IoT Hasn't Fully Delivered in Warehousing and Logistics—But the Future Is Bright

The Internet of Things (IoT) has long been hailed as a game-changer for warehousing and logistics. Lower sensor costs and advanced platforms like TagoIO have created an ecosystem ripe for innovation. Yet, many businesses find themselves underwhelmed by the results. If companies are able to get some improvements only in the last-mile delivery step, it can really improve the overall cost of the operation as the last-mile can account for up to 53% of total supply chain cost (MIT). While the potential is clear, challenges have slowed widespread adoption.

Some roadblocks to IoT adoption in the logistics industry include the complexity of customization, resource constraints, and underutilized data from sensors. TagoIO and other IoT platforms can provide robust tools, but tailoring IoT solutions to specific operational needs remains challenging. Warehouses and logistics operations often require highly customized configurations, which can be time-consuming and expensive to develop.

Companies worldwide run hundreds of solutions on the TagoIO platform and process billions of data points every month. Nevertheless, based on our experience at TagoIO, our developers and customer success managers face constant challenges with data integration from disconnected systems. “Without seamless integration, the real-time insights IoT promises are hard to achieve.” - says Fabio Rosa - TagoIO’s CEO. 

Even though sensor costs have plummeted in the last decade, implementing and maintaining IoT systems still demands significant investment in time, expertise, and ongoing support. Smaller companies, in particular, struggle to justify these costs without clear short-term ROI.

The Turning Point: AI-Powered IoT with TagoIO

While IoT adoption has been slower than anticipated, the future is looking brighter than ever, thanks to advancements in artificial intelligence. Take TagoIO, for example, the platform now is leveraging AI to simplify and enhance IoT solutions, addressing many of the current pain points.

AI can automate much of the customization process, reducing the need for expensive development work. With AI, configuring TagoIO for specific warehouse or logistics workflows becomes faster, cheaper, and more accessible. Also, the company delivered several Dashboard Templates and Kickstarter scripts that saved hundreds of hours in development time - all at no cost. By integrating AI, TagoIO is transforming raw IoT data into actionable recommendations, helping businesses optimize inventory management, reduce downtime, and improve supply chain efficiency.

A Promising Future

The combination of IoT and AI represents a new era for warehousing and logistics. With platforms like TagoIO becoming more intuitive and cost-effective, even smaller businesses can begin to unlock the transformative potential of IoT. Try our AI support at TagoIO admin to help with the development of your application and get in touch with our customer success team to learn more about new features and tools specific to warehouse and logistics, request a demo to understand better how TagoIO can assist and talk to one of our specialists.

While the journey hasn’t been as fast as expected, the industry is at a tipping point. With AI reducing barriers and amplifying the power of IoT, the benefits we’ve all been waiting for are finally within reach.