Mail and logistics company Deutsche Post DHL (DPDHL) has signed a Memorandum of Understanding (MOU) with telecoms equipment manufacturer Huawei to develop a range of supply chain solutions for customers using Industrial Internet of Things (IIoT) hardware and infrastructure.
As part of the MOU, the Chinese multinational will assist DPDHL with development and application of IIoT technology for customers at all stages of its supply chain network.
The aim is to drive greater efficiency, safety and customer service for anyone who does business with DPDHL.
DPDHL predicts a trillion dollar IoT supply chain market
According to DHL’s own Internet of Things in Logistics report, IoT could generate up to $1.9 trillion in revenue for the global logistics industry by 2025.
DHL suggests the value will come from enabling operators to better monitor and optimize their supply chain processes through low-cost networked sensors and devices.
It’s not surprising, then, that DPDHL and Huawei are joining forces to connect large volumes of devices across long distances via a low-power wide-area (LPWAN) cellular-based IoT network.
Collaborate to accumulate
To take advantage of the connected supply chain opportunity, Huawei said it will make its IoT devices, connectivity experts, and network infrastructure accessible to DHL.
Huawei is one of the leading players in the development on LPWAN technology, notably working alongside Vodafone for the development of Narrowband Internet of Things (NB-IoT) networks to power low-power devices.
DPDHL is set to benefit from this expertise in its ongoing efforts to incorporate greater sensing and automation capabilities into its warehousing, freight and last-mile delivery services.
The company hopes that greater connectivity will deliver a more integrated logistics value chain by providing critical data and visibility in warehousing operations, freight transportation, and last-mile delivery.
Tackling a complex supply chain
In a statement, Dr. Markus Voss, global COO and CIO at DHL Supply Chain, suggested that the MOU would help both companies tackle the growing complexities of supply chains, “with a powerful combination of world-class Internet of Things hardware, networks, and expertise in end-to-end supply chain management.”
Yan Lida, President of Huawei Enterprise Business Group, went one step further, saying: “This partnership opens up an opportunity to improve the efficiency, safety and customer service offered by global supply chains in previously-impossible ways, and defines how the Internet of Things will shape the fortunes of the logistics industry in the next few critical years of innovation.”
Huawei and DHL will also collaborate on efforts to market and commercialize the results of their innovations, including pilot commercial projects in Europe and China.