Deutsche Post DHL and Huawei to work together on IoT supply chain tech

Dr Markus Voss (Global COO & CIO, DHL Supply Chain) and Yan Lida (President of Huawei Enterprise Business Group) at the MOU signing ceremony.

Chinese ICT solutions provider Huawei has signed a Memorandum of Understanding with Deutsche Post DHL Group to develop a range of supply chain solutions for customers using industrial-grade Internet of Things hardware and infrastructure.

In a statement, DHL asserts that the company is looking at ways to increase its involvement in IoT technology.

“The Internet of Things could generate up to €1.77 trillion ($2.5 trillion) in additional value for the global logistics industry by 2025, enabling operators to better monitor and optimise their supply chain processes with low-cost networked sensors and devices,” the company said.

Under the MoU, Huawei and Deutsche Post DHL Group will collaborate on innovation projects focusing on cellular-based Internet of Things technology, which can connect large volumes of devices across long distances with minimal power consumption, delivering a more integrated logistics value chain by providing critical data and visibility in warehousing operations, freight transportation, and last-mile delivery.

“Spending on connected logistics solutions is expected to more than double between now and 2020, and many logistics providers including Deutsche Post DHL Group have already begun to explore Internet of Things applications in their supply chains, including everything from enhanced asset tracking to driverless delivery vehicles,” said Dr Markus Voss, Global COO & CIO, DHL Supply Chain. “This MoU will allow both Huawei and Deutsche Post DHL Group to tackle complex operational and business challenges with a powerful combination of world-class Internet of Things hardware, networks, and expertise in end-to-end supply chain management.”

The MoU will see Huawei make its Internet of Things devices, connectivity experts and network infrastructure accessible to Deutsche Post DHL Group and its ongoing efforts to incorporate greater sensing and automation capabilities into its warehousing, freight, and last-mile delivery services.

Yan Lida, President of Huawei Enterprise Business Group commented, “This partnership opens up an opportunity to improve the efficiency, safety and customer service offered by global supply chains in previously impossible ways, and defines how the Internet of Things will shape the fortunes of the logistics industry in the next few critical years of innovation.”