DHL launches 'Internet of Things' trend report in Dubai

DHL said the Internet of Things (IoT) will be a 'game-changer' for the logistics and supply chain industry.
Ken Allen, CEO, DHL Express, speaking at the event.
Ken Allen, CEO, DHL Express, speaking at the event.
Dhl express, Internet of things, Technology, NEWS

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DHL and Cisco Systems released a new white paper entitled Internet of Things in Logistics at the DHL Global Technology Conference in Dubai today.

The two companies refer to the Internet of Things (IoT) as the networked connections of physical objects, citing such examples as shoes that tell its owner the number of steps taken and sensors on parking meters that inform drivers of available parking lots.

DHL stated that IoT will significantly affect the logistics and supply chain industry, from creating more last mile delivery options to increasing efficiency in warehousing operations and freight transportation. 

Rob Siegers, president, Global Technology Sector, Customer Solutions and Innovation, DHL said: “We are just at the cusp of the Internet of Things (IoT) revolution.

"The DHL Trend Report estimates that less than 1% of all physical objects that can be connected to the internet are connected today.

"By 2020, Cisco estimates that computers (including PCs, laptops, tablets and smartphones) will represent just 17% of all Internet connections – the overwhelming 83% will stem from IoT, which includes wearables and smart-home devices.”

The report was unveiled at the fifth annual three-day DHL Global Technology conference, held from 14-16 April in Dubai.

At the conference, DHL and Cisco disucced the IoT's possibilities surrounfing enabling new business models that benefit the entire logistics value chain.

Nour Suliman, CEO, DHL Express Middle East and North Africa, commented: “As the figures show, technology growth is impacting and driving our business and as such we need to stay ahead of the curve.

"Products too are evolving at a speed where existing business models are ever-changing and new players are surfacing.

"As leaders in the provision of logistics, there is a tremendous opportunity for DHL to observe how we can shape the industry with our customers; and ensure we are continuously at the forefront of the next wave of technology.

“The UAE and Dubai in particular are keeping up with these changes and moving towards becoming a Smart City. All these dynamics coupled with Dubai’s geographical location make it an excellent global logistics hub connecting the world in a fast paced industry that is constantly innovating to meet customer demand.

"Dubai is the perfect location to host this conference as we shift towards increasing our footprint in emerging markets of Middle East and Africa and the city acts as the spring board to reach these markets and close the gap."

Dr. Bernd Heinrichs, managing director IoE EMEAR & Open Berlin IoE Innovation Center, added: “The IoT is offering a whole new level of opportunity for technology leadership in Dubai.

"IT will be in the spotlight to enable actionable information, build new connections and open new revenue streams for organisations throughout the country. As Dubai continues to invest in technology today and in the future, the implications are already transformational as it enjoys a stronger economy, job growth, and improved education, healthcare, and citizen services.

"By leveraging the IOT and the new era of the Internet of Everything (IoE) Dubai can achieve a potential value of $4.87 billion by 2019.” 

Ken Allen, CEO, DHL Express and Board Sponsor Technology, said: “At Deutsche Post DHL Group we have a deeply held belief in the positive powers of global trade.

"Yet, as our Global Connectedness Index 2014 revealed, the overall level of global connectedness remains surprisingly limited. 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 Cisco’s economic analysis, IoT will generate $8 trillion worldwide in value at stake over the next decade from five primary drivers: innovation and revenue ($2.1 trillion); asset utilisation ($2.1 trillion); supply chain and logistics ($1.9 trillion); employee productivity improvements ($1.2 trillion); and enhanced customer and citizen experience ($700 billion).

"Digital disruption is all around us and it’s having massive implications for business," commented Chris Dedicoat, president, EMEAR for Cisco.

"Digitisation and the expansion of the Internet of Things is a catalyst for growth, which is driving new economic models and enabling organisations to remain competitive and embrace the pace of change happening globally.

"This report clearly demonstrates that digitization and the IoT will deliver long term efficiencies and growth opportunities across a wide range of industries.” 

According to the report, over the next decade, the logistics industry could unlock higher levels of operational efficiency as the IoT connects in real time millions of shipments being moved, tracked and stowed 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 revolutionise business processes across the entire value chain including supply chain and logistics. To get the maximum global economic benefit, we’ll need to understand how all components in the value chain converge and this will require a comprehensive collaboration, participation and the willingness to invest to create a thriving IoT eco system for sustainable business processes," asserted Markus Kückelhaus, vice president innovation & trend research, DHL Customer Solutions & Innovation.

Cisco Consulting Services and DHL are also collaborating on a joint IoT innovation project that will improve decision making in the warehouse operations through near real-time data analytics based on Wi-Fi location data of selected devices.

The solution is based on Cisco’s Connected Mobile Experiences (CMX) which uses the high-density wireless network to collect aggregate location data on Wi-Fi connected devices.

DHL recently announced the use of augmented reality in operations in warehouses, during transportation and last-mile delivery, which could be enhanced by computer-generated sensory input such as videos or graphics. 

It was also behind the world’s first commercial deployment of the DHL Parcelcopter, which delivered emergency medications and other goods to the North Sea Island of Juist.

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