IoT and Tracking in Logistics: Asset, Shipment, and Condition Visibility

IoT tracking in logistics is a capability set that combines (a) a physical device attached to an asset or shipment, (b) connectivity to transmit readings, and (c) software rules that turn readings into operational actions. The goal is not “more data,” but the specific visibility needed to run the operation: where something is, what condition it is in, and whether it is behaving as expected.

A practical way to specify IoT visibility is to write requirements in the form: For [tracking target], we need [data type] at [frequency/trigger] so that we can [operational action] within [time window] and assign it to [role/team].

1) Tracking targets: what you want visibility on

Start by listing the physical “things” you might track and the business reason for each. Avoid tracking everything; prioritize where visibility reduces cost, risk, or service failures.

Step-by-step: choose tracking targets

• Step 1 — Segment shipments/assets: by value, temperature sensitivity, theft risk, lead time variability, and customer penalties.
• Step 2 — Pick the minimum set: choose 1–2 targets for a pilot (e.g., high-value pallets and temperature-sensitive shipments).
• Step 3 — Define “unit of tracking”: trailer vs shipment vs pallet. This determines how you reconcile IoT data to operational objects (loads, orders, stops).
• Step 4 — Define ownership: who installs, who retrieves (if reusable), and who pays for loss/damage of devices.

2) Data types: what the devices measure

IoT devices typically produce a mix of telemetry (measurements) and events (state changes). Your requirements should specify which data types matter and what “good enough” looks like for accuracy and frequency.

Common data types and how they are used

• Location pings: GPS/cellular/Wi-Fi positioning. Used for ETA updates, route adherence, and dwell detection. Specify ping frequency (e.g., every 15 minutes in transit, every 2 hours when stationary) and triggers (e.g., on motion start/stop).
• Geofences: virtual perimeters around sites, ports, customer DCs, or high-risk areas. Used to detect arrival/departure, dwell time, and unauthorized stops. Specify fence size and expected dwell thresholds per site.
• Temperature and humidity: used for cold-chain compliance and quality assurance. Specify sampling interval (e.g., every 5 minutes), acceptable range, and whether you need calibrated sensors.
• Shock/tilt: used to detect handling damage risk (drops, impacts) and support claims. Specify g-force threshold, duration, and whether you need orientation/tilt angle.
• Door open/close (and tamper): used for theft prevention and chain-of-custody. Specify whether door events are expected at certain geofences only (e.g., customer site) and what constitutes “unauthorized.”

Be explicit about context. A door opening at a customer dock is normal; the same event at an unplanned roadside stop may be critical.

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3) Operational actions enabled: turning visibility into decisions

IoT tracking only creates value when it changes what your team does day-to-day. Define the action, the owner, and the time window for response.

Step-by-step: write an “actionable visibility” requirement

• Step 1 — Define the decision: what will someone do differently when the signal occurs?
• Step 2 — Define the trigger: threshold, geofence, or pattern (e.g., “no movement for 90 minutes outside planned stop”).
• Step 3 — Define the response: call carrier, update ETA, create inspection task, quarantine product.
• Step 4 — Define the owner and backup: primary role, escalation role, and hours of coverage.
• Step 5 — Define the evidence needed: what data must be stored to prove compliance or support claims.

4) Alert design principles to avoid noise

Poorly designed alerts create “alarm fatigue”: teams start ignoring notifications, and the system loses credibility. Design alerts as a controlled operational product, not as raw device output.

Principles for high-signal alerts

• Start with exceptions, not telemetry: avoid sending every ping; alert only when something deviates from plan or policy.
• Use thresholds with hysteresis: prevent flapping (e.g., temperature must be out of range for 10 minutes before alerting, and back in range for 10 minutes before clearing).
• Tier alerts by severity: informational vs warning vs critical. Only critical should wake someone up.
• Route by responsibility: the recipient must be able to act. If they cannot, the alert is misrouted.
• Limit duplicates: one incident should create one case with updates, not 30 separate alerts.
• Include context in the alert: shipment ID, last known location, planned next stop, threshold breached, recommended action.
• Define quiet hours and escalation: after-hours routing to an on-call role for critical issues only.

Alert tuning checklist

• What is the expected daily alert volume per planner/dispatcher?
• What percentage should result in an action? (If <20%, it is likely too noisy.)
• Are thresholds different by lane, season, product, or carrier?
• Do you need different rules for “in transit” vs “at facility”?

Example: alert playbook (template)

5) Data retention and audit needs

Retention is not just an IT decision; it affects claims, compliance, customer disputes, and continuous improvement. Define what must be retained, at what granularity, and how it can be retrieved.

What to retain (practical categories)

• Raw sensor readings: temperature series, humidity, shock metrics, door events, location points. Useful for investigations and audits.
• Derived events: geofence arrival/departure, dwell time, excursion start/end, incident severity changes. Useful for reporting and workflow.
• Alert and case history: who received the alert, acknowledgments, actions taken, timestamps, notes, attachments (photos, reefer controller screenshots).
• Device metadata: device ID, calibration certificates (if applicable), firmware version, battery status, assignment history (which shipment/asset had it and when).

Retention questions to answer with operations, quality, and legal

• Claims window: how long after delivery can customers file claims, and what evidence is required?
• Regulatory/compliance: do you need calibrated temperature records and audit trails for specific products?
• Customer contracts: do SLAs require proof of temperature compliance or chain-of-custody?
• Storage vs accessibility: do you need fast access to the last 90 days and archived access for 1–3 years?

Define retrieval requirements as well: “A claims analyst must be able to export a shipment’s temperature chart and excursion summary within 5 minutes, including timestamps and sensor ID.”

6) Vendor evaluation criteria (business perspective)

Evaluate vendors on how reliably they support your operational outcomes, not on feature lists alone. Use a scorecard that reflects your lanes, products, and workflows.

Key criteria to compare

• Coverage and connectivity: performance on your actual lanes (urban/rural), cross-border behavior, indoor/yard performance, and roaming reliability.
• Battery life and maintenance model: expected life at your ping rate; how battery status is reported; replacement process; total labor impact.
• Reuse and reverse logistics: reusable vs disposable; retrieval process; loss rate assumptions; cleaning/refurbishment; pooling options.
• Device robustness: water/dust rating, temperature operating range, tamper resistance, mounting options.
• Data quality and timeliness: latency from event to alert; location accuracy; sensor calibration options; handling of missing data.
• Integration and workflow fit: ability to push incidents into your operational tools; webhooks/event feeds; mapping of device-to-shipment; support for case management.
• Reporting and analytics: excursion summaries, dwell reports, lane performance, device health dashboards; export capabilities for audits/claims.
• Security and access control: role-based access, audit logs, data ownership, and how customer/carrier access is handled.
• Commercial model: per device, per shipment, per month; overage fees; cellular costs; minimums; replacement fees; support SLAs.

Step-by-step: run a vendor pilot that answers business questions

• Step 1 — Define success metrics: e.g., reduce temperature-related claims by X%, reduce detention hours by Y, improve ETA accuracy by Z.
• Step 2 — Choose representative lanes and sites: include at least one “hard” lane (low coverage, long dwell, cross-dock).
• Step 3 — Set alert rules and owners: implement the playbook with limited alert types first.
• Step 4 — Measure action rate: for each alert type, track % acknowledged, % acted upon, and time-to-action.
• Step 5 — Validate evidence: run a mock claim/audit and confirm you can retrieve the required records quickly.
• Step 6 — Calculate total cost to operate: include labor for installation, retrieval, battery swaps, and exception handling.

Simple exception workflow (example)

This workflow shows how an IoT exception becomes a managed operational case. Keep it simple and consistent across exception types.

1) Device detects exception (e.g., temp out of range for 10 minutes)  
2) System creates an Incident Case (unique ID) and assigns severity  
3) Notify primary owner (Transportation Ops) with context + recommended action  
4) Owner acknowledges within SLA and logs action (call carrier, verify setpoint)  
5) If unresolved within escalation timer, escalate to secondary owner (Quality / Carrier Manager)  
6) Continue to update case with new sensor readings and notes  
7) Case closure: condition returns to normal OR shipment disposition decided (quarantine/accept/reject)  
8) Post-incident review: tag root cause (equipment, handling, delay) and update thresholds/playbook if needed

Practical example: temperature excursion case fields

• Shipment reference: load ID, PO, customer, product category
• Sensor reference: device ID, calibration status, placement (in-box/pallet/trailer)
• Exception details: threshold, start time, duration, max temp, location at start
• Actions taken: who contacted, instructions given, reefer setpoint/fuel confirmation
• Disposition: accepted, accepted with deviation, quarantined, rejected
• Evidence attachments: temperature chart export, photos, carrier messages