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     A B S T R A C T

    In this paper, some aspects of modern logistics related to the Internet of Things technology were studied. Internet of Things can overcome shortcomings of some areas of logistics, for example monitoring,

    production management, efficiency of logistics operations, information, exchange and communication, modeling supply chains, intelligent information collection and security. This paper describes some principles and characteristics of Internet of Things, and briefly discusses the application of it in modern logistics.

    Logistics has come to a new stage with the development of Internet of Things technology. The current application areas and future prospects of this technology are analyzed in this paper. Difficulties encountered in the implementation show that the IoT

    technology needed to be further improved. However, despite many difficulties, experts believe that the key are not problems of costs, standards and techniques, but the formation of  Corresponding author: a profitable business model in the logistics industry. Paweł Tadejko K E Y   W O R D S Internet of Things, modern logistics, standardization, architecture, security, privacy, Bialystok University  of Technology interoperability Faculty of Computer Science e-mail: DOI: 10.12846/j.em.2015.04.07 p.tadejko@pb.edu.pl Introduction Internet of Things (IoT) represents the next step means using some technique through the internet towards the digitization of our society and economy protocols to achieve automatic recognition and (Rose, 2015), where objects are interconnected communication. Nowadays the most popular device through communication networks and exchange is RFID (Radio-Frequency Identification). Over the information about their status and/or the surrounding last decade RFID went on to become a useful tool in environment (Fig. 1). Paradigm „always connected” retail, logistics, healthcare and a

    handful of other is one of the feature of IoT. Technology can be very enterprise sectors (Bisk Education, 2012; Harropm, useful in logistics where every object is uniquely 2006; Das, 2015). identified, and accessible to the network, its position

    Reports suggest that RFID is fast taking over the and status known, and where we have special software world, but the recent Beacon technology may change services. this situation by giving for businesses new possibilities.

    Modern logistics includes a lot of characteristics, However, the market for RFID tags and systems will such as systematic industry, combination of logistics rise rapidly in the next decade, because RFID devices and information technology, technology still have some advantages over Beacons (Girish, modernization, integration of supply, integration 2015). services, a full service and network architecture of

    Internet of Things systems require each device to logistics system (Chuanyu, 2009; Shaoai, 2009). be embedded with a unique digital tags with its The key technology of each path are: sensors, detailed specifications. Using the special system to intelligent chips and wireless transmission network. read or write the information, and then through Therefore, the core is identification device, which wireless data communication network send to other 54


    Source: (Improving T&L, 2015).

    Internet of Things is a network connecting

    Many industries and business sectors try to use the anything with the Internet to exchange information possibilities of data-driven technology, but companies and communication, to realize intelligent searching in transport and logistics are way ahead. By their very source, identification, location, tracking, monitoring nature, the logistics providers that move objects by and management. IoT and related technologies have modes of transport have widely distributed networks strong connection with service-oriented architecture and take part in rapid information distribution about – SOA (Yuqiang, 2010). The facts makes the states of devices. As a result, they were quick to see recommendations for designing a new-type logistics the benefits of new kinds of sensors, connection business processes by applying the IoT technology technology and service oriented architecture. based on the supplying chain perspective. The IoT

    Using mobile technologies and the Internet of has many positive impacts on every stage in the global Things, enterprises can accelerate productivity, logistics supply chain, starting from the manufacturing profitability and operations with solutions designed stage all the way, to the retail stage (Fig. 2). It makes specifically for their processes. Building solution better visibility of supply chain, tracks deliveries in where enterprises can connect all devices across  real time, improve a data accuracy and thus provides a distributed network, capture and share their the ability of faster exception management. mission-critical data, allowing them to show real- Standardization of technologies related to IoT is time view of all operations (Tab. 1),

    (Boost to C&L, very important, as it will lead to better interoperability, 2015). By leveraging convergence of the above thus lowering the entry barriers. Currently, many mentioned trends, transportation and logistics can manufacturers are creating vertical solutions (a slice dramatically improve the following areas: in the IoT application space), using their own

    •End-to-End Visibility – complete visibility technologies and inaccessible services. Standards facilitates more effective, timely decisions and need to be created to change this „Intranet of Things” reduces delays through quicker detection of issues; into the more complete „Internet of Things”. As yet,

    Warehouse and Yard Management – with IoT- no holistic approach to IoT has been proposed; enabled mobile devices designed to track inventory coherent concepts that unify IoT do not exist, leading data, equipment and vehicles, enterprises can give their physical assets a digital voice; to silo solutions that do not support interoperability

    •Fleet Management – with mobile scanners, (Rose, 2015; Bassi, 2013). This approach is  computers and RFID systems alone, enterprises an extension of the single device-to-cloud can gain visibility into their assets and better communication model, where „IoT devices upload streamline operations to keep their fleet moving. data only to a single application service provider”. 

    Economics and Management Volume 7

    • Issue 4

    • 2015 developers, devices manufacturers and advertisers, information, facilitating attacks on other systems and and there are many business models with fast endangering personal safety (Cline, 2015). changing conditions (Mobile Health – Reconciling, Companies need to get ahead of the inevitable 2015). fearmongering and back a minimum set of privacy standards that addresses the core concerns of IoT 2.5. Collecting IoT data – really Big Data users. Other industries have successfully taken  a similar self-regulatory approach, such as the mobile- Companies need to collect most of the data marketing industry’s „Mobile Application Privacy because that is relevant to their business and that is a Policy Framework”, automaker industry’s „Consumer seriously challenging task. Furthermore they need to Privacy Protection Principles for Vehicle Technologies filter out redundant data and also protect the data and Services” and agribusiness sector’s „Privacy and from getting attacked. This requires highly efficient Security Principles for Farm Data”. mechanism that includes software and protocols In October 2014, Europe’s Article Working Party (Croll, 2015). (WP) published Opinion 8/2014 on the Recent

    The most common data collection tool is the Developments on the IoT

    While the Opinion is based devices with special sensors. Data collection process on the current Data Protection Directive 95/46/EC, in field of IoT also requires particular protocols. many of the legal solutions and recommendations are Message Queue Telemetry Transport (MQTT) and taken from concepts proposed in the draft EC data Data Distribution Service (DDS) are two of the most protection regulation (95/46/EC, 1995; 2002/58/EC, comprehensive protocols. Both protocols can help 2002). The Opinion establishes that European data devices connect with real-time machine-to-machine protection law applies even if the data controller is (M2) networks. MQTT collects data from multiple outside of the European Union. devices and puts the data through the IT infrastructure.

    The US regulator has adopted similar non-binding On the other hand, DDS distributes data across guidance. In January 2015, the Federal Trade devices. Commission (FTC) released a report on „The Internet IoT deployments will generate large quantities of of Things: Privacy and security in a connected world” data that need to be processed and analyzed in some (FTC Staff Report, 2015), which provides a „series of cases real time. Processing large amount of data in concrete steps that businesses can take to enhance real time will increase workloads of data centers, and protect consumers” privacy and security. leaving providers facing new security, capacity and analytics challenges. This is where knowledge 2.7. Issues strictly addressed to Transport discovery in databases and data mining technologies and Logistics come into play. These technologies (called sometimes machine learning or deep learning) provide possible Some techniques based on IoT can help solutions to find out the information hidden in the manufacturing execution system to solve real-time data of IoT. Next knowledge can be used to enhance data driven optimization among each manufacturing the performance of the system or to improve the system layer. Most key components of T&L systems quality of services (Tsai, 2014). can be designed to track and trace the real-time information of the manufacturing things such as 2.6. Legal, Regulatory and Rights operators, machines, pallets, materials and so on. The dynamical optimization of the production process The use of IoT devices raises many needs of could be possible in new way if we can use the real- regulations and legal questions as well as amplifies time manufacturing information coming from IoT existing legal issues around the privacy and personal sensors. The objective of dynamical optimization is to data processing.

    The questions are wide in scope, and analyze and quickly adjust the

    production control the rapid rate of change in IoT technology outpaces parameters based on information from IoT devices. the ability to adapt. Gartner said cybersecurity and The most important challenge is how to establish an privacy concerns are the main obstacles to IoT reference architecture for IoT-based manufacturing adoption. A report by the U.S. Federal Trade execution system to apply the conception of IoT to Commission enumerated the risks of a standard-less manufacturing field and build up a referenced real- IoT: enabling unauthorized access and use of personal time information capturing and integration framework (Zhang, 2013). 60

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