IoT in logistics: Cost, Benefits and Use Cases



Logistics management is a complex process that requires monitoring and managing multiple activities, such as supply chain, warehousing, and transportation. There are numerous factors that can cause delays, which can lead to customer dissatisfaction. To address this issue, industry leaders and decision-makers are embracing innovation and evaluating the potential of using the Internet of Things (IoT) for logistics process optimization. By doing so, they are aiming to streamline processes and improve customer satisfaction.

In this article, we will analyze the various benefits of IoT in logistics operations as well as the cost constraints. In addition to this, this blog will also feature the various use cases of the technology and how various industry experts are implementing the evolving technology in their regular operations and increasing the overall efficiency.

According to a recent report from Globenewswire, the IoT in Logistics Market was valued at $37.41 billion in 2021 and is expected to reach $93.85 billion by 2028, thereby registering a CAGR of 14.0% in the time period between 2022 to 2028. Thus, it is now the right time to hire a dedicated logistics software development services organization that can help you put things into perspective and offer you customized solutions as per your supply chain and logistics requirements.

Understanding the Benefits of IoT in Logistics

Today, many logistics experts rely heavily on various software tools and applications to carry out their work. This is not simply a consequence of the digital age, but rather a necessity in order to make the most efficient decisions. IoT software provides logistics managers with the ability to make informed decisions regarding goods arrivals and deliveries, reducing the risk of imprecise planning.

Furthermore, with the help of IoT software, it is much easier and faster to develop the most suitable transportation routes based on current road and weather conditions, as well as other relevant factors, compared to manual methods.

Automation of planning has revolutionized the logistics industry, providing a variety of benefits that include:

  • Real-time tracking
  • Enhanced reporting and documentation development
  • Reduced time for route designing and delivery
  • Mitigation of risks related to failed deliveries
  • Streamlining of the entire supply chain process
  • Improved inventory management, and more transparent processes

These advantages have enabled companies to optimize their operations which lead to improved efficiency and cost savings.

Coming to the overall budget, the cost of developing an IoT app for your logistics business can vary between $40,000 to $200,000. There are several factors that further affects the overall cost of development including:

  • App’s complexity
  • Wireframe
  • UI/UX design
  • Development process
  • Location of the app development agency
  • Team size
  • Total app features
  • Technology stack used
  • Quality assurance
  • Maintenance

Now that we have looked into various benefits of IoT in logistics and have understood the multiple factors that affect the overall development budget, let us move ahead and look at the various use cases of the technology in supply chain and logistics industry.

Comprehending the Use Cases of IoT in Logistics

Inventory Tracking Systems

Inventory tracking systems are designed to streamline procedures related to re-stocking and distributing goods. Such software is equipped with the capability to gather and process data received from connected sensors that are placed on products. This allows managers to have the assurance that goods are stored securely, as well as being aware of their exact location at any given moment.

With the aid of solutions powered by IoT in logistics, managers have the advantage of being able to track stock levels more quickly and easily. Sensors and other smart devices are placed on shelves, warehousing equipment, and vehicles, allowing specialists involved in various stages of the supply chain process, such as sales, orders, and deliveries, to have the most up-to-date information regarding the quantity or volume of the specified item.

Location Management Systems

In transport logistics, it is of utmost importance for managers to be aware of the precise real-time location of each vehicle, gain a comprehensive understanding of the current delivery status and be able to accurately estimate when goods can be shipped. To meet these needs, location management tools are employed. These tools are further enhanced with modern GPS modules for monitoring the location of a vehicle as well as detecting the speed of the driver. This parameter assists in evaluating the actual situation on the road and ascertaining whether drivers are adhering to traffic regulations and can guarantee the secure delivery of products.

Through the use of these tools, logistics companies are able to avoid delays caused by traffic conditions, enhance the accuracy and efficiency of fleet and goods tracking, and ensure that they are meeting the contractual obligations to their clients and delivering goods in a timely manner.

Predictive Analysis Systems

Software platforms that collect data from various devices in real-time and process the received information to produce reports and forecasts are a valuable addition to this group. These solutions enable specialists to make more informed decisions on deliveries and warehouse planning.

Furthermore, these systems can be enhanced with features for route design and notifying employees of changes in delivery conditions. Predictive analytics tools can be used to determine the most appropriate modes of operation, the average time needed to get ready for a shipment, and many other organizational aspects, allowing companies to optimize their operations.

Fleet Management Systems

Fleet management solutions such as CameraMatics are often integrated into more complex systems to help companies better organize their workflow. These solutions are similar to software products used for location tracking, but they can also be used to monitor the technical state of vehicles. This is achieved through the installation of sensors and devices on the trucks, which continuously measure certain parameters.

This data is then used to generate regular reports on the state of the vehicles and to suggest when tech maintenance services should be conducted.


We hope our article has offered you an insightful look into the benefits and use cases of IoT in logistics. IoT connected devices reduce operational costs, guarantee product safety, monitor employee performance, and simplify supply chain management. Moreover, IoT solutions link different sectors, leading to improved collaboration between companies and enhanced overall productivity.

On a global level, IoT technology helps to combat climate change and reduce the negative environmental impact of the logistics and transportation industry, while also enabling businesses to fulfill their corporate social responsibility. Stay tuned for more information on the subject coming your way!