Mar 27 2020
Blogs /

Supply chain management

Supply chain tracking and visibility have been the holy grail of the logistics since their invention. This technology has immensely improved movements and delivery of goods, planning and execution of logistics strategies, reduced costs, and it has increased optimization to the full capacity. Tracking and visibility systems use the GPS and location data to track items, merchandise and even people. For this reason, you are able to know where a particular cargo has reached; the best routes that you can take in delivering your shipments; avoid insane traffics that can possibly delay the cargo; and finally you can be able to minimize travel and transport costs by optimizing on relevant routes. A company can also integrate plans by selecting the right driver for the right task- some drivers are better off on country roads but poor on urban areas and vice versa.

Visibility systems are nowadays fed by a wide range of platforms such as the enterprise resource planning, SCE, SCP, AR, AP, TMS, logistics, drayage, freight forwarding, and even freight audit systems. This makes supply chain asset tracking more reliable and effective. Supply chain asset tracking has a huge benefit in supply chain since it does the following:

Improves fleet management

Since supply chain tracking uses GPS in monitoring its shipments, it therefore becomes possible for the company/user to manage the fleet in real time using the location data. This makes communication more effective, fast deliveries, and low costs in the whole process.

Improves driver’s performance and safety

Supply chain tracking systems promotes driver’s safety and responsibility and ensures that they don’t cause accidents. As such, you will be able to remind them in case something unusual is noted. Besides, the systems help an organization to establish a loyalty program that give incentives to drivers and other players in the logistics industry since you have an oversight on them.

Enhanced Security

Supply chain visibility has opened up more ways where better security is achieved through monitoring of the fleet. Supply chain tracking is programmed in a manner that when something strange happens, alerts are sent to the concerned department and they are able to find an ample time to check the problems that encountered in the shipment process. As such, potential threats and attacks are able to be contained as soon as possible and deliveries are done on time.

Detailed cost analysis

Supply chain and logistics accounts for 80 percent of the total cost of a product. As such, optimizing such an area will enable manufacturers and retailers to significantly save huge costs that are unnecessary in logistics and supply chain. This can be achieved by critically monitoring bad habits of the driver, unnecessary costs incurred and fuel mileage which, consequently, calls for adjustments to meet specific goals. For example, you can fuel your fleet by considering exactly how much fuel is needed, and keep in touch with the driver just to monitor how they are sticking to the said goal.

Conclusion

Supply chain tracking and visibility systems will continue to be the epitome of cost saving in the logistics industry. Besides, it gives both the supplier and the customer the confidence regarding their shipments as they will be in a position to track and monitor every movement of their goods. Besides, it promotes loyalty and good business ethics since every procedure is followed without any shoddy activity.

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