The Impact of Food Logistics Operations on Customers
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July 11, 2024
August 29, 2024
x min read
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Imagine tracking your dinner's journey from farm to table—as easily as watching a rideshare car arrive to pick you up. That's the future of food logistics, and it's happening now. In a recent eye-opening webinar, “How Shipment Visibility Boosts CX and Controls Costs,” Rajah Nagarajah, Director of Sales at Tive Inc., and Vince Rivait, Business Development Executive at BOA Logistics, dished out the latest on how real-time shipment visibility is shaking up the industry.
So why are food shippers gobbling up this technology? It's simple: better visibility means happier customers—and fatter bottom lines. The impacts are huge, from slashing waste to protecting your salad from becoming a science experiment en route. How might this change your next meal? Let's dig into the juicy details these experts served up and see why supply chain visibility is becoming the secret sauce in food logistics.
The Role of Shipment Visibility in Enhancing Customer Experience
Biting into a strawberry that's traveled thousands of miles—yet tastes like someone plucked it from your backyard—is no longer fantasy, it's the new reality of food logistics. Real-time shipment tracking silently transforms how we eat so that “fresh” truly means fresh. But the impact goes far beyond taste: from slashing waste to boosting profits, the numbers tell the full story.
The Need for Real-Time Visibility
Perhaps you're eagerly awaiting delivery of your favorite kombucha, only to find it's turned into a ticking time bomb because it dipped below 33°F during transit. Or maybe you’re opening a jar of gourmet sauce—anticipating a burst of flavor—but discovering a separated mess instead. These aren't just minor inconveniences: they're part of the 2% of perishable shipments that face a problem, whether it’s an arrival issue, quality issue, or safety/temperature issue, as Nagarajah mentions in the webinar.
But beyond keeping food at just the right temperature to preserve taste, visibility tech also protects your wallet—and your customers' stomachs. In fact, real-time shipment tracking is so effective that a collaborative report between Tive and Food Shippers of America (FSA)—Food Shippers Guide to Food Chain Digital Transformation—found that when it comes to the key perceived benefits of real-time shipment visibility, the highest-ranked benefit was “End-customer satisfaction” at 73%. Ultimately, providing accurate ETAs and live updates—and turning the nail-biting wait for food into a transparent, trust-building experience—goes beyond delivering products to serve peace of mind.
Impact on Claims & Revenue
Imagine the chaos of a busy warehouse: the beeping of forklifts, the shouts of workers, the constant rush to get perishables on the road. Now picture having a sixth sense into this mayhem, catching snags before they turn into full-blown disasters. That's what real-time tracking does for shipping companies. Small businesses sending out just 100 shipments a year especially benefit from such a tool because one botched delivery can mean disaster for their bottom line. With instant alerts about temperature swings, they can nip problems in the bud—avoiding the hassle of claims and the heartbreak of watching good food go to waste.
And here's the kicker: it's not just about playing defense. When products show up fresh and on time, everybody wins. Customers are happy, shelves are stocked, and cash registers keep ringing. In a world where margins are razor thin and there is fierce competition, this foresight can be the x-factor that keeps a company thriving. Who knew a little real-time data could pack such a punch?
The Customer Impact of Challenges in Food Logistics
While the food logistics sector reaps many benefits from real-time tracking, it still faces obstacles that affect both customers and costs. From unpredictable markets to safety issues, these challenges demand innovative solutions.
Market Fluctuations & Rising Costs
Food logistics is like a chaotic kitchen during rush hour. Costs are bubbling over, and 38% of the industry's leaders cite “Freight Market Fluctuations/Rising Costs” as their top challenge. It's as if someone cranked up the stove: fuel prices are sizzling, customer orders are all over the place, and the supply chain is more tangled than a bowl of spaghetti. Natural disasters, pandemics, and even global squabbles throw extra ingredients into this complex recipe.
When costs soar, logistics companies face a tough choice: to raise prices or risk going under. This domino effect ripples down to your local grocery store, where that cereal box suddenly costs more. Shoppers, feeling the squeeze, think twice about their usual purchases. They might switch to cheaper brands or skip certain items altogether. These decisions hit food producers and sellers hard, potentially shrinking sales and profits. It's a delicate balance where everyone—from truck drivers to families planning dinner—feels the impact of decisions made along the supply chain.
Cargo Theft & Fraud
Suppose you're a truck driver rolling down the highway with a trailer full of valuable food products. Suddenly, the reality of cargo theft hits you like a ton of bricks. It's not just a bad dream—these incidents have shot up by 53% in recent years, sending shockwaves through the food logistics world. No wonder it's keeping logistics providers up at night, ranking as their second-biggest challenge. Some routes feel like running a gauntlet, with thieves lurking around every corner—both in person and on the web.
But here's the thing: beyond keeping food safe, effective food logistics hinges on keeping promises and building trust. When you ship your products, you're crossing your fingers that everything will arrive in pristine condition. Get it right, and your customer will be a loyal partner. Mess it up, and you might as well kiss that business goodbye. In fact, 57% of industry leaders say that cutting down on risks and theft is a top perk of real-time tracking. Play your cards right with rock-solid security and straight talk—and the ability to spot trouble before it escalates—and you'll have customers eating out of your hand. But let things slip through the cracks, and you'll watch those relationships crumble faster than a stale cookie.
Technological Advancements in Shipment Visibility
When produce arrives at its final destination, fresh and perfectly chilled, it’s all thanks to a network of smart sensors and tracking devices working tirelessly behind the scenes to monitor it—from farm to fridge. However, the benefits in reality extend even further than this to please your customers.
Adoption of Real-Time Tracking
Picture a tale of two warehouses. In one, workers frantically juggle phones and emails to track shipments. In the other, a calm team watches real-time updates flow across their screens. That's food logistics in a nutshell. While 51.5% of providers use technology that provides real-time transportation and supply chain visibility, 43% still report using old-fashioned methods such as email tracking and repeated phone calls.
This gap tells a much deeper story than fancy tech gadgets. The narrative is about who will thrive and who will struggle to survive. The early adopters already see the perks: customers are happier, food safety's a breeze, and the bottom line? It's looking healthier by the day. Meanwhile, the holdouts face a tough choice: in a world where customers expect lightning-fast updates and pinpoint accuracy, sticking to outdated methods is a recipe for getting left behind.
Benefits of Multi-Sensor Devices
Multi-sensor devices are tiny boxes of technology that change the shipping game. Think of them as intelligent, watchful companions for every package. They track temperature, location, humidity, light, and shock; provide comprehensive shipment data; and offer real-time updates that let shippers act fast when things go off course.
Beyond keeping milk cold and electronics safe, smart tech is reshaping how companies do business. Fewer spoiled goods mean happier customers, less money wasted, and the ability to turn potential disasters into smooth sailing. It's not rocket science: it's just smart tech making life easier—one shipment at a time.
Customer Success: How BOA Logistics Mastered Shipment Tracking with Tive Technology
Before discovering Tive, life for BOA Logistics included managing 400+ shipments a week, each one a ticking time bomb of potential problems. But since adopting Tive Solo 5G trackers, things have changed for the better. Here's how:
- Immediate problem solving: With unreliable sensors replaced with Solo 5G trackers, BOA now monitors temperature, tracks origin, and detects trailer door activity in real time. This upgrade means they can prevent losses from reefer malfunctions—in around five trucks weekly—on the fly.
- Smarter decisions on the go: Tive's data enables BOA to make informed decisions instantly, such as rerouting trucks based on live weather and GPS data—ensuring timely and safe deliveries.
- Seamless data access: Tive's system integrates smoothly with BOA’s existing TMS, making it easy for staff to access detailed shipment data—enhancing transparency and management efficiency.
- Strengthened customer relationships: Tive’s accurate tracking helps BOA resolve disputes and verify charges, building trust and reliability with their clients.
- Winning new business: The use of cutting-edge tracking technology has both retained customers and attracted new ones—including a major perishable beverage distributor—highlighting the competitive edge Tive provides.
Nourishing the Future: The Power of Visibility in Food Logistics
Whether you're a produce distributor watching the clock tick on delicate berries, a seafood importer battling against melting ice, or a grocery manager trying to keep shelves stocked with farm-fresh goods, real-time visibility tools can transform your food logistics. Companies like Tive serve as your eyes and ears on the road—keeping watch over your precious cargo's temperature, location, and other vital signs.
Beyond avoiding disasters, Tive enables customers to deliver on their promises. Imagine the satisfaction of consistently providing your customers with the crispest lettuce, the freshest fish, or the juiciest peaches. That's the power of staying one step ahead in the food logistics game. By embracing these tools, you're not just moving food from place to place—you’re preserving quality, reducing waste, and building trust with every delivery.
Curious about how this could work in your world? Get started with Tive today.