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In one of our recent blogs, we talked about what IoT (Internet of Things) is and whether it’s the right time to adopt it. You can find that blog right hereHowever, since IoT in the warehouse is a fairly new concept/technology, warehouse managers, technology directors, and higher decision makers might find it somewhat difficult to plan it and of course, even more challenging implementing it.

The primary reason for this is the overwhelming amount of moving parts, details, and infrastructure that is (seemingly) needed for successfully implementing this warehouse technology.

This blog gives away the basic knowledge about the essentials of industrial IoT (IIoT) that you will need for a successful deployment.

Here are 5 essentials of IIoT that you must consider:


1. Equipment

The actual deployment of industrial internet of things lies in the successful deployment of censoring devices such as, temperature, accelerometer, proximity, motion sensors, and actuators among others.

The first thing you must understand is what exactly you are trying to measure and/or detect (for e.g. the acceleration of a forklift while in operation) and then consider factors such as IT infrastructure, systems, and implementation/maintenance costs.

The bases of IoT in a warehouse are sensors and actuators embedded into objects and/or devices. Some of the sensors and actuators that you might consider adopting include, but are not limited to:

    • RFID tags on parcel and pallets to efficiently & effectively track cargo within the warehouse
    • Barcode scanners with RFID capabilities to quickly find packages in crowded areas
    • Temperature and humidity sensors in cold storage facilities to track in real-time temperature & humidity
    • Motion, speed, and proximity sensors and actuators in forklifts to prevent accidents
    • GPS, motion & speed detectors embedded in wearable devices to detect operational inefficiencies

Warehouse IoT Scanner

Apart from this, you must also consider other devices that nicely complement an IoT ecosystem. These are:

    • Rugged tablets
    • Mobile computers
    • Industrial smart phones
    • Wearable devices like smart watches and glasses

It is the joint action of sensors and actuators that makes industrial IoT such a powerful technology across warehouses and distribution centers.

Not only can these sensors help streamline and direct the movement and operations, but can also help you collect invaluable data that can later be used to detect inefficiencies (for e.g. reducing walking time), increase productivity, and prevent accidents.


2. Network

The power of the Internet of Things lies in its potential to be the Internet of Everything as Cisco terms it; meaning, its ability to interconnect devices, people, and objects. And for this to become a reality, IoT and all its components depend on a reliable network infrastructure.


IoT Network in Warehouse

Source: Internet of Things in Logistics by DHL & Cisco


To interconnect all the IoT endpoints (sensors and actuators), you need a well-designed (and implemented) wired and wireless network that reliably and securely transmits communications across the entire IoT ecosystem.

In the case of a wired infrastructure, it is highly recommended to use Cat6e cabling and gigabit connections (switches and routers with at least gigabit capabilities) to avoid network bottlenecks, latency and/or packet loss.

For wireless connectivity, it is highly recommended to implement a wireless infrastructure that is equipped with wireless controllers (used to centralize the management of all wireless access points) that support authentication and encryption protocols such as MAC address authentication or X.509 certificates.

These authentication and encryption protocols will help you ensure that only approved devices are connected to your network (authentication) and that information is transmitted in a secured manner over the air (encryption).


3. Security

Considering the amount of information to be collected within a warehouse IoT ecosystem, it is important to carefully consider the security side of the equation.

Why? Because failing to do so can result in the leak of not only sensitive customer information (for e.g., high value cargo and customer details) but also specific operational processes and procedures that provide your business with a competitive advantage.

So, to avoid this, it is extremely important that the following questions are carefully considered during the planning and deployment phases of a warehouse IoT implementation.

    • How to control what devices (sensors, actuators, mobile devices, people, etc.) can connect and participate in the IoT ecosystem? - Authentication.
    • How is data going to be protected while in transit (moving between endpoints and the database)? - Data integrity.
    • What data repository (for e.g.. database) can guarantee that only the right people and systems have access to write and read data? - Authorization
    • Who will be responsible for monitoring the security of the IoT ecosystem and conducting system maintenance intended to address and correct system vulnerabilities?

No system is 100% secured. So, people and processes should be in place to protect the system and effectively respond in the case of a security incident. It is important to consider all these questions and proactively find the correct answers and solutions to them. 

Security is one of the prime concerns that haunts the deployment of warehouse IoT. A study by Aruba, a Hewlett Packard Enterprise company, involving users of IoT reveals that


84% respondents reported that they have already experienced IoT-related breach at least once.


4. IoT Platform

An IoT ecosystem is a complex organization of interconnected devices that expands across sensors, devices, software, equipment, security systems, servers and databases - only to mention a few.

Considering the large number of components required to interact reliably and securely, most companies depend on what is known as IoT Platforms to achieve this purpose. 

An IoT platform is nothing but a middleware (mostly cloud based) used to interconnect all the pieces of the IoT ecosystem. Think of it as the glue that connects all the parts within the ecosystem and stores, and processes & analyzes all the generated data.

So, instead of developing your own IoT platform, it is highly recommended to leverage an established third-party IoT platform (cloud IoT) to manage all the components of your warehouse IoT.

Here are some of the most recognized IoT cloud vendors.


IoT Platform


While the biggest names in IoT news right now are Azure, AWS (Amazon Web Service), IBM Watson, Google Cloud Platform, and Salesforce IoT, there are also several other smaller players that suit IIoT rather well.


5. Analytics

Along with choosing a suitable platform for IoT in the warehouse, you will also need to look into IoT analytic capabilities.

IoT analytics means the application of data analytics tools and methods to analyze and make sense of large volumes of collected data – remember, sensory devices will be collecting data (status, events, etc.) in real-time. Here, lies the power of IoT in warehouse and distribution center operations.


Predicitve Analytics in Warehouse Management-1


Data analytics hold a very crucial place in the IoT scheme of things. Not only will it help you analyze large volumes of data generated by your IoT ecosystem, but will also structure all the unstructured data to help you make sense of it.

Remember, every component within the ecosystem will generate large volumes of data, so organizing it is critical to make it meaningful and useful. Without proper organization of all the generated information, warehouse managers and other decision makers will not be able to understand it and take actions to drive efficiency within the warehouse.

Down the line, IoT data analytics is the very tool that helps you drive efficiency and profitability by understanding in detail operational inefficiencies and allowing you to put effective solutions that will yield tangible operational efficiencies.


Deploying IoT in Warehouse

Image Source

Creating a smart warehouse with IoT is no longer a hype. This technology is already making inroad into many warehouses and distribution centers across the world. There is no doubt that IoT in warehouse is on its way to becoming a reality.

While this technology continues its natural evolution (watch here when and how to adopt a technology), warehouse managers and other decision makers must start preparing and planning for budgeting, planning, and deploying IoT within their facilities.


As always, if there is anything else that you would like to know about the Internet of Things in warehouses or distribution centers, or if you need some tips on warehouse technology, do not hesitate to contact us or comment below. 


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