5 advantages of Geofencing apps which makes them profitable for logistics companies

5 advantages of Geofencing apps which makes them profitable for logistics companies

Quicker check-ins of delivery trucks, safer driver commute and higher success rate for deliveries are now targeted by a different technology by the logistics business owners. From a market of $ 8.12 billion in 2014, the location-based services are projected to grow till $39.87 billion by 2019. And geofencing apps are leading this growth. But why? GPS integration is always there for the drivers and logistics owners to speed up not only their delivery but also their operations. What are the major benefits of using geofencing apps which are luring the logistics industry towards embracing the geofencing apps as the next big thing in the tech?

Let’s check out the main advantages.

Why are Geofencing apps in rage?

In logistics, till now the major emphasis was on to becoming faster. But the industry is gradually realizing that it not only about speed when it comes to delivery. It is also about becoming real-time and trackable. Geofencing is the process of using geofences to track the desired units when they are in proximity. Geofences are the static perimeter of a certain area around the center for which the monitoring needs to be done. These centers can be anything ranging from retail stores, offices, warehouses or the delivery centers. One the desired units are in proximity to the geofences, event-based triggers are used to perform specific actions. It can be a notification to that unit about the latest offer from the store department or a specific delivery time to a customer situated at the other part of the city who is waiting for the shipment to be delivered by this unit. Since geofencing apps are not cost intensive and offer a better hold on a geography to the business owners, they are becoming popular among industries.  

  • Event triggered actions

Even automated operations have a limit of their own. They can’t be customized on the case to case basis for each carrier. But with the help of Geofencing, you can introduce event triggered actions in your supply chain. These event triggered actions can be utilized to prepare the forward supply chain for the processing of the incoming carrier and the shipments. This cuts down a lot of time required for the carriers to spend on the dock which results in lesser detention time and quicker dispatch.

  • Accurate Location based reporting

With the help of adequate information about the number of shipments available for dispatch and location coordinates for the ones in transition, delivery centers can convey accurate time for the arrival of shipments. This saves the time spent on waiting for the product on the receiving end. It also reduces the cases of failed deliveries as the receiver has been notified in advance of the delivery. It has been observed that a “Pre-delivery” notification is able to curb the “failed deliveries” by 25%.

  • Higher security

Asset management and tracking become even more secure with the help of geofencing. GPS trackers help to secure not only the mobile assets such as the carriers but also the static assets with the help of strategic geofencing around the asset area. Any breach in the area can be instantly detected and diagnosed. Even for a delayed entry or slow movement of the carrier can be scrutinized for damage to the carrier.

  • Real-time coordination

Once the carrier enters the geofenced area, it can coordinate on the real-time basis to update the stats about the onward trip automatically. No human coordination is required as the system can itself interpret the remaining distance, speed of the carrier and necessary stop points and duration of the trip and calculate the time of arrival. In the case of changes in schedule due to unexpected stoppages and encounters faced by the carrier, the system can automatically update the new time in the system for reference on real time basis.  

  • Improved Planning

Geofencing majorly relies on GPS trackers and the mobile app APIs for the update of carrier movement and hence deliveries. This always keeps the operations staff at the forefront with the necessary information for making any changes in the planned trip. This helps them to keep on improving the supply chain by making required changes in order to keep the deliveries on time.  


If you are wondering how much impact geofencing can introduce in practical scenarios then think about Audi. It is using a Geofencing smartphone app which uses the GPS coordinates of the incoming delivery trucks and estimates the remaining distance they need to travel and reach the plant. The app helps in triggering different check-in events on the respective remaining distance detected by the geosciences. Therefore after the truck enters 50 km distance from the plant, the adjustment in the truck delivery schedule is done if any changes in scheduled delivery time are needed. After the truck enters the 20 km distance the check-in process starts by matching the logistics planning schedule with the truck’s position. Once the truck enters the 1 km area from the plant, the triggers initiate the status change process from “In transit” to “In plant” and updates the schedule. In case you are wondering how much time Audi saves by using geofencing apps, it is 30 minutes per truck and Audi plant at Ingolstadt, Germany alone receives 650 trucks per day where this prototype geofencing program is running.

The industry is optimistic about Geofencing apps due to many reasons which work in the favor of logistics business. The technology is not cost intensive. It practically doesn’t need any hardware to be installed at the delivery site or in the carriers. It is and works as a simple mobile app which uses the GPS coordinates just like any other tracking app. The difference created by the triggered actions are made by introducing required tech solutions in the TMS used by the company.  

DreamOrbit is consistently helping out its clients in embracing such solutions. In logistics industry, it is important to use the customized solutions as the companies differ from each other vastly in terms of size and scale of operations. DreamOrbit understands the specific requirements of each of its clientele and helps them in adopting best tech solutions of the logistics industry.     

About DreamOrbit:

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 about DreamOrbit.

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