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Huawei announced that it has signed a Memorandum of Understanding (MOU) with DPDHL Supply Chain, the leading mail and Logistics Company, to develop a range of supply chain solutions for customers using industrial-grade Internet of Things (IoT) hardware and infrastructure.

The Internet of Things could generate up to US$1.9 trillion in additional value for the global logistics industry by 2025, according to Huawei, enabling operators to better monitor and optimize their supply chain processes with low-cost networked sensors and devices.

Under the MOU, Huawei and DHL will collaborate on innovation projects focusing on cellular-based Internet of Things technology, which can connect large volumes of devices across long distances with minimal power consumption. The greater connectivity will deliver a more integrated logistics value chain by providing critical data and visibility in warehousing operations, freight transportation, and last-mile delivery.

“Spending on connected logistics solutions is expected to more than double between now and 2020, and many logistics providers including DHL have already begun to explore Internet of Things applications in their supply chains, including everything from enhanced asset tracking to driverless delivery vehicles,” said Dr. Markus Voss, Global COO&CIO, DHL Supply Chain. “This MOU will allow both Huawei and DHL to tackle complex operational and business challenges with a powerful combination of world-class Internet of Things hardware, networks, and expertise in end-to-end supply chain management.”

The MOU will see Huawei make its IoT devices, connectivity experts, and network infrastructure accessible to DHL and its ongoing efforts to incorporate greater sensing and automation capabilities into its warehousing, freight, and last-mile delivery services. Huawei and DHL will also collaborate on efforts to market and commercialize the results of their innovations, including pilot commercial projects in Europe and China.

“Relying on Cloud-Pipe-Device Collaboration, Huawei builds an open, flexible, elastic, and secure platform, helping customers easily integrate and develop applications tailored to actual service scenarios,” said Yan Lida, President of Huawei Enterprise Business Group. “This partnership opens up an opportunity to improve the efficiency, safety and customer service offered by global supply chains in previously-impossible ways, and defines how the Internet of Things will shape the fortunes of the logistics industry in the next few critical years of innovation.”