be true. It has been talking to current users, and has honed in on developing a solid marketing message. The message – we can solve your immediate need.
Not expressing the full-vision up front has been a challenge when Keychain reaches out to companies with whom they have little or no relationship; however, they have found that solving an immediate need is what gets companies excited.
What immediate need(s) can the company address? According to Beshore: “For shippers, this is getting them access to trucks, sometimes within just minutes of our first contact. For drivers, this means getting them a paying load when they’re stuck at a rest stop, are far from home, or simply need a line-haul out.”
Leveraging social media to grow the company
The company has found that one of the best ways to use social media is for listening. Rather than spend time and money putting together and distributing sales literature, the company searches for relevant industry hashtags (i.e.: #trucking) to see what people are talking about, and more importantly what they care about. By using social media this way, Keychain is an audience to users instead of the other way around. This has enabled the company to shape their offering with a solid understanding of what people want from a transportation provider.
“From phone calls to interviews, crowdfunded campaign partnerships, and beyond, social media has certainly helped us grow our business,” says Beshore.
Can they deliver?
Can Keychain deliver on their bold promises? Their customers believe so. Here is what three customers say about the company:
“With Keychain I no longer have to waste hours on logistics. Their platform makes it easy to quickly enter shipment details and receive the most competitive rates available.” Marc DeVidts, Double Robotics
“Keychain gives us instant access to thousands of reliable carriers nationwide. It’s the most efficient and cost effective tool we’ve found.” Nathan Brown, Reclaimed American Hardwood
“Within minutes I can enter my shipment details and Keychain handles the rest. Annoying phone calls and exorbitant broker fees are over.” Ad Sachan, Treeline Woodworks.
