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How can a shipment monitoring system improve supply chain management?

How can a shipment monitoring system improve supply chain management?

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As businesses expand and grow, the significance of a seamless abs light in the system becomes even more critical. And it is one of the crucial aspects of any organization that wants to ensure remote brand penetration and brand awareness. Supply chain monitoring helps the organization keep a tab on the real-time tracking of the shipment. Hence, the role of the shipment monitoring system becomes even more significant.

What is the shipment monitoring system?

A shipment monitoring system is a software solution that provides real-time tracking of goods. This article will explore the various components of a shipment monitoring system and how it can improve the supply chain system.

How Does a Shipment Monitoring System Work?

A typical shipment monitoring system is a blend of hardware, software and a communication network that tracks the movement of goods. Some common hardware components attached to the shipment include a GPS tracker, RFID tags, temperature tracking device and others.

These devices transmit data to the software component. Here the information processing and analysis take place. Then, the software communicates the data to the relevant stakeholders, such as the logistics team, warehouse managers, and customers, through the communication network. 

Types of shipment monitoring systems

From the above discussion, we know that the shipment monitoring system components play an important role in ensuring a seamless flow of data related to container tracking. Here are some of the most commonly used shipment tracking systems;

GPS Tracking

It makes use of GPS technology to track the location of the shipment in real-time. Moreover, it also provides information on the speed, direction, and altitude of the shipment. Thus making shipment tracking more effective and efficient.

RFID Tracking

RFID (Radio Frequency Identification) technology uses radio waves for container tracking. It can provide information on the shipment’s location, movement, and temperature.

Barcode Scanning

This type of monitoring system uses barcode scanning technology to track the shipment’s movement throughout the supply chain. It can provide information on the shipment’s origin, destination, and current location.

IoT (Internet of Things) Tracking

It works on connected devices. The sensors transfer the information to the system. Here, the data is analyzed, and the final info is disseminated to stakeholders. It provides real-time information on the shipment’s location, temperature, humidity, and other factors.

Satellite Tracking

This type of monitoring system uses satellite technology to track the shipment’s location and movement, even in remote areas where other types of tracking systems may not work.

Mobile App Tracking

Some shipment monitoring systems also come with mobile apps that allow users to track their shipments in real time and receive alerts and notifications on their mobile devices.

How a shipment monitoring system works

Different components come together to ensure the seamless functioning of the shipment monitoring system. Here’s a general overview of how such a system works:

Sensors and Devices

Cancers are important as they gather information related to the movement of the shipment. Eventually, these devices collect all the data from the shipment and pass it on to the central server. These sensors can include GPS trackers, RFID tags, barcode scanners, temperature sensors, and more.

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Data Collection

The data collected by the sensors is transmitted to a central server or cloud-based platform. Here the analysis of data takes place. The data can be accessed by authorized users through a web interface or mobile app. 

Real-Time Monitoring

The monitoring system can provide real-time updates on the shipment’s location and condition, allowing users to track its progress and receive alerts and notifications if there are any issues or delays.

Analytics and Insights

The data collected by the monitoring system can be analyzed to identify trends, patterns, and areas for improvement in the supply chain. This information can be used to optimize logistics and improve efficiency.

The shipment monitoring system provides visibility and control over the entire supply chain. Thus,  helping businesses to ensure that their products are delivered on time and in good condition.

Benefits of using a Shipment Monitoring System

There are several benefits of using a shipment monitoring system, including: 

Real-Time Visibility

A shipment monitoring system provides real-time visibility into the location, movement, and condition of shipments throughout the supply chain. This allows businesses to track their shipments in real-time and proactively address any issues or delays.

Increased Efficiency

By providing real-time visibility and control over the supply chain, a shipment monitoring system can help businesses optimize logistics and increase efficiency. This can lead to cost savings and improved customer satisfaction.

Improved Customer Service

With a shipment monitoring system, businesses can provide customers with accurate and timely information on the status of their shipments. This can improve customer service and help build customer loyalty.

Enhanced Security

A shipment monitoring system can help enhance security by providing real-time alerts and notifications if a shipment is tampered with or stolen. This can help prevent losses and protect the integrity of the supply chain.

Better Inventory Management

By tracking the movement and location of shipments, a monitoring system can help businesses manage their inventory more effectively. This can reduce stockouts and overstocking, leading to better inventory management and cost savings.

Examples of companies that have successfully implemented shipment monitoring systems

There are many companies that have successfully implemented shipment monitoring systems to improve their supply chain operations. Here are a few examples: 

Amazon

Amazon is focusing on making its supply chain system highly efficient. By implementing sophisticated shipment monitoring systems like RFID tags, sensor systems and GPS tracking, it keeps a tab on the real-time tracking of the shipment. Hence it allows the companies to optimize their logistics and provide the customer with accurate information on the status of the shipment.

DHL

This is yet another company that has actively used modern technology to make its supply chain system more efficient. It incorporates smart sensors which use the internet of things to track the shipment. Besides, it also helps in tracking the temperature, humidity and other factors that may impact the shipment. Eventually, it allows the company to provide the customer with real-time information on the condition of the shipment.

FedEx

FedEx is there a noun firm in the logistic division. Its cutting-edge technology plays an important role in making the supply chain system at FedEx more efficient. It makes use of a shipment monitoring system called  “SenseAware.” The latter uses IoT sensors to monitor the location, temperature, humidity, and other factors of its shipments. This allows FedEx to provide customers with real-time information on the status of their shipments and proactively address any issues.

These are just a few of the many companies that have been actively using modern technology to provide bespoke supply chain solutions to the stakeholders as well as the end user.

Challenges and Limitations of Shipment Monitoring Systems

While shipment monitoring systems offer many benefits, there are also some challenges and limitations that businesses should be aware of. Here are a few:

Cost

Implementing a shipment monitoring system can be expensive, especially for small and medium-sized businesses. The cost of hardware, software, and ongoing maintenance can add up quickly.

Technical Complexity

Shipment monitoring systems can be technically complex and require specialized knowledge and expertise to set up and maintain. This can be a challenge for businesses that do not have in-house IT resources.

Connectivity

Some shipment monitoring systems require a reliable internet or cellular connection to transmit data in real time. This can be a challenge in remote areas or regions with poor connectivity.

Battery Life

Many types of shipment monitoring devices rely on batteries to power them. The battery life of these devices can be limited, especially in extreme temperatures or harsh environments.

Data Overload 

Shipment monitoring systems can generate large amounts of data, which can be overwhelming for businesses to process and analyze. This can make it difficult to identify actionable insights and make informed decisions.

Privacy Concerns

Shipment monitoring systems collect sensitive information on the location, movement, and condition of shipments. This can raise privacy concerns, especially if the data is not properly secured and protected. 

Parting Thoughts

The above discussion would have given you a clear insight into how important is the supply chain management system. The shipment monitoring system plays a vital role in ensuring seamless inventory management, providing real-time visibility into the shipment’s location, movement and condition. Eventually, it helps businesses optimize logistics, manage their inventory, reduce cost and thus improve customer satisfaction.

A seamless shipment monitoring system includes tools like GPS tracking, RFID, sensors and other technologies. Recently, several new technologies like artificial intelligence and Blockchain have been used in recent times. The primary objective of these technologies is to make the supply chain system transparent.

About Tive Inc

Tive Inc. is a technology company that provides real-time supply chain visibility solutions for businesses. Tive’s solution is designed to help businesses optimize their supply chain operations, reduce costs, and improve customer satisfaction by providing real-time visibility into the status of their shipments. The platform can also help businesses identify potential issues or delays in the supply chain and proactively address them before they become major problems.

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