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How GPS Technology is Shaping Supply Chain and Logistics Industry?

  • Akansha Sharma
  • Jan 30, 2024
  • RFID
How GPS Technology is Shaping Supply Chain and Logistics Industry?

When it comes to supply chain and logistics, efficiency and being on top of your game are essential for success. Managing fleets, optimizing routes, and assuring on-time delivery are just a few of the problems in this fast-paced sector but integration of various technologies like GPS, BLE, RFID, and UWB based RTLS has successfully manage to remove many bottlenecks and provide efficiency.

The GPS (Global Positioning System) tracking is one amongst many Internet of Things based modern solutions that have the ability to transform supply chains and logistics day-to-day operations be it supply chain visibility, item level tracking, keeping tabs on consignments or managing warehouses.

Along with IoT as the redefining technology for the transportation and shipping industries, developing an efficient logistics software solution is essential for corporate growth. In this blog, we'll look at how GPS tracking works and how it could change supply chain and logistics organizations.

Impact of GPS trackers on the Logistics and Supply Chain Industries

GPS trackers have transformed the logistics and supply chain industries by enabling real-time visibility, optimizing operations, and increasing overall efficiency.

Here are a few ways GPS trackers affect these industries:

1. Real Time Visibility on Consignments with GPS

GPS trackers can give real-time location information for vehicles, goods, and assets in transit. With this level of information, logistics managers can monitor the entire supply chain. The capacity to track the real-time location, status, and movement of items allows logistics managers to make informed decisions on the spot. Such increased visibility enables proactive route changes, effective resource allocation, and rapid responses to any unexpected problems.

2. GPS-based Route Optimization

GPS tracking can improve delivery routes, increasing efficiency in a variety of ways. Using real-time tracking data, you can find the fastest routes for your drivers to take, avoiding traffic jams, road closures, and other potential delays. GPS based route optimization software uses advanced algorithm and analytics to offer you the most direct and efficient routes, effectively helping you save money on transportation and time, thus increasing the overall efficiency of the supply chain. It not only reduces travel time but also improves fuel efficiency, lowering overall operational expenses.

The fact that one can see the movement of consignment on their smartphone, with real-time accuracy, GPS enables a highly efficient, flexible, and optimized outdoor navigation. Logistics managers can make informed decisions based on real-time data, ensuring that fleets travel the quickest and most cost-effective routes, contributing to overall efficiency and boosting firm competitiveness in the logistics landscape.

How GPS Technology is Shaping Supply Chain and Logistics Industry?

3. Asset Tracking and Inventory Management

Asset tracking and inventory management are essential components of logistics and supply chain operations, and the use of GPS trackers has transformed these procedures. Though we can also use RFID for asset tracking and management in supply chain, GPS trackers give real-time information about the location and status of assets throughout the supply chain journey, which is not possible with RFID. By attaching GPS trackers to cargo and inventory, businesses can monitor the precise movements of commodities, ensuring precision and reliability. Such technology enables proactive decision-making, lowering the likelihood of theft, loss, or damage.

4. Improved Safety and Security

Risks and security concerns are always a top consideration in logistics and supply chain management. GPS tracking can help reduce these risks and improve supply chain security. One of the primary advantages of vehicle tracking is its ability to prevent theft and loss. Using real-time tracking data, you can set up alerts and notifications (directly delivered to you on your smartphones) to notify you immediately if an item deviates from its intended route or unexpectedly stops. It enables you to respond swiftly in the case of a potential security breach, such as theft or unauthorized access to your items. GPS based geofencing also allows supply chain businesses to minimize risks and deter theft losses.

5. Improving Customer Satisfaction

Delivery times are one of the primary ways that GPS monitoring systems can improve customer satisfaction. In today’s time, customers want instant notification and real-time tracking when their order is shipped and with GPS, you can accurately predict and communicate estimated delivery times to your clients if you have real-time visibility into the location and status of shipments. Its transparency reduces the likelihood of supply delays or missed deadlines, while also regulating consumer expectations. When customers receive their orders on time and as promised, faster and more exact delivery might make them happier.GPS tracking can provide your consumers with reliable shipping status updates. You can notify them of changes in the location of their shipments so that they can make plans and avoid surprises. That sort of transparency builds trust in your supply chain management, increasing client happiness.

6. ETA Predictions 

One of the most important parts of modern logistics and supply chain management is having precise and reliable estimated time of arrival (ETA) predictions. It is especially critical in businesses like shipping, transportation, and air travel, where delays may severely disrupt supply chains and even endanger lives. To achieve accurate ETA projections, companies frequently rely on modern tracking technologies like GPS, data analytics software, and communication networks that allow for real-time monitoring and updates. Furthermore, IoT technology can revolutionize supply chain management and logistics operations, making them more effective and efficient. Accurately predicting arrival times improves both operational efficiency and customer happiness by providing consistent timetables for deliveries or arrivals.

To summarize, GPS tracking technologies have become an effective tool for Logistics and increasing supply chains in a variety of ways. It enables clients to obtain real-time updates, optimizes delivery routes, reduces risks, improves security, promotes supply chain partner interaction, and increases customer satisfaction.

Disclaimer: The information presented here is for general information purposes only and true to best of our understanding. Users are requested to use any information as per their own understanding and knowledge. Before using any of the information, please refer to our Privacy Policy and Terms and Conditions.

  • Created on Jan 30, 2024

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