Exporting in a global economy is easier with m2m
20 Aug 2014 Transport, Industrial
Exporting is a crucial building block in today’s global economy. A T-shirt sold in Madrid may have been produced in Taiwan with cotton brought from mainland China. An IKEA chair sold in San Diego was probably designed in Sweden but produced and sent from a factory in China. A Japanese branded car in Montreal fills its tank with petrol extracted off shore Florida and sent by train to a Michigan refinery before being exported over the north border of the United States.
Clothes, furniture, crude… Taiwan, China, Japan, United States, Spain, Sweden… How are these goods and these places connected? In today’s global economy, millions of export operations occur around the world every day.
The global economy is shifting its power balances based on data like exportation figures: United States remains the biggest economy in the world at least in terms of GDP figures though the years of economic domination are coming to an end as China’s unstoppable growth is bound to lead them to the first place – according to some in 2028, while others believe the change of guard could happen as soon as this year.
The importance of moving products outside national borders is a basic economic principle to strengthen growth: the greater the exports, the more moderate the imports, the better for any country’s economy.
In times of war or when political or social conflict make a country or a region unstable it is difficult to conduct business in those areas. So what happens to a steel train en route through a war stricken country? Did my package arrive safely to an area where there has been an outbreak of guerrilla combats? Did the fish collected, deep-frozen and sent from a conflictive fishing bank arrive preserving sub-zero temperature conditions during the voyage home?
Now think of the traditional way these goods are transported. Whichever route and means were selected by the company – maybe even the country’s authorities – sending the items always has a degree of uncertainty.
And along came M2M. No matter how previously untraceable, isolated or complicated to reach places were before, thanks to the possibility of working on a global scale with a single SIM card, M2M enabled devices in the containers storing goods will be able to provide us insight on several parameters such as exact location, temperature – in case of products that require cold chain preservation, or whether the goods are in movement or stalled due to some problem in the transport.
In the case of many goods the impact of not having this type of control is purely economic. In other cases however, there is also a health condition that can be affected either if the shipment is lost –for example medicines sent to isolated regions, or if the goods being shipped are transported in a faulty manner– food or other goods that have to preserve a certain temperature.
In the days when exporting is so crucial, moving goods while controlling parameters such as location, condition of the goods and whether they will arrive on time has surpassed the degree of being nice-to-have features to become crucial items of information in the global exporting business of the twenty-first century.