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Internet of Things and Big Data in Smart
Logistics
Tairan Wang(B)
University of Glasgow, Glasgow, UK
icyjagerw@gmail.com
Abstract. With the rapid growth of global trade, the demand for logistics is
increasing across all industries. The burgeoning demand is forcing the traditional
logistics industry to transform itself into smart logistics. Among the many new
technologies that have emerged in recent years, there are many that have facili-
tated the transformation of the logistics industry. This paper collects and integrates
information on the technologies needed in the process of realising smart logistics
and highlights the role of Internet of Things (IoT) and Big Data technologies in
driving the smart logistics industry.
Keywords: Internet of Things ·Big Data ·Smart Logistics
1 Introduction
With the development of commodity variety and worldwide commerce, the logistics
industry has grown to become a critical component of the global economy and a source
of global firm marketing goods and expertise [1]. However, the logistics industry in the
modern day continues to confront challenges such as excessive costs and inefficiency.
According to the Council of Supply Chain Management Professionals’ (CSCMP) 30th
Annual State of Logistics Report, logistics expenditure in the United States was US$1.64
trillion in 2019, an increase of 11.4 percent over the previous year and accounting for
around 8.0% of GDP [6]. Additionally, the percentage might be greater in certain less
developed nations. It will be detrimental to the economy’s growth.
Additionally, the COVID-19 outbreak had a significant impact on the industrial sec-
tor. Throughout the outbreak, the logistics sector performed a critical role in distributing
vital household supplies to the population in a non-contact way, therefore assisting in
preventing the transmission of the virus.
As a result, the logistics sector must create smart logistics. This article will discuss
two emerging trends: the Internet of Things and Big Data technologies, as well as its
implications for the logistics industry.
2 Smart Logistics
Dieter Uckelmann coined the term “smart logistics” in 2009. Wang et al. [2] define
smart logistics as the use of technologies such as the Internet of Things, Big Data, cloud
© The Author(s) 2023
Z. Zhan et al. (Eds.): EIMSS 2022, AHCS 7, pp. 1265–1271, 2023.
https://doi.org/10.2991/978-94-6463-024-4_131
1266 T. Wang
computing, and artificial intelligence to the logistics sector. By gathering and analysing
data in real time, the system can mimic how people think and solve issues, resulting in
high quality and cheap cost.
Smart logistics information technology primarily consists of technologies for sens-
ing, disseminating, processing, analysing, and forecasting logistics information [3]. Due
to a lack of knowledge in the conventional logistics paradigm, empirical conclusions are
more easily accepted. A sophisticated logistics system, aided by new technology, can
completely resolve this problem. The implementation of smart logistics would represent
a huge disruption and innovation in the conventional logistics business, with ramifi-
cations for the traditional logistics model, operation model, industrial structure, and
production ecology.
3 Internet of Things in Smart Logistics
The Internet of Things (IoT), a vital component of information and communication
technology, is often regarded as having promised future possibilities for wireless com-
munications. The Internet of Things connects people and things, things and people, via
the use of sensors, controllers, mechanical devices, and people, enabling informatiza-
tion, remote control administration, and network intelligence. The Internet of Things is
a subset of the Internet, and the Internet remains at its heart [16].
The logistics industry’s IoT architecture is composed of five distinct layers: per-
ception, access, network, support, and application, as illustrated in Fig. 1. The percep-
tion layer collects data and acquires signals through physical devices. The access layer
Fig. 1. Smart logistics scenarios, basic functions, and key technologies.
Internet of Things and Big Data in Smart Logistics 1267
responds to the sensing layer’s request to transfer the data acquired to transmission net-
works such as 3G, 4G, and WiFi. By sending the signal from the access layer to the
support layer, the network layer completes the signaling process. The support layer pro-
vides data processing tools and platforms. The application layer establishes a connection
between the IoT and its consumers. Additionally, it enables the industry to complete its
duties [6].
Through network communication technology, smart logistics systems equipped with
IoT devices such as RFID tags, sensors, actuators, and mobile phones may access all
information in the smart logistics industrial chain in real time and facilitate information
exchange across equipment. Intelligent logistics systems built on IoT platforms can
handle and analyse massive amounts of logistical data, make choices using modern
technologies such as cloud computing, big data, and artificial intelligence, and operate
items intelligently. In conventional logistics, tasks such as scanning items and data input
are often completed manually, which is inefficient. Meanwhile, storage rooms at logistics
stations are often inadequately designated, and process monitoring is lacking.
The standard warehouse management system is combined with IoT technology to
create a smart warehouse management system that can increase the efficiency of items in
and out, expand the volume of storage, and reduce labour intensity and expenses. Addi-
tionally, it enables real-time management of incoming and departing items, increases
delivery efficiency, and manages the collection, transfer, and picking of commodities
across the system.
Through the real-time monitoring system, the logistics firm can get information on
the location of trucks and cargo, the conditions of the cargo, such as temperature and
humidity, and the speed, tire temperature, pressure, fuel amount, braking times, and other
driving behaviours. It effectively integrates information about cargo, drivers, and vehicles
while moving products, hence increasing transport efficiency, lowering transportation
costs, minimising cargo losses, and providing a clear picture of everything that occurs
throughout the transport process. Additionally, this strategy has the potential to decrease
accidents and related injuries.
A case study conducted by (John & Paul, 2017) demonstrates how vehicle monitoring
may be used to accomplish another objective: lowering exhaust emissions (Green House
Gases (GHG)). The business installed sensors in trucks and provided drivers with training
to help them improve their hazardous driving habits. By 2016, this firm has reduced
GHG emissions by 42%, with 32% of this decrease attributed to driving behaviour
modification.
The smart courier locker is built on IoT technology and is capable of detecting,
storing, monitoring, and controlling things, among other tasks. When combined with
a PC server, the smart courier locker comprises an intelligent courier delivery system.
The PC server can analyse data acquired by smart delivery devices and make real-time
updates in the background, making it easier for users to monitor couriers, deploy couriers,
perform courier terminal maintenance, and perform other operations.
After the courier has put the item in the smart delivery locker, the clever system
will send the user an SMS message with the verification code and the pick-up address.
Users may pick up their items within 24 h at any moment, which simplifies the pick-up
procedure.
1268 T. Wang
4 Big Data Technology in Smart Logistics
Cox&Ellsworth[8] initially proposed the term “Big Data” as a difficulty in the computer
system, referring to data sets that exceed the limit capacity of the computer’s main
memory, local disc, and even distant disc. However, as the Internet has developed, the
concept of “Big Data” has most than likely shifted to a tool for resolving big data issues
and doing analysis. Big Data technology enables us to more efficiently and effectively
handle the enormous database of exploding information. Big Data may assist us in
selecting and categorising data in order to solve technological challenges and accomplish
our objectives, and we can also use this technology to process and merge data acquired
from incompatible systems, databases, and websites.
Big Data is regarded as a crucial breakthrough in the logistics business since it
enables operational capabilities, whole supply chain execution, and route optimization
[9]. Additionally, it provides cost-cutting strategies, an appropriate pricing strategy,
optimises logistical procedures, and significantly simplifies the decision-making process
[17].
Logistics Big Data is used to describe data and information pertaining to logistics
operations such as shipping, warehousing, handling, loading and unloading, packing,
and delivery handling. Big data analysis can boost shipping and delivery efficiency,
save logistics costs, and more efficiently meet customer service needs. All data relating
to cargo distribution, logistics express firms, and customers is integrated into a massive
real-time information platform, enabling rapid, efficient, and cost-effective logistics [12].
Due to the fact that transportation, storage, packing, and processing of commodities
all involve a high degree of contact and information exchange. Big data technology
enables the optimization of distribution routes, the rationalisation of logistics centre
locations, and the optimization of warehouse storage capacity. As a result, logistics
costs may be significantly reduced, and logistics efficiency increased.
The DHL delivery business presented a solution to the “last mile” issue in logistics
in the article [17], which is the last step of the supply chain and the most expensive. The
DHL solution is separated into two components: real-time optimization of the trans-
portation route and a new shipping system that utilises anyone travelling along the
essential road for the firm, whether they are employees or not. This solution leverages
Big Data technologies such as complicated priority scheduling and location through a
custom application. Additionally, it enhances operational precision when compared to
a planned and dispersed workforce.
The report [18] also included another fascinating example of a DHL organisation
using Big Data technology in logistics, namely “DHL Resilience 360,” a risk manage-
ment tool for supply chains. By informing consumers about the possible damage caused
by the supply chain, and by collecting and analysing data, we can safeguard and enhance
the supply chain’s efficiency.
Additionally, big data technologies may aid in the improvement of customer service.
With more individuals shopping online, buyers are becoming more aware of the logistical
experience. Through data collection and analysis, as well as the right application of these
analyses, organisations can give the finest service and operational procedures for their
logistics company to their clients. Which strengthens the relationship with consumers
and builds their trust, encouraging customer loyalty and preventing client turnover.
Internet of Things and Big Data in Smart Logistics 1269
Certain commodities that need unique storage and transportation circumstances,
such as certain products and medications that must be held at certain temperatures or
certain delicate goods, require special transit conditions. Both the delivery business and
the client rely on the items. It would be awful if items were damaged as a result of poor
storage or transportation. Then, using Big Data technology in conjunction with IoT, a
secure and cost-effective method of storing and delivering items may be developed.
5 Impacts on the Logistics Industry
In affluent nations such as the United States and Japan, smart logistics has progressed at
a reasonably rapid pace in recent years. The advancement of smart logistics is facilitated
by a strong IT infrastructure and a commitment to technology research and development.
Numerous integrated logistics firms used smart warehousing, smart logistics plan-
ning, and smart distribution years ago, including automated three-dimensional ware-
houses, handling robots, automated loading and unloading forklifts, drones, unmanned
vehicles, and logistics storage systems. Tesco, Amazon, and other businesses began using
RFID in 2015. Amazon’s Tracy Operations Center, for example, utilizes the Cubiscan
measurement system for inbound storage, which enables efficient scanning of inbound
product form factor data and increases inbound storage efficiency; an inbound imaging
system streamlines the receiving process; and a large-scale use of Kiva robots for goods
picking, which significantly improves order processing efficiency. Caterpillar is a corpo-
ration based in the United States that manufactures construction and mining equipment.
Caterpillar created software for total logistics planning and design based on the influence
of simulation models and data on logistics expenses such as warehousing, customer ser-
vice information, and warehouse management. This resulted in a large increase in sales
and cost savings [14,15].
On the one hand, the Internet of Things (IoT) and Big Data technologies enable the
implementation of smart logistics by providing technological assistance and transform-
ing logistics into really intelligent systems capable of observation, self-adaptation, and
seamless connection with the outside world. On the other hand, smart logistics is the
primary application area for IoT and Big Data technology, logistics firms are significant
IoT and Big Data technology users, and smart logistics also serves as a demand generator
and development direction for IoT and Big Data technology.
6 Conclusion
To summarise, the fast rise of the Internet and e-commerce, along with the COVID-
19 outbreak, has increased global demand for logistics services, exposing some of the
inefficiencies and costs associated with conventional logistics. As a result, the logistics
industry’s change is critical.
Nations such as the United States, Japan, and a few European countries have emerged
as leaders in the development of the smart logistics sector, with a sizable domestic
market, world-class technology, and a more integrated industrial chain. Smart logistics
has emerged as a critical driver of the contemporary logistics industry’s development,
cost reduction, and industrial upgrading.
1270 T. Wang
Without a question, IoT and Big Data technologies are game changers in the logistics
business. The confluence of these two new developments has the potential to cut costs,
increase efficiency, and enhance service quality.
Today, the majority of organisations, including logistics firms, are trying to innovate
and evolve. Customers are getting more demanding; businesses are becoming more
aware of the worth of their customers and concentrating their efforts on producing
additional value for them. Technologies such as Big Data and the Internet of Things are
also enabling businesses to improve their competitiveness and contribute to the logistics
sector.
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