Supply Chain Tracking Solutions
by Jaidyn Farar
As your business continues to expand, your supply chain will only grow more complex, and a large network of suppliers, transportation providers, and warehouses isn’t easy to manage. To maximize productivity and minimize costs, organizations need full visibility into every stage of their supply chain. That’s where supply chain tracking comes into play.
What is supply chain tracking?
Supply chain tracking is the process of monitoring and managing the movement of goods, information, and resources throughout the entire supply chain. Businesses with tracking systems in place can see where goods are located at any stage of the supply chain, from procurement to final delivery to the customer.
Relying on data collection and analysis, supply chain tracking helps businesses maintain control over their operations, respond quickly to disruptions, and optimize their logistics processes. In addition to minimizing disruptions and errors, supply chain tracking makes it easy to provide your customers with real-time updates and reliable delivery timelines.
Supply chain tracking is made possible through various technologies.
What is a supply chain tracking system?
A supply chain tracking system is a technological solution that allows businesses to monitor and manage the flow of raw materials and finished products throughout their entire supply chain. These systems provide real-time visibility and insights through a combination of software, hardware, and processes.
Technology used for supply chain tracking
The best tracking systems collect and analyze supply chain data in real time, allowing organizations to quickly intervene when (or even before) issues occur. The following technologies are vital for gathering and analyzing that data.
- IoT (internet of things). IoT is a network of interconnected devices that communicate and share data through the internet. In supply chain tracking, IoT sensors are used to monitor the condition, location, and status of goods.
- RFID (radio frequency identification). RFID uses radio waves to automatically identify and track tags attached to products or shipments. It’s a high-tech alternative to barcodes that allows businesses to quickly scan and locate inventory.
- GPS (global positioning system). GPS technology provides precise location data for tracking shipments and fleet vehicles. In supply chain tracking, GPS helps ensure timely deliveries by offering visibility into potential delays or route optimizations.
- Bluetooth. Bluetooth is a short-range wireless technology that lets devices communicate over short distances. Bluetooth is often used for asset tracking within warehouses or facilities, allowing for quick, localized identification of inventory and equipment.
- Blockchain. Blockchain is a decentralized, secure ledger system that records transactions in a transparent and tamper-proof manner. It records transactions and movements of goods, helping to combat fraud and improve transparency.
- Data analytics platforms. The technologies above help collect and transmit data. But when it comes to analysis, you need a reliable data analytics platform. Systems like EasyPost Analytics help businesses use their data to effectively guide decision-making.
- AI and machine learning. AI and machine learning algorithms analyze large datasets to identify patterns and optimize processes.
7 benefits of supply chain tracking
Why should businesses track the movement of materials and products through the supply chain? We’ll give just seven reasons, though there are plenty of others.
1. Real-time visibility
Supply chain tracking gives businesses real-time visibility into where goods are located, whether they’re safely stored in a warehouse or on the road.
With this comprehensive view, organizations can respond quickly to unexpected issues like delays, lost shipments, or supply disruptions. For example, if an essential part is delayed en route to a manufacturing facility, real-time alerts can give you time to adjust schedules or source alternatives.
Real-time visibility doesn’t just help you solve pressing problems; it also makes it easier to optimize your logistics strategies for long-term success. With access to supply chain metrics, businesses can identify recurring inefficiencies and make changes that improve overall performance.
Finally, real-time visibility is essential when it comes to inventory management. With a complete view of inventory levels and locations, you’ll know when to reorder stock, how much safety stock to order for each product, and which products are in danger of stockouts or overstocking.
2. Operational efficiency
Greater operational efficiency is another significant benefit of supply chain tracking. By using tracking systems, businesses can gain deeper insights into their operations, allowing them to spot bottlenecks and eliminate unnecessary steps.
For instance, data might reveal that specific warehouse zones experience delays in order processing. With this knowledge, warehouse managers can reconfigure layouts or adjust staffing to improve the flow of goods. The result? Faster operations, less wasted time and labor, and lower operational costs.
Remember, increased supply chain efficiency isn't just about speed; it’s also about accuracy. Supply chain tracking minimizes human error, ensuring that inventory counts, shipment schedules, and order statuses are updated automatically—and correctly. Fewer errors means fewer returns and less time spent resolving customer complaints.
3. Cost reduction
As mentioned above, supply chain tracking systems help businesses identify and eliminate inefficiencies that drive up expenses. With detailed data on inventory levels, transit times, and warehouse operations, you can streamline your logistics and save money.
Consider the following ways that supply chain tracking and visibility help cut costs:
- Carrier selection. By tracking transit data, a business can discover which carriers offer the most cost-effective services based on package size, weight, destination, and delivery time.
- Route optimization. Supply chain tracking can reveal inefficiencies in transportation, empowering businesses to switch to more cost-effective routes.
- Inventory optimization. Overstocking ties up capital in excess inventory, while stockouts can lead to lost sales and dissatisfied customers. Supply chain tracking minimizes the risk of both by providing accurate, real-time data that aids in smarter procurement.
4. Greater customer satisfaction
Improved customer satisfaction is one of the most compelling benefits of supply chain tracking, as it directly influences your business's reputation and customer loyalty. When customers receive the right products on time, their confidence in the brand grows, leading to repeat business and positive word-of-mouth recommendations.
By providing real-time updates and accurate delivery timelines, you can keep customers informed throughout the entire order process. This transparency builds trust and assures customers that their orders are being managed efficiently. Even if things go wrong (which they sometimes will), customers who are kept in the loop will likely be less frustrated and more understanding.
Of course, customer satisfaction doesn’t just depend on shipping time; buyers also want their orders to be complete and accurate. Fortunately, supply chain tracking helps with that too. It improves accuracy in order fulfillment, reducing the likelihood of mishaps like incorrect items or delayed shipments.
5. Risk mitigation
In these uncertain times, when natural disasters, labor strikes, and economic fluctuations reign supreme, a resilient supply chain is a must-have. To prepare for disruptions, 41% of businesses have taken steps to improve supply chain visibility via tracking technology.
Real-time visibility into each stage of the supply chain gives companies the ability to detect issues such as delays, damage, theft, weather-related disruptions, or unexpected route changes as they happen. Tracking technology can be very precise, even monitoring the physical conditions of a shipment, such as moisture and temperature. This comes in handy if you sell sensitive products such as pharmaceuticals.
In addition to managing immediate risks, supply chain tracking systems support long-term risk reduction by giving you access to historical data that can inform future strategies. Companies can analyze patterns of disruptions—like repeated carrier delays or seasonal slowdowns—to make more resilient choices.
6. Data-driven decision making
Does your business make decisions based on real-time data and historical trends? If not, you’re probably missing out on valuable opportunities to improve your operations.
With accurate tracking data, companies can analyze inventory turnover, shipping times, supplier performance, and much more. They can then use this data to guide decision-making across all stages of the supply chain.
Below are just a few ways you might use data to make smarter logistics decisions:
- Analyze supplier and carrier performance metrics to choose vendors who consistently meet your requirements.
- Optimize storage layouts based on demand forecasting to minimize picking times.
- Evaluate return patterns to identify product defects or improve packaging durability.
7. Sustainability
Sustainability is an increasingly important benefit of supply chain tracking. More and more customers care about the eco-friendliness of the brands they purchase from, and countries around the world have started getting more serious about sustainability regulations.
By monitoring the movement of goods and resources, companies can identify inefficiencies that lead to excess energy use, waste, or unnecessary emissions.
Supply chain tracking helps businesses see beyond their direct sustainability efforts, revealing the environmental performance of suppliers and logistics partners. This provides a perfect opportunity to identify sustainable alternatives, such as sourcing from eco-conscious suppliers or adopting more energy-efficient technologies.
Easily track every shipment with EasyPost Enterprise
Your supply chain tracking system will likely be large and complex, composed of various technologies and platforms. When it comes to last-mile delivery, you need a shipping solution that makes it easy to track shipments, analyze performance data, and send customers real-time updates.
EasyPost Enterprise provides a range of solutions to improve your supply chain tracking. With EasyPost Enterprise Shipping, high-performance shippers can create labels at sub-second speeds and automatically track each package. For an in-depth look at supply chain data, EasyPost Analytics offers insights into parcel shipping, inventory, and warehouse operations.
Get in touch to learn how EasyPost Enterprise improves supply chain tracking.