DHL Supply Chain and Huawei Technologies jointly launched a narrow-band internet of things, or NB-IoT, application on Sept 6 for improving logistics at manufacturing sites. The first target was an automotive site in Liuzhou, Guangxi Zhuang autonomous region.

The application also aims at raising the efficiency of the domestic logistics industry, executives concerned say.

Supported by a range of industrial multimedia IoT protocols and interfaces, it offers connectivity, smart operations and device management functions at manufacturing sites.

"Waiting time for drivers will be halved from an average of 40 minutes to 20 minutes, and risks of manufacturing delays are significantly reduced as materials arrive in time and resources are optimized by the IoT solution," says Markus Voss, chief information officer and chief operating officer of DHL Supply Chain.

Leveraging existing infrastructure and limited investments, the IoT solution is designed to facilitate and streamline yard management for inbound-to-manufacturing logistics, which can significantly improve inbound processing time at the site, says Voss.

According to Zou Yin, CEO of DHL Supply Chain Greater China, the NB-IoT solution has been developed by adapting technologies of Huawei and China Mobile.

"Exploring new technologies like NB-IoT is one of many ways we are forging forward with our digitalization journey in China," says Zou.

"The cross-industry effort made by Huawei and DHL has enlightened industrial players to find a way out amid the fragmented logistics industry battling all these years with high cost due to the uneven resources, supply and demand of products," says Lin Guolong, director of the Shanghai Maritime University Logistics Research Center.

Lin says the fast development of e-commerce requires logistics to be more efficient and approachable, with higher service standards and lower costs. Despite its fast growth, logistics costs are still high; so intelligent logistics via the IoT seem to provide an answer.

The 2016 Commerce Logistics Operations Report, released by the Ministry of Commerce, said a total of 11.1 trillion yuan ($1.7 trillion; 1.42 trillion euros; ￡1.28 trillion) was spent on logistics last year, up 2.9 percent year-on-year and accounting for 14.9 percent of the GDP.

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