Welcome!

Related Topics: @ThingsExpo, Java IoT, Mobile IoT, Linux Containers, @CloudExpo, @BigDataExpo

@ThingsExpo: Article

Internet of Things Doing Some Heavy Lifting (IoT)

The supply chain is the primary driver of the explosive expansion of M2M applications

In the last decade, the "Internet of Things" has expanded from a small set of assets with first-generation radio frequency identification (RFID) tags to a proliferation of devices using a variety of wireless machine-to-machine (M2M) technologies. By some estimates, there are as many as 10 billion M2M devices deployed worldwide today, expected to grow to a ubiquitous 30 billion by the end of this decade.[1]

The power of M2M lies in its ability to capture, transmit and analyze asset data automatically - without human intervention - and inform business decisions that increase operational efficiencies, improve service capabilities and save money.

The supply chain is the primary driver of the explosive expansion of M2M applications, accounting for as much as 40% of revenue growth in the M2M market.[2] It's no wonder: manufacturers, distributors and retailers - especially those with large-scale enterprises - have long regarded supply chain optimization as a critical competitive differentiator.

One example of an M2M technology undergoing a surge of adoption across global supply chains is a wireless Vehicle Management System (VMS) for industrial trucks, such as forklifts.

Demand Drivers for VMS
Powered industrial trucks are the heart of material handling operations in the supply chain, and the cost of owning and operating an industrial truck - including fully burdened operator labor - can exceed $250,000 per vehicle per year in a three-shift operation. For an enterprise with 500 vehicles and a typical two-shift operation, the annual budget to run the fleet can exceed $80 million.

In addition to operator labor, the major costs associated with industrial trucks include acquisition (purchase or lease); damage (to facilities and products, as well as the vehicles themselves); maintenance; energy to power the vehicles; and a variety of direct and indirect costs related to injuries caused by vehicle accidents.

Industrial trucks are also the object of extensive governmental safety regulations, detailed in Occupational Safety & Health Administration (OSHA) standard number 1910.178.

What Does a VMS Do?
A Vehicle Management System is fundamentally about controlling the use of equipment and linking all vehicle activity to the operator. With that foundation, a VMS establishes accountability for equipment use, enforces powered vehicle safety regulations, and generates asset utilization metrics that can be used as Key Performance Indicators (KPIs) for material handling.

More specifically, a VMS can improve productivity by ensuring that equipment is available to work in the proper place at the right time, tracking fleet utilization (e.g., peak vehicle usage over time), measuring operator productivity (e.g., time logged into vehicles vs. time paid, and time actively working vs. time logged in), and benchmarking best-practice KPIs for equipment usage.

A VMS also helps enforce workplace safety policies by restricting vehicle access only to trained, authorized personnel, and by requiring operators to complete an electronic safety inspection checklist prior to using equipment. In addition, a VMS typically incorporates an impact sensing system that enables management to automate responses to vehicle accidents.

VMS systems typically deliver a return on investment by: (1) reducing damage to vehicles, facilities, and goods; (2) reducing or avoiding vehicle acquisition costs by justifying decreases in fleet size; (3) optimizing fleet maintenance controls to reduce maintenance costs; (4) eliminating costs traditionally associated with monitoring and enforcing safety policies; and (5) increasing productivity and justifying a reduction or reallocation of labor.

25 Years Ago, WMS...Today, VMS
A quarter-century ago, Warehouse Management Systems (WMS) emerged in the global supply chain to help manage inventory, order processing, and shipping. Within a decade, WMS had been deployed by many forward-looking organizations. Today, if a Fortune 1000 company with material handling operations has not deployed a WMS, it is almost certainly lagging behind its competitors.

VMS for industrial trucks is in an evolutionary stage similar to where WMS was a decade ago. Many progressive and respected supply chains have deployed VMS - users include some of the world's largest auto makers, consumer packaged goods companies, food producers, government organizations, industrial manufacturers, and retailers. Looking at the pace of WMS adoption is a precedent, VMS technology can be expected to proliferate rapidly, and any organization with sizable material handling operations will be at a competitive disadvantage if it does not use VMS.

References

  1. "More Than 30 Billion Devices Will Wirelessly Connect to the Internet of Everything in 2020," ABI Research, May, 2013.
  2. "Assessing Mobile Network Operator Capabilities and Opportunities in M2M," Matthew Hatton, M2M Summit, September, 2012

More Stories By Greg Smith

Greg Smith is Vice President of Marketing and Corporate Communications at I.D. Systems, a leading provider of wireless M2M asset management solutions. He has more than 25 years of experience in technology product development, and has published dozens of articles on technology solutions in both national media and trade publications. Greg has been involved in IoT technology deployments — specifically wireless vehicle management systems (VMS) for industrial trucks — with companies such as Ford Motor Company, Nestlé, Procter & Gamble, Target, Toyota, and Wal-Mart, among others. He holds a Bachelor of Arts degree from Williams College.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


Latest Stories
Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing and analyzing streaming data is the Lambda Architecture, represent...
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...
Your homes and cars can be automated and self-serviced. Why can't your storage? From simply asking questions to analyze and troubleshoot your infrastructure, to provisioning storage with snapshots, recovery and replication, your wildest sci-fi dream has come true. In his session at @DevOpsSummit at 20th Cloud Expo, Dan Florea, Director of Product Management at Tintri, will provide a ChatOps demo where you can talk to your storage and manage it from anywhere, through Slack and similar services ...
SYS-CON Events announced today that Ocean9will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
The taxi industry never saw Uber coming. Startups are a threat to incumbents like never before, and a major enabler for startups is that they are instantly “cloud ready.” If innovation moves at the pace of IT, then your company is in trouble. Why? Because your data center will not keep up with frenetic pace AWS, Microsoft and Google are rolling out new capabilities In his session at 20th Cloud Expo, Don Browning, VP of Cloud Architecture at Turner, will posit that disruption is inevitable for c...
Building a cross-cloud operational model can be a daunting task. Per-cloud silos are not the answer, but neither is a fully generic abstraction plane that strips out capabilities unique to a particular provider. In his session at 20th Cloud Expo, Chris Wolf, VP & Chief Technology Officer, Global Field & Industry at VMware, will discuss how successful organizations approach cloud operations and management, with insights into where operations should be centralized and when it’s best to decentraliz...
Providing the needed data for application development and testing is a huge headache for most organizations. The problems are often the same across companies - speed, quality, cost, and control. Provisioning data can take days or weeks, every time a refresh is required. Using dummy data leads to quality problems. Creating physical copies of large data sets and sending them to distributed teams of developers eats up expensive storage and bandwidth resources. And, all of these copies proliferating...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
DevOps has often been described in terms of CAMS: Culture, Automation, Measuring, Sharing. While we’ve seen a lot of focus on the “A” and even on the “M”, there are very few examples of why the “C" is equally important in the DevOps equation. In her session at @DevOps Summit, Lori MacVittie, of F5 Networks, explored HTTP/1 and HTTP/2 along with Microservices to illustrate why a collaborative culture between Dev, Ops, and the Network is critical to ensuring success.
Interoute has announced the integration of its Global Cloud Infrastructure platform with Rancher Labs’ container management platform, Rancher. This approach enables enterprises to accelerate their digital transformation and infrastructure investments. Matthew Finnie, Interoute CTO commented “Enterprises developing and building apps in the cloud and those on a path to Digital Transformation need Digital ICT Infrastructure that allows them to build, test and deploy faster than ever before. The int...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
SYS-CON Events announced today that Conference Guru has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great dea...
SYS-CON Events announced today that Technologic Systems Inc., an embedded systems solutions company, will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Technologic Systems is an embedded systems company with headquarters in Fountain Hills, Arizona. They have been in business for 32 years, helping more than 8,000 OEM customers and building over a hundred COTS products that have never been discontinued. Technologic Systems’ pr...
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.