Why Internet of Postal Things could be the next step in the CEP evolution

There are more internet-connected devices in the world than there are people. The explosion in connectivity has the potential to be transformative not only for humans but also for businesses and industries.

This increased connectivity is often called the Internet of Things (IoT) and refers to interconnecting networks of physical objects embedded with digital sensors that can collect, transmit and act upon a wide variety of data.

IoT can create real value for organisations that strategically adopt it to better control and manage assets, increase efficiency, cut costs, generate new revenue, and improve the customer experience.

Extending the Internet of Things into the realm of mail and parcel delivery can potentially also revolutionise how postal, courier and express services operate.

The Internet of Postal Things (IoPT) could help CEP businesses generate operational efficiencies, develop new services and business models and improve the customer experience. IoPT envisions a future where smart mailboxes, connected vehicles, and real-time data analytics come together to create a more responsive, efficient, and customer-centric courier, express and parcel network.

As consumer expectations for faster, more reliable deliveries continue to rise, the traditional methods of managing postal operations are becoming increasingly inadequate. The need for a more intelligent, interconnected system is more pressing than ever. The IoPT represents a significant evolution in the postal and parcel logistics industry, making it smarter, more connected, and more attuned to the demands of modern consumers.

This article explores how the CEP industry can adopt IoPT, and what promises it holds in developing a connected, intelligent network that may soon become the industry standard.

WHAT IS THE INTERNET OF POSTAL THINGS (IOPT)?

The Internet of Postal Things is a concept that extends the Internet of Things (IoT) to the courier, express and parcel industry. It involves the integration of various internet-connected devices, sensors, and data analytics into the postal system to enhance the efficiency, transparency, and overall service quality of the courier, express or parcel operations.

The key components of IoPT include physical objects such as:

• Smart mailboxes and parcel lockers: These are equipped with sensors that notify users and postal workers when mail or packages are delivered, picked up or need attention.
• RFID and GPS Tracking: RFID (Radio Frequency Identification) tags or GPS devices can be attached to parcels and provide real-time tracking information, helping customers and postal workers monitor the exact location and status of packages throughout the delivery process.
• Environmental sensors: Sensors can monitor temperature, humidity and other environmental factors to ensure that sensitive items, such as perishable good or fragile items are handled properly.
• Connected vehicles: Postal vehicles can be equipped with IoT devices to optimise routes, monitor vehicle health, and reduce fuel consumption, contributing to more efficient and sustainable postal services.
• Data analytics and predictive maintenance: The data collected from various IoT devices can be analysed to predict maintenance needs, optimise CEP operations, and even predict parcel delivery times more accurately.
• Customer interaction: IoPT can enable more seamless customer interactions, such as automatic notifications, better parcel tracking, and even predictive delivery scheduling based on the recipient’s availability.

ADOPTING THE INTERNET OF POSTAL THINGS

According to Christian Østergaard, Lead Visionary and Senior Group Strategist of IT-production/IoT/AI at PostNord use of technologies like IoPT can have a significant impact on the CEP industry in the coming years.

“Combining our own operational data with demographics, like behaviours in different areas, can give you an overall optimisation. The potential for improved processes thanks to interconnectivity and the automated use of data is huge,” he says.

However, it’s a steep incline to implement IoPT across the board in a CEP company. One of the major challenges in adopting the IoPT within the CEP industry is the complexity of integrating new technologies into existing systems.

Østergaard agrees that this orchestrated connectivity of IoPT in the CEP industry is very ambitious. But it is becoming a possibility because developments in software intelligence are moving faster and the technology is becoming more affordable.

Many CEP companies are more inclined to focus on improving internal controls through high-level systems that manage their networks, which may seem more manageable and within their immediate grasp. The more accessible approach might therefore be to first look at a dynamic parcel network that integrates the latest advances in automation, software and artificial intelligence to connect, automate and optimise the delivery process across the CEP operator’s entire network, from the point of shipment to the consumer’s doorstep.

BENEFITS AND CHALLENGES OF THE INTERNET OF POSTAL THINGS

The Internet of Postal Things could help CEP companies generate operational efficiencies, improve the customer experience and develop new services and business models.

Interconnecting the parcel network can provide endless opportunities for new, smarter applications, especially in the areas of delivery, transportation and logistics, building management and government services.

The Internet of Postal Things offers a multitude of benefits that can significantly enhance the postal and logistics industry:

• Improved efficiency: By automating and optimising various processes, postal services can operate more efficiently, reducing costs and delivery times. For example, sensors could capture the volumetric weight of parcels and help ensure that each truck is full and the space optimised.
• Enhanced customer experience: Real-time tracking and notifications, along with more reliable deliveries, enhance customer satisfaction. The customer knows exactly when the expected package will arrive at the doorstep and can plan their day accordingly.
• Sustainability: Optimised routes and predictive maintenance reduce fuel consumption and vehicle wear, contributing to more sustainable operations. Data on the truck’s location are combined with, for example, real-time data on traffic jams, weather, or new delivery or pick-up requests ensuring the most efficient route.
• Security and reliability: With better tracking and monitoring, the security and reliability of postal services improve, reducing the chances of lost or damaged parcels. Gone might be the days of inexplicably losing a package that the consumer urgently needs.

However, the implementation of IoPT is not without its challenges:

• Privacy challenges: Privacy is increasingly important to consumers. Businesses must incorporate privacy protection measures into the design of data collection, storage, and use, especially when it involves sensitive information like delivery addresses and contents.
• Security challenges: Anything connected to the internet is a potential entry point for an unauthorised individual to slip into the system. The large amounts of data generated by IoPT devices need to be secured to prevent breaches and misuse.
• Integration challenges: Implementing IoPT systems can be complex and costly, requiring investment in new technologies and infrastructure. The lack of standards can hinder the all-important interoperability and increase the risk of investing in technology that becomes obsolete.
• Staff challenges: New technology transforms the roles employees play within a business. CEP companies will need personnel with expertise in systems management and integration, analytics, and security to maintain the IoPT infrastructure.

The notion of linking these internally controlled systems to a broader network of “externally” managed systems, as proposed by IoPT, can seem overwhelming. Concerns over data security, integration costs, and the complexity of managing both internal and external factors simultaneously further complicate the adoption of IoPT.

Despite these challenges, the increasing availability and affordability of advanced technologies, such as sensors, AI, and big data analytics, suggest that CEP companies may be closer to realising the potential of IoPT than they know.

Examples of implementation of the Internet of Postal Things

While no company has fully realised the vision of a comprehensive Internet of Postal Things, many leading logistics and courier companies are implementing key components of IoPT.

These companies are using parts of IoT technology to improve tracking, optimise routes, enhance customer experience, and ensure the safe delivery of sensitive items.

We’ve collected some examples of companies making huge leaps towards a future CEP industry based on the Internet of Postal Things:

UPS

• ORION System: UPS uses an advanced route optimization system called ORION (On-Road Integrated Optimization and Navigation). The system, first deployed in 2012, provides drivers with the most efficient route for deliveries and pickups on more than 66,000 routes in the United States, Canada and Europe.

FedEx

• SenseAware: FedEx offers a service called SenseAware. It was conceived to address a demand for sensor-based shipment information that could be shared dynamically and in real-time. With a device placed inside packages that monitor temperature, light exposure, humidity, and even motion this solution is particularly valuable for sensitive shipments like pharmaceuticals. The data is available in real-time, allowing both the sender and recipient to monitor the package’s condition throughout the journey.

Amazon

• Amazon Locker: Amazon’s Locker service allows customers to pick up packages from secure locations. The lockers are IoT-enabled, providing notifications and tracking updates to both Amazon and the customer. Essentially it provides the customer with a self-service delivery location to collect packages from Amazon. When a package arrives at the locker, the customer receives a delivery confirmation email with instructions on how to pick up the package. The email also includes the address and opening times for the locker.

Takeaway

The Internet of Postal Things represents a significant transformation in the parcel and logistics industry by integrating IoT technologies to optimise operations, improve efficiency, and enhance customer experience. With smart devices like connected mailboxes, real-time tracking, and data analytics, IoPT offers opportunities for better route optimisation, sustainability, and service reliability.

While challenges such as privacy, security, and system integration remain, companies like UPS, FedEx, and Amazon are already making strides toward realising the potential of IoPT.

The implementation of IoPT may soon become an industry standard, shaping a more intelligent and connected delivery network.