6 supply chain visibility benefits
In a logistics business, time is a crucial element for both the sender and the recipient. Shipment tracking systems provide visibility in the supply chain but also more business benefits such as:
- reducing potential costs caused by delays and missing packages,
- maximising performance and efficient processes,
- providing a better customer experience.
But these are very general benefits. So, let’s dive deeper!
Avoiding damage during transportation
Transportation may cause spoilage of food, for instance.
Food companies need to make sure that not only their cargo gets to shops on time, but also that conditions under which it is transported are stable and do not cause quality loss or spoilage.
- In this case, e.g., tracking and tracing temperature, humidity and shocks might be of great importance for the safety of the final consumers.
Cargo theft prevention
Supply chain theft is common.
Tracking and tracing cargo makes sense for valuable goods such as jewellery, machines, objects made on-demand, as well as big volumes of more common commodities.
- Thanks to tracking and tracing location, the unpredicted and suspicious stops and excursions can be identified, which helps prevent occasions for theft.
Transportation disruptions prediction
Operational constraints and responsiveness were a PwC’s subject of interest, in its “Global Supply Chain Survey” report. It turns out that companies whose logistics practices are flexible are able to be nearly 30% more effective when it comes to delivery performance – comparing to companies who are rigid.
- Shipment tracking systems allow a company to react in stressful situations such as delays. Actions may include sending a new package, notifying the customer in advance or trying to improve shipment time by changing the shipment method.
Logistics services vendors evaluation
How common are delays? Are the shipments handled as intended? Should we pay the full price for each shipment?
- Tracking and tracing cargo gives an excellent opportunity to monitor SLAs with carriers and 3PL companies and evaluate and compare their services.
Improving logistics efficiency
But tracking and tracing cargo, if done correctly, helps improve not only the services of vendors but also internal logistics and supply chain management.
It gives insight into your organisation and helps spot inefficiencies and bottlenecks.
- You can evaluate and redefine your standard operating procedures.
Better customer experience with lower support cost
Finally, sharing data about cargo or shipment location, and information on the cargo conditions with customers improves the customer experience and helps cut costs of manual customer service.
- Customers themselves can check what they can expect and if the product they got was appropriately handled, and thus if it is safe and of the right quality.