In today's business world, sustainability is becoming increasingly important – especially for companies operating in the transportation and logistics industry. The industry is a prominent contributor to CO2 emissions. In 2020, the transport sector alone was responsible for 23.2% of all EU greenhouse gas emissions, according to the World Economic Forum, with just under a third of those coming from road freight transport. This makes the sector one of the largest emitters of greenhouse gasses after the energy sector.

By applying technologies such as Internet of Things (IoT) and artificial intelligence (AI), logistics companies can not only achieve sustainability goals faster, but also increase efficiency and competitiveness.

How can the Internet of Things and Artificial Intelligence help implement sustainable logistics?

IoT and AI can help logistics companies improve their energy and resource efficiency. In addition to reducing energy consumption (energy efficiency), IoT and AI can also help reduce CO2 emissions of transportation and logistics companies and minimize the use of production factors (resource efficiency).

Energy efficiency:

• IoT sensors can be used, for example, to control the energy consumption of buildings, machines, and vehicles. This way, companies can avoid wasting energy while reducing their electricity costs.
• AI systems are also being used to monitor energy consumption and to identify opportunities for optimizing operational processes. These systems analyze consumption data and identify patterns that allow users to streamline processes and to save energy.

Resource efficiency:

• IoT-enabled sensors are used to monitor vehicle fuel consumption and highlight optimization opportunities.
• AI systems are used to predict traffic conditions and improve routes so that emissions are reduced.
• Both, IoT and AI, have the advantage of keeping track of wear and tear of machines and vehicles. Thus, companies know the maintenance needs of their equipment and have control over required maintenance. This extends the life of the equipment while reducing maintenance costs. Predicting maintenance minimizes downtime, enables better planning of supply chains, and helps to avoid bottlenecks.

Overall, IoT and AI are important tools for logistics companies to achieve their sustainability goals. The implementation of IoT and AI-based solutions improves energy and resource efficiency, and has enormous potential to reduce CO2 emissions, as well as to get the highest benefit from the resources deployed.

Sustainable processes through intelligent networking

Intelligent networking of logistics processes and data using IoT and AI optimizes truck journeys and makes supply chains more transparent. The combination of sensors and data analysis software allows users to control transport routes and conditions precisely, and thus reduce emissions. AI models also support the efficient and sustainable design of logistics processes, for example, by automatically monitoring and managing inventories according to demand.

Thanks to technological advances in IoT and AI, considerable progress is also being made in the packaging and recycling industry. Integrating IoT sensors into packaging automates return systems and ensures the seamless tracking of recycled materials. Linking IoT systems and AI analytics helps reduce waste and limit resources. This also has implications for reverse logistics in e-commerce, where effective return of goods and materials is particularly important.

Another crucial factor in sustainable logistics is the involvement of customers and partners in the process. IoT and AI are valuable tools here as well. By incorporating customer feedback and responses on social media platforms, for example, needs can be better identified, and logistics conditions can be adapted to customer requirements. In addition, AI models are helpful in better anticipating customer wishes and thus improving the efficiency and sustainability of logistics processes.

IoT and AI are no miracle workers

In conclusion, IoT and AI offer a wide range of opportunities to facilitate sustainable logistics. By intelligently connecting processes and data, resources can be used more efficiently, emissions can be reduced, and supply chain transparency can be increased. The integration of customers and partners, as well as the consideration of recycling processes, enable a holistic and sustainable design of logistics. Companies should therefore increasingly rely on IoT and AI systems to ensure sustainable logistics in the future.

However, it is important to emphasize that the use of IoT and AI alone does not automatically lead to a sustainable future. Companies must continue to actively engage in rethinking their business processes and implementing sustainable measures, such as a reduction in waste and emissions, or an implementation and continuous monitoring of a sustainable supply chain. Nonetheless, IoT and AI can be valuable tools to achieve these goals by helping to optimize processes, save resources, and improve collaboration between different stakeholders.

We regularly conduct market and trend analysis, including monitoring the impact of regulations on business processes and the activities of competitors. Do you have any questions on this topic or would you like to get to know our KnowledgeAgent team “Travel, Transport & Logistics”? Then please do not hesitate to contact us!