How, Why, & ROI: The Business Case For Streamlined Shipment Monitoring

Obviously, it would be fantastic for logistics professionals if rates and volumes didn’t fall—and if global economies were constantly running at peak efficiency. But as the past few volatile years have revealed, life is a mixture of abundant and lean years. Tough times often unmask some truths, such as the importance of resilient, efficient supply chains that can overcome any obstacle. Down periods also often lead to innovation, as shippers must find new strategies for success. A weaker freight market may “force many companies in the supply chain and visibility logistics space to ensure they are providing solutions that solve problems, improve the overall efficiency of supply chains, reduce waste, and continue to introduce innovations that drive supply chain performance going forward,” said Tive founder and CEO Krenar Komoni.

Shippers are under pressure to find solutions—while also tightening their budgets as the threat of recession continues. With that in mind, let’s examine how shipment monitoring helps the return on investment and improves supply chain resilience.

What is a Shipment Monitoring System?

A shipment monitoring system uses hardware and software to track the movement and status of freight. Shipment monitoring technology allows interested stakeholders to track cargo and deal with any potential delays or disruptions that may arise. Shipments may use GPS tracking devices or radio frequency identification on their freight, allowing parties to analyze data, find potential issues, and even help prevent theft by ensuring the process is going according to plan. An example of a tracker that monitors cargo is the Tive Solo 5G, which reads the temperature, humidity, light exposure, and shock absorption of freight—and relays the results to a cloud platform for further study.

Shipment monitoring systems implement hardware, such as tracking devices, with software apps like transportation management system software. The hardware collects data, and the software processes information. This pairing provides real-time visibility—and exposes potential problems along the supply chain. Stakeholders can thus collaborate to share insights and strategies in real time, reducing bottlenecks and helping better serve customers by increasing their rate of on-time, in-full deliveries.

The How, Why, & ROI of a Shipment Monitoring System

Logistics professionals who don’t incorporate tracking into their shipments are asking for trouble. By the time they find out about disruptions, there may be no hope of still delivering the freight on time. Let’s look more at why a shipment monitoring system is so essential.

Why do Shippers Need Streamlined Shipment Monitoring?

In addition to the benefits of offering real-time visibility—which enables companies to access current shipment data—monitoring also provides solutions to challenges that logistics professionals face. One of these is the rising threat of theft. An estimated $223 million of cargo was stolen in 2022, with an average value of over $200,000 per incident. A shipment monitoring system shows the freight status at all times through the supply chain, assuring that stakeholders know of any deviations to business as usual. If an unauthorized event is in progress, an alert is instantly sent to help companies take steps to deter theft.

Rising fees and penalties are another way shipment monitoring systems can cut down on losses. Demurrage and detention fees were up 12% worldwide in 2021, but a shipment monitoring system enables managers to optimize container handling by identifying potential bottlenecks—from origin to destination. By receiving end-to-end real-time data, shippers can better avoid having freight stuck at ports and sidestep unnecessary fees.

How Does Monitoring Help Shippers Build Resilient Supply Chains?

Shipment monitoring software helps companies build agile, resilient supply chains that respond instantly to sudden disruptions. Here’s how:

• Visibility: Real-time visibility helps stakeholders know where every shipment is—and includes on-the-ground insight into status and condition. Shipment monitoring software can also bring customers into the loop so they can rest easy, understanding their freight is in good hands.
• Actionable insight: Stakeholders take the data they receive from real-time visibility to analyze large amounts of information to expose patterns and trends. The software may predict delays ahead of time by leveraging advanced analytics—and can help managers make other data-driven decisions.
• Active monitoring: Any deviation from the plan alerts stakeholders that something has gone awry, enabling them to take proactive measures to mitigate the issue—or even avoid it altogether. With active monitoring, shippers get constant readings on temperature and humidity and know immediately if disruptions occur.

How Shipment Monitoring Proves Its ROI

The visibility provided by shipment monitoring systems helps companies identify and address potential issues in real time, leading to a more efficient, agile supply chain and a better return on investment. Shipment monitoring helps companies reduce costs by optimizing routes, reducing delivery times, and minimizing or avoiding fees from demurrage and detention. Real-time visibility also minimizes the risks of theft or damage, as any disruptions are immediately sent to stakeholders. Shipment monitoring systems provide detailed analytics that enables companies to better track key performance indicators (KPIs)—helping shippers uncover areas of improvement and make data-driven decisions that increase efficiency and reduce costs and waste.

Collaboration between stakeholders is vital to building resiliency. The transparency that comes with all stakeholders—including customers—having real-time information about the status of goods fosters improved teamwork, communication, and trust. Parties can share insights and strategies to tackle inefficiencies, thereby improving ROI. “The supply chain is a team sport,” said Tive’s Komoni. “The beauty of having a plethora of technologies in the supply chain is that it has helped usher in a tremendous era of interoperability and integration.”

Tive Trackers Take Shipment Monitoring to a New Level

Shipment monitoring systems have revolutionized the logistics industry, allowing stakeholders to constantly stay up to date on the status of shipments—and instantly handle any exceptions that occur. By utilizing tracking technology such as Tive’s, companies have a complete record from origin to destination of their freight, allowing for unprecedented visibility that optimizes efficiency along the supply chain. Contact Tive to find out how its hyper-accurate trackers can provide peace of mind that your cargo is taken care of—throughout its journey.