Cargo & Logistics GPS Tracking

A cargo's location, safety and condition can be monitored by use of GPS tracking technology, all from the relative comfort of a computer through the use of an easy-to-use software application over the internet. This mix of convenience and simplification offered by GPS tracking has revolutionized the field of logistics, with many businesses opting to employ this technology to improve their operational efficiencies as well as safeguard their cargo during shipment. Why has GPS tracking become such an integral part of the logistics industry in such a short span of time? The reasons are many-fold.

  • It helps significantly improve trailer-to-tractor ratios, effectively increasing the productivity.

  • It improves the accuracy and reliability of service and delivery through real-time updates about the location of cargo, along with estimated arrival times and status of cargo.

  • Helps streamline and improve the management of shipments by decreasing response time to issues or while dealing with changing customer requirements.

  • It reduces the risk of theft and losses through instant notifications in case of the assets being compromised.

  • Helps in optimization of asset use by keeping track of “dropped” cargo and delays caused by detained trailers at customer site.

  • Assist in transport of cargo that needs special care by monitoring various parameters such as trailer temperature, load status, trailer identification etc.

  • Help maintain a log of information regarding pertinent factors such as shipment route, delays at different stages of transit etc, in order to enable accurate reporting.

  • It assists in the implementation of “Just-in-Time” delivery systems, thus limiting inventory levels and improving asset utilisation.

  • It automates the process for the proof of delivery, thus simplifying the logistical processes a great deal.

  • It helps reduce labour costs by eliminating the need for human intervention at various stages such as inventory checking, delivery verification etc.

  • It improves the efficiency of supply chain management, streamlining cash flow by enabling instant delivery confirmations for invoice generation.

  • Customer satisfaction is impacted as a result of improved delivery efficiency as well as efficient sharing of information regarding the cargo transport.

  • Container tracking helps reduce the number of insurance claims, thus keeping insurance premiums for your organization in check.

 

The Challenges

Cargo tracking, while having its advantages, also raises a lot of challenges. They have to be understood in depth by any organization before going for the GPS tracking solutions for their cargo. Some of them can be described as below:

 

  • It involves a high cost of implementation which may not work out for all logistic operators. Economy of scale is the key to an effective cargo GPS tracking system.

  • Mere setup and implementation of a logistics tracking mechanism is not enough to generate operational savings. Smart analysis of the business and a complete “buy-in” on the part of the management are vital to an effective logistics tracking system for any organization.

  • Real time cargo tracking through extreme environments may be a challenge as the GS equipment employed may not be able to work in conditions such as sub-zero temperatures or high temperature environments

  • The battery life of the GPS tracking equipment is dependent on the usage, i.e. frequency of tracking and the costs also vary accordingly. An optimal usage is to be devised.

 

The Solution

Most of the challenges described above can be tackled with the right understanding of GPS tracking technology and the correct choice of equipment.

 

  • There are seasoned GPS tracking equipment manufacturers who provide consultancy services for upgrading your systems and do an analysis of your business to ascertain if GPS tracking technology can impact your efficiency, given your scale of operation. This ensures that you do not jump on the bandwagon too early and end up spending on technology which may not give you a commensurate return on investment.

  • GPS tracking technology always needs to be accompanied by a commitment on the part of the organization to it, meaning that all operational processes at various levels of logistics management have to be redesigned accordingly

  • The cargo GPS tracking technology set up must be customized to the needs of the cargo that it is applied to. Various weather conditions, handling patterns etc need to be understood well before implementing the system.

  • Minor details such as battery life of equipment etc need to be understood before purchase, so that the right kind of solution is applied. For example, highly critical shipments need to be tracked in real time with very frequent tracking, and hence a suitable solution is to be employed.