Proving the Business Case for the Internet of Things

Intel and Honeywell partner on smart logistics

Steve Rogerson
May 24, 2017



Intel and Honeywell are collaborating to make the shipping and logistics industry smarter.
 
Intel has launch the CLP connected logistics platform to give companies insight into the status of assets during their journey through the supply chain, allowing them to make intelligent, real-time decisions that can reduce loss or spoilage of freight, increase asset use, and optimise end-to-end supply chain operations.
 
Intel’s announcement was made with Honeywell unveiling its Connected Freight platform based on Intel CLP.
 
Researchers report that 89 per cent of logistics and shipment service providers believe a lack of visibility into the status of their supply chain is one of the biggest challenges they face today. Estimates put the annual worldwide financial impact from cargo loss at about $60bn in 2016. Studies also show 30 per cent of all perishable goods spoil before reaching their destination. The impact is enormous, both globally and within an individual company’s supply chain.
 
Intel CLP is designed to solve these problems. Taking advantage of a scalable IoT architecture, Honeywell’s Connected Freight featuring CLP consists of cost-effective sensors that can be attached to packages or individual assets. These sensors communicate wirelessly with a cellular- or wifi-enabled gateway that can travel with the shipment or be installed as fixed infrastructure.
 
Connected Freight can provide real-time status updates of each shipment’s location, temperature, humidity, shock, vibration, tilt, pressure, proximity and exposure to light. Logistics service providers and shippers can use the platform’s alerts to make real-time decisions that can reduce operational costs, increase use of associated assets, as well as increase service levels to customers. Highly granular data can also assist companies in planning and predicting future operations to avoid problems proactively and improve overall supply chain efficiency.
 
The data gathered and communicated en route by smart and connected shipments should help industries not just track goods, but also improve business decisions such as rerouting if demand shifts or intercepting a damaged shipment. By analysing data from thousands of shipments, logistics service providers will be able to predict and avoid routes where damage or delays are likely, establishing a more reliable distribution network.
 
"Honeywell is developing a range of connected supply chain solutions that leverage technology and data to make supply chains more efficient and better able to adapt to rapid change," said Taylor Smith, president of Honeywell's workflow business. "For shippers, logistics providers, retailers and others faced with a host of costly freight challenges, such as theft, damage, spoilage and delays, this convenient cloud-based solution provides customers with detailed analytics in order to plan, anticipate and react immediately to incidents that occur during shipment."
 
Real-time shipment information is critical, for example, when shipping perishables and goods that require uninterrupted refrigeration, such as pharmaceuticals, or high-value equipment that is sensitive to vibration or shock.
 
"After assessing our internal supply chain needs and the needs of the industry, we forged a unique collaboration with Honeywell," said Chet Hullum, general manager at Intel. “Together, we've customised Intel's CLP technology to deliver an IoT offering that solves real logistics problems. Thanks to data accessibility, shippers and carriers will be able to establish a more reliable supply chain network by having deeper visibility and information on shipments."
 
Connected Freight consists of tags that sense a range of environmental conditions, such as temperature or vibration. The tags can be affixed to pallets or individual packages. The sensor data are captured by a mobile gateway placed inside a lorry or shipping container and then transmitted via cellular networks to a cloud-based command-and-control platform.
 
Users can establish alerts based on temperature, shock, tilt, humidity, pressure and intrusion detection. It can alert manufacturers of high-value, highly sensitive technology if equipment has been damaged while being loaded or unloaded, or if it may have been stolen. The cloud can also store data for compliance and audit needs, and provide predictive and reactive analysis, such as which routes to avoid.
 
Honeywell developed the technology with Intel and three third-party logistics companies – DHL, Expeditors and Kuehne + Nagel.
 
"Kuehne + Nagel chose Honeywell and Intel to partner in the development of Connected Freight because of their expertise and competence in this kind of technology," said Martin Kolbe, chief information officer at Kuehne + Nagel. “We have used our competence as a global provider of logistics services and our expertise in supply chain management in order to co-develop this new technology. We understand and anticipate the need for real-time data to inform customer actions during transportation very well. Armed with the Connected Freight, Kuehne + Nagel can offer a variety of new services tailored to our customers' specific needs. There are ongoing trials of the technology with one of our customers in the pharmaceutical and healthcare industry, which is of strategic importance."