In global logistics, the lack of real-time visibility remains one of the most challenging issues, leading to significant economic and environmental losses. In this article, we explore how IoT technology (Internet of Things) technology can revolutionize the supply chain, reducing losses and improving sustainability.
Impact of Lack of Visibility
A central problem in the supply chain is the waste of perishable products. According to global data, up to 40% of food produced is lost, largely due to inefficiencies in transport and storage. A key factor in these losses is the lack of visibility and control over product conditions during transportation. Thirteen percent of this food never even reaches retailers, being wasted before it is sold, which not only results in a devastating economic impact but also a significant environmental footprint. These inefficiencies generate up to 10% of global greenhouse gas emissions, largely due to food loss.
This situation also involves the waste of natural resources. For example, in 2023, 70% of the freshwater used worldwide went to agriculture, meaning that when food is wasted, so is the water used in its production.
The Power of IoT Sensors
This is where IoT technology comes into play as a powerful solution. IoT sensors offer companies the ability to monitor critical factors such as temperature, humidity, and impacts during the transportation of goods. This is especially crucial for perishable products, such as fruits and vegetables, which are sensitive to temperature changes. A small increase in temperature inside a container can spoil tons of products, causing large economic and environmental losses.
IoT sensors collect and transmit real-time information, allowing companies to act before a problem turns into a loss. Previously, companies had to wait until the shipment arrived at its destination to get information about the product’s condition, which could be too late to take corrective action. But with sensors that automatically connect to 2G, 5G, and WiFi networks, companies can receive alerts as soon as the container reaches land coverage, allowing crucial decisions to be made before the cargo arrives at port.
A distinctive aspect of IoT sensors is that they transmit data in real-time, unlike traditional systems like USB or Bluetooth, which require manual intervention. These sensors automatically send information to digital platforms, generating custom alarms in case an anomaly is detected. If the temperature exceeds predefined levels or an impact is detected in the container, companies can be notified immediately and act preventively.
Digitization and Optimization with Big Data
Another advantage of IoT technology is its ability to digitize the entire supply chain. The data collected not only helps with real-time monitoring but also allows companies to analyze trends and optimize their logistics processes. By monitoring multiple shipments over time, companies can identify the most efficient routes, the most reliable transport operators, and even predict problems before they happen. This big data-driven approach turns logistics into a much smarter and more predictable process, enabling cost reduction and efficiency improvement.
A Practical Example: Exporting Bananas
To better understand the impact of this technology, let’s look at a practical example. Imagine a company exporting bananas from Latin America to Europe. Before implementing IoT sensors, this company wouldn’t know if their cargo had been exposed to improper temperatures until the container was opened upon arrival, which could lead to the loss of tons of products. With IoT sensors, they can monitor the temperature in real-time throughout the journey and receive alerts if something goes wrong, even before the container reaches port. This not only helps prioritize which containers need to be checked first but also prevents product loss.
CLCircular’s Solution: IoT Technology Accessible to All
However, while IoT technology is incredibly powerful, it has not always been accessible to all companies, especially those with low-margin products. This is where CLCircular stands out, offering a reusable sensor rental model, significantly reducing costs for companies. CLCircular sensors monitor key factors such as temperature, humidity, impacts, and container door openings, ensuring that products arrive at their destination in optimal condition.
Additionally, CLCircular’s circular economy model ensures that sensors are recovered, cleaned, and reused, reducing electronic waste and minimizing environmental impact. This approach allows more companies to access IoT technology, benefiting from its ability to reduce losses and optimize logistical efficiency.
Conclusion
In conclusion, real-time visibility is key to reducing both economic losses and environmental impact in the supply chain. Thanks to companies like CLCircular, IoT technology is now accessible to a wide range of sectors, enabling more efficient, sustainable, and competitive logistics.
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