4 Ways Asset Tracking Can Transform Your Supply Chain

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The supply chain is the backbone of the business. It is where crucial operational stages happen—from procurement of raw materials to product delivery. It’s a notoriously complex system that it’s common for problems to surface almost every day, like miscommunication or delivery delays.

Managing the supply chain is always challenging. But with a clear view of this area in the business, you can streamline your operations and improve your cash flow. Asset tracking systems can help revolutionize your supply chain.

Importance Of Asset Tracking

One of the leading causes of poor logistics is poor visibility. Poor visibility can make it hard for you to dig down to the root of a problem in the system. Without knowing the real cause of the issue, you experiencing several other complex issues, like inaccurate planning and forecasting.

In the supply chain, asset tracking is the process of monitoring your physical assets in real time—so it can improve your visibility into the supply chain.

Moving forward, we’ll dive into how different asset-tracking systems can minimize flaws in your supply chain and ultimately transform it.

Asset-Tracking Technologies

There are three main ways to track your assets:

  • GPS (Global Positioning System) tracking is the method of tracing assets through a network of satellites and GPS receivers.
  • RFID (radio-frequency identification) tracking is the process of locating tagged assets through electromagnetic readers and tags.
  • Barcode scanning requires using a special reader or scanner that can read data in the codes. Objects are tagged with black-and-white-striped labels, which are generated by barcode makers, like Camcode.

So how can these asset-tracking technologies change the game in your supply chain? Here’s how:

1. Better Supply Chain Operations

Operational efficiency reduces costs and saves time.

One of the key benefits of tracking is that it’ll help you identify logistical inefficiencies based on the real-time data you collect for analysis.

With GPS tracking, for instance, you can monitor goods in transit: How many times does the driver temporarily stop on one route? Does this route have regular traffic jams? Knowing what’s causing transportation holdups will lead you to the right approach to the problem. If it’s bad traffic, you can offer alternative routes.

Real-time asset tracking helps straighten out your logistical and transportation issues by improving transparency.

2. Increased Security 

Since the supply chain essentially involves the movement of assets from one point to another, transportation is paramount. You will need to invest in a fleet of vehicles during the manufacturing stage until the endpoint delivery of the goods.

Asset tracking improves security due to having better real-time control over your assets and fleet. It’s a precautionary measure that can prevent shrinkage and loss of other assets. Supposing theft or misplacement occurred. With better visibility, you can still track the assets and recover them. An asset-tracking system helps minimize the loss of goods through theft and mismanagement. In a nutshell, optimize your revenues.

3. Increased Customer Satisfaction

Customer satisfaction increases customer retention. High customer satisfaction puts you in operation for the long haul. 

Asset tracking helps enhance customer satisfaction. Through GPS tracking, clients can track their parcel, giving them peace of mind.

Besides giving customers a sense of security, asset tracking gives them convenience. The knowledge of the location of their goods allows them to plan for the pickup. They’ll know when to anticipate the arrival of their package and will, therefore, waste no time waiting.

4. Increased Productivity 

With asset tracking, you can expect increased productivity in your supply chain.

One of the activities that can affect your liquidity is poor order management. To process orders, workers have to find the goods in the warehouse. It’s a process that can be lengthy if they have to go from shelf to shelf. With a barcode or RFID system, it is easy to locate any item. It quickens the order-processing stage.

Asset tracking also minimizes professional inefficiencies. Drivers are less likely to slack around on the job because they know you’re monitoring their movements, and that may improve their productivity. They’ll more likely make faster and more deliveries in a day.

Conclusion

Poor visibility causes a negative domino effect in the supply chain. It can cause operational problems that can make you lose revenues and customers. 

Asset-tracking systems can help improve transparency in the supply chain. In this article, we’ve offered insights into how modern asset-tracking systems can help ensure your supply chain remains efficient. With improved visibility, you can diminish operational inefficiencies and, therefore, improve your asset and inventory management.

 

Author Bio: Amanda Nelson is currently a professional content writer.