From Order to Delivery: How Tracking Software Streamlines the Supply Chain

There are multiple ways tracking software streamlines a company’s supply chain. From initial warehouse assets to the final mile delivery, you can easily keep tabs on the condition, location, and movements of every item almost in real-time. 

In fact, businesses without tracking software will face intense challenges in their entire ‘order to delivery’ cycle. Problems like missing delivery dates, lost packages, wrong SKUs sent in the parcels can crop up every single day. This would not only hamper the business’ reputation but throw your warehouse operations and delivery into chaos.

The only way to effectively oversee all the order fulfillment processes and monitor last-mile deliveries is to use tracking software. Hence, having tracking software is a priority for many eCommerce businesses if you wish to optimize their supply chain. 

To help you save the trouble of deep research, we’ll go over the various ways how tracking software streamlines the supply chain from order to delivery. 

What is A Tracking Software? 

A tracking software is a technology platform that helps businesses monitor, trace, and locate the position of their assets in the supply chain. Supply chain comprises an overwhelming number of individuals, organizations, raw materials, logistics companies, and technology involved in the production, distribution, and delivery of finished goods. 

This is why tracking everything is critical in ensuring accountability, accuracy, and transparency in the order fulfillment and deliveries to consumers. It’s only when you keep track of inventory and final orders that you can calculate your monthly cost of goods sold (COGS) accurately.  

There are different types of tracking software that eCommerce businesses can use to keep a regular check on their supply chain:

  • Asset tracking systems: They monitor the movement of physical assets like raw materials, merchandise, equipment, and inventory. 
  • Parcel tracking software: These platforms are used to track the mobility of shipments dispatched with carriers from the time it leaves the warehouse until it reaches the customer. 
  • Freight tracking software: These are specialized tracking programs that detect the motion of containers at sea, air, and fleet on the ground. It also tracks the location of pallets on docks and ports.

Most eCommerce companies integrate with tracking software that’s capable of monitoring the life-cycle of a product, from port to customer’s doorsteps. Therefore, tracking software nowadays have expanded their capacities by having deep integrations with carriers and warehouses. 

Some carriers and 3PLs use advanced technologies like Push and Pull API, RFID tags, GPS and satellite tracking, cell phone triangulation, and ultra-wideband beacon to create their proprietary tracking system.

How Tracking Software Streamline the Supply Chain from Order till Delivery

Now that we’ve briefly covered the basics of tracking software, let’s go over how it can make things more efficient for your supply chain: 

1. Inventory Management

Inventory represents the overall assets i.e. SKUs that a company possesses for selling to customers. An inventory tracking software traces the quantity, condition, and location of inventory in the warehouse or fulfillment centers. It covers all aspects of inventory life-cycle: transit, receipt, storage, and dispatch. It monitors the following processes:-

  • Inventory procured from suppliers for accurate inventory accounting.
  • Inventory sold to customers to calculate the time of future replenishment.  
  • Tracking returned orders to account to avoid errors in stock availability.
  • Counting inventory damages for reorders and repair. 

Once an inventory tracking system is adopted, it’ll help organize the order fulfillment process. 

2. Faster Order Fulfillment

The Order fulfillment process begins right after the online store or eCommerce shopping sites in US (United States) accepts a customer order and informs its warehouse to prepare one. A tracking software based on a real-time location system comes in handy right from the beginning to facilitate faster order fulfillment. It plays a role overseeing the following situations:-

  • Monitors cross-docking so that shipments incoming from the suppliers are correctly dispatched to carriers. 
  • Locate SKUs in storage bins, totes, and shelves for easy retrieval and sending them to the packing stations.
  • Make use of anchor devices to track pallets stored in warehouses.

3. Optimize Warehouse Processes 

When a tracking software works in conjunction with a Warehouse Management Software, it becomes a powerful resource to augment warehouse operations and ensure staff safety. A tracking software is help in the following cases:

  • Using a digital map, tracking software displays the position of every product in the warehouse so that they are picked manually at the shortest possible time.
  • Using indoor position technology, the software can locate every equipment used in the warehouse.
  • Schedule and clear docking space for receiving inventory or other supplies from manufacturers.

4. Track Shipment In-Transit

The most important use-case of a tracking software for an eCommerce company is tracking shipment movement en route to customers. Doing so takes care of the most sensitive process in the supply chain- the last-mile delivery that determines customer satisfaction. A shipment tracking software works in the following ways:

  • It oversees the vehicle’s movement using IoT devices and wireless systems like GPS and updates the same information to carriers’s backend.
  • It integrates with APIs to provide shipment details to eCommerce companies who can notify customers about their order status.
  • It can be used by route optimization algorithms to find the shortest distance or pathway to customers. 

5. Monitor Exceptions in Delivery 

A tracking software is very useful in monitoring shipping exceptions and supply chain risks. This automated system constantly supervises both the fleet and the shipments they carry. Therefore, it is privy to all the minute changes that can hamper the delivery process and can be used in resolving exceptions. 

  • It sends real-time data to retailers in cases of shipping exceptions like road congestions, weather disruptions, delays due to holidays, etc. 
  • It informs the brands when the first delivery fails so that you can communicate with customers and resolve the issue in time.
  • It interlinks with the tracking page so that customers are always kept in the loop about their order delivery. 

5 Benefits of Having a Tracking Software for Supply Chain Efficiency 

1. Resolve Supply Chain Risks

A tracking system becomes the overseer when things go awry in the supply chain such as custom led delays or when pallets are halted at ports. It springs into action to inform eCommerce companies and the associated stakeholders so that you can take due actions.

2. Built-in Capacity for Multiple Integrations 

Many tracking software allow businesses to integrate the application with their own eCommerce platform. This helps consolidate all tracking information in a centralized dashboard. 

3. Promotes Data-Driven Decisions 

When stakeholders have information on all existing supply chain processes, you can make better business decisions. By tracking inventory or delivery metrics like monthly Cost of Goods Sold or First Attempt Rate and prepare strategies to improve their business. 

4. Understand customer demand 

If a certain inventory stock in a warehouse runs out faster than others, then it’s a good indication that customer demand for it is high. Using this information, merchants can make early preparations for replenishment of the best-selling SKUs.

5. Customer Satisfaction

Having recourse to real-time shipping information, retailers can keep customers in the loop about their parcel’s journey. You can notify customers using tracking portals or automated notifications. You can relieve the customer team from having to deal with high volumes of Where Is My Order (WISMO) calls.  

Conclusion

A tracking software lets you make data-driven decisions and improves the average consumer experience to an excellent one. With consolidated data on every item from warehouse to delivery, you can ensure that your supply chain operations work smoothly. We hope this article has helped you learn how tracking software is beneficial to your supply chain.