The internet of things (IoT) today connects every imaginable type of object to the internet, enabling a global network of connected devices. But when engineers first began laying the groundwork for the technology, it wasn’t clear that the new system would have any business applications at all.

According to industry lore, the first IoT device was created in the early 1980s at Pittsburgh’s Carnegie Mellon University, where thirsty researchers wired a Coca-Cola vending machine to report on its own temperature and inventory of drinks.

In the years since that novelty application was unveiled, IoT technology has become part of daily life in nearly every business sector. It also now serves as one of the essential underpinnings of the fourth industrial revolution—known as Industry 4.0—alongside other foundational concepts like artificial intelligence (AI), robotics, and three-dimensional (3D) printing.

In fact, as of April 9, when people around the world commemorated “World IoT Day,” there were over 15 billion devices connected to the IoT worldwide, according to estimates by the French electronic device developer Linxens. That enormous reach makes IoT a crucial tool for modern logistics, according to the company.

“IoT is an ally in many industries, particularly in logistics. It facilitates package tracking, improves material traceability, and optimizes logistics flows. Smart connectivity also extends product lifecycles and helps reduce waste. The integration of digital product passports (DPP) centralizes essential product data, promoting transparency, repairability, recycling, and a circular economy,” Quentin Prêtet, vice president at Linxens IoT Solutions, said in an email.

THE SPREAD OF SMART LABELS

That lightning-fast market growth is only expected to increase. And as the cost of IoT components like tags, sensors, antennas, and batteries continues to drop, IoT deployments in supply chains will become increasingly “democratic,” industry experts say.

A prime example is the market for “smart labels,” which is set to jump in size over the next five years—from a value of $11.43 billion in 2024 to $17.33 billion by 2029, according to a report by the industry research firm MarketsandMarkets. These labels, also known as electronic labels, incorporate digital technologies that allow users to track and monitor inventory and other assets in real time.

That growth in demand will be driven largely by the logistics sector, the report says, noting that businesses will use the labels to track the movement of everything from retail merchandise and perishable goods to electronic and IT assets, pallets, and equipment. A leading use case is warehouse management, where smart labels can help reduce stock loss, inaccuracies, and order fulfillment problems. Another is transportation management, where the tags can provide precise data on a shipment’s location as well as the conditions it encounters in transit.

A number of tech developers have already rolled out smart labels specifically designed for the latter purpose. For instance, the California IoT solution provider Tag-N-Trac recently launched a line of disposable smart labels that provide real-time tracking in multimodal transportation as well as environmental monitoring for the shipping units, helping businesses secure their shipments and streamline operations. The company says the labels can capture and transmit data such as location, route deviations, and dwell-time alerts, enabling end-to-end chain-of-custody tracking and tamper alerts. The units communicate via Bluetooth or 5G cellular networks.

Another example is Reelables, a British company that says its printable 5G smart labels allow logistics service providers, cargo forwarders, and retailers to track shipments at the piece level as they move through the supply chain. The labels feature an embedded tracking device that’s connected to a 5G cellular network, allowing them to automatically collect location data from the network and “trigger” events the moment a shipment arrives or departs a warehouse or waypoint, the company says.

Likewise, the California-based visibility specialist Roambee offers a four- by six-inch smart label that uses 5G networks, GPS locators, and NIST (National Institute of Standards and Technology)-calibrated sensors to register and communicate temperature, humidity, shock, and light exposure. The disposable label, which is designed for single-journey applications, provides enterprises with real-time visibility into secondary distribution networks and direct-to-customer deliveries, the company says.

Dutch tracking and sensing technology firm Sodaq has also gotten into the game, offering a smart label tracking device that incorporates a lightweight 3D-printed battery to minimize weight. The label includes a location tracker, temperature sensors, and an accelerometer, allowing for notifications when the tracked item reaches key points along the supply chain journey.

MORE DATA PER DAY MAKES THE HEADACHES GO AWAY

That growing torrent of data generated by even the smallest packages and products could potentially transform logistics flows by giving users item-level control of their inventory.

Just ask the Minnesota-based freight broker and third-party service provider C.H. Robinson, which recently opened up its “Item-level Solutions” platform to all of its customers, saying the product can help companies deal with increasing volatility in the world economy.

The system provides end-to-end visibility and control across inventories and supply chains at the most granular level: by the individual item or stock-keeping unit (SKU). Its capabilities include tracking items in motion or at rest, managing orders and inventory with precision, and enabling real-time insights for better planning, cost control, and customer service while reducing blind spots, the company says.

“Supply chains across every industry are at an inflection point in the face of ongoing disruptions, AI-driven transformation, and rising customer expectations, and that’s why we’re making these solutions available for all our customers now,” Arun Rajan, chief strategy and innovation officer at C.H. Robinson, said in a statement. “This isn’t a new capability for us—it’s a proven one. We are scaling it up to meet all shippers’ increasing needs for more visibility, more control, and more actionable insights at the most granular level.”

As it gets cheaper, the technology and equipment that powers IoT tags and networks is bringing the power of the internet of things to entirely new categories of trackable objects. When even individual parcels and items moving through supply chains can be connected to the global internet, the industry has gained a powerful tool for dealing with the snarls and disruptions that can cause costly delays. Welcome to the internet of everything.