BULK HANDLING, STORAGE & LOGISTICS
How IoT improves supply chain sustainability
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t comes as no surprise that the world has been pushing for more energy-efficient options in all facets of life. From transportation, retail and agriculture to consumer goods and services, the threat of climate change and rising energy
costs have forced organisations to double-down on their efforts to cut greenhouse gas emissions. Although these pushes for supply chain sustainability are sometimes framed as a way to appease the general public, the truth is that implementing and improving sustainability initiatives benefits an organisation’s bottom line, both in the short-run and the long-run. It has also never been easier for a supply chain to implement sustainable plant engineering practices. With recent advances in IoT technology and enhanced connectivity being embraced across industries, supply chains can use their existing IoT sensors and network capabilities to push their sustainability efforts, all while seeing increased ROIs through continuous improvements. This is sustainability that goes beyond just having notable corporate social responsibility. Here are some of the benefits that IoT technology brings to a supply chain’s sustainability: 18
November/December 2021
Increased fuel and energy efficiency for logistics operations It costs money to move goods and supplies around. The average 18-wheeler truck costs over $1400 (US$1000) to fill up on diesel fuel. Planes can often reach the $14,000 (US$10,000) per fight. When vehicles are out on the road, businesses need to know where they are at all times, and how they can make transit routes as efficient as possible. With the right IoT technology in place, trucks can be rerouted for new deliveries while still on the road, deliveries can be optimised so that vehicles use less fuel and real-time analytics can allow a company to estimate fuel costs well in advance and make changes as they see fit. These gains go beyond truck fleets and cargo planes. With inventory management software and integrated IoT sensors, forklifts can also be used more efficiently in a warehouse or freight yard, with operators being able to locate pallets and shipments with real-time tracking. This reduces the amount of time spent driving around just looking for the right materials to move. On average, forklift operators have been able to move up to 30% more freight within a regular work shift hour, all while saving on fuel costs.
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