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Terms & explanations relating to logistics, supply chain management and e-commerce

Internet of Things (IoT)

The term Internet of Things (IoT) refers to a network of interconnected physical devices that collect, exchange, and analyze data using sensors, software, and other technologies. In the context of logistics and warehouse management, IoT is revolutionizing processes through real-time transparency and automation.

In warehouses, IoT devices enable precise inventory tracking using RFID tags, sensors, or GPS trackers. Smart shelves automatically report inventory fluctuations, while connected conveyor belts and robots enhance the efficiency of picking and sorting processes.

In logistics, IoT-enabled vehicles and containers ensure seamless shipment tracking and predictive maintenance. This minimizes downtime and optimizes route planning.

IoT applications not only improve efficiency but also enhance safety by reporting potential risks such as overloading or temperature fluctuations in real time.

As a result, IoT has become a cornerstone of modern, data-driven supply chains.

Other areas where IoT technologies are applied include:

  • Industry 4.0: IoT drives automation in manufacturing, for example, through connected machines that predict maintenance needs (predictive maintenance) or optimize production workflows.

  • Retail: IoT devices such as smart shelves and connected checkout systems enable optimized inventory management, personalized offers, and improved customer experiences.

  • Mobility and transportation: IoT is used in smart cities to optimize traffic, for instance, through intelligent traffic light systems. Connected vehicles improve safety, navigation, and enable autonomous driving.

  • Energy and environment: Smart grids, smart meters, and IoT sensors help monitor energy consumption and use resources more efficiently. Environmental monitoring, such as tracking air quality or weather data, is another key application.

  • Agriculture: IoT devices facilitate precision farming by using sensors to measure soil moisture, weather conditions, or plant health. Smart irrigation systems optimize water usage.

  • Healthcare: Wearables such as fitness trackers and medical IoT devices monitor health data in real time. Connected systems in hospitals streamline patient data management and device monitoring.

  • Smart homes: IoT devices like smart thermostats, connected lighting, voice assistants, and security cameras enhance comfort, energy efficiency, and safety in private households.