The logistics sector is in the midst of a digital transformation where sustainability, efficiency and safety are top priorities. By connecting vehicles, equipment and goods with IoT sensors, companies can not only reduce losses and optimise flows but also create entirely new business value. Below are concrete examples of how the technology is already used in the Nordics and globally.
How companies build sustainable logistics chains with IoT
Digitalisation has become a natural part of the transport and logistics sector. With rising demands for sustainability, cost efficiency and transparency, companies seek solutions that both streamline flows and reduce risks while delivering positive environmental impact. IoT is a central enabler here: by equipping vehicles, equipment and goods with connected sensors, organisations can shift from reacting to incidents as they occur to proactively managing their processes.
Theft protection and tracking in the logistics chain
IoT is not an isolated technology but a foundation on which a palette of innovations can be added: artificial intelligence, automation, digital twins and smart warehousing. The real benefit emerges when data from connected devices is used to optimise resource use, prevent losses and create better customer experiences.
Robust technology for nordic conditions
Loss of pallets, containers or vehicles is a well-known problem in transport. It is not only about direct costs but also about disruptions across the entire flow. Small, battery-powered sensors can be easily mounted on existing equipment. These systems rely on wireless communication and are both portable and discreet. On suspected movement, unauthorised use or deviation from a defined zone, alerts are automatically generated. Close-range communication is expected to be the strongest growth factor among IT technologies in the coming years.
For companies, this means a new level of control. Equipment can be located within minutes rather than days, thefts drop dramatically and insurance costs can be kept down. At the same time, a clearer picture of resource usage is created, enabling more effective flow planning.
Real-time data in the warehouse
IoT solutions are also used to increase precision in inventory management. As is well known, GPS coverage indoors is hard to build because GPS depends on signals from satellites that do not penetrate indoor environments. The latest tracking technology combines GPS for outdoor tracking with Bluetooth and Wi-Fi for indoor environments. This makes it possible to follow goods, forklifts and pallets in real time — from inbound goods to final delivery.
By combining technologies, companies can follow a pallet seamlessly from warehouse to end customer, receive real-time updates and act on delays or deviations immediately. Solutions can be implemented using both public and private wireless networks (4G/5G or LoRaWAN), making them flexible and scalable. IoT is not merely a technical “nice-to-have” but a tool to create efficient, visible and reliable logistics chains.
Full visibility provides assurance
This has several positive effects. Staff no longer need to search for equipment, which shortens picking times and reduces stress in high-load environments. Routes can be optimised so driving distances shrink, saving fuel and reducing CO₂ emissions. Geofencing — digital fences that mark permitted areas — can be used to control vehicles, warn staff or trigger alarms if equipment moves outside a defined zone. This contributes to safer workplaces by warning when vehicles or personnel enter risk areas.
Robust technology for nordic conditions
Logistics in the Nordics often involves demanding conditions: cold, moisture, dust and long distances. Robustness of IoT solutions becomes decisive here. Trackers must withstand harsh conditions and offer long battery life — in some cases up to 15 years. Such technical solutions make the technology practically usable at scale, where thousands of devices must operate without frequent maintenance.
For construction and industrial projects, where expensive machinery and tools are frequently moved between sites, this brings security. Companies gain continuous insight into where equipment is, how it is used and can quickly react to deviations.
Safer work environment with wearables
IoT contributes not only to more efficient flows but also to safer working environments. Wearables — wearable sensors you know from smartwatches — do not fit exposed industrial environments. Instead, rugged and weatherproof devices are needed. Compact, shock-resistant units with GPS, Bluetooth and built-in sensors can record movement, detect falls and give employees the ability to send an SOS alert.
In terminals, ports and large warehouses the technology enables faster assistance in accidents, improved compliance with occupational safety requirements and reduced everyday risks. In combination with digital twins, employers can also analyse patterns in virtual environments to prevent dangerous situations before they occur.
Towards more resilient logistics
A major benefit of IoT is the ability to move from reactive handling to proactive control. Instead of discovering problems after they have occurred, companies can act on deviations in real time. A lost vehicle, a misplaced pallet or a malfunctioning forklift becomes visible quickly, enabling rapid intervention.
With the Corporate Sustainability Reporting Directive (CSRD) increasing demands for companies to document environmental impact and resource use at a detailed level, IoT becomes crucial: connected sensors on vehicles, pallets and equipment deliver real-time data on transport, energy consumption and load utilisation. The information can be automatically used to produce transparent and accurate reports while helping companies reduce emissions, optimise flows and strengthen their sustainability profile.
IoT as a competitive advantage in the Nordics
For the Nordic market — where short lead times, reduced environmental impact and high safety are central drivers — IoT provides a clear competitive edge. IoT is therefore no longer a future vision but a practical tool that is already changing how we build smart, sustainable logistics flows today.