
APPLICATION OF IOT IN LOGISTICS – CHALLENGES; ENABLERS & SUCCESS FACTORS
Shahlo Hamroqulova, Kristo Anant ,Abstract
Logistics has benefitted immensely from the use of Internet of Things (IoT), in realigning the actual value of supply chains to greater visibility, effectiveness and coordinated management of the flow of products. However, this integration is not without its challenges; it has some specific enablers and success factors that are essential to support integration, implementation as well as the operation of the system. This is a review on the use of IoT in logistics to analyses the challenges, the enablers, and the critical success factors involved in the process.
There remains several issues that organizations need to overcome for IoT to improve the function of logistics when adopted. Some of the challenges include; security issues that pertain to data privacy and threats, compatibility problems that come about due to integration of different IoT devices and systems, difficulty in scaling IoT systems due to growth of operation and high initial capital costs that come with establishing IoT systems. Furthermore, the integration of different level of networks and different locations prove to be even more complex for the logistics companies taking up IoT technologies.
To overcome the described challenges and thus to ensure the proper use of IoT in the logistic, some enablers are of special importance. Adaptability to work with cloud computing platforms makes it possible to work with incoming data in real time, thus improving the decision-making process. The application of IT tools for analysis in the stream of big data holds provides an insight for the anticipation of failures and timely problem solving. In addition, the usage of the blockchain improves data protection and traceability of the supply chain activities. The standardization that takes place within the industry also helps to ease compatibility in the use of different IoT solutions.
Keywords: Cyber security; Interoperability; Data handling; expandability; Real time visibility; Prognostic analysis; Business process automation; Information processing; Compatibility with legacy systems; Cross organisational cooperation; spending on technology.
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