“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.
Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.
Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.
Gartner defined the new functions as follows:
Agentic reasoning in GenAI allows for advanced decision-making processes that mimic human-like cognition. This capability will enable procurement functions to leverage GenAI to analyze complex scenarios and make informed decisions with greater accuracy and speed.
Multimodality refers to the ability of GenAI to process and integrate multiple forms of data, such as text, images, and audio. This will make GenAI more intuitively consumable to users and enhance procurement's ability to gather and analyze diverse information sources, leading to more comprehensive insights and better-informed strategies.
AI agents are autonomous systems that can perform tasks and make decisions on behalf of human operators. In procurement, these agents will automate procurement tasks and activities, freeing up human resources to focus on strategic initiatives, complex problem-solving and edge cases.
As CPOs look to maximize the value of GenAI in procurement, the study recommended three starting points: double down on data governance, develop and incorporate privacy standards into contracts, and increase procurement thresholds.
“These advancements will usher procurement into an era where the distance between ideas, insights, and actions will shorten rapidly,” Ryan Polk, senior director analyst in Gartner’s Supply Chain practice, said in a release. "Procurement leaders who build their foundation now through a focus on data quality, privacy and risk management have the potential to reap new levels of productivity and strategic value from the technology."
Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.
That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.
Nearly half (48%) of the SMEs surveyed said they expect higher holiday sales compared to 2023, while 44% said they expect sales to remain on par with last year, and just 8% said they foresee a decline. Respondents said the main challenges to hitting those goals are supply chain problems (35%), inflation and fluctuating consumer demand (34%), staffing (16%), and inventory challenges (14%).
But respondents said they have strategies in place to tackle those issues. Many said they began preparing for holiday season earlier this year—with 45% saying they started planning in Q2 or earlier, up from 39% last year. Other strategies include expanding into international markets (35%) and leveraging holiday discounts (32%).
Sixty percent of respondents said they will prioritize personalized customer service as a way to enhance customer interactions and loyalty this year. Still others said they will invest in enhanced web and mobile experiences (23%) and eco-friendly practices (13%) to draw customers this holiday season.
That challenge is one of the reasons that fewer shoppers overall are satisfied with their shopping experiences lately, Lincolnshire, Illinois-based Zebra said in its “17th Annual Global Shopper Study.”th Annual Global Shopper Study.” While 85% of shoppers last year were satisfied with both the in-store and online experiences, only 81% in 2024 are satisfied with the in-store experience and just 79% with online shopping.
In response, most retailers (78%) say they are investing in technology tools that can help both frontline workers and those watching operations from behind the scenes to minimize theft and loss, Zebra said.
Just 38% of retailers currently use AI-based prescriptive analytics for loss prevention, but a much larger 50% say they plan to use it in the next 1-3 years. That was followed by self-checkout cameras and sensors (45%), computer vision (46%), and RFID tags and readers (42%) that are planned for use within the next three years, specifically for loss prevention.
Those strategies could help improve the brick and mortar shopping experience, since 78% of shoppers say it’s annoying when products are locked up or secured within cases. Adding to that frustration is that it’s hard to find an associate while shopping in stores these days, according to 70% of consumers. In response, some just walk out; one in five shoppers has left a store without getting what they needed because a retail associate wasn’t available to help, an increase over the past two years.
The survey also identified additional frustrations faced by retailers and associates:
challenges with offering easy options for click-and-collect or returns, despite high shopper demand for them
the struggle to confirm current inventory and pricing
lingering labor shortages and increasing loss incidents, even as shoppers return to stores
“Many retailers are laying the groundwork to build a modern store experience,” Matt Guiste, Global Retail Technology Strategist, Zebra Technologies, said in a release. “They are investing in mobile and intelligent automation technologies to help inform operational decisions and enable associates to do the things that keep shoppers happy.”
The survey was administered online by Azure Knowledge Corporation and included 4,200 adult shoppers (age 18+), decision-makers, and associates, who replied to questions about the topics of shopper experience, device and technology usage, and delivery and fulfillment in store and online.
An eight-year veteran of the Georgia company, Hakala will begin his new role on January 1, when the current CEO, Tero Peltomäki, will retire after a long and noteworthy career, continuing as a member of the board of directors, Cimcorp said.
According to Hakala, automation is an inevitable course in Cimcorp’s core sectors, and the company’s end-to-end capabilities will be crucial for clients’ success. In the past, both the tire and grocery retail industries have automated individual machines and parts of their operations. In recent years, automation has spread throughout the facilities, as companies want to be able to see their entire operation with one look, utilize analytics, optimize processes, and lead with data.
“Cimcorp has always grown by starting small in the new business segments. We’ve created one solution first, and as we’ve gained more knowledge of our clients’ challenges, we have been able to expand,” Hakala said in a release. “In every phase, we aim to bring our experience to the table and even challenge the client’s initial perspective. We are interested in what our client does and how it could be done better and more efficiently.”
Although many shoppers will
return to physical stores this holiday season, online shopping remains a driving force behind peak-season shipping challenges, especially when it comes to the last mile. Consumers still want fast, free shipping if they can get it—without any delays or disruptions to their holiday deliveries.
One disruptor that gets a lot of headlines this time of year is package theft—committed by so-called “porch pirates.” These are thieves who snatch parcels from front stairs, side porches, and driveways in neighborhoods across the country. The problem adds up to billions of dollars in stolen merchandise each year—not to mention headaches for shippers, parcel delivery companies, and, of course, consumers.
Given the scope of the problem, it’s no wonder online shoppers are worried about it—especially during holiday season. In its annual report on package theft trends, released in October, the
security-focused research and product review firm Security.org found that:
17% of Americans had a package stolen in the past three months, with the typical stolen parcel worth about $50. Some 44% said they’d had a package taken at some point in their life.
Package thieves poached more than $8 billion in merchandise over the past year.
18% of adults said they’d had a package stolen that contained a gift for someone else.
Ahead of the holiday season, 88% of adults said they were worried about theft of online purchases, with more than a quarter saying they were “extremely” or “very” concerned.
But it doesn’t have to be that way. There are some low-tech steps consumers can take to help guard against porch piracy along with some high-tech logistics-focused innovations in the pipeline that can protect deliveries in the last mile. First, some common-sense advice on avoiding package theft from the Security.org research:
Install a doorbell camera, which is a relatively low-cost deterrent.
Bring packages inside promptly or arrange to have them delivered to a secure location if no one will be at home.
Consider using click-and-collect options when possible.
If the retailer allows you to specify delivery-time windows, consider doing so to avoid having packages sit outside for extended periods.
These steps may sound basic, but they are by no means a given: Fewer than half of Americans consider the timing of deliveries, less than a third have a doorbell camera, and nearly one-fifth take no precautions to prevent package theft, according to the research.
Tech vendors are stepping up to help. One example is
Arrive AI, which develops smart mailboxes for last-mile delivery and pickup. The company says its Mailbox-as-a-Service (MaaS) platform will revolutionize the last mile by building a network of parcel-storage boxes that can be accessed by people, drones, or robots. In a nutshell: Packages are placed into a weatherproof box via drone, robot, driverless carrier, or traditional delivery method—and no one other than the rightful owner can access it.
Although the platform is still in development, the company already offers solutions for business clients looking to secure high-value deliveries and sensitive shipments. The health-care industry is one example: Arrive AI offers secure drone delivery of medical supplies, prescriptions, lab samples, and the like to hospitals and other health-care facilities. The platform provides real-time tracking, chain-of-custody controls, and theft-prevention features. Arrive is conducting short-term deployments between logistics companies and health-care partners now, according to a company spokesperson.
The MaaS solution has a pretty high cool factor. And the common-sense best practices just seem like solid advice. Maybe combining both is the key to a more secure last mile—during peak shipping season and throughout the year as well.