Drones, IoT among top technologies reshaping the logistics industry

Supply chain players are now using drones beyond last mile deliveries

Drones and Internet of Things (IoT) devices have transitioned from cutting-edge innovations to fundamental components in the supply chain sector, significantly altering the landscape of modern logistics.

As Mark Yong, Managing Director of Blume Global in Asia-Pacific, notes, “The impact of drones and IoT devices in our industry has been profound. They're no longer just state-of-the-art; they're a part of our everyday operations.” 

Highlighting the versatile applications of drones in the logistics sector, Yong said drones are now being used to inspect terminals and container ships which used to be “labour-intensive and risky.” 

“Drones have made these processes much safer and more efficient,” he explained, adding that drones have also been crucial in surveillance and emergency response.

The expansion of drone use beyond last-mile delivery is also particularly noteworthy. 

"We’re not just talking about delivering small packages. Drones are now integral in moving goods over longer distances, sometimes up to 100 kilometres,” Yong said.  This leap in capability demonstrates the evolving nature of drone technology in supply chain logistics.

Turning to IoT devices, Yong emphasised their growing importance in container logistics. 

“The cost of IoT technology has dropped to a point where outfitting every container, not just refrigerated ones, with tracking and monitoring devices is feasible,” he stated. This development is revolutionising the way companies track and manage their cargo, offering real-time data on location, condition, and security.

Yong elaborated on the benefits for refrigerated containers: “IoT devices allow us to monitor conditions inside the containers, like humidity levels, and detect any risks of tampering. This wasn’t just challenging before; it was nearly impossible.”

The integration of drones and IoT devices in the supply chain industry represents a significant leap forward in efficiency and safety. As Yong puts it, “These technologies are no longer just about innovation; they’re about adding real value to our operations.”

Another game-changer in the supply chain industry is AI, said Yong.

"AI, through its ability to correlate data, has shown significant success in logistics," he said. He highlighted how AI can predict and manage the complexities of ship-to-port interactions, utilising historical data on weather and congestion. This predictive capability is particularly valuable for shippers who need to know the precise timing of their goods' arrival.

“AI has been, I would say successful, this why any company wants to brag about AI, because then the valuation goes up,” he said, “The ROI has been proven and validated for use of smart technologies, in terms of AI."