Freight tracking software or vehicle tracking software is one of those prime telematics services which help the shippers to have a better control over the dynamic side of the supply chain. The rise in the usage of satellite & cellular communication enabled cargo loading units in the form of containers and trailers supplements the fact that the transporters want to avail complete visibility in the freight transportation. It should be noted that the inclination towards freight tracking software is not restricted to a particular mode of transportation. Air, Rail, Ocean cargo containers and intermodal cargo containers are racing towards a completely connected freight transportation future at the same pace. By the end of 2014, there were 0.43 million Unit Load Devices (ULDs) which have helped the freight tracking software to monitor the same number of cargo containers via cellular or satellite communication. One can get a better idea about the relevance of freight tracking software with the rise of ULDs since 2014. By the end of 2019, these devices are predicted to clock a compound annual growth rate of staggering 28.5%. This means that by the end of 2019, there will be approximately 1.5 million ULD devices which will be supporting the freight tracking software in monitoring and tracking functions with the help of cellular and satellite communication.
By the end of 2014, there were 0.43 million Unit Load Devices (ULDs) which have helped the freight… Click To Tweet
Why you need Freight Tracking software?
We can see with the statistics mentioned above that the market is getting ready to embrace tracking and monitoring support system in the next few years. But do we know what are the key solutions which propel this support system? The most important part of the tracking and monitoring mechanism for a supply chain is the freight tracking software which helps the system to decipher the inputs provided by the ULDs. It helps the fleet managers to understand the negative or positive impact on the current state of the freight container over the end goal of the trip. This is generally done with a dynamic estimation of the time of arrival of the container. If the expected time of arrival (ETA) is later than the Scheduled time of arrival (STA), the delivery is at higher risk of being rejected. With the help of 24/7 monitoring and tracking mechanism, the fleet managers can detect the delay in ETA at an early stage to take counter actions to expedite the shipment and reduce the risk. This is only one scenario where knowing the real time status of the shipment can put the fleet managers in a better position to ensure the success rate of the delivery. But there are various similar instances where knowing the delay at the deviation from the planned route or milestones through freight tracking software can save the day for the transporters.
Moreover, it is not always about knowing the status of ongoing trips. With the data analysis of the past trips record generated by the freight tracking software, the fleet managers can reduce the variables from the routes. With the help of data for most profitable carriers and routes which are helpful in transporting freight faster and cheaper, fleet managers can plan more efficient shipping routes. Therefore apart from generating value by providing vital information about the real-time freight status for comprehensive customer support, freight tracking software also helps in eradicating the loopholes in the shipping process. This, in turn, helps in framing better shipping strategies for the future.
What is true Total Cost of Visibility (TCV)
The total cost of visibility is described as the expenditure incurred in installation and operation of freight tracking software infrastructure. This involves the tracking sensors, RFIDs, Barcode tracking devices along with the software purchase cost. With the help of cloud-based freight tracking software available in the present times, the total cost of adaptation of tracking solutions has decreased to a great extent. Also, due to same reasons, data security is at par with the best available options. Since the freight tracking software solutions are now gearing up towards supplementing automated back office operations, the adaption and operational cost are mostly justified by the savings and improvements in the operations of the supply chain.
Specific areas where Freight tracking software help
As suggested in a study by MacroPoint, around 12% of the total loads shipped a reached destination after the scheduled arrival time. This not only hampers the future business prospects of the shipper but also induces an uncertainty in receipt of shipment which can result in failed delivery. In most of the cases, this delay could have been avoided or prevented with the help of better insight into the system where the lag is induced. Other specific aspects where freight tracking software could deliver positive results are described below.
Reduce Check Calls
Check calls are necessary to provide the acknowledgement of receipt and dispatch of the loads at different hubs. Freight tracking software automates the process to reduce the efforts from the customer that is made to know the status of the shipment. Freight tracking software is also able to provide the dedicated customer portals where the real-time location status can be seen by the customers. For alerting the customers for a tentative delivery, freight tracking software can also send the alerts in the form of SMS and emails stating a short window for the expected time of arrival of the shipment. This particular feature has been able to reduce the check calls considerably with a decrease in failed delivery scenarios by 20%.
Better Customer Services
54% of the 3PLs suggested that they have lost business due to lack of visibility in their business. Freight tracking software directly addresses this problem for the shippers. With the help of being alerted by the freight tracking software for the specific factors that are hindering the timely deliveries, the shippers can take due measures to solve the problems. Freight tracking has helped immensely in knowing the key factors such as idle production line, staffing insufficiencies and lack of inventory. All of this needs the active involvement of the manufacturer to be sorted out and get deliveries done as per the schedule.54% of the 3PLs suggested that they have lost business due to lack of visibility in their business. Click To Tweet
Freight tracking software also helps the shippers to supply the dynamic consumer demand in a much better way with the help of dynamic routeing. In case a particular hub runs out of the supply, the transporter can direct the carriers which are nearest and intended for less urgent delivery. The diversion in the original plan for diverted carrier can be substantiated with counter measures as shipper can manage that with some extra time. To have this kind of flexibility in managing the carriers in real time for a dynamic change in the demands, transporters heavily rely on advanced freight tracking software and take measures accordingly.
Decrease Dwell Time
Detention periods observed during freight transportation are efficiency drainers for the productive time and adds up as loopholes which decreases overall efficiency of the system. In fact, as suggested by FMCSA the total revenue which we lose every year due to detention periods is about $3 Billion. Since the freight tracking software are able to deliver the GPRS status of the carriers in real time, you can detect and act upon these cases of extended detention time. While these are the immediate benefits of the freight tracking software, these are not the only once with advanced reporting system. The advanced reporting system records the dwell time for the ports and hubs to analysis the trends for the average dwell time that can be experienced for the respective ports and hubs. This also helps the shippers to have a better insight to choose from fastest ports and routes with average dwell time taken into account for the future trips.As per FMCSA the total revenue which we lose every year due to detention periods is about $3 Billion. Click To Tweet
Dwell time induces higher loss in the cold supply chain as they carry degradable type of goods which is sensitive to time lag on a larger extent. This means that in cold supply chain high dwell time is not only risking the client business for the shipper, but also complete consignment is at stake. These scenarios where the consignment is prone to become inconsumable or discarded in case of deterioration of quality of good, freight tracking software also take humidity and temperature statistics in account for tracking.
Theft prevention remains one of the most direct benefits of the freight tracking software. Today when the carriers are fitted with the monitoring and GPRS tracking devices which are able to transmit the real time status of the geographical coordinates of the carrier, any deviation from the planned route can be detected and acted upon instantly.
An accurate freight tracking software which is connected with the back office operations can help immensely in automating your inventory operations. Thereby ensuring that you don’t have to suffer from lack of stocks or visibility in your warehouse. With the help of trends recorded by the freight tracking software, you will be able to assess the productivity and ROI goals in a better way. The inflow and outflow of the units with respect to time taken also helps in managing the in-house operations for inventory operations with improvements for better dispatch process, better warehouse layout planning and acknowledging staffing requirements. A freight tracking software which relies on barcodes and RFIDs also improves the accuracy of the inventory management and helps in reducing the manual work for inspection of the goods.
Freight tracking software are becoming more viable for the shippers and manufacturers by embracing the features devised by advanced technology. Today, manufacturers and shippers are also able to build up their future business strategies with the help of predictive analysis provided by the freight tracking software. Many of them are also providing the key insights into the scheduling operations, which can result in more efficient outcomes. The possibilities for technology advancements are limitless and at Dreamorbit, our dedicated team believes it completely. Therefore we try to address the custom needs of the clients with bespoke solutions for implementation and integration of freight tracking software. We also try to educate our clients about the advancements and innovative features which can help their existing infrastructure to deliver scalable and more efficient outputs. To know more kindly get in touch for a quick discussion, we would be happy to help.
DreamOrbit is a Logistics and Supply Chain Technology Development company. We have been creating meaningful and reliable software products for the industry which is “Always on the go”for the past half decade. We are highly motivated team aimed at innovation. Our philosophy is to “keep challenging the potential within”. With the support of our happy customers and dedicated team, we strive to provide best possible solutions to industry problems. Visit our website to know more aboutDreamOrbit.