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How Shipment Tracking Systems Work & Their Importance

Vartika Gautam by Vartika Gautam
29 March 2022
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Every day tons of cargo are shipped all over the world because people nowadays prefer online shopping. We are living in an era of on-demand delivery and online purchase. Therefore, with such a massive number of packages moving across different locations, having a reliable, smart, and accurate delivery tracking system is integral for any business. Such systems not only enhance your reputation but also increase sales. 

It is crucial to keep your customers posted about their delivery status, and it can be done with a shipment tracking system. These systems are very intelligent and allow the users to keep tabs on each shipment’s status from the comfort of their offices and even on the go. 

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This article discusses how shipment tracking systems work and why they are important. 

How do Shipment Tracking Systems Work? 

Shipment tracking refers to the process of package tracing as they are sorted and sent for delivery. It includes verification of package source and delivery trail. Moreover, it also enables the recipients to predict the date and time of delivery. In short, with a good shipment tracking system, you can easily keep your logistics operations updated. 

But how can you track your shipment?

Below we will explain the entire process step-by-step so that you can understand the functions of shipment tracking systems. 

  1. Barcode Generation

The first step of the delivery tracking process is barcode generation. A barcode is a unique signature of each package that appears like a series of vertical lines. It contains all the essential information about the package, e.g., what is inside the package, the destination, details of seller or buyer and contact information, etc. The shipment can be easily tracked when a barcode is generated and assigned to the package. Also, the chances of the package getting stolen or misplaced are reduced. 

2. Parcel Scanning 

As a barcode is attached to the package, the next step in shipment tracking is package scanning. The packages are scanned so that the delivery services get all the necessary information which is then added to the database for further monitoring. Once the packages are scanned, they can be shipped to the desired destination. 

3. Real-time Tracking 

After scanning, the logistics companies and their customers can easily track the package in real-time. Here a smart package management software that offers end-to-end traceability comes into play. It provides all the necessary package details (destination, current location, and estimated delivery date) to the interested parties with just a click, and that’s it! You can start tracking your shipments from any device and any location.  

4. Parcel Delivery 

The last step of the shipment tracking system is package delivery, where the product reaches its destination and is received by the customer. As the delivery is completed, the tracking system updates the status and notifies all the interested parties about the successful delivery.

What is the Importance of Shipment Tracking? 

As we have already discussed, shipment tracking is essential to maintain transparency with your customers. Other than that, it has various benefits that go beyond communication. 

Let’s see why shipment tracking systems are essential for businesses.

  • Reduction in costs

Choosing a shipment tracking software is an investment of a lifetime. It enables retailers and other business owners to have a complete view of their shipment’s status. If any issue arises during the shipping process, the operators can tackle it before the package reaches the customer. In this way, you can lower your expenses and costs that were previously increasing due to returns, refunds, and complaints. 

  • Improved customer experience 

Customers nowadays prefer retailers who provide the best shopping experience and keep them informed about their delivery status. Therefore, you need shipment tracking systems that empower you and your customers as well. Order tracking systems improve your customer experience by providing them peace of mind and winning over more buyers. 

  • Timely Delivery 

Shipment tracking systems also help you ensure on-time delivery, which is why they are important. Delays in shipments are one of the common reasons for customer complaints. They do not care about the condition of the package; if it is late, they consider it an overall poor experience. 

You can avoid delayed shipments with order tracking systems because the transparency increases. The retailers can coordinate with the carriers and warehouse staff to eliminate any problems that might cause delays. 

  • Enhancement in Supply Chain Efficiency 

Using shipment tracking software, you can easily spot the areas that need improvement in your supply chain. If any step or process is not working properly, it will affect the other parts of the chain as well. Shipment tracking software increases the visibility of the supply chain for the retailer. Therefore, it becomes easier for them to enhance their efficiency. 

Benefits of Using Shipment Tracking Software 

A robust package tracking software provides real-time access to the shipment information and alerts on the condition of the packages. As a result, the company’s overall productivity and chances of success increase. 

Some of the significant perks of a shipment tracking system are:

  • Your customers can get an idea of the estimated time of delivery.  
  • You can easily increase communication with your clients. 
  • It helps you manage the delivery schedules accurately, leading to increased customer satisfaction. 
  • With shipment tracking systems, you can increase the number of your returning customers.
  • When the number of customers increases, your sales increase, and your revenue skyrockets. 
  • Also, the usage of the shipment tracking system is environment-friendly because it does not involve any paper. 

The Bottom Line 

If you are associated with the retail business, shipping the orders on time, and tracking them is an integral part of your business. You need to improve these operations with time if you want to meet the ever-changing expectations of your customers. Therefore, you should opt for a shipment tracking system to streamline and optimize your delivery operations. It helps you monitor the shipment process closely and keeps the customer informed. So, choose what is best for your business and customers. 

 

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