Everything You Need to Know About Connected Logistics


Everything You Need to Know About Connected Logistics

Connected logistics can be tricky if you are not aware of the nuances involved in it. In this blog post, we will explore this unique supply chain concept so you can decide if it can be useful for your business.

A system consisting of interconnected devices powered by an Internet of Things (IoT) solution provider is known as a Connected Logistics system. This system increases the efficiency of work in the logistics industry. The various components of connected logistics include monitoring the regulations, managing the assets, managing the fleets, and tracking the warehouse management. Several other areas of logistics fall under the purview of connected logistics but are not limited to logistics operations, various monetary transactions, distribution, and product shipment.


Connected logistics is what ties all aspects of logistics in one common thread. With all information available with this system, business owners can make informed decisions impacting their revenue, mitigating potential losses, and predicting future roadblocks. It is an expectation that the Global Connected Logistics Market will register a 17.5% CAGR between 2021-2026. Connected logistics increase the transparency within businesses, which makes the businesses more customer focusing and competent.


Connected Logistics Systems—4 Pillars


An increase in business worldwide has triggered exponential growth in the other associated services. When product demands increase, successful delivery of those products becomes paramount. That results in a consequent rise in demand for accompanying services. Hence, the four pillars of the Connected Logistics System come into the picture. They address all the growing pain of the logistics of successful product delivery.


The four pillars are the following:

  • Communication Systems
  • Supply Chain Monitoring Systems
  • Vehicle Tracking
  • IT Security

These pillars play a significant role in building a robust Connected Logistics System; let us look at them individually.


Communication Systems


The communication system enables uninterrupted communication between drivers and managers. Typically, cell phones serve as the primary mode of interaction, but they frequently suffer from insufficient connection quality. Extensive research has demonstrated that efficient communication leads to improved company performance, increased employee satisfaction, and minimized potential for human errors. It, in turn, prevents disruptions in the supply chain and lowers operational expenses.


Supply Chain Monitoring Systems


The ability to monitor every step of the supply chain provides you with significant benefits. It minimizes errors, facilitates effective management of outbound and inbound inventories, and even assists in procuring raw materials and shipping finished products. Knowledge about these components confers a major advantage in supply chain operations.


Vehicle Tracking


Continuous monitoring of cargo trucks, airplanes, and ships involved in package transportation is essential throughout the year, around the clock. It ensures superior customer service and instills confidence in customers by assuring them that their merchandise or products are on the correct path. This monitoring is made possible through GPS devices, coupled with analytical tools that aid in predicting the estimated arrival time at the destination.


IT Security


The logistics industry faces many IT security threats that it must contend with. Attacks by hackers on sensitive data can have far-reaching consequences, impacting not just you but also your external suppliers and end customers. Presently, most companies worldwide allocate significant financial resources, amounting to millions of dollars annually, to prevent such attacks and actively combat hackers.


Internet of Things as one of the drivers of Connected Logistics


Many industry leaders feel that one of the drivers of market growth of Connected Logistics is the increasing use of IoT-driven supply chain systems, especially for temperature-sensitive products.


After all, Maersk Group, a prominent player in the logistics industry, has successfully adopted Industrial IoT solutions from AT&T to oversee their refrigerated containers. It incorporates cutting-edge communication systems equipped with RFID technology and sensor devices powered by the Internet of Things (IoT). By leveraging these advancements, you can enhance your operations and progress towards more value-added services. It can’t be denied that the future of the global connected logistics market lies in IoT, integrated solutions, data, and, notably, mobility.


Here are some crucial IoT applications you can leverage to stay connected within your company:

  • Inventory Tracking
  • Demand Forecast
  • Fleet Management
  • Data Analysis
  • Environment Sensors
  • IoT and Blockchain for Digital BOL
  • Autonomous and Self-Driving Cars
  • Drone-Based Delivery

These advanced IoT-based technologies strengthen a connected logistics system, especially if you deliver temperature-sensitive products.



‍Thus maintaining logistics and efficiently handling them can be a daunting task, especially if it’s a connected logistics system. There are multiple activities that you need to manage for successful order fulfillment. You can implement advanced technologies to streamline the processes and workflows of connected logistics, one of which can be embracing the innovations provided by IoT.


Alternatively, you can hire a professional Third Party Logistics provider to manage connected logistics professionally.


About XPDEL:

XPDEL is a leading hi-tech provider of Fulfillment and Logistics Services on a mission to enable growth for eCommerce companies. We are futuristic in our vision and constantly work on creating technology that helps us meet customer expectations for today and tomorrow. We have a wide network of Fulfillment centers that enables us to efficiently handle nationwide delivery in the US – same day, next day, and 2-day delivery. Being closer to the end consumer, we deliver much faster than others.