)
Knowing the location and status of a truckload is vital to shippers. That’s why we’ve highlighted some best practices to help you improve supply chain visibility and share the many other benefits.
So buckle up, and let’s get started.
Introduction to supply chain visibility in road freight logistics
What is supply chain visibility? Simply defined, it’s the ability to track goods in transit from the manufacturer or supplier to the final destination with the customer.
In the dynamic and complex world of road freight logistics, shippers need to know the location and status of their loads at any given time. Supply chain visibility gives you end-to-end, real-time transparency into your shipments so you can react to unexpected events and protect your business. While this is one advantage, there are many more benefits, including:
Informed, data-driven decision making
Optimized inventory levels
Improved supply chain efficiency
Increased cost savings
Easier tracking of CO2 emissions
Enhanced customer experience
The diagram below helps illustrate this further.
In addition, the data collected drives analytics to, for example, optimize routes and loads, make strategic decisions on carrier selection or inform your procurement strategy.
End-to-end visibility in your supply chain allows you to optimize your inventory by having just what you need when you need it. This results in significant cost savings and a reliable, efficient supply chain.
Keeping your customers informed builds trust, improves reputation and enhances their experience, and lets you stay ahead of the competition.
Challenges and barriers to supply chain visibility in road freight logistics and how to overcome them
While there are many advantages to supply chain visibility, there are also some challenges and barriers that companies may face in implementing it.
For example, traditional on-premise applications and legacy systems were generally not designed to support information exchange or connect with customers and global business partners.
As a result, companies often work in static data silos that prevent coordinated planning and restrict analytics and communication. They cannot predict and react effectively to unexpected disruptions and operate with limited visibility. Without supply chain transparency, problems occur that will damage their business profits and customer relationships.
The solution is to embrace the latest AI and Machine learning technologies as soon as possible. For logistics companies that want to scale and grow their business, AI and ML-powered systems are essential. They allow businesses to gather and analyze large volumes of data to optimize supply chain operations, continuously learn and adapt to changing circumstances, and enhance supply chain transparency.
However, for many large organizations, this is easier said than done. The challenge often involves overcoming a company culture that sticks to traditional and trusted methods. Discarding such systems and processes can be a difficult mindset hurdle to overcome.
Moreover, companies are reluctant to invest in something that may be costly and time-consuming to implement in-house, such as a new IT system or software upgrades.
Overcoming the barriers to supply chain visibility
So what’s the answer? The truth is that real-time visibility for your supply chain is just too important to ignore. However, it’s vital that you choose a reliable, class-leading visibility provider that works with your existing EDI/ERP and delivers data for decision-making. Collaboration with visibility platforms allows you to integrate into their ecosystems without owning or maintaining their digital assets.
By accessing the Shipper Portal or connecting via API or EDI with sennder, shippers can track & trace their loads in real time with GPS technology. They receive automated updates on their shipments' location, status and ETA. In addition, sennder’s proprietary technology, powered by machine learning, provides customers with an array of performance data, KPIs and C02 emission reports.
Let’s look at some technologies behind supply chain visibility in road freight logistics.
Telematics, Tachographs and GPS Tracking for supply chain visibility
Telematics relates to monitoring vehicles, equipment, and other assets using GPS technology and onboard diagnostics (OBD) to track the vehicle’s location and status.
All road freight vehicles manufactured in the EU are equipped with a tachograph, a tool used to record driving time for commercial vehicles, also known as hours of service (HOS), and to ensure driver well-being and road safety.
In 2011, the EU Commission proposed revising the regulations on tachograph usage to comply with the constant technological updates, which resulted in replacing the existing devices with smart tachographs.
Smart tachographs enable communication with the vehicle’s engine and the telematics system to capture data on its engine, speed, kilometers driven, driver performance and accurate real-time GPS location information.
Due to these devices’ range of advanced features, they have now become vital components in a fleet management system. In addition to providing customers with real-time visibility and ETA insights, they save costs and increase overall fleet productivity and sustainability.
As well as tachographs, many other tracking devices with built-in GPS receivers are installed in trucks. Using these gives shippers real-time visibility on orders; from pick-up to final delivery, youare immediately informed in case of unforeseen delays or issues en route so that you can react quickly.
sennder offers advanced tracking capabilities through its partnership with major visibility providers like C03. End-to-end GPS freight tracking is made possible in minutes by accessing our Shipper Portal.
In addition, the telematics data collected provides a range of valuable KPI metrics, from On Time Delivery (OTD), loading times and driver efficiency to carbon emission levels and lane congestion. As a result, shippers make better data-driven decisions to optimize their loads.
The Shipper Portal is available to all of sennder’s shippers free of charge. With it, shippers can track and trace almost every load in our extensive European network, including spot loads, and retrieve performance data and real-time ETAs.
Future trends in supply chain visibility in road freight logistics
What role will supply chain visibility play in our industry as we move forward, and how will it develop?
A key to the answer is to examine what has been happening to the logistics industry over the last few years: it has been faced with unprecedented challenges, such as supply chain disruptions due to the pandemic and geo-political events, the rapid emergence of new technologies, increased customer demand and changing consumer attitudes, as well as economic pressures and environmental regulatory compliance.
A road freight professional must have an agile, efficient, resilient supply chain to survive and thrive in this environment. Embracing digital technologies, process automation, and full end-to-end supply chain visibility is vital to achieve this.
The market is recognizing the importance of logistics technology as the growth in freight-tech funding testifies. Looking to the future, road freight companies that leverage advanced technologies, such as visibility solutions, will lead the field.
Get in touch if you’d like to make your supply chain visible with sennder technology.
FAQs
What does real-time supply chain visibility require in road freight logistics?
It requires advanced hardware to be in place, such as a smart tachograph with a GPS tracking device that connects to the truck’s telematics system to process and transmit data instantly.
Integration with a reliable provider that gives real-time analytics and performance reports and other supply chain stakeholders is also vital to ensure visibility.
How do telematics, tachographs, and GPS tracking enhance supply chain visibility?
Smart tachographs integrated with telematic systems or other devices with built-in GPS receivers can collect live data about the location and status of the vehicles, enabling real-time visibility from pick-up to final delivery.
Shippers, via an API or logging into the sennder Shipper Portal, can track & trace their loads in real-time with GPS technology. As a result, any issues en route can be dealt with quickly and proactively.
What are the barriers to implementing these technologies in road freight logistics?
Some barriers can be that companies, whether intentionally or not, use on-premise applications and legacy systems, which do not support effective information exchange to enable supply chain transparency. Other challenges may arise from company cultures that stick to traditional methods and are reluctant to invest in AI and machine learning technologies.
However, the first step is to choose a reliable, class-leading visibility provider that works with your existing EDI/ERP and delivers data for decision-making.
)
)
)