Creating the Internet of Logistics
digitizing their transport operations within
their sphere of influence and the
collaboration with other business partners
on a peer-to-peer basis.
T HE L OGISTICS C HALLENGE
The logistics industry is lagging many other
industries in its race to digitize due to a
number of structural challenges. However,
there is a huge pressure to digitize due to the
benefits that each of the parties involved will
reap. This article discusses these challenges
and benefits and proposes that the solution
to the digitization challenge lies in existing
internet-based standards creating the
Internet of Logistics.
According to the Eurostat Digital Intensity
Index, 1 Transport and Storage is fifth from
the bottom of 24 digitization of economic
sectors defined. Only Wholesale & Retail and
Construction have lower scores than
Transport and Storage.
The nature of the logistics industry is quite
different from looking at a manufacturing
site, however, since the number of
enterprises involved easily ends up in 10-20
companies when all steps from shipper to
consignee (see Figure 1) are added.
Many companies involved
Historically, digitization in Logistics has
largely been driven by individual enterprises
Figure 1: General point-to-point transport
1
Eurostat, Digital Intensity Index - https://ec.europa.eu/digital-single-market/en/desi
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March 2020