An Oracle blog about Internet Of Things

  • September 4, 2018

Driving Digital Transformation in Logistics Using IoT

If society were a living organism, then logistics would be the red blood cells transporting critical (and sometimes not so critical) goods from one place to another. This reliance on well-functioning logistics networks has become even more important with the digital consumer’s growing need for speed and buying power. But this growing demand means that logistics networks are stretched thinner than ever. According to the World Economic Forum’s 2016 paper on Digital Transformation in Industries, the logistics industry has introduced digital innovations at a slower pace than many other industries. The report adds that this slower rate of digital adoption brings enormous risks that, if ignored, could be potentially catastrophic for even the biggest established players in the business.


The logistics industry has introduced digital innovations at a slower pace than many other industries

The growing adoption of modern Transportation Management Systems is a great step towards digitization of logistics planning and optimization. Oracle Logistics Cloud, a cloud-based transportation management system, in collaboration with other components of the supply chain allows enterprises to seamlessly plan and optimize the complete order-to-fulfillment process. Using Oracle Logistics Cloud, hundreds of companies worldwide have achieved efficiencies greater than 15-20% in their logistics operations amounting to savings of millions of dollars. There are, however, some significant blind spots in transportation that continue to drive major inefficiencies in logistics operations.

The most critical and common transportation blind spot is the lack of real-time visibility into current status of shipments. While digital consumers have become accustomed to anytime, anywhere access to information, the same experience and quality is not yet common in the B2B segment and especially in logistics. Many shippers are at the mercy of high-latency EDI updates or manual track & trace to get status on their shipments. This problem is even more acute if the shipper has specific needs such as temperature or humidity sensitive shipments. By the time the shipper has received accurate, actionable status on the shipment, it is often too late to avoid penalties or poor customer experience. Even enterprises running their private fleet of connected trucks often have the same transportation blind spots because of the silo’ed nature of telematics systems that are not integrated with transportation management systems.


Delayed shipments directly translate into lost revenue, higher operational costs and lost productivity. Delayed shipments require receiving warehouses to constantly reshuffle their dock reservations, suffer lost productivity of warehouse workers and incur additional operational costs because of increased work hours. Shipment damage might get detected only upon delivery resulting in lost revenue and negative impact on the downstream supply chain processes. Private fleets operators could lose opportunities to consolidate shipments and end up running more trucks in order to meet commitments.


The good news is that recent technological advances in IoT and analytics combined with dramatic decreases in sensor and communication costs, now enable the perfect digital platform to effectively address the challenges mentioned above. Oracle IoT Fleet Monitoring Cloud provides a cloud-based IoT logistics application for asset-owning shippers as well as non-asset owning shippers to track their shipments in real-time, while making analytics-driven insights available to their logistics managers within their transportation management systems.


Oracle IoT Fleet Monitoring Cloud in collaboration with Oracle Logistics Cloud provides a complete digital transportation platform for shippers allowing the following benefits:


Always-on shipment tracking

Reduce downstream impact and ensure successful deliveries with timely actionable insights and real-time notifications for ETA changes and deviations from plan


Easy tracking methods 

Pick a tracking method that best fit the use case. Leverage your existing telematics investments, use the packaged mobile app or bring your own trackers


Quality Assurance

Reduce business loss from damages during transportation by monitoring conditions such as temperature, humidity, and vibration, among others

Immediate value

Rapidly deploy alongside on-prem Oracle Transportation Management or Oracle Logistics Cloud to drive significantly higher value from your digital platform investments


Extended Visibility

Extend transportation visibility across the complete supply chain for a highly responsive order-to-fulfillment process


Digital transformation in logistics is already underway and soon will no longer be a differentiator but a “must have” for any logistics operation. Do not get constrained by the limitations of legacy EDI and track & trace methods. Oracle IoT Fleet Monitoring Cloud lets you get started with minimal risk and low investment, and scales with your business needs.


In upcoming blog posts, we’ll dive into details of Oracle IoT Fleet Monitoring.

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