SHENZHEN: Huawei has signed a Memorandum of Understanding (MOU) with Deutsche Post DHL (DPDHL) Supply Chain to develop a range of solutions for customers using “industrial-grade” Internet of Things (IoT) hardware and infrastructure.
A recent DHL study has suggested the IoT could generate US$1.9 trillion in additional value for the global logistics industry by 2025 via low-cost networked sensors and devices.
The two companies plan to collaborate on cellular-based IoT technology to connect large volumes of devices across long distances with minimal power consumption. The result is expected to be a more integrated logistics value chain for DHL by providing critical data and visibility in warehousing operations, freight transportation and last-mile delivery.
According to Yan Lida, president of the Huawei Enterprise Business Group, the new partnership “opens up an opportunity to improve the efficiency, safety and customer service offered by global supply chains in previously-impossible ways”.
Huawei said it would make its IoT devices, connectivity experts, and network infrastructure accessible to DHL and its ongoing efforts to incorporate greater sensing and automation capabilities into its warehousing, freight, and last-mile delivery services.
The partners said they would also collaborate on efforts to market and commercialize the results of their innovations, including pilot projects in Europe and China.
“Spending on connected logistics solutions is expected to more than double between now and 2020, and many logistics providers including DHL have already begun to explore Internet of Things applications in their supply chains, including everything from enhanced asset tracking to driverless delivery vehicles,” said Markus Voss, Global COO&CIO for DHL Supply Chain.
“This MOU will allow both Huawei and DHL 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,” he added.
Huawei is a global information and communications technology (ICT) solutions provider for end-to-end solutions in telecom and enterprise networks, devices, and cloud computing used in more than 170 countries and regions worldwide. 2015 net profit was US$5.7 billion on revenue of US$60.8 billion.