Mariano Banzo Martínez

In the era of digital transformation, automation and intelligent logistics have become key pillars for business success. Today, the integration of new technologies into the supply chain is revolutionizing how operations are managed and strategic decisions are made. From the application of AI and big data analytics to the deployment of connected devices through the Internet of Things (IoT), intelligent logistics enable companies to optimize processes, reduce costs, and enhance the experience for both suppliers and customers. This evolution translates into greater operational efficiency and the development of resilient systems in an ever-changing environment. Automation and intelligent logistics have become key pillars for business success. Intelligent logistics trends Current trends point toward a profound transformation in logistics, covering: End-to-end digitalization: The adoption of automated systems for inventory, transport, and distribution management has improved real-time data visibility, enabling agile and forward-looking decision-making. Robotics: Robotics in distribution centers and the use of technologies such as drones and autonomous vehicles for last-mile delivery are radically reshaping the logistics landscape, speeding up delivery processes and optimizing resources. Sustainability: Companies are investing in technologies that reduce carbon footprints and promote efficient resource use, integrating solutions that balance operational efficiency with lower environmental impact. Human capital development: The effective integration of systems and continuous upskilling of the workforce are crucial to turning data into strategic decisions, driving personalization and the creation of tailored solutions based on the specific needs of each market. Automation applied to intelligent logistics paves the way for a more sustainable supply chain management approach, offering innovative responses to the demands of an increasingly demanding market. The key to navigating this new landscape lies in the effective integration of systems and the continuous training of human capital. Thus, automation and intelligent logistics are no longer just buzzwords, but strategic tools positioning businesses in a new era of competitiveness, efficiency, and innovation. Effective systems integration and ongoing human capital development are essential to the transformation of intelligent logistics. IoT as a backbone IoT in logistics represents a revolution in how supply chains are managed and optimized. At its core, IoT connects devices, sensors, and actuators to a digital network that collects and transmits real-time information. This constant data flow allows for detailed and precise tracking of assets, from goods in transit to equipment in warehouses, providing unprecedented visibility at every stage of the operation through: Real-time monitoring and tracking One of the major breakthroughs IoT delivers is the ability to continuously monitor and control shipment status. —For example, while in the past container tracking relied on manual logs or occasional reports, today, devices equipped with RFID tags, BLE beacons and GPS devices (among others), as well as IoT connectivity technologies like 5G or NB-IoT, continuously report their location, environmental conditions such as temperature and humidity, and even vibrations or shocks during transport. This not only enables companies to detect potential issues before they escalate, but also supports proactive decision-making, optimizing routes, managing incidents, and significantly reducing risks related to losses or damages. The integration of IoT in logistics enhances efficiency and transforms supply chain management into a proactive and predictive operation. Efficient inventory management In warehouses and distribution centers, the implementation of IoT has transformed inventory management and operational efficiency. Smart sensors installed on shelves and storage areas register in real time the inbound and outbound flow of products, identify stock discrepancies, and streamline replenishment processes. Additionally, these integrated devices can interact with AI-based management systems, enabling predictive analytics to anticipate demand and optimize product placement according to turnover and storage conditions. ■ This automation helps minimize human error, enhances product traceability accuracy, and reduces response times across the logistics chain. Fleet management Another important aspect of IoT in logistics is its impact on fleet and equipment management. Sensors installed in transport vehicles can monitor key parameters such as: Engine performance Fuel levels Component wear This enables companies to schedule preventive maintenance before major failures occur and optimize routes. This predictive capability not only extends equipment lifespan but also prevents unexpected downtime, leading to significant cost savings and improved operational reliability. Challenges and obstacles However, integrating IoT in logistics also presents challenges, including: Managing large volumes of data, integrating legacy systems, and ensuring information security are critical concerns that must be addressed. Companies must invest in robust infrastructure and skilled teams to ensure proper handling and protection of generated data, enabling secure and efficient communication across the supply chain. IoT in logistics is not just a trending technology but a transformational tool that boosts efficiency, reduces costs, and improves responsiveness to unexpected events. ■ By connecting each link in the supply chain, an intelligent and dynamic ecosystem is created—essential to meeting current market challenges and preparing for an increasingly digitalized future. Other enabling technologies AI and data analytics Another key component is the integration of Artificial Intelligence (AI) and advanced data analytics. Applying machine learning algorithms to process large volumes of information helps identify patterns, predict demand, and optimize distribution routes. This predictive capability not only cuts operational costs but also improves response times in the face of disruptions, allowing companies to quickly adapt to market fluctuations. The synergy between AI and analytics drives holistic optimization, turning every data point into an opportunity to enhance operational efficiency and personalize the customer experience. IoT technology in logistics boosts efficiency, reduces costs, and improves responsiveness to unexpected events. Automation and robotics Automation and robotics have also transformed the operation of warehouses and distribution centers. Implementing automated systems for sorting, packing, and inventory management drastically reduces processing times and minimizes human error. In parallel, innovations in autonomous vehicles and drones are revolutionizing transportation, particularly last-mile delivery. These solutions not only accelerate logistics operations, but also support smarter and more sustainable resource use, anticipating the needs of a market that increasingly demands speed and efficiency. Blockchain Integrating technologies like Blockchain ensures secure, end-to-end traceability of every product, building trust with both suppliers and customers. In parallel, the commitment to environmentally friendly practices is driving the development of optimized routes and renewable energy solutions, cutting carbon emissions and aligning with the expectations of increasingly conscious consumers. ■ Together, these trends form an integrated ecosystem that optimizes logistics operations and positions companies at the forefront of innovation and sustainability. Conclusion All the technologies discussed here are not just a mix of trending innovations, but a transformational toolkit that boosts efficiency, reduces costs, and enhances resilience. By connecting each link of the supply chain, an intelligent and dynamic ecosystem is created—crucial for overcoming today’s market challenges and preparing for a more digital future. At Telefónica Tech, we are ready to support companies through these challenges and guide them through their transformation process, responding to these trends with a comprehensive portfolio of solutions. Connectivity & IoT Real time asset tracking thanks to accurate and efficient UWB connectivity September 3, 2024

The transformation of physical spaces has accelerated profoundly over the last few years, with technology taking on a leading role. Solutions such as The Brain platform, we have developed internally at Telefónica Tech, enable and facilitate this transformation, helping companies to achieve gains in efficiency, sustainability, knowledge and customer experience, including the phygital concept (bringing together the physical and digital worlds) in their physical spaces. We can identify 5 main lines of action for retailers, focusing on the physical retail space: Be more phygital, uniting the online and physical space to meet the expectations of the new consumer with an optimal shopping experience in all its sales channels. It is a twist to the old omnichannel, allowing more options to the customer, such as starting the purchase at home, recovering the cart in the physical store, but not finishing the purchase at that moment and then returning to finish it at home, etcetera. Improving the knowledge of the customer and their habits to maximize the visit and make strategic decisions that improve business results, having better data means being able to make better decisions. And with the data we are collecting we can then use them to make decisions that affect the following points that we are going to discuss as challenges. Improving the customer experience at points of sale, as the importance of the physical store is reinforced. A customer who enjoys a differential and pleasant experience at a point of sale will become loyal to the brand and will return to the store to make more purchases. Efficiency is key for retailers in a context of inflation and high prices, as this efficiency will allow us to gain margin points in the sale of products. If we focus on personnel management, improving efficiency in daily processes and tasks allows employees to focus on what brings value to the business. Sustainability is one of the key points nowadays due to the increase in energy prices and the higher costs that this implies for a physical space; as well as the need to reduce the impact of the carbon footprint. Positioning in sustainability is important for companies, consumers demand transparency and value the most sustainable brands. What is The Brain? The Brain is a platform developed by Telefónica Tech that allows you to digitalize your physical space through several integrated solutions, dynamic marketing, musical ambience, indoor insights. and proximity marketing. The Brain connects all these products to obtain an integral vision including monitoring, operation, content management, dahsboards and generate actionability through its rules engine. The main differential value of The Brain is to enable actionability between the different integrated solutions and to offer the possibility of integrating external data sources that can also be used as part of the actionability to enrich the complexity and versatility of the rules. The actionability can be between the own elements that Telefónica Tech offers in its projects as in systems that the customer already has deployed, for example lighting systems to perform synchronized effects depending on the customer experience that is taking place in the space (video, audio and the like), and also to provide the possibility to integrate external data sources that can also be used as part of the actionability). The modular architecture and the integration APIs also allow the indicators and data that are in The Brain to be integrated with BI systems (Business Intelligence, which are systems that collect and analyze all the information related to the business) that the client already has or in data lakes (centralized repositories of information), for its subsequent exploitation. The platform will allow you to segment based on the criteria you need users, roles, geographic, business, etc. to enable you to manage different experiences in each point of service that you have installed in The Brain. The Brain from Telefónica Tech enhances customer experiences, while improving efficiency and sustainability. A platform that grows with your needs The Brain is a platform that is ready to grow and evolve as your needs change; you don't need to contract all the products from the beginning, just contract what you need and from there you can grow in number of licenses or add products in a simple way. The architecture design allows you to scale the platform in real time, depending on the demand to manage the growth of traffic and devices automatically. The platform has secure APIs that allow other systems to interact with the platform, thus achieving interoperability between existing systems and those deployed at the client. We develop an annual product roadmap that allows us to evolve based on market trends, customer needs and our experience in marketing this type of solutions for more than 15 years. The roadmap is flexible enough to adapt to special projects that may arise. Transforming physical spaces is being driven by technology. AI and predictive modeling The speed at which AI evolves is vertiginous and it is a challenge for organizations to keep up with trends and changes; as well as to decide the best use cases to apply the technology and respond to the challenges indicated. Telefónica Tech has professionals and partners specialized in the field of AI and Big Data, being able to integrate this expertise in the development of the platform to offer advanced functionalities. Therefore, we have video analytics solutions integrated in The Brain that make use of AI in real time to obtain KPIs about the users of the spaces or measure the impact and audiences of your advertising content on dynamic marketing screens, which will allow you to define communication strategies adapted to the profile of your customers, with a better conversion rate, impact, and brand recall. Our predictive models for the influx of people to the physical space take into account nearby events or the weather among many variables so you can plan the demand and be more efficient in the use of staff and the provisioning of products. Making strategic decisions requires a better understanding of customer habits and knowledge. Areas of application The Brain will help you transform your physical space, in the retail, banking, and distribution sectors; among others. It will allow you to program and broadcast dynamic marketing campaigns segmented according to the business criteria you require, play music ambience channels and audio spots, know the behavior of your customers in the space; know how they move, how long they spend in each of the areas of the store, average waiting times in the cashier or customer service areas, and more KPIs. ■ You will also be able to know the expected footfall in your space through the predictive funnel model, which will allow you to schedule staff shifts more efficiently. Therefore, you will be able to make decisions that respond to the industry challenges we listed at the beginning of the post. The Brain also has application in other sectors such as offices to manage corporate communication, tourism offices, customer service or museums where the knowledge of the user and the experience offered to it are of vital importance. Telefónica Tech offers the design, consulting, implementation, and maintenance of digital transformation projects of spaces, using The Brain as a fundamental piece, to help our clients to solve the challenges they are facing.

One of the companies' biggest dreams when it comes to communicating their advertising campaigns, offers and services is to be able to adapt these communications to the profile of the people who are currently receiving these advertising messages. In the online world, for many years, browsing data, cookies, etc. have been used to personalise the advertisements displayed on websites; two people with different profiles accessing the same website will not see the same advertising. In some cases, although the advertising is the same, the presentation is different to make it more attractive. We are affected by this type of strategies on a daily basis, for example, in some streaming content platforms, the same series has different thumbnails that highlight different features of the series, making it attractive to people with different interests. In the first article of the AI of Things series, we talked about the two main pillars of transforming the physical world, sensorisation and data exploitation. In this article we are going to look at how knowledge of customer profiles can have an impact on business through communication. How can I adapt my campaigns? This article does not have a technical nature, but we must first define the technological scenario that will allow us to have an impact on our business. There are currently several technologies that we can deploy in our physical space to obtain information about our customers, the most important include: Videoanalytics: it allows, through cameras and always in compliance with GDPR regulations, to obtain information on the number of customers, various parameters such as age, gender, whether they come alone or with their family, movement within the space, etc. Big Data: Aggregate data obtained from various data sources that give us aggregated profiles with demographic and socio-economic data. WiFi Trackers: it allows mobile devices with open WiFi to know the number of these customers and how long they stay, among other data. Proximity marketing: the customer has an app installed on their mobile device, which may or may not contain a loyalty card. Through WiFi or Beacons we can know when the customer is in the shop and impact them with messages based on their purchase history, etc. Audience measurement: by installing cameras on dynamic marketing screens, we have the ability to understand the audiences for content and their demographic profile. These technologies will be deployed on the physical space based on the objectives that are set and will be linked to a dynamic marketing platform, which allows the management of the content that is broadcast on the screens that are deployed in the different points of sale. Campaigns carried out with dynamic marketing, whether on screens or on customers' mobile devices, have a greater impact and a higher recall rate than campaigns carried out on traditional media. This is due to the channel itself and to the fact that the content is designed specifically for this media. Until recently, these campaigns were scheduled according to start and end dates, as well as days and times of the week; based on empirical knowledge of observation of managers, strategic targets of the company and the like. This was already an improvement over static campaigns, but still far from the adaptive capabilities of online campaigns. Technologies and strategies to reach the right audience In the last year and a half, thanks to the technologies mentioned above, the ability to combine strategic programming of content with the ability to generate rules to change content based on the audience currently in your space has begun to develop, so that the content offered is the most appropriate to the profiles of the audience. The implications that this has on the business is greater than it may seem and affects various aspects, always with the aim of increasing the conversion rate and improving the experience in the space. Showing the right product to the profile of the customers will increase the conversion into sales of that product, while the presentation of tactical offers helps to have a higher percentage of impulse purchases, bearing in mind that we are carrying out the campaign in the place where the purchase is going to be made. The above is already a tremendous step forward compared to static campaigns, but it still requires an analysis of the data and, depending on what is seen in terms of customer trends, product targeting, time of year, etc., a strategy must be designed and the content to be reproduced must be chosen to ensure that the conditions set are met. Where are we heading? The future we are envisioning at Telefonica Tech IoT & BD is based on our own platform of intelligent spaces, spotdyna and the new capabilities of Big Data and analytics to develop an algorithm within the AI of Things platform with the ability to orchestrate the content to be broadcast at all times on the dynamic marketing platform, based on all this data and applying an exhaustive labelling of the content where various characteristics of the content are indicated both objectively and subjectively. These algorithms will take into account various inputs that will include data such as the day of the year, the time, the weather, what has happened in the past in terms of sales on days with a similar profile, analysis of customers who are currently in the space, forecasts for the future, etc. With this we will be able to simplify and make the content programming process more efficient, where what we would have to do is to tag the content and make it available as a pool, where the algorithm with automatic learning would be fed with all the sensors, big data and other environmental data to make the best decision and also be able to know the impact of the decision to follow the learning process, being able to make better and better decisions, offering content with offers and services better adapted to the audience and environment, achieving better conversion rates in sales. The path of evolution is set and we are taking the first steps of this new paradigm. If you want to know more applications of the fusion of the Internet of Things and Artificial Intelligence, or what we call AI of Things, you can read other articles of the series: AI OF THINGS AI of Things(I): Multiplying the value of connected things February 28, 2022 IA & Data AI of Things (II): Water, a sea of data March 16, 2022 AI of Things IoT anomalies: how a few wrong pieces of information can cost us dearly September 18, 2023 AI of Things AI of Things (V): Recommendation and optimisation of advertising content on smart displays May 17, 2022