DHL Global Forwarding, Miami, and Cisco Systems, Inc., San Jose, Calif., joined forces to produce a new trend report focused on the Internet of Things (IoT).

According to the report, IoT will generate $8 trillion worldwide in value at stake over the next decade. This will come from five primary drivers—innovation and revenue ($2.1 trillion); asset utilization ($2.1 trillion); supply chain and logistics ($1.9 trillion); employee productivity improvements ($1.2 trillion); and enhanced customer and citizen experience ($700 billion).

“Bountiful opportunities exist for logistics providers to leverage IoT in their organizations in order to increase productivity, re-engineer existing processes and provide new services that challenge traditional business models. However, to derive significant commercial value from IoT will ultimately depend on how well-connected assets, such as containers or parcels, are networked along the entire supply chain. This of course entails close cooperation and collaboration between all players in the logistics industry,” says Rob Siegers, president of global technology for DHL customer solutions and innovation.

For any organization with supply chain or logistics operations, IoT will have game-changing consequences, from creating more ‘last-mile’ delivery options for customers to more efficient warehousing operations and freight transportation.

According to the report, over the next decade, the logistics industry could unlock higher levels of operational efficiency, as the IoT connects in real time millions of shipments being moved, tracked and stored each day.

In warehousing, connected pallets and items will be a driver for smarter inventory management. In freight transportation, tracking and tracing of goods becomes faster, more accurate, predictive and secure while analytics of a connected fleet can help to predict asset failure and automatically schedule maintenance checks.

Finally, connecting delivery personnel with surrounding vehicles and people can become a way of monetizing and optimizing the return trip to improve efficiency and service in last-mile delivery. For customers, this means shippers can provide a faster, more reliable and cost-effective service.