Transportation of heavy materials like cement and steel is a complex undertaking that requires meticulous coordination, precise tracking, and persistent adherence to timelines. That said, many enterprises operating in heavy material logistics face several challenges, from road theft to inefficient routing. Besides, lack of insights and faulty tracking mechanisms often lead to complex issues like excessive fuel consumption and underutilization of fleet capacity.
Over recent years, however, IoT-based transportation telematics has emerged as powerful catalysts, enabling these companies to streamline heavy material logistics. By embedding AI and IoT technologies across vehicles, assets, and supply chains, heavy material logistics drive unprecedented levels of visibility, accountability, and operational control.
Discover how IoT-based telematics systems are rapidly transforming cement and steel logistics, paving the way for safer, greener transport operations.
Key Challenges in Cement and Steel Logistics
Unlike FMCG or general cargo, heavy material logistics involves several unique challenges or pain areas. As per a survey by PwC, the freight cost to move steel within India can be higher than international shipping costs. For instance, transporting steel from Jamshedpur to Mumbai costs about $50 per tonne, compared to $34 per tonne for shipping from Rotterdam (Europe) to Mumbai. This implies longer transit times and higher expenses for domestic deliveries. Overall, logistics inefficiencies create an estimated $20-25 per ton cost disadvantage for Indian steel producers.
Before diving into the technicalities of heavy material logistics, let’s explore key challenges persisting in cement and steel industries.
Payload Integrity
Cement, as we know, is prone to moisture contamination and wastage due to various factors. Similarly, steel loads are often at risk of pilferage or damage due to improper handling or unsecured shipments.
Regulatory Compliance
Overloading, emissions, and safety standards require stringent documentation and monitoring. Besides, companies operating in cement and steel industries must ensure compliance with government-imposed regulatory policies.
Inefficient Routing
Research suggests that suboptimal route planning due to unnecessary mileage and idling may increase fuel costs by up to 30 percent. The same thing applies to heavy material logistics, particularly to cement and steel industries that incur heavy losses due to complex, inefficient routing.
Fuel and Maintenance Costs
Heavy loads accelerate vehicle wear and significantly impact fuel efficiency. Besides, lack of fuel monitoring and predictive maintenance may lead to fuel thefts, higher fuel consumption, and contribute to increased maintenance costs. According to DAT Freight & Analytics, fuel is the highest cost for owner-operators and represents about 38% of total operating costs.
IoT Applications in Telematics to Enhance Heavy Material Logistics
IoT-based telematics integrates advanced IoT sensors, GPS/GNSS tracking, wireless communication, and intelligent analytics platforms to create a connected ecosystem. Using it in heavy material logistics, particularly in cement and steel industries may enhance operational efficiency and yield faster delivery times with reduced overhead costs. For instance, advanced sensors and GPS tracking enable precise monitoring of load weights, route deviations, and delivery progress. This, in turn, reduces shipment delays, prevents pilferage, and fosters proactive logistics operations.
Telematics also supports predictive maintenance, enabling enterprises to avoid costly breakdowns that disrupt diverse operations across cement and steel industries. By implementing IoT in transportation telematics and integrating with an inventory module, companies can optimize dispatch planning and improve resource utilization. Ultimately, these capabilities drive higher operational efficiency, cost savings, and more reliable service for customers in demanding industrial supply chains.
Furthermore, heavy material logistics can be broadly classified into two main types:
- In-Plant Logistics: Movement, storage, and handling of heavy materials within the manufacturing plant or facility. For instance, logistics process automation (LPA), digital weighbridge handling, guided routing & parking are a few technologies that are actively used as part of in-plant logistics solution.
- Outside-Plant Logistics: Transportation and coordination of materials outside the plant i.e. from raw material sources to the plant, and from the plant to customers/distributors. Fuel monitoring system, Advanced Driver Assistance System, Driver Monitoring System, and GPS e-Locks are some key technologies that find their use in outside-plant logistics.
Let’s delve into a more detailed analysis with the help of a tabular comparison as shown below:
| Aspects | In-Plant Logistics | Outside-Plant Logistics |
|---|---|---|
| Scope | Internal material flow – includes raw material reception, WIP movement, storage, and feeding lines. | External movement – includes inbound logistics (from supplier) and outbound logistics (to customer/distributor). |
| Tech Stack | IoT-based asset tracking, RFIDs, MES, and robotics (RPA) | GPS tracking, TMS, Video telematics, Geofencing, Electronic Proof of Delivery |
| Applications | Conveyor systems, Inventory storage & retrieval, Line-side feeding, Scrap removal etc. | Route optimization, Vehicle monitoring software, Cargo handling and tracking, Third-party logistics (3PL) |
| KPIs Tracked | Material handling time, In-plant TAT, Downtime due to material unavailability | Transit time, Fuel consumption, Fleet utilization, Detention time, Delivery accuracy |
| The Impact | Directly influences production continuity, process efficiency, and safety. | Affects raw material availability, customer delivery timelines, and overall supply chain efficiency. |
| Automation Scope | High – with smart material movement systems and warehouse automation. | Moderate to high – through integrated telematics, AI-based route optimization, and load planning. |
| Integration Needs | Needs tight integration with ERP, MES, and production planning systems. | Needs integration with TMS, customer portals, 3PL systems, and ERP. |
Core Components of IoT-based Telematics
Below are the core components of IoT-based telematics solutions from the standpoint of cement and steel industries.
Telematics Control Units (TCUs)
TCUs are installed in trucks carrying cement and steel material to capture real-time location, speed, fuel consumption, and diagnostic data.
Smart Sensors
Many enterprises use load sensors, temperature/humidity probes, and door status monitors to ensure continuous cargo condition monitoring across heavy material logistics.
Cloud Platforms
Cloud-based analytics platforms have gained traction across heavy material industries like cement and steel manufacturing. These platforms are integrated with fleet telematics to provide actionable insights into heavy material logistics via centralized dashboards.
Mobile Applications
Mobile applications are like beacons for operations teams or fleet managers who use these apps to continuously monitor fleet movements and track heavy material shipments on-the-go.
As such, IoT-based transportation telematics empowers logistics operators to effectively track heavy material shipments, streamline operations and optimize resources with end-to-end accountability. Besides, with AI features and predictive data analytics, it helps detect potential issues, enabling fleet managers to prevent machine breakdowns or equipment failures. Consequently, advanced telematics solutions, equipped with predictive maintenance, help enterprises in cement or steel industries to significantly reduce maintenance costs.
IoT-based Telematics to Streamline Cement and Steel Transport
IoT applications in telematics have streamlined heavy material logistics by rendering real-time visibility, automation, and data-driven decision-making across all stages of the logistics process. From tracking heavy shipments to optimizing routes and ensuring compliance, these intelligent systems help manufacturers and logistics providers cut costs, improve safety, and boost operational efficiency. Let’s take a closer look at how IoT-based fleet telematics systems and connected mobility may benefit cement and steel logistics.
1. Real-Time Load Monitoring
Enterprises may use smart load sensors to verify that cement and steel are loaded correctly on vehicles. As such, it helps prevent overloading fines and also detects unauthorized unloading during transit. For example, if a truck deviates from the planned unloading sequence or if the cargo door opens unexpectedly, instant alerts are triggered, enabling proactive intervention.
2. Dynamic Route Optimization
Telematics platforms leverage GPS and live traffic feeds to compute the most efficient routes. This proactive approach is even more beneficial for the cement industry where delivery timelines directly impact product usability. That said, dynamic route optimization significantly reduces delivery cycle times and prevents batch spoilage. In steel logistics, optimized route planning also helps navigate restrictions on heavy vehicles in urban areas.
3. Enhanced Driver Performance and Safety
Implementing IoT in transportation telematics paves the way for proactive driver behavior monitoring and helps prevent harsh braking, overspeeding, and fatigue. Carrying out cement and steel loads and shipments could be risky and more prone to accidents. By enforcing safety protocols, IoT-based coaching modules and compliance reports promote safer driving habits and reduce liability exposure.
4. Reduced Fuel Consumption and Maintenance Costs
Fuel sensors and engine diagnostics enable early detection of inefficiencies. By analyzing trends in fuel consumption and wear patterns, fleet managers can implement predictive maintenance strategies. This, in turn, helps minimize breakdowns and enhances vehicles’ life span despite heavy-duty operations.
Also read, Top Strategies to Cut Fleet Fuel Costs
5. Supply Chain Transparency
IoT telematics facilitates end-to-end shipment visibility to customers, logistics heads, and procurement managers, enabling them to track shipments in real-time. Also, clients may use secure portals or apps to proactively track cement batches or steel consignments, improving trust and simplifying documentation for billing and compliance.
Logistics Process Automation in Heavy Material Shipments
Logistics process automation system plays a transformative role in heavy material logistics by streamlining complex, labor-intensive operations and minimizing manual intervention. In industries like cement, steel, and automotive where volumes are high and materials are bulky, automation ensures greater accuracy, safety, and efficiency. Besides, it enhances coordination between in-plant and external logistics, helping manufacturers maintain tighter control over TATs, reduce idle time, and improve compliance with safety and regulatory standards.
For example, in a steel manufacturing plant, automated weighing systems and RFID-enabled vehicle tracking can streamline truck movement from the yard to loading bays. This, in turn, would significantly reduce loading errors and wait times. Similarly, cement plants can deploy automated dispatch systems integrated with ERP and TMS platforms to schedule bulk shipments based on real-time demand and fleet availability. In a nutshell, automation not only improves operational throughput but also provides actionable insights that drive continuous improvement and cost savings.
Real-World Impact
Many prominent companies in the cement and steel industries have already adopted IoT-driven logistics solutions. Here’s one such example which shows how a leading Indian cement company implemented these solutions across their daily operations.
UltraTech Cement is leveraging technological and digital innovation to decarbonize manufacturing and drive operational excellence, delivering greater value to its stakeholders. They are exploring new ways to leverage IoT, AI sensors, dynamic scheduling, and auto-ordering to continuously optimize operations for greater reliability and efficiency. Besides, the company is gradually expanding its green logistics fleet. After piloting five EV trucks in early 2024, they are now deploying 100 more EVs to move 75,000 MT of clinker monthly on a 400 km route, cutting carbon emissions by 17,000 MT annually.
The Road Ahead
As cement and steel demand continue to grow, logistics networks are poised to face immense thrust, calling for tech-driven ways to support evolving customer needs. That said, IoT, BI and emerging technologies like AI-powered predictive analytics and 5G-enabled ultra-low latency communication will further enhance the efficiency of fleet telematics solutions. In coming years, we shall see even more intelligent, self-optimizing supply chains, creating faster, safer, and more sustainable heavy material logistics ecosystems.
Conclusion
Heavy material transport is entering a new era of precision and efficiency. IoT-based telematics stands at the center of this transformation, equipping logistics operators with the tools to overcome age-old challenges like theft and resource wastage. For cement and steel logistics providers, adopting IoT in the fleet management system may help unlock an array of benefits that we have already discussed above.
At Binary Semantics, we provide end-to-end IoT and video telematics solutions to streamline fleet logistics and facilitate proactive tracking of shipments across devices. Our approach to streamlining heavy material logistics is built on 3Cs of process automation i.e. connectivity, control, and clarity.
The first step is to eliminate data silos with a unified logistics dashboard while the second step is about reducing human errors and enhancing throughput with automation. The third objective is to improve fleet visibility with advanced driver assistance and driver monitoring, and video telematics solutions.
To explore or implement IoT-based telematics tailored to your operations, feel free to reach out at marketing@binarysemantics.com.
