Smart logistics: connected operations
Improving the logistics operation of a large home appliances company in India by leveraging RFID and LoRaWAN® to implement an end-to-end vehicle tracking solution for their manufacturing facility.
The challenge
India's logistics industry, supporting almost 25% of the overall workforce, saw a boom in third-party operators following the expansion of the road network in the mid-1990s. Unfortunately, the introduction of middlemen operators created a significant challenge in finding ways to track, monitor, and exchange information transparently between all parties — suppliers, distributors, contractors, and buyers. This deficit in trust made it difficult to keep a balanced supply of drivers and led to an increase in contracted truck driver costs, as manufacturers were charged a premium for every hour a driver was on the job.
Companies sought to improve operational efficiencies to reduce costs and increase productivity. While much focus was on speeding up logistics timelines, dealing with the inconsistencies of contracted operators proved difficult. Many companies instead focused on operational activities they had control over — the locating, packaging, loading, and unloading of containers at their own warehouses.
Why LoRaWAN®?
Smart solutions like vehicle tracking and smart inventory management are quickly being adopted in logistics to improve operational efficiencies with the Internet of Things. Choosing the right IoT technology presents challenges, especially for warehouse facilities often located in remote areas extending over large plots of land, which often lack direct internet access or sufficient LAN connection points. Wi-Fi has range limitations, and cellular, while offering longer range, is often unavailable in remote areas and suffers from indoor coverage issues.
LoRaWAN® proved an excellent option for solutions that don't require huge amounts of data transmitted wirelessly over long-range distances, with two key benefits: minimal investment — long-range internet access without needing many LAN connections on the grounds — and deep indoor penetration, making it suitable for warehouse applications.
The solution
A large home appliances company in India needed a smart solution to track truck driver activities at their 8-hectare facility, including entry/exit times and arrival/departure times at specific warehouses. The goal was to monitor time spent on the grounds and predict truck arrival times at each warehouse, displaying this on LED monitors — allowing the company to prepare containers prior to arrival, reducing truck wait time and time on site.
The company initially planned an RFID solution, but quickly realized the RFID readers required direct LAN access, which was unavailable. Touio, in collaboration with ecosystem partners, developed a specialized RS232-to-LoRaWAN® converter device that connected to the existing RFID reader via its serial port, transmitting RFID data over the LoRaWAN network. An RF survey determined that only one outdoor LoRaWAN® gateway — installed 40 meters off the ground — was needed to cover the entire 8-hectare area.
Benefits & conclusions
After just one month of implementation, the customer saw significant, immediate benefits:
50% less driver time
Average time for a truck to complete all pick-up activities dropped from 3 days to 1.5 days.
Eliminated idle time
~400 daily visits across 80+ pick-up points now follow a tight, enforced schedule.
~$3,400/day saved
Reduced driver hourly rates and service/fuel charges from shorter time on grounds.
This case study demonstrates that focusing on internal problems within a company's control is a strong starting point for digitalization. LoRaWAN proved its ability to support hybrid projects by integrating with existing RFID technology, delivering an immediate return on investment.
LoRaWAN® and LoRa Alliance® are marks used under license from the LoRa Alliance.
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