Logistics and Supply Chain Technology Report 2021

Chapter 4: Internet of Things

If the dream of a wholesale digital transition in supply chain operations is to be realised, then the Internet of Things (IoT) will need to be central to the industry’s transformation. Spurred on by the glut of lower-cost smart sensing infrastructure available to the industry, with devices increasingly capable of providing real time insights and more granular tracking information, the push for IoT-centric environments has allowed for a wide growth in self-steering, event-driven logistics processes across an ever more connected set of operations. The vast scale of digitalisation across the industry over the past few years has encouraged data-driven transparency to become more available across a variety of sources along the supply chain, building the foundations for an interconnected network of IoT devices capable of driving the industry forward.

The Promise of 5G:

The gradual maturation of the IoT sector has been further bolstered by growing investment in 4G/ LTE as well as the rise of 5G. IoT devices have evolved from mere monitoring systems to active components in a distributed network of automated decision-making software. APAC has pulled ahead in 5G and IoT investments over the past year, driving industrial transformation across all sectors. However, despite broad governmental support for 5G across Southeast Asia, many providers are still struggling to keep pace compared with other regions, especially as some have yet to recover from the investment outlay into 4G networks. The business case for 5G is still emerging, but those who want to lay longer term plans for the next decade view 5G as a nascent but necessary technology to enable digital transformation and to sustain competitiveness. Low-latency as well as broad coverage will function as a lynchpin to support IoT networks and automated infrastructure across a wide range of verticals. Remote control also becomes possible, broadening the possibilities for a remote distributed workforce and a scalable automated monitoring environment throughout the supply chain. A broad buy-in across telecommunications and solutions providers alike could foster greater adoption from stakeholders across the industry as a foundational technology upon which to build the future of logistics.