The Importance Of Shipment Tracking

May 18, 2022

Delivery Tracking Concept. Collage Of Black Woman Checking Shipping Information Of Her Order Online On Laptop With Cargo Services Infographics Icons

Shipment tracking is becoming very popular with most logistic operators in the Sea Freight industry. These operators use advanced tracking technology from tracking software developers. They can now incorporate the provisions of the tracking system in their operation. And when the system is set up, the operators and their clients can keep tabs on any shipment they wish to deliver.

How Does Shipment Tracking Work

Logistic operators use tracking software along with other IoT systems to digitally tag each shipment in their possession before loading them up. And when they set out for sea, the shipment's tag returns signals to them from its sensors. These electronic signals provide raw data that can be translated into physical coordinates. The coordinates will, in turn, be used to place the location of the shipment in real-time. Then the location status can now be relayed to the shipment owners as periodic updates.


Clients that receive these updates can keep track of their shipment's position in real-time. The value of this provision is immensely beneficial to the clients' cause. They'll become more confident and trust in the safety and security of their shipments. These clients will also make significant savings in time and money, resources that they can invest somewhere else.

This article highlights the importance of shipment tracking to everyone in the value chain. But most especially, the client whose cargo is being shipped will benefit more from it. These benefits will also be enjoyed by other players in the sea freight scene. The benefits will trickle down the value chain from the shipping company to the logistic operators.

Increase In Client Trust And Confidence

Some logistics providers attach smart sensors to their packages. These sensors send signals that can, in turn, be used to track and detect them. So whether your shipment gets misplaced at the terminal or the warehouse, you can easily find it in no time. It gives a layer of security to your shipments, and the confidence that it instills in customers is good for business.

The customers also get the tracking details, and some can even get the coordinates of their shipment. They track their shipments using data that is relayed in real-time. And with the regular status updates they get, they'll be more confident about the safety of their shipment.

Some logistic operators make provisions in their tracking system to foster a shared community. Through the tracking software in use, they can create open lines of communication that can enhance customer engagement. From sending status updates to their clients, they can also send important product information.

The end product is a service provider that can feel the pulse of its clients. This will, in turn, lead to a satisfied client base and high customer retention.

Savings In Cost

Depending on the employed strategies, a shipping operation can quickly go from a routine procedure to a money drain. Extra costs may arise from different channels, leaving clients and service providers to face the fallout. Your shipment may be delivered to the wrong person, and funds have to go into the process of reclaiming it.

In other scenarios, a lack of notice on your shipment's arrival time may incur unwanted costs. These fees-detention and demurrage will apply to your shipments if they are not cleared from the ports before the expiration of their grace tenure. And when your shipments are held in a container for days on end, the impact is also felt elsewhere. You are reducing the turnaround of the container operators, harming their business in the process.

Using a tracking system, all these unfortunate events would have been avoided. Everyone involved with the delivery of your shipment would not have to spend an extra dime. This is what a shipment tracking provision can do, making it ever so important.

Increased Customer Participation And Satisfaction

Customer satisfaction is one of the most important goals of every business. The value that most companies place in it informs the need for blending in customer-focused provisions in their operations. With a tracking number, the customer becomes an active stakeholder in the transit of their shipment. They get regular updates on the location status of their shipment.

And if an unexpected situation forces a departure from the laid out shipment plans, they'll not be left behind. They'll be duly notified of a change of course as soon as possible.

With all these in place, the customer or client can take pride in their involvement in the entire shipment process. It'll result in a happier and more satisfied client base, and the service providers will reap the benefits in due course.

Increased Operational Efficiency

With an effective tracking provision, logistic operators and other players in the value chain can do much more. They can keep tabs on the efficiency of their operations. The tracking system returns raw data that can be interpreted to relate to other key parameters.

These parameters may include travel time, route distance, navigation coordinates, and other key performance indicators. With these data in hand, the relevant performance review personnel can rate their systems. They can look for any areas of improvement and suggest measures to be taken.

They can plan to make necessary changes that will enhance the efficiency of their operations. Hence, the tracking system does not only favor the client. It can also benefit the other parties involved in shipping your package.

Increased Speed Of Operations

There are many ways that an effective shipment tracking system can help to save time for all the parties involved in the process. On your part as the client, you'll get due notification on any change to the original "Estimated Time Of Arrival" (ETA) for your shipment.

So instead of going way ahead of time or arriving too late, you can go at just the right time. This is because the tracking software that most 3PL operators use will come in handy at these times. It will send regular updates on important stages of your shipment's journey.

Your shipment's arrival is the most important stage of the journey. And the status updates that you'll receive can not be mistaken for anything else. So you can start planning to stop by the port as soon as your shipment arrives at its target destination.

There'll be no time wasted due to a breakdown in communication or misinformation. This is because the data is right in your hands. With a few clicks of your mobile device, you can check your scheduled pickup time and plan around such time.



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