SAN JOSE, CA: Cisco says the Internet of Things (IoT) will generate US$8 trillion in value over the next decade with US$1.9 trillion from logistics.
The other drivers will be innovation and revenue (US$2.1 trillion); asset utilization (US$2.1 trillion); employee productivity improvements (US$1.2 trillion); and enhanced customer and citizen experience (US$700 billion).
Together with DHL, Cisco has released an IoT report that estimates 50 billion devices will be connected to the Internet by 2020, compared to 15 billion today.
They say for any organization with a supply chain or logistics operation, IoT will have "game-changing consequences, from creating more last mile delivery options for customers, to more efficient warehousing operations and freight transportation". The two companies are collaborating on an IoT innovation project that will improve decision-making in warehouse operations with near real-time data analytics based on Wi-Fi connected devices.
Ken Allen, CEO DHL Express commented: "There is huge potential for countries to further increase their connectedness and prosper through trade, integration and technology. We believe the internet of things will be a primary enabler of this global transformation."
According to the report, the logistics industry could improve operational efficiency as the IoT connects in real time millions of shipments each day. "The internet of things is the connection of almost anything – from parcels to people – via sensor technology to the web and both Cisco and DHL believe this will revolutionize business processes across the entire value chain including supply chain and logistics. said Markus Kückelhaus, vice president Innovation & Trend Research, DHL Customer Solutions & Innovation.
The report concludes by wondering what the logistics industry will look like when 30 percent of things are connected: "Digital disruption is all around us and it's having massive implications for business. Digitization and the expansion of the Internet of Things is a catalyst for growth, which is driving new economic models and enabling organizations to remain competitive and embrace the pace of change happening globally," added Chris Dedicoat, president, EMEAR for Cisco.