LoRa Alliance® End of Year Report 2020

WHITE PAPERS PUBLISHED IN 2020

22

CITIES

LOGISTICS

Why LoRaWAN ® is the connectivity platform for smart city applications READ NOW >

Why LoRaWAN ® is the logical choice for as- set-tracking connectivity READ NOW >

WHY LoRaWAN ® IS THE LOGICAL CHOICE FOR ASSET-TRACKING CONNECTIVITY

WHY LoRaWAN ® IS THE CONNECTIVITY PLATFORM FOR SMART CITY APPLICATIONS

MAY 2020

APR I L 2020

UTILITIES A solution for successful interoperability with DLMS/COSEM and LoRaWAN ® READ NOW > INTRODUCTION We live in a rapidly urbanizing world, in which two-thirds of the populati n will live in citie by 2050, adding another 2.5 billion city-dwellers to the current just over 4 billion urban residents 1 . to them. For example, for turning a light off at dawn, there of devices, there are radio access networks to connect devices according to their needs and ensure connectivity is ubiquitously available at an appropriate cost. There are also data visualisation and analytics tools to derive actionable insights from the data that is collected and communicated.

INTRODUCTION

THE LOGISTICS SECTOR

Asset tracking has been among the earliest applications to gain significant traction first in the machine-to-machine (M2M) market over the last two decades and, in more recent years, in the Internet of Things (IoT). In early iterations, the connectivity used for asset tracking was either cellular or satellite. The objective was purely to have remote visibility of the location of the asset. However, with the evolution toward IoT and the increasing availability of new technologies—such as low-power wide-area networks (LPWANs)—asset-tracking applications are becoming more ubiquitous, pervasive and sophisticated. We are now able to communicate not only the position of the asset but also key information, such as the status of the object and data, such as temperature, speed and asset-specific information. This paper explores the importance of asset tracking within the evolution of logistics.

Supply chain and logistics are often used interchangeably, but this is not always accurate. Based on the Council of Supply Chain Management Professionals (CSCMP) definition, logistics is seen as “part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers’ requirements.” Using the CSCMP definition, the logistics competitive landscape can be grouped based on different business models. Noting that companies can operate using different business models, they can be grouped in the way illustrated in Figure 1 .

Individual endpoints differ from vertical to vertical as

Smart cities are the ultimate in interconnected, intelligent infrastructure, with services, devices and systems linked that encompass simple inputs such as sensors on waste bins or controls for streetlighting to complex citizen services composed of multiple systems integrating with each other to enable smart transportation or connected vehicles. The connection of infrastructure and services in a city includes buildings, businesses and municipal assets, and operates alongside smart buildings, smart vehicles and smart utilities. The common goal is to make money, save money or achieve compliance. Often, it’s all three. As in all complex technological deployments, smart cities rely on an ecosystem of developers, equipment makers and service providers to provide the various pieces of the smart city architecture. This ecosystem looks very similar for all digitally transformed sectors, not just smart cities. The equation is composed of hardware, software, connectivity and data processing capability. There are sensors and actuators to measure variables and then react

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infrastructure of the network and the data handling is largely the same, providing a vast base of development and engineering resources. Thankfully, it’s not necessary to reinvent the wheel every time you look to connect a new endpoint device. The connectivity needs of an air conditioner are similar to those of a streetlight, although the data transmitted and the frequency of that transmission might be very different. requirements when it comes to infrastructure. They’re clearly different from a smart agriculture environment, for example, which has far fewer applications to support, fewer constraints in terms of dense urban topology, and involves fewer stakeholders to integrate across the ecosystem. Smart cities are complex in terms of the number of different services, applications and endpoints involved; they have challenging wireless network propagation characteristics, such as needs for in-building and underground network coverage; they involve multiple vendors and types of users;

Figure 1. Logistics Market Classification

Logistics Player Business Model

Logistics Player Type

Typical Customers

Segment

Mainly freight forwarders, third and fourth parties Trucking, rail freight, sea freight, air freight

Logistics Service Providers (LSPs)

Manufacturers, wholesalers, retailers

B2B

Carriers

LSPs

B2B

Retailers and manufacturers, other companies with the need to deliver items

Courier Express Parcel (CEP)

Last-mile delivery

B2B and B2C

Source: Elaboration on classification by PWC “Shifting Patterns: The Future of the Logistics Industry”

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LoRa Alliance ® and LoRaWAN ® are registered trademarks. Used with permission. ©2020 LoRa Alliance ®

www.lora-alliance.org

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