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The Benefits of Cargo Tracking in Logistics

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Shipment tracking is vital for any logistics company. It allows carriers to locate their cargo at any time and control their shipments. You can make better decisions and reduce your costs when you have this information. Furthermore, it will enable customers to see where their package is at the moment and get an update on when they can expect to get it. So, you’ll make faster deliveries, and they’ll cost you less. And those are just two of the benefits of cargo tracking in logistics. There are many more of them, and today, we’ll talk about them all. So, let’s dive right in.

Reduced Waste and Increased Efficiency

The logistics business has always been competitive, and it doesn’t seem that this will change any time soon. So, if you want to keep the edge over your competitors, you have to optimize your processes and your costs all the time. On top of that, people are buying off the internet more than ever before. Hence, the demand increases, and although driver shortage is showing signs of improvement, the situation is still far from ideal.

Your job as a logistics manager is to find ways to meet the increased demands and keep your costs low. It’s not a simple job, but luckily, there are solutions for it. Cargo tracking and automating your processes are the ways to go, as they’ll help you figure out the optimal routes for your cargo. Spend some time on it, and you’ll see patterns emerging. As a result, you’ll reduce your fuel costs and get your shipments through customs quicker.

If you can get to a point where each of your shipments takes the fastest and the most fuel-efficient route, you’ll be golden. You’ll save time and money, and your customers will be happier with your services.

It Helps You Stay Competitive

If you want to be successful in logistics, you want to be the one leading the pack. So you have to stay on top of all the latest trends, and shipment tracking is right at the top of the list of technologies you need to embrace.

At the moment, most distribution centers use barcode scanners, but GPS and RFID tracking aren’t far behind. And it’s worth mentioning that companies that haven’t been using any of these technologies are planning to implement them this year. Therefore, if you’ve been holding on until now, it’s time to do it.

Of course, tracking the cargo once it leaves the warehouse is as critical. So in the ideal scenario, you want to offer your customers a few monitoring levels to choose from. For example, if they’re going to trace goods shipped by air, allow them to pick if they want to go for tracking through an airline, through a freight forwarder, or GPS. Some methods will be more accurate than others, but their costs will vary.

Keep in mind that all logistics companies are aiming to become more customer-centric. Thus, they’re all investing in tracking technologies. Your goal should be to stay ahead of the curve, so you can’t afford to keep on the side and watch it happening.

Meeting Customer Demands

In a short time, delivery tracking has made its way from a nice-to-have to a must-have. Thanks to Amazon, end-users now expect to be able to check on their shipment at any time, and one of the benefits of cargo tracking in logistics is that it makes it possible.

Long ago, the recipients were happy knowing that their parcel would come in five to seven days. Today, they want to know if the delivery will happen in the morning or the afternoon. If it’s a large shipment we’re talking about, they might need extra staff to handle it. On the other hand, if it’s small, they want to know when to check their mail. It’s convenient as they can plan their day around it, and people love it for that.

Moreover, tracking data will help your team function better. For example, if the customer pays for overnight shipping, it’s up to you to make it happen. With accurate data at their disposal, your employees can detect missing packages early and spot delays before they happen. So, it’ll be easier for you to keep your promises.

Increased accountability

If you don’t have a cargo tracking system in operation, there’s not much you can do about missing or delayed shipments. However, if you have it, the situation is quite different. Not only do you know the exact moment when the package arrives, but you even know who signed for it right away.

If you go a step further and implement GPS, you’ll know there’s something wrong as soon as the shipment veers off course. Thanks to the AI in logistics, the system will notify you if something strange happens, and you can contact the driver in real-time to make it right. You can be sure that each of your deliveries reaches the recipient, and it will give you the peace of mind you need.

Tracking and Rerouting Delays

Unexpected traffic jams, vehicle breakdowns, and driver errors can all bring you plenty of problems. However, electronic tracking can detect possible delays and reroute your shipments on its own. It will notify you and the driver of what’s ahead, and you’ll get a chance to pick the best solution.

Remember — the best route is often changing. The road construction and crashes can make a stretch of highway that’s usually clear unusable. If that happens, you’ll want to have a system on hand that will help you find the way out of it. And if the shipment has to be late, you can notify your clients so they can adjust their plans and be ready for the new delivery date.

So, a complex cargo tracking system will help you meet your deadlines and keep things smooth between you and your customers.


In the modern world, data is everything, and a system that manages your shipment tracking will also give you lots of insights into how you operate. You’ll see which routes you use the most and how efficient they are. In essence, it’ll help you to keep your supply chains connected in the best possible way.

Analyze the data you get and use it, and you’ll see that the benefits of cargo tracking in logistics are much bigger than you might have thought. It’ll help you improve your operations, bring your costs down, and make your customers happier. What more could you ask it to do?

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