A recent study released by DHL and Cisco, the IoT Trend Report, forecasts more than 50 billion devices will be interconnected by 2020. The logistics and supply chain industry is predicted to realize $1.9 trillion in value as IoT solutions enable automated inventory and location awareness of in-stock and in-transit items.

The supply chain could realize $1.9 trillion in value over the next decade when networks expand their connections to distribution centers, warehouses, transportation and other elements throughout the supply chain.

“The Internet of Things is the connection of almost anything via sensor technology to the Web, and both DHL and Cisco believe this will revolutionize business processes across the entire value chain including supply chain and logistics,” stated Markus Kückelhaus, VP, innovation and trend research, DHL Customer Solutions & Innovation.

The logistics industry could achieve significantly higher levels of operational efficiency during the next decade as the IoT connects millions of shipments and provides real-time data as assets are moved worldwide.

Within the distribution center, connected pallets will be a driver for smarter inventory management. In transportation and shipping, tracking and tracing of goods will become faster, more accurate, predictive and secure. For last mile delivery, customers can provide an even faster, more reliable and cost-effective service.

According to Cisco, the IoT will generate $8 trillion in value over the next ten years from five primary factors: revenue and innovation; asset utilization; supply chain and logistics; employee productivity improvements; and enhanced customer experience.