“Eye” in the sky: IoT powers vaccine delivery blitz
Charged with transporting rush shipments of Covid-19 vaccines around the globe, logistics service providers turned to the latest internet of things (IoT) tools to monitor and safeguard their lifesaving cargo.
Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.
When logistics service providers were first charged with delivering the new Covid-19 vaccines in late 2020, they may have wished for a magic wand to solve the extraordinary challenges their mission would present. While some already had specialized pharmaceutical divisions and cold chain warehouses to serve the typical trade in medicines and biological products, those networks were designed for a lighter flow of goods to predetermined destinations like hospitals, not an all-out blitz to reach every corner of the globe as quickly as possible.
The vials of the precious vaccine had to be moved in huge quantities, kept at ultra-low temperatures, and shipped and delivered at top speed … all at a time when commercial aircraft—whose belly space has long been the main means of expedited international cargo transport—were largely grounded due to pandemic-related restrictions on passenger travel. At the same time, the service providers’ employees had to work in conditions where they faced exposure to the very virus they were fighting. To cap it off, the contractors were under colossal pressure to distribute the vaccines before the deadly disease could spread among vulnerable populations.
Citing severe capacity constraints in the aircargo market, the International Air Transport Association (IATA) dubbed the effort “the mission of the century” for the sector.
Yet despite those and other challenges, logistics service companies—and parcel carriers, in particular—have been successful in their efforts to swiftly distribute Covid-19 vaccines. One of the key tools players have brought to bear is the internet of things (IoT), a vast network of connected sensors that allowed shippers and carriers to monitor and track this critical cargo as it passed through multiple hands, transportation modes, and countries.
MOVE IT QUICKLY, KEEP IT COLD
To help them track shipments and manage the complexities of time-sensitive vaccine distribution, the major parcel carriers—DHL, FedEx Corp., and UPS Inc.—all turned to variations of IoT technology.
For DHL, IoT tools were critical for monitoring cargo that had to be maintained at subzero temperatures (-70 degrees Fahrenheit for the Pfizer vaccine and -20 degrees for the Moderna version) and for reassuring trading partners who were pushing for urgent delivery. Those partners stretched across the globe: Through May of 2021, the company had transported more than 200 million doses of the various Covid-19 vaccines on about 9,000 flights to more than 120 countries.
While DHL has a well-established network for transporting vaccines and other pharmaceuticals, it looked to the IoT part of its existing system to meet the specific demands of Covid vaccine distribution, said Claudia Roa, the company’s president, Life Sciences and Healthcare.
“The three main differences or unique features with the Covid-19 vaccine were its extremely low temperature requirement; the lack of data available to know the risks and the effects of changes in temperature, time, etc.; and its global urgency—which is probably the most sensitive aspect of this distribution effort,” Roa said. Thanks to its IoT network, DHL had the resources in place to manage the first two challenges, thereby freeing company leaders to concentrate on the third one. “Using sensors, we have been able to monitor the temperature and location of every vaccine shipment to guarantee that the temperature stays within the required range,” she said.
For FedEx, IoT networks were crucial for tracking a steady stream of vaccine shipments to all 50 states as well as destinations around the world. Through the use of connected sensors, every shipment of vaccines has generated a cloud of detailed tracking data, the company said. As of mid-June, FedEx had delivered Covid-19 vaccines and related ingredients and supplies to 40 countries, including a shipment of 1.35 million Johnson & Johnson vaccine doses from Memphis, Tennessee, to Toluca, Mexico, in coordination with the nonprofit aid agency Direct Relief and the U.S. and Mexican governments.
In a statement about its role in the vaccine delivery effort, FedEx cited its standard dictum about tracking packages, saying “The information about the package is as important as the package itself as it moves through the network.” The Memphis-based company has invoked that motto for years, but it added something new when it tackled the vaccine delivery challenge: its “FedEx SenseAware ID” tracking technology, which it unveiled in May 2020, about six months before the first public vaccine shipments began.
That new tracking system incorporates sensors designed with the Bluetooth low-energy (BLE) communications standard, which uses less power and costs less than previous versions. That makes the IoT devices affordable enough that users can attach a sensor to each vaccine shipment, not just to pallets or containers. The sensors allow FedEx to track the location of vaccine shipments in near real time. The company then analyzes the data it collects with a platform that leverages artificial intelligence and predictive tools to monitor conditions surrounding the packages; this allows customer-support agents to intervene if weather or traffic delays threaten to impede deliveries, the company said.
And for UPS, IoT devices are enabling the company and its customers to actively monitor temperature-controlled cargo, including pinpointing the location of any Covid-19 vaccine shipment within its worldwide network. Using its “UPS Premier” service, the Atlanta-based company attaches a small mesh sensor, about the size of a credit card, to every vaccine shipment. The technology provides visibility into the location of every package, to within 10 feet, anywhere in the network. Like FedEx, UPS analyzes the data it collects using software that can detect network disruptions before they occur and then recommend countermeasures in real time.
NEW TECH SOLVES OLD PROBLEMS
The successful application of IoT technology in vaccine distribution can be attributed to two main factors, according to companies that manufacture the sensors and networks that make the system work. The first is the industry’s deep experience with the technology: Vendors have been deploying simpler versions of IoT devices to solve similar logistics challenges for years, which meant that when the call for more-sophisticated versions came, they had a solid foundation to build on. The second is a spate of technological advances that occurred just before the pandemic began, solving several longstanding problems with the technology and greatly expanding its capabilities.
For example, California-based IoT technology vendor Identiv has long been providing systems that use radio-frequency identification (RFID) tags to monitor the temperature of wine shipments in transit. These systems help shippers determine whether their products have been exposed to out-of-range temperatures while en route—a concern that vaccine shippers share. So when the need arose, the company was able to use the same approach to develop a monitoring system for ultra-cold shipments.
“‘Smart’ packaging with temperature control, anti-tampering [features], and location tracking is critical in efficient vaccine delivery,” Identiv CEO Steve Humphreys said, adding that Covid-19 has forced “exponential growth” in this technology.
That “exponential growth” came just in time to solve several key challenges with Covid-19 vaccine distribution. Thanks to a “technology convergence” of recent advances in sensors, readers, and other devices, IoT systems were able to overcome past shortcomings, according to Chris Jones, executive vice president, marketing and services for Descartes Systems Group, a provider of IoT devices and logistics technology.
Until recently, most tracking tags suffered from short battery life, but modern units using Bluetooth low-energy technology can run for seven years on one of the coin-shaped batteries commonly used to power wristwatches, Jones said. Earlier sensors were also too expensive to use on anything but the highest-value shipments, but their cost today is just one-tenth or one-twentieth of what it was half a dozen years ago, he said. Thanks to those price drops, users can now toss a tag into each carton of goods being shipped or attach it to the outside of the parcel, the pallet it’s stacked on, or the unit load device (ULD) that airlines use to roll cargo into the bellies of planes.
Yet another recent technology advance has helped the industry overcome some longstanding problems with collecting data from those sensors. Older systems that relied on cellular data networks had limited capacity to collect and then share the information they recorded, since airports limit cellphone connectivity to protect planes’ communications channels, and because shipments sitting in cold storage are insulated by thick metal walls. But in recent months, Descartes has provided some of its customers with readers that are tuned to Bluetooth low-energy signals, creating networks of local antennas that operate on a different bandwidth than airplane wireless signals and can therefore be placed close to cargo. Airfreight carriers, including Delta, Air New Zealand, and Cathay Pacific, are installing the solar-powered units on light poles and other sites around an airport; the resulting coverage is far more effective than anything cellular networks can offer, Jones said.
For example, Cathay Pacific Cargo said in June that it was launching Descartes’ BLE-based network, tags, and readers at dozens of airports across the globe. This investment will allow customers to monitor vaccine and other shipments in near real time through the airport-to-airport leg of each shipment’s journey, the airline said. With the new system, Cathay Pacific’s data loggers can now record and transmit data to Bluetooth readers in the cargo terminal and the airside ramp area, providing such information as the GPS location, temperature, humidity level, and vibration.
HISTORIC ACHIEVEMENTS
By collecting and sharing crucial data about shipments in transit, IoT technology has played a critical role in logistics companies’ historic effort to deliver Covid-19 vaccines. Thanks to engineering upgrades, modern IoT sensors and networks have allowed users to overcome extraordinary challenges in this global race to save lives.
The benefits of improved IoT technology will extend far into the future, Identiv’s Humphreys believes. “Manufacturers, distributors, government leaders, NGOs, and the health-care community have an opportunity right now to troubleshoot methodologies and identify best practices to better prepare for a future pandemic,” he said.
Autonomous forklift maker Cyngn is deploying its DriveMod Tugger model at COATS Company, the largest full-line wheel service equipment manufacturer in North America, the companies said today.
By delivering the self-driving tuggers to COATS’ 150,000+ square foot manufacturing facility in La Vergne, Tennessee, Cyngn said it would enable COATS to enhance efficiency by automating the delivery of wheel service components from its production lines.
“Cyngn’s self-driving tugger was the perfect solution to support our strategy of advancing automation and incorporating scalable technology seamlessly into our operations,” Steve Bergmeyer, Continuous Improvement and Quality Manager at COATS, said in a release. “With its high load capacity, we can concentrate on increasing our ability to manage heavier components and bulk orders, driving greater efficiency, reducing costs, and accelerating delivery timelines.”
Terms of the deal were not disclosed, but it follows another deployment of DriveMod Tuggers with electric automaker Rivian earlier this year.
Manufacturing and logistics workers are raising a red flag over workplace quality issues according to industry research released this week.
A comparative study of more than 4,000 workers from the United States, the United Kingdom, and Australia found that manufacturing and logistics workers say they have seen colleagues reduce the quality of their work and not follow processes in the workplace over the past year, with rates exceeding the overall average by 11% and 8%, respectively.
The study—the Resilience Nation report—was commissioned by UK-based regulatory and compliance software company Ideagen, and it polled workers in industries such as energy, aviation, healthcare, and financial services. The results “explore the major threats and macroeconomic factors affecting people today, providing perspectives on resilience across global landscapes,” according to the authors.
According to the study, 41% of manufacturing and logistics workers said they’d witnessed their peers hiding mistakes, and 45% said they’ve observed coworkers cutting corners due to apathy—9% above the average. The results also showed that workers are seeing colleagues take safety risks: More than a third of respondents said they’ve seen people putting themselves in physical danger at work.
The authors said growing pressure inside and outside of the workplace are to blame for the lack of diligence and resiliency on the job. Internally, workers say they are under pressure to deliver more despite reduced capacity. Among the external pressures, respondents cited the rising cost of living as the biggest problem (39%), closely followed by inflation rates, supply chain challenges, and energy prices.
“People are being asked to deliver more at work when their resilience is being challenged by economic and political headwinds,” Ideagen’s CEO Ben Dorks said in a statement announcing the findings. “Ultimately, this is having a determinantal impact on business productivity, workplace health and safety, and the quality of work produced, as well as further reducing the resilience of the nation at large.”
Respondents said they believe technology will eventually alleviate some of the stress occurring in manufacturing and logistics, however.
“People are optimistic that emerging tech and AI will ultimately lighten the load, but they’re not yet feeling the benefits,” Dorks added. “It’s a gap that now, more than ever, business leaders must look to close and support their workforce to ensure their staff remain safe and compliance needs are met across the business.”
The “2024 Year in Review” report lists the various transportation delays, freight volume restrictions, and infrastructure repair costs of a long string of events. Those disruptions include labor strikes at Canadian ports and postal sites, the U.S. East and Gulf coast port strike; hurricanes Helene, Francine, and Milton; the Francis Scott key Bridge collapse in Baltimore Harbor; the CrowdStrike cyber attack; and Red Sea missile attacks on passing cargo ships.
“While 2024 was characterized by frequent and overlapping disruptions that exposed many supply chain vulnerabilities, it was also a year of resilience,” the Project44 report said. “From labor strikes and natural disasters to geopolitical tensions, each event served as a critical learning opportunity, underscoring the necessity for robust contingency planning, effective labor relations, and durable infrastructure. As supply chains continue to evolve, the lessons learned this past year highlight the increased importance of proactive measures and collaborative efforts. These strategies are essential to fostering stability and adaptability in a world where unpredictability is becoming the norm.”
In addition to tallying the supply chain impact of those events, the report also made four broad predictions for trends in 2025 that may affect logistics operations. In Project44’s analysis, they include:
More technology and automation will be introduced into supply chains, particularly ports. This will help make operations more efficient but also increase the risk of cybersecurity attacks and service interruptions due to glitches and bugs. This could also add tensions among the labor pool and unions, who do not want jobs to be replaced with automation.
The new administration in the United States introduces a lot of uncertainty, with talks of major tariffs for numerous countries as well as talks of US freight getting preferential treatment through the Panama Canal. If these things do come to fruition, expect to see shifts in global trade patterns and sourcing.
Natural disasters will continue to become more frequent and more severe, as exhibited by the wildfires in Los Angeles and the winter storms throughout the southern states in the U.S. As a result, expect companies to invest more heavily in sustainability to mitigate climate change.
The peace treaty announced on Wednesday between Isael and Hamas in the Middle East could support increased freight volumes returning to the Suez Canal as political crisis in the area are resolved.
The French transportation visibility provider Shippeo today said it has raised $30 million in financial backing, saying the money will support its accelerated expansion across North America and APAC, while driving enhancements to its “Real-Time Transportation Visibility Platform” product.
The funding round was led by Woven Capital, Toyota’s growth fund, with participation from existing investors: Battery Ventures, Partech, NGP Capital, Bpifrance Digital Venture, LFX Venture Partners, Shift4Good and Yamaha Motor Ventures. With this round, Shippeo’s total funding exceeds $140 million.
Shippeo says it offers real-time shipment tracking across all transport modes, helping companies create sustainable, resilient supply chains. Its platform enables users to reduce logistics-related carbon emissions by making informed trade-offs between modes and carriers based on carbon footprint data.
"Global supply chains are facing unprecedented complexity, and real-time transport visibility is essential for building resilience” Prashant Bothra, Principal at Woven Capital, who is joining the Shippeo board, said in a release. “Shippeo’s platform empowers businesses to proactively address disruptions by transforming fragmented operations into streamlined, data-driven processes across all transport modes, offering precise tracking and predictive ETAs at scale—capabilities that would be resource-intensive to develop in-house. We are excited to support Shippeo’s journey to accelerate digitization while enhancing cost efficiency, planning accuracy, and customer experience across the supply chain.”
Donald Trump has been clear that he plans to hit the ground running after his inauguration on January 20, launching ambitious plans that could have significant repercussions for global supply chains.
As Mark Baxa, CSCMP president and CEO, says in the executive forward to the white paper, the incoming Trump Administration and a majority Republican congress are “poised to reshape trade policies, regulatory frameworks, and the very fabric of how we approach global commerce.”
The paper is written by import/export expert Thomas Cook, managing director for Blue Tiger International, a U.S.-based supply chain management consulting company that focuses on international trade. Cook is the former CEO of American River International in New York and Apex Global Logistics Supply Chain Operation in Los Angeles and has written 19 books on global trade.
In the paper, Cook, of course, takes a close look at tariff implications and new trade deals, emphasizing that Trump will seek revisions that will favor U.S. businesses and encourage manufacturing to return to the U.S. The paper, however, also looks beyond global trade to addresses topics such as Trump’s tougher stance on immigration and the possibility of mass deportations, greater support of Israel in the Middle East, proposals for increased energy production and mining, and intent to end the war in the Ukraine.
In general, Cook believes that many of the administration’s new policies will be beneficial to the overall economy. He does warn, however, that some policies will be disruptive and add risk and cost to global supply chains.
In light of those risks and possible disruptions, Cook’s paper offers 14 recommendations. Some of which include:
Create a team responsible for studying the changes Trump will introduce when he takes office;
Attend trade shows and make connections with vendors, suppliers, and service providers who can help you navigate those changes;
Consider becoming C-TPAT (Customs-Trade Partnership Against Terrorism) certified to help mitigate potential import/export issues;
Adopt a risk management mindset and shift from focusing on lowest cost to best value for your spend;
Increase collaboration with internal and external partners;
Expect warehousing costs to rise in the short term as companies look to bring in foreign-made goods ahead of tariffs;
Expect greater scrutiny from U.S. Customs and Border Patrol of origin statements for imports in recognition of attempts by some Chinese manufacturers to evade U.S. import policies;
Reduce dependency on China for sourcing; and
Consider manufacturing and/or sourcing in the United States.
Cook advises readers to expect a loosening up of regulations and a reduction in government under Trump. He warns that while some world leaders will look to work with Trump, others will take more of a defiant stance. As a result, companies should expect to see retaliatory tariffs and duties on exports.
Cook concludes by offering advice to the incoming administration, including being sensitive to the effect retaliatory tariffs can have on American exports, working on federal debt reduction, and considering promoting free trade zones. He also proposes an ambitious water works program through the Army Corps of Engineers.