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Edge Computing vs. Cloud Computing

Source: Xenonstack (2023): Edge Computing vs Cloud Computing | 8 Key Differences; Muvi (2020): Cloud Video Encoding vs On-Premise : Pros, Cons and Beyond; Zgig (2021): Edge vs Cloud Computing

Relevance to the Future of Logistics

Camera Vision for Operational Efficiency & Security

A traditional closed-circuit television (CCTV) setup can overload the warehouse internet infrastructure, constantly streaming high-bandwidth raw video signals to a cloud server for analysis. Instead, edge computing offers a viable alternative.

By applying camera vision technology in the warehouse, computation of context-rich visual data occurs locally, at the network edge. Each camera uses its own internal computer to run a motion detection application, and only this footage is sent to cloud, greatly reducing bandwidth use and increasing data security. This achieves real-time monitoring and analysis for operational efficiency and security; for example, accurate stock counting, location tracking, identification of misplaced items, detection of unauthorized access, monitoring of high-risk areas, and quality control.

In a collaboration project with DHL Global Forwarding in Denmark, a proof of concept was run with Protex AI, a solution which uses computer vision and AI to analyze data and generate proactive safety events and dashboards. Edge devices connect to the local CCTV setup and network, processing and storing visual data on site. Only selected clips are sent to the management system in the cloud server.

Data Privacy

Data privacy and protecting individual worker identity are essential in logistics and the supply chain. With its decentralized approach, edge computing helps companies comply with stringent data regulations such as the European Union’s General Data Protection Regulation (GDPR).

Processing data where it is collected at the edge reduces the need to transmit sensitive information from logistics operations to centralized or cloud servers. After processing data locally, it may still be necessary to transmit some of this information to central servers or the cloud. By using encryption at the edge, the data is unreadable without the required decryption key, keeping information secure even if intercepted during transmission or storage.

As an additional layer of security, established techniques such as tokenization can be used, replacing personally identifiable information (PII) with unique tokens. This way, visual data can be used to enhance operational efficiency but worker anonymity is also assured in the warehouse or yard.

Fleet Management Telematics

Telematics plays a significant role in fleet management by providing real-time data and insights about vehicles and drivers. With edge computing, relevant data can be captured, processed, and used for rapid analysis and decision making. Examples include tracking the location, speed, and movement of vehicles in real time, monitoring engine performance and fuel consumption, diagnosing vehicles and receiving real-time maintenance alerts, and analyzing driver behavior.

American IoT company Samsara uses edge computing in an integrated platform solution to improve fleet safety, efficiency, and sustainability. This covers dash cams, telematics, compliance, trip management, driver vehicle inspection reporting (DVIR), trailer tracking, and speed monitoring. For example, the highly effective dash cam uses sensors, computer vision, and AI to analyze both the road and the driver at the edge. Through video analysis, edge computing identifies and documents safety-related events such as instances of high-risk driver behavior or driver fatigue. Edge computing then selects recordings of only relevant events to automatically upload to cloud for fleet managers to access.

Supply Chain Resilience

Edge computing offers several specific applications in strengthening supply chain resilience.

To meet growing demands for visibility and enable increasing levels of e-commerce, better stock transparency is required in logistics. This transparency is essential at all times and all stages of the supply chain, ideally with granularity to individual product level. Responding to this need, companies are using IoT devices to monitor temperature, track real-time location, and watch stock levels. This information enables data-driven business decisions.

There are numerous opportunities to increase resilience by leveraging edge computing in supply chain processes. For example, this technology would be effective during autonomous vehicle transportation (trucking and last mile) as the truck is vulnerable to an increasing number of cyberattacks. Also, if vehicle control is compromised, there is a danger to other road users and to the shipment itself. When a self-driving vehicle is connected to the edge, however, it is able to react to situations in real time, rectifying any malfunction and correctly responding to cyberattack without requiring human intervention.

Within a warehouse, edge-enabled devices share and process data in real time. This improves the speed and accuracy of warehouse operations. For example, edge-enabled cameras can scan barcodes on individual pallets to monitor stock per micro-location in the facility. The cameras can read barcode metadata and indicate if a box has been placed in the correct location. Crunching metadata in real time, the analytics platform can trigger an alert of fraudulent barcodes and incorrect placements. This data can then be streamed, connecting the edge-enabled devices to the warehouse management system and enterprise resource planning system via cloud, so that employees are actioned to rectify the situation.

Challenges

Challenge 1

The distributed nature of edge computing creates a broader attack surface for cyberthreats; each individual edge device is vulnerable and could render the entire network vulnerable.

Challenge 2

Managing disparate networks and storage systems to edge compute is complex and requires specialized IT expertise and talent at multiple geographical locations simultaneously.

Challenge 3

The physical isolation of devices powered by edge computing, and therefore the data being exchanged by multiple devices, makes it difficult to monitor, authenticate, and authorize data access.

Challenge 4

Edge computing requires time and investment which can be challenging while running hundreds of container clusters simultaneously with different microservices provided at different edge locations at different times.

The distributed nature of edge computing creates a broader attack surface for cyberthreats; each individual edge device is vulnerable and could render the entire network vulnerable.
Managing disparate networks and storage systems to edge compute is complex and requires specialized IT expertise and talent at multiple geographical locations simultaneously.
The physical isolation of devices powered by edge computing, and therefore the data being exchanged by multiple devices, makes it difficult to monitor, authenticate, and authorize data access.
Edge computing requires time and investment which can be challenging while running hundreds of container clusters simultaneously with different microservices provided at different edge locations at different times.

Outlook

The proportion of supply chain decisions based on data from the edge ecosystem is expected to continue to grow. Organizations are shifting away from centralized systems towards more distributed networks enabled by developments in Wi-Fi, Bluetooth, and 5G/6G data communication. With edge processing of real-time data, we here at DHL anticipate logistics operations becoming more dynamic while covering larger networks, with data and decisions originating from the edge. This will improve warehouse operations, asset utilization, fleet management, and overall workforce efficiency and safety.

This trend should be CAREFULLY monitored,with implementations available for many use cases today.

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Sources

  1. Accenture (2023): Edge Computing to Enable New Business Models in the Next Three Years, According to New Accenture Report
  2. Grand View Research (2023): Edge Computing Market Size, Share & Trends Analysis Report