In 2025, the demand for smart IoT tracking technologies, including smart labels, will reach new heights.
Pre-parcel anxiety is a growing phenomenon among today’s shoppers, characterised by an obsessive need to track their parcels. Studies show that 90% of consumers check their parcel status at least once, with research also revealing that shoppers monitor delivery updates up to four times per order.
This growing demand for transparency reflects a consumer preference for efficiency and real-time information about their purchases. At the same time, businesses also stand to benefit from the strategic insights and opportunities offered by tracking data, enabling them to refine their operations, enhance communication and build stronger customer relationships.
Supply chain vulnerability
Recent years have shown just how vulnerable the global supply chain can be, with disruptions stemming from the pandemic, geopolitical tensions, seasonality and severe weather events. Yet, within this complexity lies the potential for data-driven solutions. Whether it’s navigating disruptions from conflicts or rerouting shipments due to sudden storms, businesses equipped with real-time data can proactively adjust routes and timelines, ensuring efficient deliveries and accurate communication.
Today’s supply chain is also under threat from increasing cargo thefts. In 2023 alone, around $700 million worth of cargo shipments were stolen in the US, highlighting a growing crisis in supply chain security. A particularly concerning trend is the rise of “strategic theft,” where sophisticated criminals exploit stolen identities from carriers and logistics brokers to reroute and steal freight with alarming speed and precision.
However, technology is stepping up to combat this challenge, with smart labels emerging as a vital solution. Once, a simple GPS tracker on a truck was considered sufficient, but the sophistication of thieves today demands smarter tools. Smart labels not only discreetly track a package’s real-time location but also monitor critical factors such as changes in temperature and can even detect unauthorised door openings. Such information is key to ensuring constant visibility at every step in the supply chain ecosystem.
Yet, in 2025 and beyond, the pivotal focus will be on how we can efficiently analyse this real-time data from smart labels to anticipate challenges and improve supply chain management. For example, machine learning algorithms could play a crucial role in detecting unusual patterns – such as unexpected route deviations or unauthorised stops – and instantly alerting security teams. As the smart label market continues to expand in the coming years, AI will also play an increasingly pivotal part in accurately analysing the vast data sets generated by a growing number of devices, ensuring security remains central to every delivery.
The automotive industry
Smart labels hold immense potential in transforming the automotive industry, which has faced a series of significant challenges in recent years. In the wake of the pandemic, a global semiconductor shortage directly caused the loss of over 9.5 million light-vehicle production units in 2021. Despite ongoing recovery, supply chain vulnerabilities, particularly in semiconductor availability, remain a pressing concern.
A typical motor vehicle comprises between 15,000 and 25,000 components, each of which must be transported across a complex supply chain involving multiple suppliers and manufacturers. This intricate process leaves room for errors or disruptions. A single missing component at the wrong time can lead to major delays in production. In fact, up to 50% of unscheduled downtime in manufacturing stems from a lack of spare parts or stock-outs. Blind spots at any stage of the supply chain can trigger significant ripple effects, leading to inventory shortages and costly delays.
Interestingly, supply chain visibility is frequently identified as a core challenge for many industries. According to a McKinsey survey, 45% of respondents reported having no visibility into their upstream supply chain or being limited to insights only as far as their first-tier suppliers. Smart labels provide an efficient solution for achieving continuous supply chain visibility without requiring additional infrastructure. In many data-driven organisations, information often exists in isolated silos across various departments and processes, preventing teams from accessing data simultaneously and collaborating effectively.
For example, in the past, a logistics firm in the United States might have operated using a completely different dataset than one of its European counterparts. However, with the integration of smart labels, shared platforms have transformed the way businesses operate. Data is no longer confined to individual systems but is now collected, shared, and accessed across connected devices. This shift helps organisations to pinpoint delivery problems more accurately, improve accountability, and make informed decisions that enhance overall efficiency.
This is particularly crucial in industries where the timely delivery of specific parts is essential for business success, such as the automotive sector.
Sustainable smart labels
Shared data doesn’t just drive business success; it is also a cornerstone of advancing sustainability across organisations. To successfully implement sustainability initiatives, supply chain partners must first align on accurate, accessible data.
Looking ahead to 2025 and beyond, smart labels will emerge as a vital tool for driving sustainable practices. These innovative labels provide actionable insights, such as CO₂ emissions for various transportation methods, empowering organisations to make informed, environmentally conscious delivery decisions. By offering end-to-end visibility into a product’s journey across the supply chain, smart labels also help businesses to prioritise partnerships with vendors that align with their sustainability goals.
Advances in AI and machine learning will further amplify these efforts. Organisations will increasingly leverage AI and ML to analyse sustainability data – not just from smart labels, but also from a growing network of IoT devices within the supply chain. According to Gartner, top-performing supply chain organisations are investing in AI/ML technologies at more than twice the rate of their lower-performing peers.
As the adoption of IoT devices accelerates, AI-powered analytics and business intelligence will become essential for companies in meeting their sustainability targets and turning data into actionable strategies. However, the sustainability of smart labels themselves is equally important. Clever reusability will become a major focus as advancements in battery technology unlock greater opportunities to enhance the environmental impact of these devices.
Small, smart, sustainable, secure
As technology advances at a rapid pace, we are continually discovering innovative ways to ensure devices are seamlessly connected, highly secure, and support sustainable gains. Smart labels perfectly embody this progress. By combining connectivity with efficiency, smart labels offer a transformative solution for today’s ever-evolving landscape.
