Freight tracking is a critical component of any logistics process that provides peace of mind to both companies and customers as it allows them to see the location of a cargo shipment at any given time.
Companies use inbound freight tracking to trace and prepare to receive incoming international and domestic air cargo and sea freight, while outbound freight tracking enables customers to check the status of their packages.
Tracking freights in shipments is particularly useful for international logistics, such as air freight service to the Caribbean, Latin America, where complications may arise at customs or while using various local carriers to deliver parcels. With freight tracking, you can instantly check where your shipments are and provide your customers with up-to-date information on when they can expect their orders to arrive.
The Benefits of Freight Tracking
Having the capability to determine exactly where your freight is at any given point is critical to your business’ success. This type of information allows you to make better transportation decisions, particularly reducing costs and improving your services. Customers also deem freight tracking as added value, and your company is perceived to offer customers top-notch service as you provide faster deliveries with accurate arrival dates.
Here are some of the top benefits of freight tracking:
1. Reduced Waste and Increased Efficiency
From 2000 to 2017, there has been a 20% increase in the total value of US exports to Canada. This translates to a rise in demand and, inevitably, an increase in transport costs. However, it has been observed that there is a growing deficit of drivers. The American Trucking Association estimates that there will be a shortage of 100,000 drivers within the next five years. At the same time, Canada is forecasted to be short of 25,000 truck drivers by 2023.
In other to stay competitive, it is crucial to optimize transportation costs and increase efficiency. Logistics managers would have to find ways to meet increased shipment demands while keeping costs low, despite the shortage of drivers. Automated shipping and tracking solutions offer cost-effective air freight services solutions – enabling shippers to find optimal international and domestic air cargo routes for their cargo, which will help to significantly reduce fuel costs and lead to more efficient ways to consolidate exports customs.
2. Get Ahead of Competition
Logistics and supply chain management is investing heavily in tracking technology. In 2019 alone, surveys reveal that 71% of distribution centers use barcode scanners, 32% use GPS technology, and 23% use, RFID readers. It has been observed that companies that use tracking technology have begun to benefit from increased efficiency and their ability to provide their customers with accurate shipping information.
3. Improved Customer Satisfaction
Providing customers with detailed information as to when their package will be out for delivery, or if there will be any delays, is not just a convenient form of an update but vital information that is deemed necessary in their hectic schedules. Accurate tracking data also help ensure that shipments arrive on time by early detection of missing packages and catching delays before they affect the delivery date.
4. Increased Accountability
Freight tracking ensures accountability. With shipment tracking, you will be able to identify who signed for a particular package when it arrives at a location. So, when a shipment gets delayed or goes missing, there is real-time and accurate information on who is responsible. GPS tracking empowers your team to quickly determine when a shipment veers off course and contact the driver to recover loads.
5. Anticipate and Prevent Delays
With electronic tracking, you can detect delays and reroute shipments automatically, so you no longer have to worry about unexpected traffic jams, vehicle breakdowns, or driver errors. An automated tracking system can detect when a package deviates from its predefined route and will alert you right away. This way, your team can contact the driver to check and arrive at an optimal solution. If a delay is unavoidable, your company can alert the customer right away, giving them enough lead time to adjust their plans and accommodate a new delivery date.
6. Data-Based Analysis and Decision-Making
The transportation management system handles all your automated tracking and provides detailed insights into recurring patterns with your air freight or sea freight shipments. This enables you to see the routes used most frequently, which couriers you use for your heaviest loads, and which carriers you spend the most money with. Given all this data, you are equipped with enough information to strengthen your bargaining power and optimize your carrier selection for your freights.
Final Thoughts
In today’s business environment, it is imperative that you have a clear and detailed understanding of your shipping matrix so you can implement an effective shipping strategy that will enable your business to curb errors, remain competitive, increase efficiency, and grow significantly. With the help of freight tracking software systems that ensure the accuracy of your shipment records, timely deliveries, and adherence to audit schedules, you are equipped to manage your shipments and gain more significant profit margins effectively.