Specialization project on

A study of NextGen Supply Chain using Internet-of-Things

(IOT) and Robotics

Submitted in partial fulfillment for the award of the degree of

Master of Management Studies (MMS)

(under University of Mumbai)

Submitted By

Noel Vivian Raj

(Roll No.98)

Under the Guidance of

Prof. Anguja Agrawal

2016-18

SIES College of Management Studies

Nerul, Navi Mumbai-400706

 CERTIFICATE

This is to certify that project titled “A study of NextGen Supply Chain using
Internet-of-Things (IOT) and Robotics” is successfully completed by Mr. Noel
Vivian Raj, during the IV Semester in partial fulfillment of the Master’s Degree in
Management studies recognized by the University of Mumbai for the academic
year 2016-18.

This project work is original and not submitted earlier for the award of any
degree/diploma or associateship of any other University/Institution.

Signature of Guide

Name: Prof. Anguja Agrawal

Date:
 DECLARATION

I hereby declare that this Project Report submitted by me to SIES College of

Management Studies is a bonafide work undertaken by me and it is not submitted
to any other University or Institution for the award of any degree, diploma /
certificate or published any time before.

Name of the Student: Noel Vivian Raj

Roll No.: 98
 Acknowledgement

I humbly express my gratitude to my guide and mentor Prof. Anguja Agrawal,

Dr. Nitin Kubde and Prof. Vilas Chaudhari Dean, Operations and the entire
Operations department for supporting in completion of the project report on “A
study of NextGen Supply Chain using Internet-of-Things (IOT) and Robotics”.

Signature

Noel Vivian Raj

Date:

i
 Executive Summary

The Internet of Things (IoT) is a technology that extends digital connectivity to devices and
sensors in homes, businesses, vehicles and potentially almost anywhere. This enables virtually
any device to transmit its data, to which analytics can then be applied to facilitate monitoring
and a range of operational functions. IoT can deliver value in several ways. It can provide
organizations with more complete data about their operations, which helps them improve
efficiencies and so reduce costs. It also can deliver a competitive advantage by enabling them to
reduce the elapsed time between an event occurring and operational responses, actions taken or
decisions made in response to it.

IoT is expected to spread rapidly over the coming years and this convergence will unleash a new
dimension of services that improve the quality of life of consumers and productivity of
enterprises, unlocking an opportunity referred to as the ‘Connected Life’.

For consumers, the IoT has the potential to deliver solutions that dramatically improve energy
efficiency, security, health, education and many other aspects of daily life. For enterprises, IoT
can provide solutions that improve decision-making and productivity in manufacturing, retail,
agriculture and other sectors.

While the Internet of Things (IoT) will ultimately have an enormous impact on consumers,
enterprises and society as a whole, it is still at an early stage in its development. As mobile
operators and their partners pilot new services across multiple sectors, ranging from health to
automotive, they have identified several distinctive features of the Internet of Things. A
common understanding of the distinctive nature of this nascent opportunity should help hasten
the development of this market.

The Internet of Things can enable the next wave of life-enhancing services across several
fundamental sectors of the economy. As the Internet of Things evolves, the proliferation of
smart connected devices supported by mobile networks, providing pervasive and seamless
connectivity, will unlock opportunities to provide life-enhancing services for consumers while
boosting productivity for enterprises. For consumers, connectivity provided by the IoT could
enhance their quality of life in multiple ways, such as, but not limited to, energy efficiency and

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security at home and in the city. In the home, the integration of connected smart devices and
cloud-based services will help address the pressing issue of energy efficiency and security.
Connected smart devices will enable a reduction in utility bills and outages, while also
improving home security via remote monitoring. In cities, the development of smart grids, data
analytics and autonomous vehicles will provide an intelligent platform to deliver innovations in
energy management, traffic management and security, sharing the benefits of this technology
throughout society.

In education, mobile-enabled solutions will tailor the learning process to each student ‘s needs,
improving overall proficiency levels, while linking virtual and physical classrooms to make
learning more convenient and accessible.

For enterprises, the ability of IoT to combine innovations in data analytics, 3D printing and
sensors, will improve productivity by enabling a step change in the quality of decision making,
efficiency of production, personalization of retail and productivity of food production.

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 Table of Contents
1.Introduction ...................................................................................................................... 1
1.1 Internet-of-Things(IOT) and Robotics Overview……………………………….1
1.2 Objective………………………………………………………………………...7
1.3 Scope of the Project……………………………………………………………..7
1.4 Purpose and significance of Project……………………………………………..7
1.5 Limitations of the Projec………………………………………………………...7
2. Review of Literature ........................................................................................................ 8
3. Methodology.................................................................................................................. 10
3.1 Research design……………………………………………………………………10
3.2 Sources of Data……………………………………………………………………10
4. IoT in Manufacturing..................................................................................................... 11
5.IoT in Warehouse Operations ......................................................................................... 17
6.Current state of Robotics in Warehousing ...................................................................... 22
7.Robotics in Distribution Centers .................................................................................... 29
8.IoT in Transportation ...................................................................................................... 34
9.Last Mile Delivery .......................................................................................................... 37
9.1 IoT in Last Mile Delivery………………………………………………………….37
9.2 Robotics in Last Mile Delivery…………………………………………………....40
10.Use Cases of IoT .......................................................................................................... 42
11. Conclusion ................................................................................................................... 45
12.Bibliography ................................................................................................................. 47
13. Appendices .................................................................................................................. 48
13.1 List of Figures…………………………………………………………………….48

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1.Introduction

1.1 Internet-of-Things(IOT) and Robotics Overview

We have entered a unique period in the life of the Internet - the Internet of Things (IoT). the
simplest way to think of IoT is to consider it as the networked connection of physical objects.
With the advent of IoT, Internet connections now extend to physical objects that are not
computers in the classic sense and, in fact, serve a multiplicity of other purposes. A shoe, for
example, is designed to cushion the foot while walking or running. A street light illuminates a
road or sidewalk. A forklift is used to move pallets or other heavy items. None of these have
traditionally been connected to the Internet - they did not send, receive, process or store
information. Nonetheless, there is information latent in all of these items and their use. When we
connect the unconnected-when we light up “dark assets” -vast amounts of information emerge,
along with potential new insights and business value.

A connected shoe can tell its owner or a manufacturer the number of footfalls in a given period
of time, or the force with which the foot strikes the ground. A connected streetlight can sense
the presence of cars and provide information to drivers or city officials for route planning and to
optimize the flow of traffic. A connected forklift can alert a warehouse manager to an
impending mechanical problem or safety risk or be used to create greater location intelligence of
inventory in the warehouse.

Smart refrigerators, smart watches and smart cars - the IoT makes all this possible. IoT refers to
data communication among a large range of assets or devices-from your fridge to your oven, or
more pertinently from your inventory to its container, from the container to the carrier, from the
pallet to the warehouse. The more your assets can “speak” to one another and share data, the
more they can work together to help you improve your processes.

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 Figure 1.1 The Connected Home and Consumer

When things like household appliances are connected to a network, they can work together in
cooperation to provide the ideal service as a whole, not as a collection of independently working
devices. This is useful for many of the real-world applications and services, and one would for
example apply it to build a smart residence; windows can be closed automatically when the air
conditioner is turned on or can be opened for oxygen when the gas oven is turned on. The idea
of IoT is especially valuable or persons with disabilities, as IoT technologies can support human
activities at larger scale like building or society, as the devices can mutually cooperate to act as
a total system.

Robots are being designed to remove dangerous landmines and support recovery from natural
disasters in ways that would be too risky for human beings. Robots work together with factory
employees to assemble goods around the world with higher quality and at lower cost. Personal
robots are available to help us around our homes by mowing the lawn, watering the garden, and
vacuuming the living room. These robots already advance our lives by eliminating tasks that are
dangerous, repetitive, tedious, or boring and give us improved skills of accuracy, precision, and
strength. Robots enhance our productivity and allow us to accomplish more each day even in a
world where the working population is getting older.

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Value Chain in Supply Chain

Supply chain management is basically the flow of goods and services. It includes the whole
process of goods movement, storage of raw materials, in-process inventory and good’s
consumption from the point beginning to end. The ultimate goal of efficient supply chain
management is to reduce the inventory costs for an organization. That ultimately keep track
about goods’ consumption and product’s availability when required. A supply chain is a
network of facilities and distribution options that performs the functions of procurement of
materials, transformation of these materials into intermediate and finished products, and the
distribution of these finished products to customers. Supply chains exist in both service and
manufacturing organizations, although the complexity of the chain may vary greatly from
industry to industry and firm to firm.

Figure 1.2 IoT applications across Value Chain

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IoT Architecture
Four things form basic building blocks of IoT system –sensors, processors, gateways,
applications. Each of these nodes has to have their own characteristics in order to form a useful
IoT system.

Figure 1.3: Simplified block diagram of IoT

Sensors:

These form the front end of the IoT devices. These are the so called “Things” of the system.
Their main purpose is to collect data from its surrounding (sensors) or give out data to its
surrounding (actuators). These have to be uniquely identifiable devices with a unique IP address
so that they can be easily identifiable over a large network. These have to be active in nature
which means that they should be able to collect real time data. These can either work on their
own (autonomous in nature) or can be made to work by the user depending on their needs (user
controlled). Examples of sensors are: gas sensor, water quality sensor, moisture sensor etc.

4
Processors:

Processors are the brain of the IoT system. Their main function is to process the data captured
by the sensors and process them so as to extract the valuable data from the enormous amount of
raw data collected. In a word, we can say that it gives intelligence to the data. Processors mostly
work on real-time basis and can be easily controlled by applications. These are also responsible
for securing the data – that is performing encryption and decryption of data. Embedded
hardware devices, microcontroller etc. are the ones that process the data because they have
processors attached to it.

Gateways:

Gateways are responsible for routing the processed data and send it to proper locations for its
(data) proper utilization. In other words, we can say that gateway helps in to and fro
communication of the data. It provides network connectivity to the data. Network connectivity
is essential for any IoT system to communicate. LAN, WAN, PAN etc. are examples of network
gateways.

Applications:

Applications form another end of an IoT system. Applications are essential for proper utilization
of all the data collected. These cloud-based applications which are responsible for rendering
effective meaning to the data collected. Applications are controlled by users and are delivery
point of particular services. Examples of applications are: home automation apps, security
systems, industrial control hub etc.

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IoT Working Mechanism
First, it acquires information with respect to basic resources (names, addresses and so on) and
related attributes of objects by means of automatic identification and perception technologies
such as RFID, wireless sensor and satellite positioning, in other words the sensors, RFID tags
and all other uniquely identifiable objects or “things” acquire real-time information (data) with
the virtue of a central hub like smartphones.

Second, by virtue of many kinds of communications technologies, it integrates object-related

information into the information network and realizes the intelligent indexing and integration of
the information related to masses of objects by resorting to fundamental resource services
(similar to the resolution, addressing and discovery of the internet).

Finally, utilizing intelligent computing technologies such as cloud computing, fuzzy

recognition, data mining and semantic analysis, it analyzes and processes the information related
to masses of objects so as to eventually realize intelligent decision and control in the physical
world.

Figure 1.4: IoT Architecture Layers

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1.2 Objectives
The main objective of my thesis is to understand how Internet-of-Things (IoT) and Robotics can
transform the traditional Supply Chain into an intelligent and digitized Supply chain that
Enterprises can leverage to have a competitive advantage and be future oriented.

This paper aims to provide a comprehensive overview of the IoT scenario and reviews its
enabling technologies and the sensor networks. Also, it describes a six-layered architecture of
IoT and points out the related key challenges.

1.3 Scope of the Project

• Understanding an overview of IoT and Robotics technology

• Analyze and provide use cases where IoT and Robotics can be used to design an
efficient and intelligent supply chain

1.4 Purpose and significance of Project

Supply Chain processes must augment and change with massive inclusion of new technologies,
robotics, artificial intelligence, big data approach and become more sustainable, considering the
growing challenges. This research study explores the main technological advancement in Supply
Chain Management. From Materials Handling to Production and Distribution, Internet-of-
Things and Robotics will change the conventional methods and the supply chain processes
highly efficient and excellent.

1.5 Limitations of the Project

The data available for IoT and Robotics technology to augment supply chains is limited

Much information about strategic assets (warehouses, tools and equipment’s etc.) in a supply
chain of a company is limited

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2. Review of Literature

The Fourth Industrial Revolution is “fundamentally changing the way we live, work, and relate
to one another” (SCHWAB, p. 1, 2016). The Industry 4.0 concerns the development and the
connection of emerging technologies in areas such as 3D printing, augmented virtual reality,
artificial intelligence, robotics, autonomous vehicles, big data, cloud computing, biotechnology
in a way to promote disruptions in businesses, but important changes may also occur in the
economy and in the society. Among these technologies, the Internet of Thing (IoT) is reaching
substantial attention (CHUNG; KIM, 2016). According to Weinberger, Bilgeri & Fleisch (p.
700, 2016), the term IoT “was initially coined at the Auto-ID labs at the Massachusetts Institute
of Technology (MIT) and describes the vision that virtually all objects become smart and
connected”. Kafle, Fukushima & Harai (p.44, 2016) considers it as “an object of the physical
world (physical thing) or the information’ world (virtual thing), which is capable of being
identified and integrated into communication networks.”

Vermesan et al. [2014], the IoT refers as intelligently connected devices and systems to gathered
data from embedded sensors and actuators and other physical objects. IoT is expected to spread
rapidly in coming years a new dimension of services that improve the quality of life of
consumers and productivity of enterprises, unlocking an opportunity. Now this time Mobile
networks already deliver connectivity to a broad range of devices, which can enable the
development of new services and applications. This new wave of connectivity is going beyond
tablets and laptops; to connected cars and buildings; smart meters and traffic control; with the
prospect of intelligently connecting almost anything and anyone. This is what is referred as the
“Connected Life”.

IoT may contribute to addressing many of our global challenges, such as disease outbreaks,
climate change, pollution, resource scarcity (KAFLE; FUKUSHIMA; HARAI, 2016) and it may
impact our own life routine, such as home management and appliance maintenance
(WEINBERGER; BILGERI; FLEISCH, 2016, BABAMIR, 2012). In terms of the application of
IoT to the industrial world, the literature mention that it may help in “preventive maintenance,
remote control, manufacturing analytic tools and services, management of process quality as
well as smart retrofitting of machinery (…), and it will allow to integrate whole supply chains,
8
tracking and tracing inter and intra plant logistics” (WEINBERGER; BILGERI; FLEISCH, p.
701, 2016). In addition, the advances in IoT may help to “monitor and visualize various wireless
sensor networks (WSN) applications in manufacturing environments such as automated work
cells, transportation systems, logistic, and storage systems” (BI; WANG; DA XU, p. 377 2016).
In this context, real-time data and delivery of the product in the right place at the right time
(SIVAMANI; KWAK; CHO, 2014) are streamlined, even allowing the creation of new services
and the improvement of business processes (APPEL et al., 2014) and business models.

9
3. Methodology

3.1 Research design

This research is a qualitative, observatory research. It deals with the study of IoT and Robotics
technology and its possible impacts in the development of supply chains and other applications.
The paper presents the development of IoT and Robotics for specific applications in supply
chain such as such as warehouse management systems, inventory management and
manufacturing operations.

3.2 Sources of Data

The theoretical part will be based on a documentary analysis that
includes obtaining information from various types of documents:

• Paper-based sources – books, journals, periodicals, abstracts, indexes, research reports,

conference papers, market reports, internal records of organizations, newspapers and
magazines
• Electronic sources-on-line research database(EBSCO), Internet, videos etc.

Also, I used the observation method in my thesis for better considering the IoT and Robotics
technology in terms of its use cases and applications.

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4. IoT in Manufacturing

An informed manufacturing organization contains four elements: informed products, processes,

people and infrastructure. These essential elements of manufacturing are converging like never
before, creating a more automated, intelligent and streamlined manufacturing process.

• Products: Advanced sensors, controls and software applications work together to obtain
and share real-time information as finished goods make their way down the production
line. Informed products will enable machines to take autonomous action.
• People: By connecting people across all business functions and geographies, and
providing them with relevant information in real-time, “informed people” will provide
intelligent design, operations and maintenance, as well as higher quality service and
safety.
• Processes: By emphasizing bidirectional information-sharing across the global
manufacturing value chain — from supplier to customer — informed processes lead to a
flexible and adaptable supply chain.
• Infrastructure: Using smart infrastructure components that interface with mobile
devices, products and people, informed infrastructure will better manage complexities
and enable more efficient manufacturing of goods.

Figure 4.1 An Informed Manufacturing Plant

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All parts of the manufacturing value chain will greatly benefit from a deep penetration of digital
sensors that enable enhanced visibility and better control of production processes, as well as
increased automation of tasks. Below figure elaborates the applications that encompass IoT
principles across the manufacturing value chain- from research and development, through
sourcing, production, outbound logistics, marketing and sales — offer huge potential benefits.

A range of possibilities across core functional and process areas also exists. These possibilities
are only limited by the ability of organizations to derive meaning from the vast amount of
granular time-stamped data generated by embedded sensors in the products and equipment.

Connected Supply Chain

By connecting the production line to suppliers, all stakeholders can understand

interdependencies, the flow of materials and process cycle times. IoT systems can enable
location tracking, remote inventory level monitoring and automatic reporting of material
consumption as they move through the supply chain. Access to predictive analytics based on
real-time data helps manufacturers identify issues before they happen, lower inventory costs and
potentially reduce capital requirements.

An example of the connected supply chain is Dell’s supply chain orchestration, spanning from
customers to suppliers. On the customer side, Dell ensures that all its employees are engaged
with customers to help them find the best customized choice that fits their need. These orders
are then translated to its OptiPlex manufacturing facility, which is able to build more than
20,000 custom-built products.

Once customer orders arrive, they are consolidated at the part level via real-time factory
scheduling and inventory management. Dell’s IoT capability not only enables the company to
churn out revised manufacturing schedule every two hours, but it also enables communications
(with time stamps) to suppliers to ensure that required materials are delivered to specific
buildings, dock doors and manufacturing lines.

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 Figure 4.2 Illustration of a Connected Supply Chain

The IoT data and network provide interconnectivity between the shop floor and top floor, which
enables the automation of specific processes and reduces the human intervention required to
address issues or deviations. Additionally, sensors can continually measure operating parameters
such as temperature, pressure, alignment or thickness at a process level and send this data to a
remote controller.

When deviations beyond pre-set control parameters are sensed, the controller can automatically
send instructions to actuators to make adjustments to the process. IoT allows such feedback
loops to run in near-real-time, eliminating the need for active human intervention and associated
time lags. IoT can also advance shop floor visibility by providing continuous status at multiple
checkpoints. The benefits of increased visibility extend beyond the enterprise to suppliers and
third-party providers. Suppliers will have increased visibility into material consumption on the
13
plant floor and can replenish stock just-in-time, avoiding both stock-out costs and material
carrying costs.

Figure 4.3 IoT for Shop Floor Visibility

Remote Monitoring and management of Critical assets

While remote asset monitoring has been around for decades, the ability to issue corrective
commands is rapidly maturing. Consequently, equipment suppliers have a more direct role in
the operations and maintenance of manufacturing plants if they embrace new service offerings
and business models. Models can pivot around hours of operation rather than equipment sale,
and the buyer gets to use the equipment in an “as-a-service” offering. This will create entirely
new and very closely linked business relationships between manufacturers and their suppliers.

14
 Figure 4.4 IoT for Remote Asset Monitoring

Proactive maintenance

Manufacturers have widely accepted the concept of preventative and condition-based

monitoring, but many are still in the process of implementing these programs. If the
manufacturer has equipment that needs to operate within a certain temperature range, the com-
pany can use sensors to actively monitor when it goes out of range and prevent malfunctions.
Measuring vibrations to detect operations that are out of spec is another example.

15
Figure 4.5 IoT for Preventive Plant Maintenance

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5.IoT in Warehouse Operations

Warehouses have always served as a vital hub in the flow of goods within a supply chain. But in
today’s economic climate, they also serve as a key source of competitive advantage for logistics
providers who can deliver fast, cost-efficient, and increasingly flexible warehousing operations
for their customers.

This is no easy challenge. With thousands of different types and forms of goods being stored in
the average warehouse today, every square meter of warehousing space must be optimally
utilized to ensure specific goods can be retrieved, processed, and delivered as fast as possible.
The result is a high-speed, technology-driven environment that is ideal for IoT applications.
From pallets and forklifts to the building infrastructure itself, modern warehouses contain many
assets that can be connected and optimized through IoT.

In the warehouse, the widespread adoption of pallet or item-level tagging — using low-cost,
miniscule identification devices such as RFID — will pave the way for IoT-driven smart-
inventory management. Let’s examine a few instances of IoT in action in a warehouse. For
starters, wireless readers capture data transmitted from each pallet as it arrives through inbound
gateways. This data could include information on the product such as volume and dimensions,
which could then be aggregated and sent to the WMS for processing. This capability eliminates
the time-consuming task of manual counting and volume scanning of pallets. Cameras attached
to the gateways could also be used for damage detection, by scanning pallets for imperfections.

Once pallets are moved to the right location, tags transmit signals to the WMS to provide real-
time visibility into inventory levels, thus preventing costly out-of-stock situations. If any item
has been misplaced, sensors can alert the warehouse manager, who can track the item’s exact
location for corrective action. For quality management, sensors monitor the condition of an item
and alert warehouse managers when the temperature or humidity thresholds are about to be
compromised. This would allow warehousing staff to take corrective action, ensuring service
quality and greater customer confidence.

During outbound delivery, pallets are scanned through an outbound gateway to ensure that the
right items, in the right order for delivery are being sent. Stock levels are then updated
17
automatically in the WMS for accurate inventory control. Beyond goods stored in a
warehouse, IoT can also drive optimal asset utilization. By connecting machinery and vehicles
to a central system, IoT enables warehouse managers to monitor all assets in real time.
Managers can be alerted when an asset is being over-utilized or when an idle asset should be
deployed to do other tasks. For example, a variety of sensors could be deployed to monitor how
often assets in a sorting system, such as conveyer belts, are in use or idle, and at what times.
Analysis of the data could then identify optimal capacity rates and tasks for the assets. One such
innovation is Swiss log’s “Smart LIFT” technology. The solution combines forklifts sensors
with directional barcodes placed on the ceiling of the warehouse and WMS data to create an
indoor GPS system that provides the forklift driver with accurate location and direction
information of pallets. It also delivers a dashboard for managers to observe the real-time speed,
location and productivity of all forklift drivers as well as visibility on inventory accuracy.

Figure 5.1 Swisslog SmartLIFT Technology for Forklifts

Such solutions can in future identify inefficiencies in already automated processes. For example,
an automatic guided vehicle (AGV), such as an automatic pallet mover, will do an assigned task
over and over unless there is manual intervention to assign it to another task. By analyzing its
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capacity and patterns, the warehouse manager may find that on weekends, it is best used in
another part of the warehouse and this triggers corrective action. Connected assets in a
warehouse also enable predictive maintenance for warehouse transport systems. As one
example, sensors could be placed on a sorting machine to detect levels of physical stress by
measuring throughput or the temperature of the machine. Cameras can also be employed to
detect package damage or pileups as they occur. All of this data could then be collected and
combined for predictive maintenance analytics, which can schedule maintenance appointments
and calculate the expected lifetime of the machine at its current level of usage. Any pile-ups are
alerted to staff so they can be fixed before causing serious damage.

IoT can also drive higher levels of worker health and safety through a connected workforce
and connected vehicles. Statistics from the Industrial Truck Association (ITA) and the U.S.
Occupational Health and Safety Administration estimate that there are about 855,900 forklifts in
operation in the United States alone. Those forklifts are estimated to contribute to more than
100,000 accidents per year, which causes 94,750 injuries. Almost 80 percent of forklift
accidents involve a pedestrian. Multiplied on a global scale, this demonstrates the potential scale
for improving safety within the warehouse. Sensors and actuators combined with radar or
cameras attached to forklifts can allow them to communicate with other forklifts and scan the
environment for hidden objects that could cause a collision. Forklifts could be programmed to
slow automatically at intersections when another forklift or pedestrian is detected around the
corner.

Many accidents also result from workers loading the pallet incorrectly. Such accidents could be
avoided by using pressure sensors to detect when a load has become too heavy, and also when
an uneven load has been placed on the forklift. By alerting the driver when load capacity has
been exceeded or when the load center is uneven, safety is increased.

19
Figure 5.2 IoT enabled Warehouse
20
IoT technologies can also prevent falling pallets and products. A mix of sensors and cameras
could be employed to detect risks from imperfect storage and calculate the likelihood of a pallet
or item falling from a shelf. Once an issue is identified, an alert could be transmitted to the
warehouse team for immediate action, reducing potential injuries to workers and cutting down
on damage to goods. At all hours, these cameras could also be used for monitoring items to
prevent theft.

In the near future, workers will opt-in to the IoT system, connecting via their smart phones,
scanners, and wearables in fact, smart glasses and other wearables are likely to bring an exciting
new stage in machine-to-human interaction in the warehouse. The emergence of the connected
workforce provides new opportunities to monitor the health and fatigue of workers, track the
fixed process paths of workers, and analyze where warehouse managers can improve walkways
or change a process to make workers’ lives easier and safer. One such solution is under
development from Locoslab, which provides precise localization of mobile devices in indoor
environments using active and passive RFID technology. It monitors the movement of people
and objects within an indoor environment and applies location analytics to understand where
processes can be improved.

Sensors can also be integrated into the warehouse infrastructure itself. In an average warehouse,
ordinary lighting accounts for up to 70 percent of energy use.36 Smart warehouse energy
management connects HVAC and utilities networks, including connected LED lights, to
optimize energy consumption. In addition to automatically dimming and lighting according to
activity, such systems regulate the energy consumption of devices, heating, and ventilation. The
resulting reduction in energy consumption cuts overhead costs along with the carbon footprint
of the warehouse.

Figure 5.3 Smart warehouse energy management

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6.Current state of Robotics in Warehousing

Research shows that 80% of current warehouses are manually operated with no supporting
automation. These warehouses have dealt with demands for increased productivity and
throughput by supporting existing workers with good layout design, mobile material handling
equipment, and constantly improving IT. Some 15% of our current warehouses are mechanized.
In addition to the technology used in manual warehouses, these distribution centers also use
some type of material handling automation such as conveyors, sorters, goods to-picker
solutions, and other mechanized equipment to further improve the productivity of the existing
workforce.

The research finds that just 5% of current warehouses are automated. The reality today is that
these automate warehouses are typically highly mechanized environments that still employ
people in key functions. An example would be a modern sorting center which has much higher
productivity and accuracy than in previous generations. Even with all of this advanced
technology, in large sorting hubs there may still be more than 1,000 employees who spend their
time loading and unloading trucks, handling parcel unit load device containers, and manually
sorting odd-sized items.

Figure 6.1 Traditional warehouse

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Trailer and Container Unloading Robots

Many of the goods for sale in Europe and the US are made in Asia and most of these items cross
the ocean in standardized shipping containers. To save on transport costs, the majority of these
goods are loaded on the floor of the container and stacked to the ceiling without pallets. When
the container arrives at a port, it is loaded on to a truck and sent to a distribution center. On
arrival, the contents of the container are typically unloaded by hand, sorted, and stacked onto
pallets so that they can be stored in the warehouse. This very manual and labor-intensive process
can take several hours. Similarly, many long-haul parcel trucks are loaded floor to ceiling
without pallets and require significant labor to unload.

The Parcel Robot which consists essentially of the following components: a chassis, a
telescopic conveyor belt, a 3D laser scanner, and a gripping system made up of an articulated
robotic arm and a grabber. The robot is positioned in front of a container to unload and uses its
laser to scan all of the boxes. An integrated computer then analyzes the various sizes of parcel
and determines the optimal unloading sequence. The robot picks up a box and places it onto a
conveyor that transports the item out of the container and into the sorting center.

Figure 6.2 Parcel Robot

The robot moves forward as it works until the entire truck is unloaded. Nevertheless, DHL’s
innovative Parcel Robot proved to the world that robotic unloading was possible and several
23
companies have since developed the concept further. A US company called Wynright currently
offers a truck unloading robot for sale62 Like the DHL Parcel Robot, it unloads boxes onto an
extendable conveyor belt at a rate of over 500 parcels per hour. Unlike the DHL robot, it uses
low-cost cameras to locate the boxes rather than more expensive laser scanners. Over time this
technology should become more cost effective, faster, and more reliable as cameras, computers,
and robotic arms continue to improve.

Companies like Wynright are also developing trailer loading robots. This application adds
further complexity to the software because the system now has to determine the best way to
stack boxes of different shapes and weights to optimally fill the trailer without damaging any of
the items.

Stationary Piece Picking Robots

A traditional warehouse employee typically spends most of his or her time walking around the
warehouse to gather all of the items for an order. In a manual Amazon warehouse, a picker
might walk between 11 to 24 kms per shift. As previously mentioned, to save labor by reducing
the time spent walking, Amazon bought the company Kiva that builds mobile robots. These
robots can pick up a shelf of goods and bring the entire shelf to the picker who stays in one spot,
effectively turning these humans into stationary assembly line workers. After the picker selects
the needed items, the shelf moves away and a different shelf arrives to take its place. This so-
called goods-to-picker concept can be found in several technologies on the market today such as
Swiss log’s Carry Pick mobile system. It is possible in some cases to save 50% of warehouse
picking labor with these systems through the elimination of walking. Currently, most of these
systems are very capital intensive, requiring a network of connected shelves, tracks, robotic
shuttles, elevators, and conveyors. Even after this investment, they still require a significant
number of people to pick items from an automatically presented plastic tote or mobile shelf.

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 Figure 6.3 Goods-to-picker concept

While these systems save walking, a relatively large labor force remains doing the very
repetitive task of picking objects from one container and placing them into another. Besides
being extremely boring, this is not ergonomically optimal for the operator; this person must
perform the same set of movements over and over again with limited variation in the task. The
companies that make the large goods-to-picker material handling systems have seen this
problem as an opportunity to introduce robotic arms into their systems. An example is the
German company SSI Schaefer that offers a product called Robo-Pick.65 This is a typical
stationary industrial robot that is bolted inside a traditional robot work cell. The robot uses a
camera to identify items in a plastic tote which has been delivered to the work cell by one of SSI
Schaefer’s large automated tote storage and retrieval systems. Once the robot has located an
item, it picks the product up and places it on a small buffer conveyor that will ultimately deposit
the item in a separate transport tote. SSI Schaefer claims that its robot can pick up to 2,400 items
per hour depending on product characteristics and order profile. Currently the system seems to
work best with small rectangular products such as DVDs and pharmaceutical boxes.

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It is the need for a large and expensive goods-to-picker system to support the robots. Another
issue is that these large systems are not easy to move from one building to another when a
distribution network changes. In most cases the system would need to be scrapped instead of
moved, due to its complexity and sheer size.

Mobile Piece Picking Robots

The opposite of the goods-to-picker system would be a mobile robot that drives around
traditional warehouse shelves and picks items just like a person would. Several startup
companies are currently working on robots that can do just that. IAM Robotics is a small
company based in the United States. It is currently developing a mobile robot with an arm on
top and a camera system that can navigate an existing warehouse and pick items from shelves
and place them into an order tote. The system was first field tested in a pharmaceutical
warehouse in New York where it was able to pick test orders from 40 items that it had never
seen before. The robot will be tested next in a more general goods warehouse where it will be
integrated with a warehouse management system (WMS) for the first time and pick live orders.

Figure 6.4 Pick it easy concept

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The company Fetch Robotics is a well-funded startup that is also developing a robot that will
drive around a warehouse picking items from shelves. Its primary robot, called Fetch, can
extend its torso to reach upper shelves while a small secondary robot, call Freight, helpfully
holds the tote that Fetch will pick items into. Each Fetch robot can have several of these smaller
Freight robots supporting the picking process. The agile Freight robots quickly move the totes
around the warehouse from area to area while the slower Fetch robots can stay in one aisle and
focus on picking items. This effectively creates a hybrid of the goods-to-picker approach and the
traditional manual picking concept. Fetch Robotics intends to also sell the smaller Freight robots
separately; these can be used to help human workers in warehouses containing items that are too
complicated for the Fetch robot.

Figure 6.5 Fetch and Freight

Figure 6.6 Mobile piece picking robot

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Co-Packing and Customization

When shopping we sees items with special ‘half off’ price stickers or two items bundled
together so that you can ‘buy one get one free’. Retailers have found that these modifications
will catch our eye and cause us to buy more. This is a great sales device but it is expensive
because adding all of these stickers, building the displays, and repackaging items takes a lot of
labor and space. The retailers don’t want to deal with this extra labor so they have decided to
push this problem to their suppliers.

Now every major producer of shampoo, batteries, soup, and other merchandise is at risk of
receiving requests to modify their products specifically for key customers, often with very little
advanced warning. These last-minute modifications are often referred to as co-packing or
customization. In many cases, the customization process involves opening a box of products,
taking out the items, doing something simple to them like putting on a sticker, and then packing
the items back into the box. The processes are not normally difficult; they just take up space and
require a lot of labor. The key to being a good co-packer is flexibility since everyday means
working with different products and slightly different modifications. Traditional industrial
robots do not have this kind of flexibility so most co-packing is done manually. Earlier in this
report we mentioned the robot Baxter from Rethink Robotics. Let’s describe Baxter in a bit
more detail to highlight some of the things that make this robot special. Baxter is a collaborative
robot and is designed to work safely around people. Its two arms are plastic; it has springs in its
joints and sensors to shut off the arms if they hit something. There is a sensor in Baxter’s head
that scans around the robot causing it to slow down if people come close, and Baxter has three
built-in cameras that it uses to identify and pick up objects.

Figure 6.7 Baxter at DHL

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7.Robotics in Distribution Centers

Compared with the distribution centers of today, the robotic warehouses of our future are likely
to improve in almost every metric. These highly scalable facilities will be more flexible and
faster to relocate; they will achieve higher productivity with increased quality.

New operations will incorporate different types of robot each with a specific job to perform such
as unloading trucks, co-packing, picking orders, checking inventory, or shipping goods. Most of
these robots will be mobile and self-contained but they will be coordinated through advanced
warehouse management systems and equipped with planning software to track inventory
movement sand progress orders with a high degree of accuracy. Overall reliability will increase
because there will be fewer ‘single points of failure’ in each distribution center. As each robot
acts as an individual unit, we will be able to quickly push it to the side if it breaks down and
replace it with another unit from the robot fleet. Depending on the problem, we will be able to
fix the broken robot onsite or send it to a central repair facility. The new robot will be connected
to the cloud so it will automatically download the knowledge needed to take over from its
decommissioned counterpart.

Warehouse workers will be given more responsibility and higher-level tasks such as managing
operations, coordinating flows, fixing robots, and handling exceptions or difficult orders. They
will wear exoskeletons to help them lift heavy goods with less strain, fatigue, and chance of
injury. When necessary, we will bring goods into a co-packing area where collaborative robots
will work safely alongside highly skilled warehouse employees to transform basic products into
new items customized for individual orders.

Employees will train the robots through simple interfaces to do easy and repetitive tasks, and
these humans will take on the more challenging work themselves. Both small and large
warehouses will enjoy productivity gains as we add –on an as-needed basis – the robots that
have proved to be successful in supporting the existing workforce.

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Workers will be able to flex and scale operational capacity according to changing demand
simply by adding more robots to cover peaks and automatically removing them from the
building (relocating them to where they are next needed) to rebalance the distribution network
and we will experience the emergence of a robot leasing, rental, and pre-owned market allowing
companies to reduce capital investments while further increasing operational flexibility.

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Figure 7.1 Future Vison Robotics enabled Distribution Center

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Sorting Centers

Unlike today, the sorting centers of the future will run continuously, 24 hours per day, to better
align with the distribution centers that will also operate around the clock. Robotic warehouses
and sorting centers will be just as effective on the last shift as they are on the first shift. Working
in waves, the new supply chain will facilitate multiple shipments to end customers each day. By
fully utilizing equipment across shifts, we will be able to lower logistics costs and, by
processing multiple daily delivery waves, we will achieve faster service to end customers.
Goods will be brought to the sorting center by self-driving trucks. These will arrive according to
specific scheduled timeslots, and we will be able to efficiently control truck movements onto
and around the yard using GPS and a yard management system.

When a truck arrives at the dock door, robots will unload it and sort the parcels according to
final destinations. There are several possible approaches to accomplish this. For example, we
could think of using a large number of mobile robots to transport the parcels from inbound dock
doors to the appropriate loading areas. Each mobile robot would be loaded with parcels by a
robotic arm; it would then group and sequence itself with other mobile robots to efficiently
transport loads throughout the sorting center. When a truck arrives with dangerous goods, these
will be automatically sorted, handled, and transported separately and securely. All of these tasks
will be supervised by employees working in a robot-control center; these humans will address
any issues, manage workflows and make key operational decisions. Employees will also handle
any exception parcels such as items that require repacking, relabeling, or a customs check.

When leaving the sorting center, most parcels will be loaded by robotic arms into line haul
trucks which take them to the next sorting center in the network. Some items will be loaded into
drones for airborne delivery to hard-to-reach addresses. Local delivery items will be loaded into
mobile parcel robots which take them to individual homes in the surrounding area. And if the
recipient is a high-priority customer, they will be able to send their personal self-driving vehicle
to the sorting center; they can continue with their busy day elsewhere while their parcel is
placed automatically into the trunk.

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It’s clear to see that the advantages of these futuristic sorting centers – speed, flexibility, higher
productivity, and more – will translate into better service for end customers, achieving faster
delivery at a lower cost.

Figure 7.2 Future Vison Robotics enabled Sorting Center

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8.IoT in Transportation

With hundreds of thousands of ocean, air, and road assets, freight transportation presents great
potential for IoT networks. IoT in freight transportation will move beyond track and trace.
Today it is already possible to track and monitor a container in a freighter in the middle of the
Pacific, and shipments in a cargo plane midflight. We expect IoT to provide the next generation
of track and trace: faster, more accurate and predictive, and more secure.

Theft costs shippers and logistics providers billions of dollars each year, from the impact of
inventory delays as well as the cost of stolen goods. Through IoT, logistics providers will gain
clear visibility on the movement of goods — meter by meter and second by second — as well as
item-level condition monitoring to ensure that goods arrive in time, at the right place, and intact.
As we have seen, location and condition monitoring through IoT will provide a new level of
transport visibility and security. Telematics sensors in trucks and multi-sensor tags on items
transmit data on location, condition (whether any thresholds have been crossed), and if a
package has been opened (to detect possible theft).

One challenge that the logistic industry is facing is that many of the existing solutions are
proprietary, stand-alone solutions that are not connected to each other. New platforms need to be
created that combine various existing hardware and software solutions for end-to-end integrity
control of supply chains. A real-time tracking solution provider, has developed an open platform
for connecting various telematics and sensor hardware devices to consolidate data across
different applications and modes. The platform merges multiple assets such as a connected swap
body or truck into one easy-to-use portal with worldwide accessibility, allowing logistics
providers and customers to track all assets and their various devices at once.

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 Figure 8.1 Real time Tracking Portal

Another key area of IoT opportunity is fleet and asset management. For example, sensors can
monitor how often a truck, container or Unit load device is in use or idle. They then transmit this
data for analysis on optimal utilization. As noted earlier in this section, many logistics vehicles
today are already brimming with sensors, embedded processors, and wireless connectivity.
Sensors that measure the capacity of each load can provide additional insights concerning spare
capacities in vehicles on certain routes. IoT could then enable a central dashboard that focuses
on identifying spare capacity along fixed routes across all business units. From there, it could
recommend suggestions for consolidating and optimizing the route. This would create fleet
efficiencies, improve fuel economy, and reduce deadhead miles, which account for up to 10
percent of truck miles.

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Similar to optimal asset utilization in warehousing operations, a connected fleet could also pave
the way for predictive asset lifecycle management. This solution leverages analytics to predict
asset failures and automatically schedule maintenance checks. One example is MoDe
(Maintenance on Demand). DHL and Volvo partnered to create a commercially viable truck that
autonomously decides when and how it requires maintenance. The latest sensor technology was
embedded in key areas such as oil and damper systems to identify material degradation or
damages.

Data was then transmitted first to a central unit in the truck via a wireless network, then to a
maintenance platform for analysis. The driver or maintenance crews were then alerted to
potential problems. The system was found to increase vehicle uptime by up to 30 percent40 and
decrease potential danger to truck drivers through constant condition monitoring of vehicles.

IoT can also play an additional role in health and safety, preventing potential collisions and
alerting drivers when they need to take a break. Long-distance truck drivers are often on the
road for days in hazardous conditions. Cameras in the vehicle can monitor driver fatigue by
tracking key indicators such as pupil size and blink frequency. This is already being applied by
Caterpillar, the world ‘s largest manufacturer of construction and mining equipment, which is
using this technology to keep sleepy truck drivers from getting into accidents. If the solution
senses the driver is losing attention on the road, it activates audio alarms and seat vibrations. An
infrared camera is capable of analyzing a driver ‘s eyes through glasses and in the dark.

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9.Last Mile Delivery

9.1 IoT in Last Mile Delivery

With the final part of the delivery journey (the so-called “last mile”) being highly dependent on
labor, and as consumer demands become more sophisticated and delivery points continue to
multiply, logistics providers face new challenges. They need to find creative new solutions for
this important stage in the supply chain cost-effective solutions that provide value for the end
customer and operational efficiency for the logistics provider. IoT in the last mile can connect
the logistics provider with the end recipient in exciting ways as it drives dynamic new business
models. One IoT-enabled use case for the last mile creates optimized collection from mail
boxes. Sensors placed inside the box detect whether it is empty and, if so, transmits a signal that
is then processed in real time. The delivery person can then skip that box for collection, thereby
optimizing daily collection routes. Start-ups such as Postybell42 have created proximity sensors
that detect when mail has been placed in a private mailbox and can also monitor the wetness
inside the mailbox. A delivery then triggers an alert to the recipient’s phone via GSM. They can,
for example, be reminded to check their mailbox or keep track of it while they are on holiday.

The same principle could be applied to the DHL Paketkasten or Parcelbox, which are solutions
to accommodate the e-commerce boom – users can install a personal parcel locker at their front
door. This is currently being launched in Germany. But as letter volumes decrease and parcel
volumes increase, we can imagine a future in which temperature-controlled smart lockers
eventually replace traditional mailboxes and ensure first-time every-time delivery of parcels,
groceries, and other environmentally sensitive goods.

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 Figure 9.1.1 Postybell Smart Mailbox

Figure 9.1.2 DHL Paketkasten for Parcel Delivery

End-to-end supply chain risk management is yet another area in which IoT is becoming
increasingly useful. Rising volatility and uncertainty in global supply chains is causing
traditional supply chain management models to break down. Natural disasters, sociopolitical
unrest, conflict, economic uncertainty, and market volatility all threaten catastrophic disruption,
often without warning. One tool is DHL Resilience360 for supply chain risk management,
which provides a multi-tiered visualization of the end-to-end supply chain.

38
Any disruptions on a global scale are checked for their effects on key trade lanes; if they pose a
strong risk, appropriate mitigation strategies are triggered automatically. In the future,
Resilience360could integrate all the data transmitted from assets and respond when a truck
carrying urgent cargo is about to break down or when a warehouse has been flooded from a
storm. It could also move a shipment from air freight to road freight to compensate for an airline
strike.

Managing threats such as port strikes, airport closures, and highway closures may not seem like
an obvious IoT application at first glance, but analytical capabilities are becoming sophisticated
enough not only to predict them, but increasingly to respond.

Figure 9.1.3 DHL Resilience360 Supply Chain Risk Management Portal

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9.2 Robotics in Last Mile Delivery
In future, the general public will interface with robots on a daily basis. We won’t fear for our
physical safety because these robots will avoid bumping into us using advanced sensors such as
cameras, laser scanners, and proximity sensing skin. Using cloud computing techniques, these
robots will provide high-quality customer service; they will be able to speak our language, react
to our emotions, and access appropriate account information to ensure successful interaction.
The first robots that we are likely to encounter are the ones at local parcel service centers. Here,
a robot assistant may help us to ship a present to an old friend. Another everyday occurrence
could be the receipt of an email informing us that there’s a small package for collection at a
mobile parcel locker located outside a nearby store. Early each morning these lockers will be
swapped out by self-driving trucks for lockers holding new parcels which have been preloaded
the evening before by robots at the local sorting center.

The larger items will still be delivered to our homes by human employees, but they will be using
exoskeletons to safely lift heavy weights. They may be assisted by mobile robots carrying
several items and following behind the human along their route. If you live in a large apartment
building, a small mobile delivery robot may automatically take the elevator to your floor and,
once outside your front door, call your mobile phone. You will simply open your door and enter
a code into the robot; this allows a compartment to open, and you will be able to access your
parcel. If you live in a remote area, a drone may message you from your driveway and require a
similar access code procedure. In both cases, you will be able to preplan the delivery time to fit
your daily schedule since this single parcel delivery vehicle will be sent only to you.

What if you are not home?

Your own personal robot will be able to open the front door to accept the parcel on your behalf.
It’s more than likely that our homes, cars, and personal robots will all work together in the
future, ensuring we always receive our deliveries safely and on time.

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Figure 9.2.1 Last Mile Delivery using Robots
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10.Use Cases of IoT

1.The Connected Environment

The connected mailbox is just one part of an overall trend of “smart home” products that
consumers are beginning to adopt. One common IoT-based example in the consumer world is
the connected fridge. It tracks the expiration dates of products being stored, detects when
supplies are running low, and orders more online automatically. Such automatic replenishment
and anticipatory shipping solutions have implications for logistics providers. For example,
sensors detect when a retailer is low on stock and places an order automatically at the nearest
distribution center, reducing lead time and avoiding stock-outs that result in missed sales.
Amazon has even patented an algorithm that predicts a purchase by a customer before he or she
confirms it, to enable anticipatory shipping. This moves the predicted product for purchase
closer to the customer’s usual delivery address to save lead time on delivery. Thus, by
combining sensor data with customer data, logistics providers could in future provide a wide
variety of ad hoc and anticipatory delivery services for homes and local businesses. Another IoT
use case arising from the proliferation of smart devices and home products is the flexible
delivery address. Today, most online consumers have the choice of giving one preferred
delivery address or selecting an alternative means of delivery, such as to a parcel station. Many
experiments have been conducted to provide more flexible delivery, but one of the key issues
has been in matching real-time delivery to the given addresses and timeslots in a cost-effective
manner for the logistics provider. With IoT-enabled solutions, tagged parcels offer more
visibility to the recipient on when their parcel is expected to arrive and whether a change in
address is required — for example, if they are at work. If a delivery is planned during the day, a
customer could change the address to that of a neighbor who is home or at a workplace in the
vicinity. If it is unclear what a recipient’s schedule will be, smart home products with proximity
sensors (e.g., smart lights) could sense if the recipient is at home and communicate to the
delivery person ahead of time if a delivery is possible. A flexible delivery address service could
also be initiated by the logistics provider. Applying predictive analytics to the recipient’s
historical mobile device location data (with the recipient’s opt-in to the service), the provider
could request confirmation of the expected delivery window and location. New business models

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to monetize and optimize the return trip are also possible with IoT, as it connects delivery
people with surrounding vehicles and individuals. Innovative startups such as Shyp43 are
developing new ways to send products and to do pick-ups. Consumers simply take a picture of
the item they need shipped and enter all delivery information in an app, and a Shyp employee
collects the item for packing and delivery. Through IoT, logistics providers can connect with
people or businesses on their delivery route who would like to send things but don’t have the
time or means to go to a post office or properly prepare and pack an item for pick-up. These
items could be collected with dynamic pricing models and bring more value to the return trip
and to the consumer.

Figure 10.1 Flexible Shipping Powered by Shyp

Additional services can also be introduced with the rise of item level tagging. We imagine that
in the future, as RFID or other sensory tags become ubiquitous, a single product will be
monitored via a printed NFC smart label that incorporates sensors to monitor temperature and
humidity. The proliferation of these low-cost printed smart labels will allow consumers to gain
next-generation visibility on the products they have purchased.

For example, when chocolates or other perishables are ordered online, consumers will be able to
use their smartphone, via NFC, to check upon arrival if the correct temperature was maintained
during transportation and whether the seal was broken. In homes and supermarkets, consumers
could scan items such as packaged poultry to see if the ideal temperature has been maintained
from the moment the poultry was packaged until it reaches the home refrigerator. In a growing
B2C market for pharmaceutical goods, the end consumer could check the integrity of his or her
medical product (e.g., serum) before use.

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Figure 10.2 The Connected Environment

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11. Conclusion

IoT and Robotics will change the future of Supply Chain in the following ways:

Better Predict Customer Needs and Wishes

Over 90 percent of dissatisfied customers will not do business with a brand that failed to meet
their expectations. In the age of the customer, offering the right product, to the right person at
the right time and place is key to gaining (or retaining) customer satisfaction and loyalty. Smart
organizations will leverage IoT and Robotics to get a full “360-degree view of your customer”
to better predict customer needs, understand personal preferences, and create a unique brand
experience.

Improve Supply Chain efficiency

Cost efficiency, cost reduction, and spend analytics will continue as top business priorities in
supply chain management. Embedding analytics from IoT in operations leads to a 2.6x
improvement in supply chain efficiency of 10 percent or greater.

Better Assess Supply Chain Risk

Sixty-one percent of companies regarded as leaders in supply chain management consider

supply chain risk management very important. Those same leaders also recognize the need for
capabilities that provide greater visibility and predictability across their supply chains. IoT can
help assess the likelihood of a problem and its potential impact, and support techniques to
identify supply chain risk. Combining the analysis of historical data, risk mapping, and scenario
planning can enable a risk management approach for early warning.

Improve Supply Chain Traceability

Traceability is often directly linked to supply chain risk. For 30 percent of companies,
traceability and environmental concerns continue as the biggest issues to watch for Traceability
and recalls are by nature data-intensive. Big data has the potential to provide improved
traceability performance; it can also reduce the thousands of hours involved with accessing,

45
integrating, and managing product databases that capture products that should be recalled or
retrofitted.

Improve Reaction Time and Order-to-Cycle Delivery Times

Ninety percent of companies say that agility and speed are important or very important to their
business. The ability to quickly and flexibly meet customer fulfilment objectives is rated the
second most important driver of competitive advantage across all industries. Embedding big
data analytics in operations can have an impact on organizations’ reaction time to supply chain
issues (41 percent) and can lead to a 4.25x improvement in order-to-cycle delivery times.

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12.Bibliography

• Cerasis (2016) Cerasis Rater: Where Transportation Managements Meets Technology?

Available from: http://cerasis.com/
• Future Supply Chain (2016) Capgemini and Global Commerce Initiative. Available
from: www.gci-net.org.
• Martin, Roland (2015) How to make best use of augmented reality in supply chain?
Logistics insight Asia, August 15, 2015
• Understanding the Internet of Things (IoT), July 2014
GSM Association, www.gsma.com
• Robotics in Logistics, March 2016, DHL trend Research
• Sunil Luthra, Dixit Garg, Sachin Kumar Mangla,Yash Paul Singh Berwal
(2017),Analyzing challenges to Internet of Things (IoT) adoption and diffusion; An
Indian context,6th International Conference on Smart Computing and Communications,
ICSCC 2017
• Sarani Maity, Raj Sarkar (2016), A brief idea on Internet of Things
• Robotics and the “New” Supply Chain: 2015-2020, Industry Special Report Robotics
Business Review
• Internet of Things, (2015), DHL Trend Research, Cisco Consulting Services
• Shreekant Salotagi and Shivaraj Mundas, User Innovation on Internet of Things
International Journal of Trend in Research and Development, Volume 3(4), ISSN: 2394-
9333 www.ijtrd.com

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13. Appendices

13.1 List of Figures

Figure 1.3: Simplified block diagram of IoT ..................................................................... 4

Figure 1.4: IoT Architecture Layers ................................................................................... 6
Figure 4.1 An Informed Manufacturing Plant .................................................................. 11
Figure 4.2 Illustration of a Connected Supply Chain ....................................................... 13
Figure 4.3 IoT for Shop Floor Visibility .......................................................................... 14
Figure 4.4 IoT for Remote Asset Monitoring ................................................................... 15
Figure 4.5 IoT for Preventive Plant Maintenance ............................................................ 16
Figure 5.1 Swisslog SmartLIFT Technology for Forklifts ............................................... 18
Figure 5.2 IoT enabled Warehouse ................................................................................... 20
Figure 8.1 Real time Tracking Portal ............................................................................... 35
Figure 9.1.1 Postybell Smart Mailbox .............................................................................. 38
Figure 9.1.2 DHL Paketkasten for Parcel Delivery .......................................................... 38
Figure 9.1.3 DHL Resilience360 Supply Chain Risk Management Portal ...................... 39
Figure 9.2.1 Last Mile Delivery using Robots ................................................................. 41
Figure 10.1 Flexible Shipping Powered by Shyp ............................................................. 43
Figure 10.2 The Connected Environment ......................................................................... 44

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