More than 10 years ago, various technology companies were investing in tracking devices that were put in the cargo/container on a per shipment basis. Today there are many providers of such devices at a relatively low cost. Some solutions only log data and are not able to report real time and others offer far more. The most advanced of these have real time reporting using cellular and/or satellite networks along with sensors to monitor cargo, door opening along with container damage during transit.

As the Global Supply chain matures technologically, so do the demands and customer expectations on the Logistics around it. Shipping time, warehousing space, inventory flow across borders and certainly having real time visibility into supply chain disruptions. Here are a few benefits of deploying shipment based tracking solutions for your supply chain

Improved product quality and consistency

Tracking and monitoring technologies can assist you in delivering a superior product in terms of quality and consistency to your customer. The continuous monitoring of goods makes sure that your customer is never surprised when your product arrives that it is not in the best condition possible.

Decrease in warehousing and storage costs

In the global supply chain time is money. Having to overstock in a warehouse or storage facility in order to have buffer or safety stock for late shipment arrivals, shipping errors or even when your container of goods doesn’t make it on the vessel( Roll Offs) costs your business money everyday. Real time visibility allows you to be much leaner over time and free up cash previously tied up in inventory.

Reduced impact of stock outs

Complete visibility in the supply chain helps reduce the unfortunate incidence of out of stocks or stock-outs which has both direct and indirect impact on businesses by reducing sales opportunities and disappointing customers or disrupting their businesses.

Staying pro-active during supply chain disruptions

When disruptions happen, because they always do, it is always better to know sooner than later about a particular shipment or incident during transit. In the majority of cases it’s not the disruption that is the real issue, the problem is the fact that the shipper was not able to let their customer know about it in enough time to prevent the fallout from the end customer. Up until now Global Supply Chains have been reactive, spending vast amounts of money on expedited air freight because they didn’t realize the shipment was spoiled, lost or diverted until the last minute. Reduce those instances drastically by having the data from every shipment at your fingertips, so you can give your customer options simply because you have more time to react.

Reduced product shrinkage and insurance costs

Better security and condition monitoring can help reduce loss or shrinkage of products in the supply chain, including that resulting from theft and damage. When theft or damage occurs, electronic forensics can determine when and where the loss occurs, and who had custody of the shipment at the time which can lower insurance claims and premium costs.

Trade route analysis

When you have visibility you are better able to know what your most efficient trade lanes are at a granular level. Through Geo-fencing you can calculate how long your shipments sit in particular areas in your trade lanes. This information is quite valuable when you apply it to your operation and make the changes once you identify the source of your delays or shipping issues. Long term the shipping data collected from the devices can also help you identify trends in your business flow that will allow you to make smarter decisions in the future.

Lower Labor Costs

Reduced staff costs and better staff utilization by automating the supply chain management functions through actual tracking allows supply chain operators to manage by exception, reducing the number of people involved in monitoring shipments and allowing existing staff to handle greater volumes and take on new challenges to grow business.

Improved Brand Protection

Tracking, condition monitoring, and cargo security technology protects companies and their “brand capital” and can reduced the incidence of adverse cost and reputation impacts and fines associated with unauthorized insertion of contraband or worse in shipments, and the impacts such as recalls for items such as spoiled perishables.

It all comes back to the data sharing for supply chains

By giving tiered access to the real time data from shipments, everyone in the supply chain can be made aware of the location and condition of goods in transit, so when there is an incident whether it be damaged cargo, bad weather, a container not making it on the intended vessel or even a shipment that was transshipped, the customer is able to be proactive as opposed to reactive within their own supply chain.

The bottom line

Better visibility, security, and cargo condition monitoring in your supply chain has three short and long term effects:

Reduces operations cost and lowers risk – bottom line growth

Increases revenue and facilitates business growth – top line growth

Multiple intangible benefits such as brand protection, increased customer satisfaction and loyalty, and better infrastructure for future business growth

As the costs of these solutions have come down in recent years driving faster ROI, and the adoption of this technology becomes more ubiquitous among industry and within your competition, the real question becomes: When can you afford not to track your shipments?

This article was originally posted on LinkedIn.