Revolutionizing Supply Chains with Smart Labels: The Future of Shipment Tracking and Visibility

• Chinmay
• December 26, 2024
• Industrial IoT, Internet of Things
• 5G LPWAN, Global Supply Chain, IoT supply chain, shipment tracking, smart labels, smart logistics, smart packaging, supply chain visibility, sustainability in IoT, transparency
• 0 Comments

KPMG’s 2024 predictions highlight a transformative shift in supply chain management, positioning it as “the new normal” driven by advanced technologies like IoT, generative AI, and automation. These innovations are key to enhancing resilience, visibility, and transparency across global supply chains.

The past year has underscored the urgency of resilient supply chains. Trade tensions affecting semiconductor movement and extreme weather events disrupting production have exposed their fragility. As companies aim for greater transparency and adaptability, smart labels are emerging as a pivotal solution, especially for shipment tracking and high-value item traceability.

Enhanced Visibility and Security

Modern supply chains prioritize cost efficiency and just-in-time deliveries. However, disruptions during the pandemic revealed systemic blind spots. Smart labels address this challenge by turning any package into an IoT-enabled device. These small, credit-card-sized labels activate instantly and require no additional infrastructure, offering a simple yet powerful solution. They integrate advanced security features, providing real-time updates on a parcel’s status, including tampering alerts, without compromising ease of use.

By equipping organizations with visibility into potential risks, smart labels empower faster decision-making, improving preparedness and resilience.

Eliminating Data Silos

A significant challenge in supply chain management is fragmented data. Multiple stakeholders, each using distinct systems, often create silos, limiting collaboration. Smart labels revolutionize this by generating a unified data set accessible to all participants in the supply chain.

For instance, logistics providers in different continents can now access shared tracking information, breaking down geographical and organizational silos. This fosters accountability, reduces errors, and enables informed decision-making.

Diverse Applications Across Industries

The versatility of smart labels extends their potential across various industries. In shipment tracking, the adoption rate is expected to soar, with ABI Insights projecting 1.5 million devices in the EU and USA by 2025, reaching 15 million by 2028. Sectors like agriculture, food and beverage, and high-value asset management stand to benefit significantly.

Consider the case of a mobile network operator (MNO) distributing smartphones globally. Smart labels provide real-time tracking, tampering alerts, and confirmation of safe delivery, minimizing financial losses and ensuring operational efficiency. This level of transparency and security is unparalleled in traditional tracking systems.

Challenges and the Road Ahead

Despite their promise, smart labels face challenges as they scale. Sustainability is a critical focus area. Reusability and leveraging data insights, such as CO2 emissions from transportation, are vital to aligning with environmental goals. Additionally, optimizing battery life is crucial for widespread adoption. Technologies like 5G LPWAN, BLE, and satellite-based connectivity will play a vital role in ensuring reliable performance, even in remote areas.

While global supply chains may never eliminate blind spots entirely, smart labels are poised to drive unprecedented transparency and resilience. As we approach 2025, this technology will undoubtedly redefine supply chain operations.