Timely intervention at critical moments within the supply chain is a key success factor for any company to ensure a functioning supply process.
But how can companies monitor their supply chains and ensure that they are informed about all processes and operations in their supply chains? Transport tracking is the keyword and in this article we would like to give you an overview of supply chain tracking.
What is supply chain tracking?
Supply chain tracking generally means being informed about all events and incidents in the supply chain - i.e. from the time raw materials are ordered until the end products are delivered to the customer. Supply chain tracking is part of overall operational supply chain management and includes, for example, the monitoring of logistics and other operational processes as well as the assessment of specific supplier risks.cSupply chain monitoring aims to identify disruptions as early as possible in order to avoid negative effects on the entire supply process.
Examples of supply chain monitoring
One example would be the ability to continuously monitor the temperature of pharmaceutical products in order to ensure their quality. When transporting COVID-19 vaccines, for example, certain temperatures must be maintained, otherwise they become ineffective. Therefore, monitoring their condition and the cold chain during transport is crucial to ensure the effectiveness of the vaccine.
Another example is risk assessment and risk identification of partners and service providers within the supply chain. A key aspect of supply chain monitoring is therefore the collection of data and information on risks in the supply chain. Monitoring involves checking suppliers for risks and problems with the aim of immediately reporting disruptions caused by certain events that have a negative impact on the supply chain, e.g. natural disasters, industrial disruptions, etc.
What can be detected by supply chain monitoring?
A disruption to the supply chain can have serious consequences and impact on a company's overall turnover. For example, delays in the delivery of raw materials can lead to domino effects and result in the loss of customer orders. Customer satisfaction decreases, sales revenues and the company's reputation are at stake. By tracking the entire supply chain, companies can prepare for potential risks or avoid them in the long term. Below we present some of these risks:
Logistics problems
The main cause of supply chain disruptions is usually logistical problems. The transport of goods can be affected by various circumstances and factors, such as natural disasters, traffic jams and unforeseen weather conditions. Technologies such as transport trackers with GPS capabilities can help identify new routes in time to avoid potential causes of delays. Companies affected by supply chain disruptions can also use monitoring platforms to gain better insight into their supply chain - e.g. to uncover blind spots in logistics or optimise routing decisions.
Lack of deliveries from suppliers and partners
Detecting problems on the supplier side can be a challenge for companies. With data on how suppliers behave within the supply chain, companies can make better decisions when choosing their partners and selecting routes. This also includes technical ways to get real-time news and collect data about a supplier to create relevant alerts.
Choosing the right monitoring system
Choosing the right tracking system for the supply chain is crucial: using tracking systems can save companies a lot of money and time. When choosing the right connections, supply chain managers should first analyse their supply chain and determine where and in which section of the supply chain products are particularly susceptible to damage. Transport managers should also ask themselves what data they need and whether the transport should only be monitored in a specific section or across the entire supply chain? Only by correctly analysing the transport chain and the requirements derived from this can companies answer the question of which type of connection is the right one for the respective supply chain. Detailed advice from a manufacturer or distributor is also recommended in order to avoid mistakes and to obtain a monitoring device that meets the respective product and transport requirements.
Would you like to find out more about monitoring systems? Then we would be happy to advise you. Simply book our free consultation via our booking tool. We look forward to your questions.