Table of Contents

How Can IoT Play A Critical Role in Transportation and Logistics Industry

Transportation and logistics companies can smoothly enhance efficiency, instantaneously support operations, and perform better with machine-wise interaction. These solutions can be automated, from process management to surveillance and security. IoT play a critical role in transportation and logistics industry.

Let’s consider the IoT applications in the transportation and logistics industry.

Benefits of IoT in the transportation and logistics sector

IoT improves transportation by making it intelligent. IoT can be defined as the interaction of machines using integrated actuators, sensors, and other devices that can generate and share data with industry operators. It is majorly responsible for areas like inventory management, vehicle telematics systems, fleet management, security, tracking, and toll ticketing.

According to ResearchAndMarkets the industry size of IoT in the transportation sector is worth $83.25 billion and is predicted to achieve $495.57 billion, generating a 19.9% CAGR between 2021 and 2030.

Use Cases of IoT in the transportation and logistics sector

IoT has proved to be a crucial part of various segments within the transportation and logistics industry. It is beneficial to both the industry and users in each sector. Major use cases are highlighted below:

1. IoT for warehouse management

IoT can be used in different ways to manage inventory and warehouse tasks. Examples are as given below:

  1. It can be used for asset and inventory management. Smart shelves in warehouses integrated with weight sensors and RFID tags to assist with providing inventory information that updates managers when stock is low, displaced, missing, or during extreme temperatures.
  2. IoT wearables can be used by managers to monitor the well-being of their workers. Wearables can monitor the location, health, and performance of workers in the facility. For instance, the Advanced Regional Center of DHL uses a wireless sensor in the wearables to monitor the fatigue level of workers to trigger rest breaks when required. Furthermore, wearables can send notifications whenever moving equipment is in close proximity to people.
  3. Telematic devices and GPS can direct drivers on the proper route and provide accurate updates on their estimated time of arrival. IoT sensors labeled with goods offer item-level visibility. This important detail can help operations managers manage any act of goods violation proactively.

Smart warehouses can help managers and workers make informed decisions with the data from IoT devices. Examples of companies that employ smart technology for managing warehouses are DHL, Amazon, and Alibaba.

2. IoT for Supply Chain Management

IoT can help in easily monitoring the location of where goods are on the road, the time they would arrive at the destination, and where they would be stored. Some of the ways IoT can assist with supply chain management are:

  1. IoT equipment can be used to monitor goods’ movement. For instance, smart devices can notify about the location of goods, which can be used by a GPS locator to monitor their movement.
  2. Goods such as chemicals and food items need to be stored appropriately. Smart devices can help to track the environment for factors like humidity, temperature, light intensity, and so on. These devices can send notifications whenever the extreme limit for these conditions is reached. This will help store-keepers employ supply chain management to maintain and monitor the quality of goods to prevent deterioration.
  3. Route monitoring and planning can help determine possible causes of transit delays. This is beneficial in making plans for alternative routes to accelerate the supply chain.

IoT promotes the improvement of supply chain processes. Examples of top organizations employing smart devices for managing supply chains are Amazon, Nissan, Dallas Area Rapid Transit (DART), Volvo, and many more.

 3. IoT for Fleet Management

Fleet management can consume a lot of resources, money, and time. Therefore, fleet operators combine the IoT to enhance the performance as well as the safety demands. Some of the methods of integrating smart technology into fleet management are highlighted below:

  1. IoT sensors can be integrated into vehicles to transmit automated alert signals to fleet managers of possible failures. Furthermore, these sensors can send notifications on low battery, engine maintenance, coolant temperature, and so on, to enable prompt preventive measures to be carried out so that vehicles can function properly for a long time.
  2. IoT can provide insightful data that can be used to adequately manage fleets. Sensors can also provide fleet managers with a huge amount of data that can assist with monitoring travel routes, monitor vehicle idling, speeds, and meeting legal standards.
  3. Introducing automation into fleet management can be very helpful. For instance, if a vehicle breaks down on the road, an alert can be sent to the closest service center for assistance in towing the truck. This would save fleet managers and drivers a lot of stress. Also, instant alerts about the condition of the weather can help drivers take alternate routes that would speed up their arrival time.

IoT can offer instantaneous data about fleet location, delays, ETA departures, and other real-time information to passengers by tracking the vehicle condition. Traffic lights on the roads and highways can be tracked or remotely controlled through the information provided by the relevant vehicles. For example, traffic volume information generated by dedicated short-range communication systems (DSRC) can help to influence traffic lights.

The installation of several DSRCs on the road is used to monitor traffic levels, which will provide information on the light pattern changes along the main intersections and thoroughfares. Additionally, linked vehicle innovations enable drivers to refuel their vehicles when needed. This could help them prevent unexpected delays during transit. Sensor fusion, another emerging innovation uses the information from GPS systems, traffic sensors, and IoT to instantaneously process real-time information.


With so many benefits, the transportation and logistics industry is increasingly becoming more dependent on IoT-empowered solutions/systems. Shortly, IoT-enabled companies will fundamentally transform the way they track and operate merchandise, reducing cost and increasing productivity. Most of these operations will be automated and executed by robots, delivering a vastly improved customer experience.

At eInfochips, we have extensive experience in transportation and logistics areas such as Advanced Driver Assistant System (ADAS), Smart Fleet Management, Mobile Surveillance, and Next Gen Cockpit that helped our customers to increase safety and process efficiency.

To learn more, get in touch with us today.


Explore More

Talk to an Expert

to our Newsletter
Stay in the loop! Sign up for our newsletter & stay updated with the latest trends in technology and innovation.

Our Work





Device Partnerships
Digital Partnerships
Quality Partnerships
Silicon Partnerships


Products & IPs