How AI And IoT Devices Revolutionize Supply Chain Logistics And Management?

IoT Systems

September 7th, 2020   |   Updated on September 23rd, 2022

We’re currently living through the most remarkable boom of technology and progression known to man.

With these new technologies come advancements in every business area, from customer-facing technologies to predictive inventory to transportation management.

With the changing dynamics and technological advancements, The need to deliver promptly is rapidly increasing.

The evolving customer expectations drive businesses to rethink the way they have been executing supply chain and logistics operations. One of the central aspects is to ensure profitability simultaneously.

Before Henry Ford developed the first car in 1908, all shipments were overseen via carriage and ponies. Companies have to battle with low security and low proficiency utilizing such methods.

At the point when the vehicles began to show up in the business sectors and on streets, individuals began operating them to deliver the products.

It brought about a lesser chance of delivering products and decreased logistics costs. Logistics experienced a dramatic change that transformed the logistics software delivery process by the end of the twentieth century.

From that point forward, innovation and technology have assumed control over the execution and arranging of numerous tasks, including administrative work and manual work process, while ensuring the vulnerable information.

Innovation and Technology are consistently disturbing the logistics sector and changing how cargo, materials, sales orders, production, stock, and materials are overseen and managed.

Organizations always search for an answer that can carry insight into the Intelligence activities chain and logistics work process and diminish significant expenses.

The supply chain and logistics industry is adopting emerging technologies very rapidly as the Intelligence, speed, and efficiency has become the most determinant factors.

Technologies such as AI, IoT, mobile application development, and blockchain satisfy the rising need and manage complex cycles.

Here is a detailed explanation of developing custom logistics software for supply chain management using AI and IoT.

What Are AI and IoT?

Artificial Intelligence is a simulation of human insights and Intelligence in machines customized to think like people and copy their actions.

The term can be applied to any gadget that displays characteristics related to a human mind, such as learning and problem-solving.

Artificial Intelligence is a technology that is continuously evolving to benefit many different industries. Machines are wired using a cross-disciplinary approach based on mathematics, computer science, linguistics, psychology, etc.

The world of logistics and supply chain sector has now been exposed to a vast pool of smart IoT-enabled devices.

The number of these IoT-enabled devices has been increasing rapidly and is forecasted to reach up to 30 Bn by 2020.

Deployment of IoT powered solutions will continue to transform and modernize the supply chains by enhancing the operational efficiencies and increasing visibility.

The Internet of Things (IoT) has immediately become an enormous part of how individuals live, work, and communicate together. With the advent of technology, web-empowered gadgets are transforming our reality into a more turned on spot to live, globally.

IoT is completely changing the way how delivery and fulfillment companies are conducting their operations. The combination of mobile computing, analytics, and cloud services, fueled by the Internet of Things (IoT), is changing how delivery and fulfillment companies are conducting their operations.

Supply Chain Management

Supply Chain Management is a branch that needs precision and analysis. It controls the overall delivery of goods or materials from suppliers to customers.

It is the logistics professionals’ responsibility to focus on transportation, basically, the procurement and planning of vehicles for materials and goods.

Supply Chain Management System mainly handles the following components:

  1. Pick-up and Delivery Request
  2. Transporter Management
  3. Pick-up Optimization
  4. Transit
  5. Delivery
  6. BI and reporting
1. Pick-Up And Delivery Requests

The prominent role is to assign pick-up, and delivery requests that further go to the transporter. Here’s a guide on how you can develop an interface for customers to send pick-up and delivery requests.

One need not develop a new solution for managing the pick-up and delivery requests of goods from scratch. As per Gartner, it has been predicted that 50% of the global companies will use advanced analytical tools and technologies such as IoT and AI in logistics operations.

Let’s understand how emerging technologies can ensure the on-time pick-up and delivery of goods.

2. Transporter Management

With the use of Predictive Analytics algorithms, conveyors can identify and analyze if the deliveries are done efficiently or not.

  • Predictive Analytics ensuring In-Full and On-time Delivery

Real-time predictive supply chain analytics ensure that fleets arrive on time, goods are received, and moved on time to deliver shipments to customers when they require it.

Sensor-enabled IoT devices are embedded in ships, trucks, or trains that serve data like speed, engine performance and send it to the transporters who can analyze and predict the estimated arrival times and engine failures.

The embedded data can further notify the receivers and customers of delays, and load/unload activities, and product delivery requirements. It also ensures minimized and less uncertainty in delivery and fulfill customer expectations.

Smart supply chain management companies that use AI and IoT help shipping companies, agents, suppliers, and ports to optimize resource utilization and their schedules.

  • Supply chain demand Forecasting based on Orders and Inventory

With Supply Chain Demand Forecasting, companies can forecast the demand for shipments and products. Such companies need to evaluate and implement a supply chain forecast model to implement and assess capacity based on historical data, including order data and inventory data.

  • Automatic AI-Driven and IoT Shipment Notification

The use of IoT sensors in the supply chain makes tracking of products easily accessible. Sensor enabled IoT devices are used to exchange and capture the data. IoT further allows handling overall data remotely across the network infrastructure.

For example, Sensor enabled IoT devices can be implanted in vehicles carrying goods from one place to another. Data captured by embedded sensors can be converted into valuable insights using AI.

Supply Chain companies can improve the orders’ pick-up and delivery with all the handy information that is available before the shipment reaches its destination.

IoT embedded sensors send useful data related to the food within the supply chain, enabling companies to take necessary precautions and preventive measures. It also helps to maintain the customer’s loyalty and trust with complete transparency.

3. Pick-Up Optimization

It is essential to optimize the pick-up of orders so that products are not affected in any situation. Technologies like AI and IoT ensure pick-up optimization.

Trucks are selected for pick-up based on the type of load to be carried. AI evaluates and learns historical patterns and allows carriers to make decisions precisely.

An AI-based model assumes the right truck for picking up goods based on the weight and quality of goods to be transferred.

For example, if one needs to pick up sensitive or perishable goods that require extra care, you can plan the pick-up of goods in IoT-enabled trucks.

IoT enabled trucks gathers the following data about products:

  • The best temperature under which goods are procured
  • Real-time location of the goods and transport
  • Humidity exposure during transportation
  • Truck data like fuel expenses, speed, maintenance charge, etc

The data is shared with the logistics companies and product owners to monitor the quality of products maintained throughout the supply chain cycle.

4. Transit

Transit activities can be changed, utilizing IoT-empowered sensors and AI innovation. GPS sensors introduced in trucks give the real-time location of the transport vehicle on the basis of which the AI model assesses the arrival time.

IoT sensors embedded in trucks can catch data, including crash episodes, the temperature under which products are kept, and humidity levels.

Given the constant information accumulated by IoT gadgets, coordination organizations can follow travel activities progressively.

Implementing automated predictive analytics would help companies understand the difference between predicted time and the truck’s actual time to reach the destination.

Customers and supply chain management companies can know if the products are delivered under the right temperature conditions.

5. Delivery

Another component in the supply chain management process is to deliver the goods to the end-customers. The transporter would go to the warehouse to deliver goods to end customers.

As mentioned above, trucks would be instantly notified about the vacant door for picking up the goods, and warehouse managers would be immediately notified about the load preparation.

The load will further be transferred to the transporter under the complete security using IoT-enabled security and computer vision-based cameras. Once the transporter is done with the loading, the transporter would depart, and the goods will deliver it to the customers.

6. BI And Reporting

Once the pick-up and delivery of goods are done, the companies would require an extensive report that would contain the positive and negative trends of performance during the supply of goods.

The organizations will require granular transparency into their transportation expenses to manage and control the goods effectively, the demand for BI within the logistics and transportation space is skyrocketing.

Business Intelligence permits converting information into essential data. Prior, reporting was restricted to extracting data, getting it from a system, and bringing it into a spreadsheet or database where an organization would attempt to use it and convert it into useful data.

But now, Business Intelligence has arrived at a whole another level, where organizations can generate meaningful reports that shows all the data about supply chain providers in a scorecard design.

Some factors help users determine the transporters’ performance, such as on-time pick-up and delivery, driver behavior, and capaBusinessmitments.

Business insight has arrived at the following level, where meaningful can create significant reports that grandstand all the information about coordination suppliers in a scorecard design.

Variables, remembering for time get and conveyance, limit duties, and driver conduct are metrics that help clients with deciding transporters’ exhibition.


The Internet of Things and Artificial Intelligence disrupt logistics and transportation management by making logistics operations smarter day by day.

It is expected that delays in pick-ups/deliveries and trucking capacity concerns will be a matter of the past when AI and IoT come into the picture.

Author Bio

Shruti Bansal is a tech enthusiast with a specialization in Digital Marketing. She is passionate about technology, internet marketing, big data, and writing.

Currently working in a Chatbot and Mobile App Development Company. Reading novels, traveling, researching new online marketing trends are some of her areas of interest that keep her rejuvenated.