Working Paper 2024.1.6.

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- Vol 1, No 6

ỨNG DỤNG INTERNET VẠN VẬT (IOT) TRONG GIAO HÀNG CHẶNG
CUỐI: NGHIÊN CỨU TRƯỜNG HỢP CỦA DHL VÀ KHUYẾN NGHỊ CHO
DOANH NGHIỆP VIỆT NAM
Nguyễn Thanh An1, Trần Phương Anh, Kiều Ngọc Dung, Trần Hương Lan,
Văn Trần Hoài Phương
Sinh viên K60 – CLC Kinh tế đối ngoại–Viện Kinh tế và Kinh doanh quốc tế
Trường Đại học Ngoại thương, Hà Nội, Việt Nam

Nguyễn Thị Yến

Giảng viên Viện Kinh tế và Kinh doanh quốc tế
Trường Đại học Ngoại thương, Hà Nội, Việt Nam
Tóm tắt
Nghiên cứu này điều tra ứng dụng của công nghệ Internet vạn vật (IoT) trong giao hàng chặng
cuối, sử dụng DHL làm nghiên cứu điển hình. Bài nghiên cứu khám phá nền tảng lý thuyết của
IoT và giao hàng chặng cuối, sau đó phân tích các ứng dụng cụ thể của DHL. Nghiên cứu xác
định những đóng góp và hạn chế chính trong cách tiếp cận của họ, cùng với các giải pháp IoT
khác được các công ty khác sử dụng. Dựa trên những hiểu biết này, các khuyến nghị được đề
xuất cho các doanh nghiệp Việt Nam đang tìm cách áp dụng IoT trong hoạt động giao hàng
chặng cuối của mình. Nghiên cứu nhằm hướng dẫn các doanh nghiệp Việt Nam triển khai thành
công và bền vững công nghệ IoT trong dịch vụ hậu cần và khách hàng của họ.
Từ khóa: Internet vạn vật (IoT), Giao hàng chặng cuối, Logistics, Chuỗi cung ứng, DHL
INTERNET OF THINGS IN LAST-MILE DELIVERY: A CASE STUDY OF
DHL AND RECOMMENDATIONS FOR VIETNAM ENTERPRISES
Abstract
This research investigates the application of Internet of Things (IoT) technology in last-mile
delivery, utilizing DHL as a case study. It explores the theoretical foundations of IoT and last-
mile delivery, followed by an analysis of DHL's specific applications. Key contributions and
limitations of their approach are identified, along with additional IoT options employed by

1
Tác giả liên hệ, Email: k60.2112150005@ftu.edu.vn.

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other companies. Drawing on these insights, recommendations are proposed for Vietnamese
enterprises seeking to adopt IoT in their last-mile delivery operations. The study aims to guide
Vietnamese businesses towards successful and sustainable implementation of IoT technology
in this crucial aspect of their logistics and customer service.
Keywords: Internet of Things (IoT), Last-mile delivery, Logistics, Supply chain, DHL
1. Introduction
The digital revolution has ushered in an era of unprecedented connectivity and efficiency,
transforming the way industries operate. In the field of freight transportation and logistics,
advancements are occurring not only in traditional methods like post offices or courier
deliveries but also in the implementation of drones, robots, and unmanned vehicles. At the
forefront of this transformative wave is the Internet of Things (IoT), a technological paradigm
that interconnects physical elements to gather and manage data seamlessly. This shift toward
more precise and efficient processes opens up new opportunities for logistics operators
Within the logistics landscape, the last-mile delivery phase plays a pivotal role, exerting
considerable influence on both customer satisfaction and the success of businesses. McKinsey's
research reveals that the last mile constitutes a significant portion, accounting for 41% of the
total logistics cost. This percentage is projected to rise in the upcoming years. As businesses
globally grapple with the challenges of optimizing this final leg of the supply chain, innovative
solutions powered by IoT are redefining the contours of last-mile logistics. IoT-driven solutions
are attaining unmatched efficiency, ensuring on-time deliveries, enhancing customer
experiences, and fundamentally reshaping the approaches to transporting goods.
This research, titled "Internet of Things in Last-mile Delivery: A Case Study of DHL and
Recommendations for Vietnam Enterprises," delves into a comprehensive exploration of the
last-mile delivery landscape, focusing on the case of DHL and offering valuable insights for
enterprises in Vietnam. Drawing from diverse sources, including journal articles, official
reports, and publicly available records, this study employs a qualitative case study approach to
address the research questions. The primary objectives of this research are as follows:
1. Examine and analyze DHL's applications of IoT in last-mile delivery.
2. Evaluate the effectiveness of DHL's IoT implementations in last-mile delivery.
3. Assess the current utilization of IoT in last-mile delivery practices among Vietnamese
enterprises, identifying strengths, weaknesses, and challenges.
4. Provide recommendations for Vietnamese enterprises based on the lessons learned
from DHL's IoT experiences.
The paper is structured into several sections, beginning with an introduction to set the stage
for the research. Following this, the theoretical framework explores key concepts related to
IoT, last-mile delivery, and their applications. The subsequent section analyzes DHL's IoT
applications in last-mile delivery, offering an overview of DHL and detailed insights into their
current practices. Finally, the paper concludes with recommendations tailored specifically for
Vietnamese enterprises to enhance their last-mile delivery processes through IoT integration.

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2. Theoretical framework
2.1. Internet of Things
In recent years, the Internet of Things (IoT) has emerged as a groundbreaking technology
that is transforming the way things connect and communicate with each other. At its core, IoT
involves everyday objects collaborating and interacting with each other in an uninterrupted
way. This interconnected network allows objects to collect and share data, empowering
computers to make sense of the world around them – all without human intervention.
(Dorsemaine et al., 2015; Uckelmann, Harrison and Michahelles, 2011; Ashton, 2009).
While IoT is often spoken of as a single idea, experts actually view it through several
distinct lenses. Each perspective reveals different aspects of IoT's vast potential and diverse
applications. Figure 1 illustrates the three basic perspectives from which the IoT concept can
be viewed: thing-oriented, Internet-oriented, and semantic-oriented.

Figure 1. IoT concept with three visions

Source: Compiled by author
The things-oriented vision of IoT revolves around making everyday objects, both
physical and virtual, "smart" by integrating sensors, computing power, and communication
capabilities (Al-Fuqaha et al., 2015), while the Internet-oriented vision views IoT as a vast
network where everything, not just computers, can connect and chat. Each object gets its own
unique IP address, similar to computers, allowing them to communicate and share
information seamlessly. (Vasseur & Dunkels, 2010). As the number of connected devices in
IoT increases, they generate massive amounts of diverse data, including types, sizes, content.
This variety creates interoperability issues within the network. The semantic-oriented vision
emerges to solve this by using semantic technologies to organize and understand the data. It
essentially translates raw data into meaningful formats for both humans and machines,
enabling better decision-making within the IoT system (Song et al., 2010).
2.2. Last-mile delivery
2.2.1. Definition
Last-mile delivery is defined, by Hoa and colleagues (2023), in logistics, as the very last
procedure of the supply chain, where the goods are delivered from the seller’s transportation
hub to the final delivery destination. With the main purpose of distributing the ordered products

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to the end-consumers as fast as possible, the application of last-mile delivery also helps
optimize the traditional means of transportation and improve customers’ satisfaction.
Within the recent years, more research has been focussed on last-mile delivery with the
purpose of facilitating logistics. Gevaears (2009) has concluded that last-mile delivery in
logistics is the last part of the B2C distribution process. Also, Lim et al (2015) stated that last
mile delivery is considered as the final segment of a shipment of the goods from the business
to the consumer.
2.2.2. Opportunities and Challenges of last-mile delivery
Last-mile delivery stands high opportunities of development with the interference of
advanced technology. For example, drones and autonomous vehicles could revolutionize the
delivery of goods, making it faster, cheaper, and more environmentally friendly. Likewise, AI
can be integrated to optimize delivery routes, predict traffic patterns, and personalize delivery
options. The IoT is also increasingly applied by many big companies to help streamline the
process and optimize cost, time and efficiency. This can lead to faster deliveries, lower fuel
costs, and improved customer satisfaction. Moreover, the trend of sustainability also helps
businesses gain a competitive edge in the last-mile delivery market. For example, electric
vehicles and low-emission zones could help to reduce the environmental impact of last-mile
delivery.
On the other hand, last-mile delivery entails difficulties that challenge the business. In
terms of costs, last-mile delivery accounts for between 13% and 75% of total costs in the supply
chain, depending on the characteristics of different regions (Gevaers et al., 2009). Therefore,
optimizing last-mile delivery costs is a big challenge for businesses and countries around the
world. Moreover, the application of last-mile delivery has met with other challenges such as:
urbanization, traffic congestion, delivery times and so on, demanding the business to strictly
administrate the process.
2.3. Applications of IoT in Last-mile Delivery
IoT promises far-reaching payoffs for logistics operators and their business customers and
end consumers. These benefits extend across the entire logistics value chain, including last-
mile delivery. IoT in the last mile can connect the logistics provider with the end recipient in
exciting ways as it drives dynamic new business models.
For example, one application of the IoT in Last-mile delivery is IoT enabled sensors, which
keep optimal conditions for products through location tracking. Other applications are robots,
drones and self-driving vehicles which can help drastically facilitate last-mile delivery and
improve the logistics industry. Other key trends of IoT in last-mile delivery include smarter
tracking and greater visibility, analytics to drive efficiency, autonomous vehicle and robotic
delivery and so on.
Many companies have taken advantage of the Internet of Things in their last-mile delivery
process, such as DHL with many use cases, Walmart, Fedex and so on. With the help of the
Internet of Things, businesses can mitigate the disadvantages of last-mile delivery in terms of
cost, foster delivery efficiency and increase customers’ satisfaction. Companies can also
harness data, optimize routes and offer process efficiency by reducing cost. In Vietnam, the

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application of IoT is also prominent in last-mile delivery, though improvement is needed to
increase the efficiency of last-mile delivery.
Within the scope of this research, emphases are placed on the four use cases of application
of the Internet of Things in last-mile delivery, namely optimized mail/parcel collection,
automatic replenishment, flexible delivery and pick-up and next-generation visibility. From
then on, the advantages of this technology can be further highlighted.

3. Analysis of IoT in Last-mile delivery of DHL

3.1. Overview of DHL
3.1.1. Overview of DHL
DHL, part of Deutsche Post DHL Group, is the world's largest and leading provider of
domestic and international pickup, delivery, and returns solutions for freight and e-commerce
to individuals and corporate customers globally (DHL Company Portrait, 2024). Established
in 1969 by Adrian Dalsey, Larry Hillblom, and Robert Lynn, DHL pioneered a
groundbreaking courier service model dedicated to transporting non-commercial documents
between San Francisco and Honolulu. Comprising over 600,000 shipping professionals, DHL
operates as both innovative as a start-up and as a powerful international organization,
multiplying its operations and providing a logistic global business channel with a current
presence in over 220 countries (DHL Company Portrait, 2024).
3.1.2. Overview of DHL Supply Chain
DHL Supply Chain, part of the DHL Group, is the world’s leading logistics provider. At
its core, DHL Supply Chain specializes in providing tailored logistics services and supply chain
solutions with the overarching objective of simplifying complexities for clients while
delivering sustainable value. The extensive product portfolio encompasses warehouse
operations, transportation services, and a spectrum of value-added offerings. With operations
in over 50 countries, DHL Supply Chain employs approximately 185,000 individuals and
operates a fleet of around 10,500 vehicles, establishing itself as a prominent player in the third-
party logistics (3PL) sector (DHL Supply Chain, 2024).
Distinguished for its innovation, DHL Supply Chain has been named a Leader in 2022
Gartner Magic Quadrant for Third-Party Logistics, Worldwide for the 7th time in a row
(Gartner, 2023). Utilizing state-of-the-art digital solutions, DHL Supply Chain integrates
technology across its operations, with more than 80% of locations incorporating advanced
digital systems. This includes the deployment of over 4,000 collaborative robots and
approximately 38,000 smart wearables. The company leverages data analytics to drive
operational efficiencies and enhance the overall customer experience, seamlessly combining
physical and digital supply chain solutions (DHL Supply Chain, 2024).
According to the Statista Research Department, DHL Supply Chain was the second largest
third-party logistics provider in 2022, with revenues of over 45.59 billion U.S. dollars (Statista
Research Department, 2024). In the competitive contract logistics market, estimated at EUR
231.3 billion in 2021, DHL stands out as the global market leader with a noteworthy 6.0%

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market share and operations spanning more than 50 countries (DHL Annual Report, 2022).
This dominant market position reinforces DHL Supply Chain's status as a key player in the
ever-evolving landscape of global logistics.

Figure 2. DHL’s contract logistics market in 2021

Source: DHL Supply Chain
3.2. DHL's applications of IoT in Last-mile Delivery
3.2.1. Optimized mail/parcel collection
The traditional image of mail delivery often involves a postman making numerous stops,
checking each mailbox regardless of whether there is mail waiting. This approach, while
reliable, can be inefficient and time-consuming, especially in sprawling urban areas. However,
DHL is pioneering a change using the power of IoT to transform last-mile mail collection.
Intelligent sensors play a crucial role in optimizing daily mail collection routes. Embedded
within the mailbox, they accurately detect the presence of mail. If the mailbox is empty, the
sensor transmits a real-time signal, allowing delivery personnel to efficiently bypass
unnecessary stops and focus on mailboxes requiring collection. This not only reduces the time
spent on each delivery route but also allows DHL to serve more customers within the same
timeframe, improving overall productivity. This increased efficiency contributes to higher
customer satisfaction levels, potentially leading to greater customer loyalty and retention.
Moreover, the application helps minimize fuel consumption and emissions, contributing to a
more sustainable logistics operation.
3.2.2. Automatic replenishment
Automatic replenishment consists of the implementation of automated transportation,
storage, and/or management systems to speed up the supply of raw materials or finished
products to warehouse locations or production lines. This logistics concept can be applied to
topping off stock in different storage systems or areas as well as in production centers.
Automated inventory replenishment should take into account the various inventory
replenishment strategies, such as just-in-time (workstations resupplied as required), reorder
point (inventory is replenished when the minimum stock thresholds set are reached), and top-
off, which takes advantage of fluctuations in order prep to replenish the picking shelves during
slow periods.
At DHL, the seamless integration of automatic replenishment is a pivotal aspect of its
operational efficiency. This sophisticated system operates on multiple fronts, empowering
both intelligent products and home appliances, along with the shelves at retailers, to
autonomously initiate order scheduling the moment a product approaches a low-stock
scenario. This innovative approach not only significantly mitigates lead time but also serves

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as a proactive measure to prevent costly stock out situations, thereby enhancing overall
supply chain resilience.
The implementation of automatic replenishment technology at DHL extends its benefits
beyond mere inventory management. In the realm of freight logistics, this cutting-edge system
plays a pivotal role in affording DHL greater control over its expansive warehouses. By
optimizing the scheduling and fulfillment processes, DHL ensures on-time delivery, fostering
customer satisfaction and reinforcing its reputation as a reliable logistics partner. The
automated replenishment system also contributes to the meticulous control of the company's
inventory turnover.
3.2.3. Flexible Delivery and Pick-up
The integration of IoT in last-mile delivery has led to innovative solutions in flexible
delivery and pick-up services. One notable application is the utilization of smart home
technology to determine the recipient's presence, enabling secure remote access for delivery
personnel.
Traditionally, consumers could select a preferred delivery address or alternative delivery
options, such as parcel stations. IoT-enabled solutions now provide enhanced visibility by
tagging parcels, allowing recipients to track expected delivery times. This technology
facilitates real-time adjustments to delivery addresses, considering factors such as the
recipient's location or availability.
For instance, if a recipient is at work during a planned delivery, the system could suggest
changing the address to a neighbor or workplace in proximity. Smart home products with
proximity sensors can contribute to this flexibility by sensing the recipient's presence and
communicating with the delivery person in advance, ensuring optimal delivery conditions.
Logistics providers can also initiate a flexible delivery address service, leveraging predictive
analytics on the recipient's historical mobile device location data (with their consent) to confirm
delivery windows and locations.
Moreover, the IoT opens up opportunities for new business models, particularly in
monetizing and optimizing return trips. By connecting delivery personnel with surrounding
vehicles and individuals, logistics providers can explore innovative approaches to pick-ups.
Startups like Shyp exemplify this trend, allowing consumers to send items conveniently
through an app. The integration of IoT enables logistics providers to identify people or
businesses along their delivery route interested in sending items, fostering dynamic pricing
models and adding value to return trips for both the provider and the consumer.
3.2.4. Next-Generation Visibility
Visibility is the ability to track and monitor the status and location of parts, components
and products as they move along through the supply chain from origin to destination. The
applications of IoT in Logistics, particularly in Last mile delivery, has revolutionized the way
Company delivers the products and services to customers, creating Next - Generation
Visibility.

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- Radio frequency identification (RFID)
Radio frequency identification (RFID) is a form of wireless communication that
incorporates the use of electromagnetic or electrostatic coupling in the radio frequency portion
of the electromagnetic spectrum to uniquely identify an object, animal or person. RFID can be
in the form of item-level tags, sensory tags, NFC smart tags, etc., which are directly affixed to
the packaging of goods.
CAEN RFID has provided a temperature monitoring solution for international freight
forwarder DHL since 2008. DHL's pharmaceutical customers requested a service to protect
temperature-sensitive products such as vaccines and drugs, and CAEN RFID modified their
existing RT0005 tag into the DHL data logger for this purpose.
DHL is using this custom tag in their new ThermoNet shipping network, with RFID
checkpoints installed in their shipping hubs. ThermoNet is a unique new service in the
market—this cold chain validation and temperature tracking service utilizes RFID technology
to alert customers if the temperature of their life science and healthcare products goes outside
safe limits. This global air service is available for a fee to DHL’s Pharma B2B customers with
temperature-sensitive products which must be tracked. This service saves resources and time,
allowing companies to focus on their core business (CAEN RFID)

Figure 3. RT0005 tag in DHL Data Logger

Source: CAS-Data Logger
Another significant application of RFID in DHL was the Semi-Passive UHF RFID tags.
The existing SmartSensor data logger that DHL employs in its ThermoNet service is built upon
the RT0005 RFID Temperature Datalogger from CAEN RFID. These temperature sensors
function on battery power and use UHF RFID technology for easy data accessibility and
collection. The tags are equipped with in-built temperature sensors to track the temperature
inside or outside the package they are attached to

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Figure 4: Semi-Passive UHF RFID tags.
Source: CAS-Data Logger
Using RFID in last mile tracking allows companies to track their packages in real-time,
enabling them to make changes to the delivery route if necessary and track down lost or stolen
packages. This can be particularly beneficial for ensuring the timely and secure delivery of
temperature-sensitive products like vaccines and drugs. CAEN RFID's modification of their
RT0005 tag into the DHL data logger specifically addresses the need to protect temperature-
sensitive products such as vaccines and drugs during the last mile delivery. This customized
solution enhances the reliability and safety of delivering these critical products to their final
destination.
- Near-field communication (NFC)
Near-field communication (NFC) is a short-range wireless technology that makes your
smartphone, tablet, wearables, payment cards, and other devices even smarter (Tardi, 2019). It
can be called a type of RFID. The biggest highlight of NFC technology is its ability to add
peer-to-peer communication capabilities, allowing for quick establishment of wireless point-
to-point communication.
NFC is widely applied in DHL Global Chicago Hub, DHL’s largest world-wide facility,
handling international freight for specialized customers in the high-tech, pharma and food and
beverage industries.The company has made an investment including its 9,882 square-foot Life
Science Cold Chain Certified Competency Center.
Using Near Field Communication (NFC) technology, sensors log in-transit ambient
environmental temperature conditions during shipping, functioning at temperatures between
-40 and +60 degrees Celsius. The sensors allow uploading of temperature data directly to the
DHL mobile app and LifeTrack web portal, making them cost effective and easy to use
without the need for specific scanners or devices. According to Steffen, DHL has seen a 40%
increase in operational capabilities using these scanners. (Clark, 2019a)
- Beacons
Bluetooth technology was initially developed in the mid-1990s as a wireless
communication standard for short-range data exchange between devices. It has facilitated the

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implementation of beacon solutions in supply chain management by enabling seamless and
energy-efficient communication between devices.
Beacons are small devices strategically placed in various locations within the supply chain
infrastructure. They transmit signals that can be picked up by handhelds, smartphones, or other
Bluetooth-enabled gateways, allowing for accurate tracking, monitoring, and data exchange.
By integrating Bluetooth-enabled sensors or tags into packages, pallets, or containers, we can
collect and monitor real-time information about location, temperature, humidity, and other
conditions in a central system.
The technology has helped enhance transparency, reduce inefficiencies, and allow for
proactive decision-making, ultimately improving the overall efficiency and responsiveness of
supply chain operations. The introduction of Bluetooth Low Energy (BLE) is helping to extend
the battery life of even smaller devices, which is paving the way for smart labels.(DHL, 2023b)
3.3. Evaluation
Having explored DHL's use of IoT in last-mile delivery, this section aims to provide a
comprehensive evaluation of these applications. We will examine their key contributions,
identify potential limitations, and propose additional IoT technologies employed by other
companies that DHL could potentially adopt to further enhance its operations.
3.3.1. Contributions of DHL’s applications of IoT
DHL’s pioneering applications of the technology of IoT deliver a myriad of benefits,
impacting both the company's operations and the customer experience. Some of the key
contributions derived from these applications that differentiate DHL in the field of logistics
are:
- Efficiency gains: By leveraging sensor data to streamline delivery routes, DHL achieves
not only substantial cost savings but also a notable reduction in travel time and fuel
consumption. The positive environmental impact of these streamlined routes is undeniable, as
lower emissions contribute to DHL's overarching sustainability goals. The optimization of
resource utilization further magnifies these benefits, ensuring that resources are allocated
precisely where they are needed most, creating a remarkable effect of efficiency and positive
environmental impact.
- Customer satisfaction: Beyond mere efficiency gains, DHL's IoT applications elevate
the customer experience to new heights. Faster deliveries, facilitated by optimized routes,
represent just the initial step in DHL's route of customer satisfaction. Real-time tracking,
made possible by IoT, empowers customers with valuable insights into the whereabouts of
their shipments at every stage of the delivery process. The flexibility of pick-up and drop-off
options adds an extra layer of convenience, tailoring services to individual needs and
schedules. This transparency and control not only enhance customer satisfaction but also
foster trust and loyalty, positioning DHL as a customer-centric leader in the logistics
landscape.
- Future prediction: DHL’s Next-Generation Visibility (NGV) is a groundbreaking
development in operational efficiency. With its predictive capabilities, NGV analyzes vast

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amounts of data to anticipate potential issues before they can disrupt operations. This proactive
problem-solving extends to inventory management, ensuring optimal product placement at all
times. DHL's predictive capabilities not only sets a new standard for operational efficiency but
also fortifies their logistics network's resilience and responsiveness, marking a significant stride
into the future of logistics management.
3.3.2. Limitations of DHL’s applications of IoT
While DHL's pioneering use of IoT in last-mile delivery offers increased efficiency and
customer satisfaction, it is important to acknowledge that these innovative applications also
come with challenges that need careful consideration and strategic solutions:
- Data security and privacy: Protecting the privacy and security of data is of utmost
importance across all applications. From sensor data in optimized mail collection to mobile
device location data in flexible pick-up/drop-off services, concerns about unauthorized access,
data breaches, and individual privacy require robust security protocols.
- Technology dependence: DHL's applications heavily rely on technology, making them
vulnerable to technical hiccups. System crashes, connectivity issues, or software glitches can
disrupt processes, leading to delays, errors, and inaccurate data. This can result in increased
costs, operational inefficiencies, and even reputational damage.
- Cost and scalability: The initial investment in infrastructure and technology can be
substantial, particularly for RFID/NFC technology with its specialized readers, routers, and
proprietary systems. Additionally, scaling these technologies can be complex and costly,
making them less accessible for smaller businesses.
- Power and infrastructure constraints: Powering data loggers, beacons, and other
wireless devices used in asset tracking presents a challenge. Not all environments have
readily available power sources, and the diverse lifecycles and values of tracked assets make
a universal solution difficult. Ensuring sufficient onboard power or storage, developing
suitable monitoring and charging infrastructure, and addressing midlife battery replacements
are key considerations.
- Cybersecurity threats: The increased use of wireless connectivity in supply chains
attracts cybercriminals seeking to intercept communication, steal sensitive information, or
disrupt operations. Securing these IoT devices against exploitation by criminal groups is
necessary, as compromising them can have significant financial and reputational consequences.
3.3.3. Additional IoT applications used by other companies in last-mile delivery
- Amazon's Connected Mobility Solution
Besides DHL, Amazon has also taken advantage of the IoT to improve their last-mile
delivery efficiency. One of the prominent applications is Amazon's Connected Mobility
Solution - an innovative application of the IoT designed to enhance the efficiency of vehicle-
based operations (Amazon Web Services, Inc., n.d.). This solution leverages Amazon Web
Services (AWS) infrastructure to provide a centralized platform for engineers and developers.
It simplifies collaboration, asset deployment, and operation management for connected

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vehicles. The system securely onboards vehicles into AWS IoT Core, ensuring reliable
communication through well-architected components.
The application of Amazon's IoT in last-mile delivery brings forth numerous advantages.
By focusing on a centralized collaboration platform, developers and engineers can work
cohesively, deploying reusable code assets and accessing comprehensive documentation.
Secure onboarding processes guarantee that vehicle data is efficiently transmitted and
managed. Standardizing and storing data using AWS tools enable seamless analytics, allowing
for insights that can optimize routes and enhance overall delivery performance. Furthermore,
event-based alerting ensures that operational thresholds and anomalies trigger quick
notifications, empowering swift responses to unforeseen challenges.
From this case, DHL can learn the lesson by harnessing the power of Amazon's Connected
Mobility Solution to elevate its last-mile delivery services. By establishing a centralized
collaboration hub, DHL's tech team can enhance coordination and streamline deployment
processes. Securely onboarding vehicles into a platform like AWS IoT Core ensures that DHL's
delivery fleet communicates reliably and securely. The standardized data and analytics tools
enable DHL to gain valuable insights into its delivery operations, allowing for route
optimization and improved overall performance. The event-based alerting system ensures that
DHL can respond promptly to any unexpected issues during the last-mile delivery, leading to
a more efficient and customer-centric delivery experience. In adopting Amazon's IoT solution,
DHL can align itself with cutting-edge technology to meet the evolving demands of the modern
logistics landscape.
- Alexa Integration
Along with this IoT application in last-mile delivery, Amazon also has integrated its IoT
voice assistant, Alexa, with its last-mile delivery operations. Customers can link their Alexa-
enabled devices to their Amazon accounts and receive real-time delivery notifications. When
a package is out for delivery, Alexa can provide voice updates, allowing customers to stay
informed about the status of their packages without having to check their phones or computers.
Moreover, customers can provide feedback on their delivery experience through Alexa. This
feedback helps Amazon improve its last-mile delivery operations and enhance customer
satisfaction. Amazon also developed the “Alexa, Thank My Driver” feature, which allows
customers to directly thank drivers for making their deliveries. Any time a customer says
“Alexa, thank my driver,” or searches “thank my driver” on Amazon.com or on the Amazon
shopping app, the driver who completed their most-recent delivery will be notified of the
customer’s appreciation. Customers can thank their driver via the feature all year round, and
drivers are able to see the number of times they are thanked within their app. This means more
than just the packages that they deliver - Amazon is forming relationships with customers,
providing support to the community in tough moments. That is to say, according to Tomay
(2024), IoT connectivity allows seamless communication between customers and Amazon's
delivery network. In the same way, DHL can also integrate Artificial Intelligence voice into
their operations so as to increase customers’ experience, develop strong and long-lasting
relationships with customers as well as boosting the efficiency of last-mile delivery.

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- Wingcopter Drone Delivery
Wingcopter specializes in the development of autonomous electric Vertical Take-Off and
Landing (eVTOL) drones, specifically designed to enhance the efficiency and sustainability of
last-mile delivery solutions. In the context of last-mile delivery, Wingcopter heavily relies on
the IoT to ensure the efficient and secure operation of its drones. The incorporation of sensors
and cellular connectivity facilitates real-time tracking and communication, providing
continuous updates on the drone's location, battery status, and flight parameters. Furthermore,
AI algorithms leverage this real-time data, along with weather conditions, to optimize flight
paths and ensure safe navigation. Sense-and-avoid technology, utilizing LiDAR and other
sensors, enhances the drones' ability to detect and evade obstacles, thereby improving safety
and reliability. Additionally, the data collected during operations is subjected to analytics,
generating insights that contribute to ongoing enhancements in safety measures, operational
efficiency, and strategic planning.
In comparison to DHL's endeavors in the realm of drone delivery, Wingcopter exhibits
notable superiority in several aspects. While DHL's drone delivery initiatives are primarily
confined to smaller-scale pilot projects, Wingcopter has successfully transitioned to
commercial operations in multiple countries. Technologically, Wingcopter's drones outperform
DHL's current capabilities with their longer range, higher payload capacity, and the ability to
operate in diverse weather conditions. Wingcopter has also demonstrated proactive
engagement with regulatory bodies, securing approvals for commercial drone operations—a
facet that DHL needs to address for broader adoption. Operationally, Wingcopter seamlessly
integrates its drones into existing delivery networks, highlighting a gap that DHL must bridge
by developing robust infrastructure and processes for large-scale drone delivery.
In light of these disparities, DHL can draw valuable lessons from Wingcopter's drone
delivery model. DHL should consider investing in advanced drone technology to match or
surpass the capabilities of competitors, prioritize the development of a robust communication
and data infrastructure for comprehensive drone management, actively seek regulatory
approvals and compliance, and focus on seamlessly integrating drone delivery into its existing
logistics infrastructure by starting with targeted applications before scaling up. These lessons
position DHL to enhance its drone delivery initiatives and remain competitive in the evolving
landscape of last-mile logistics.

4. Recommendations for Vietnamese enterprises

4.1. Current practice of Vietnamese enterprises in using IoT in Last-mile Delivery
Logistics as a key economic sector is the driving force for Vietnam's economic
development, so the need for digital transformation or IoT application is becoming urgent. In
Vietnam, the initial results and successes in such processes of logistics businesses are
remarkable, however, such technological footprint is not so clear in Vietnam ‘s last-mile
delivery as a country with many large seaports, logistics businesses in Vietnam often pay more
attention to transportation at ports and warehouses. Therefore, new technologies applied in the
young logistics market are also concentrated at this stage.

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 The growth rate of Vietnam's logistics industry in recent times has reached about 14% -
16%, with a scale of about 40 - 42 billion USD/year. Currently, the Vietnamese logistics market
has the participation of more than 3,000 businesses. Of these, 89% are small and medium-sized
Vietnamese enterprises with capital of less than 10 billion VND, about 5% of this group have
capital of 10 - 20 billion VND; 10% are joint venture enterprises and 1% are 100% foreign-
owned enterprises (about 30 enterprises) providing cross-border logistics services, with big
names such as DHL, FedEx, Maersk Logistics, APL Logistics, CJ logistics, KMTC Logistics,
etc… Currently, there are only a group of large companies that can meet the conditions for IoT
applications such as DHL, Fedex and leading Vietnamese brands such as Vietnam Post.
The initial phase of digital transformation within Vietnam's Logistics sector is
exemplified by the inception of the "ICD Vinh Phuc Logistics Center - SuperPort" project.
This initiative, a collaborative effort between T&T Group (Vietnam) and YCH Holdings
(Singapore), involves substantial investments to establish an advanced and intelligent
logistics center in Vietnam. The project seamlessly integrates an inland container depot (ICD)
with a cutting-edge, multi-modal logistics hub that stands out in the region.
In parallel, Vietnam Post has developed the VMap map platform and a real-time address
database, facilitating the precise location, addressing, and coding of residential addresses. This
postal address code platform possesses the capability to digitize and accurately pinpoint
customers' locations. It serves as valuable information for businesses across various industries,
facilitating efficient searches. This solution significantly enhances the optimization of goods
delivery for postal, transportation, logistics, and e-commerce enterprises.
Saigon Newport Company, following the successful implementation of electronic port
and delivery order systems, as well as advanced production management and operational
programs, has achieved a remarkable 55% reduction in the time ships spend at the port.
Delivery times have been cut by three-quarters, leading to a 60% decrease in labor
requirements and a substantial improvement in traffic safety. FPT Corporation, leveraging
the Customer Insights Platform for customer data analysis, has retained 38,000 customers,
resulting in a monthly revenue increase of hundreds of billions of dong.
Despite these success stories, when considering the entire landscape of the Vietnamese
logistics industry, only a small proportion of businesses have undergone a profound
transformation similar to Saigon Newport or Vietnam Post. To fully embrace IoT, logistics
enterprises in Vietnam require additional internal resources and support from the government.
4.2. Evaluations of IoT adoption in last mile delivery of Vietnamese enterprises
- Success
Vietnam Report's survey shows that 100% of large businesses have increased investment
in digital transformation in the past year, of which 86% of businesses expect the application of
technology, digitalization and digital transformation will brings significant benefits in terms of
productivity and business performance in the future; 36% of businesses believe that introducing
technology into the logistics journey will improve global customer experience; About 68% of
large enterprises have deployed the application of technological advances of the 4.0 industrial
revolution in business activities such as: Internet of Things (86%), cloud computing (82%),

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intelligence artificial (45%), big data and blockchain, Blockchain (42%)… (Minh Duc, 2021).
Many significant successes have been recorded, typically the significantly improved processes
of Saigon Newport or Vietnam Post as mentioned above. These successes initially created
confidence for other businesses to apply digital technology to logistics processes, gradually
raising Vietnam's position internationally.
- Limitation
However, only a few large enterprises such as Saigon Newport and Vietnam Post have
started implementing IoT technology in their operations, setting a precedent for other
businesses in the same field. This also promotes competition and encourages the development
of applications related to digital transformation in general and the IoT specifically. However,
the majority are small and medium-sized enterprises with limited capital, which poses a
challenge to the widespread adoption of IoT technologies.
- Causes of limitation
Insufficient financial resources: Businesses themselves need capital to acquire advanced
technologies and high-quality human resources to effectively apply those technologies.
Additionally, when adopting new technologies, businesses are required to replace outdated
equipment with more intelligent devices that are compatible with the new technology. In
Vietnam, only Saigon Newport and Vietnam Post, which are two state-owned enterprises,
receive full support in terms of financial resources and personnel, enabling them to implement
Internet of Things technologies. However, the scope of application is still limited to simple
positioning technology, as mentioned above.
Lack of high-quality human resources: According to the latest logistics forum report in
Hai Phong in 2022, in a deep discussion, according to a survey conducted by the Vietnam
Industrial Research and Consultancy Company, 60% - 80% of interviewed businesses stated
that the capacity of their logistics workforce, including both direct personnel and management
staff, is at a relatively low level and does not meet internal needs, requiring retraining or
additional training. Currently, there are about 3,000 logistics businesses in Vietnam, and it is
estimated that by 2030, the demand for logistics human resources will exceed 200,000.
Meanwhile, the ability to meet the demand for logistics human resources only reaches nearly
20% of the market's needs. In order to improve technology and apply technological
achievements, the company's human resources are the most important factor in promptly
addressing emerging issues and building long-term optimization strategies.
Lack of synchronization among businesses: Internet of Things applications, such as DHL's
last-mile delivery, require partner brands to have equivalent technology to be compatible with
the carrier's technology. Meanwhile, in Vietnam, it is quite evident that businesses in general
have low technology adoption, not to mention the majority of individuals participating in online
sales with simple infrastructure, which has a significant role in the Vietnam supply chain.
Difficulties from the technology supplier. Even when the company has adequate financial
sources to develop the IoT, there are challenges to be concerned about. Most of the IoT market
share for Vietnamese enterprises is currently provided by foreign giants. The advantages of
foreign IoT systems include comprehensive and detailed processes, systems designed to ensure

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common standards, and the ability to transmit and connect data quickly, etc. . However, these
giants often do not fully understand the actual production conditions in Vietnam, and their
policies and planning may not be compatible with the regime and regulations in the areas where
projects are deployed.
4.3. Recommendations for Vietnamese enterprises
As mentioned above, logistics companies in Vietnam are gradually adopting technological
advancements related to IoT, especially large enterprises with strong financial resources and
good professional support. From the case study of DHL and the limitations we have identified,
Vietnamese businesses can draw experiences to strengthen resources and prepare the necessary
infrastructure for improving their logistics services through IoT.
4.3.1. Solutions for strengthening financial resources
One of the biggest weaknesses of Vietnamese Logistic Enterprises is financial resources,
which have a significant impact on the quality of physical infrastructure, equipment, and
expertise when applying IoT technologies in the company's operations. Ensuring sufficient
financial resources will help the company avoid infrastructure constraints and promptly address
system errors.
Vietnamese logistic enterprises can seek support from the government to strengthen their
financial resources. The Vietnam Logistics Business Association (VLA) has recommended that
the government provide a financial support package specifically for logistics businesses. This
can include measures such as reducing taxes and costs for logistics enterprises, as well as
offering financial incentives to promote digital transformation and improve efficiency in
logistics management and development
In addition, enterprises can explore partnerships and collaborations with other businesses
in the logistics industry. This can include forming strategic alliances with logistics service
providers, technology companies, or e-commerce platforms. By leveraging the expertise and
resources of their partners, enterprises can access additional financial support and expand their
service offerings.
Vietnam is a hot market, a transit point for goods between Southeast Asian countries and
a factory producing many international goods, a potential import and export market. Therefore,
Vietnamese logistics enterprises can take advantage of the Location advantage according to the
OLI theory to attract foreign investment and provide benefits, exchange values with partners
to conduct bilateral cooperation.
4.3.2. Solutions for upgrading technological capabilities and human resources
Logistics companies need to proactively update their knowledge about the logistics
industry as well as the technological trends being applied in major global logistics companies
such as DHL, UPS, Amazon, FedEx,... At the same time, they should consult with experts to
strengthen the professional capacity of their staff and make new improvements in optimizing
efficiency. This is very important because the logistics field involves many policy regulations
and large-scale applications, not to mention new technology applications related to IoT or other
smart technologies that may face many risks with regulations in Vietnam.

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 When applying IoT in the company’s operations, an important part of the company will
depend on technology. Therefore to secure information and accompany businesses in the long
term during the digital transformation, businesses should have their own experts to promptly
handle arising issues immediately and build strategies and digital transformation roadmaps that
are suitable.
Logistics businesses need to proactively cooperate and seek advice from digital
transformation service providers, logistics technology software solution companies to apply
new technology or order specialized applications for businesses to maximize the effectiveness
of each application.
4.3.3. Solutions for data management optimization and data security
The use of smart data will help businesses make decisions based on accurate and timely
information. However, without a suitable plan and lack of knowledge in the technology
process, it will cause information leaks and other risks related to the company's and customers'
data security. Even DHL, a giant company in the Logistics field, also recognizes this as one of
the limitations of IoT. When Vietnamese enterprises want to implement IoT, they need to pay
even more attention to issues related to Data Security and cyber security threats by solutions
that we recommend as below
- Data management optimization solutions
Integrating cloud technology is an effective method in the digital transformation process
of the Logistics industry. This technology helps businesses enhance operational efficiency and
optimize operational processes. By using cloud computing, businesses can tightly manage
specific transportation processes in their operations. Through cloud technology, businesses can
track the location of transport vehicles in real time, plan space in logistics, and manage
transported orders.
Utilize the company's Big Data to store information, forecast demand more accurately,
understand more about the customer's buying cycle, and estimate warehouse capacity in the
future based on available data. In addition, Big Data also helps analyze goods data, quantity,
status, propose transportation methods to ensure quality, improve operational efficiency for
businesses by transparentizing all types of invoices, documents, licenses, helping businesses
manage effectively and limit risks.
- Data security solutions
Purchase storage support programs, software with high security features such as Dropbox,
Onedrive or Fshare... to set up a safe internal network system. Medium and small enterprises
in Vietnam can currently consider applying Vietnamese technology with suitable prices such
as V-Eagle software and V-AZUR solution set is a server system and internal machines that
allow users to work on the internal network, still access the Internet without needing to connect
to the Internet. This solution helps businesses ensure safety when working remotely, avoid data
loss and malware infection, especially very simple to use, reasonable cost for small and
medium-sized logistics businesses in Vietnam.

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4.3.4. Lessons learned from the success of DHL
Vietnamese enterprises should recognize the potential of IoT to bring significant business
benefits to the logistics industry. By exploring the use of IoT across their warehousing,
logistics, and transportation systems, they can analyze data generated at critical points, better
manage inventory, predict system maintenance, and monitor and control supply
chains.Furthermore, Vietnamese enterprises should prioritize customer satisfaction,
considering customers as the focal point, in order to enhance services and technologies to meet
customer needs, especially in final-mile delivery. Vietnamese enterprises should focus on
innovation and collaboration in their use of IoT. Developing and realizing solutions in
collaboration with partners can help them stay ahead of trends and produce value through
smarter, faster, and more sustainable approaches.

5. Conclusion
From the above cases of how the Internet of Things can be applied in different use cases,
conclusions can be drawn, which is that IoT is an important facilitator to improve the
efficiency of last-mile delivery. DHL is one of the companies that successfully applied IoT
into their business. From such applications, many achievements can be acknowledged thanks
to the Internet of Things, such as optimizing daily mail collection routes, effectively
controlling warehouses, ensuring on-time delivery, supervising the company's own inventory
turnover and so on. However, it cannot be denied that besides the above mentioned
achievements, drawbacks are also detected, demanding the company to invest more into
researching and developing more IoT-integrated solutions to help optimize the productivity
of last-mile delivery. From then on, Vietnamese enterprises can learn the lessons on how to
make good use of the IoT technology to foster the business, therefore upgrading technological
capabilities and human resources, as well as strengthening cooperation with foreign partners
and technology solution providers.

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