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The importance of shipment tracking in e-commerce

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The importance of shipment tracking in e-commerce

One of the challenges e-commerce businesses in Indonesia and around the world face is the possibility of lost shipments. When packages go missing, businesses may face the burden of not only replacing lost items but also managing the fallout with dissatisfied customers. This could even affect the customer’s trust and loyalty.

In response to this, logistics companies design advanced tracking systems that can enhance visibility and control throughout the shipping process. Therefore, e-commerce businesses should take the proactive approach of partnering with these companies to ensure not only safety but transparency in the movement of their package as they are delivered to the customer.

The importance of reliable shipment tracking

Reliable shipment tracking has become indispensable in today’s e-commerce sector due to heightened customer expectations. Buyers are now more keen on knowing their order’s journey from the moment it is processed to when it arrives at their doorstep. As such, e-commerce companies should consider integrating advanced tracking systems into their shipping processes to accommodate their buyer’s need for transparency. Employing a robust and reliable tracking system ensures real-time updates on shipments, which, in turn, gives peace of mind to both the buyer and seller.

Understanding advanced tracking technologies

Advanced tracking technologies have become essential in enhancing the logistical operations of many e-commerce businesses. Some of these technologies include:

1. GPS

The Global Positioning System (GPS) refers to a satellite-based navigation system that presents location and time information under all weather conditions, anywhere on or near the Earth. GPS devices are often installed in transportation vehicles or embedded in freight containers to help track the precise location of shipments in real-time. This capability allows logistics companies to monitor their assets continuously and manage their fleet more effectively, ensuring timely deliveries and optimising routes to avoid delays.

2. RFID

Radio Frequency Identification (RFID) technology utilises electromagnetic fields to identify and track tags attached to objects right away. Each RFID tag contains electronically stored information which can be read from up to several feet away. They do not need to be within the direct line of sight of the reader, thereby enabling a more efficient tracking process. Logistics companies typically apply RFID tags to individual products, pallets or containers, enabling automatic inventory management and reducing human error in tracking processes.

3. IoT and smart sensors

The Internet of Things (IoT) refers to the network of physical objects — "things" — that are embedded with sensors, software, and other technologies to connect and exchange data with other devices and systems over the Internet. In shipment tracking, IoT devices can include smart sensors that monitor various conditions affecting the shipment. For instance:

  • Temperature sensors: These are crucial for perishable goods such as food items and pharmaceuticals, ensuring that the products are stored and transported within safe temperature ranges.
  • Impact sensors: These sensors detect and record impacts or vibrations that could damage fragile goods during transit. Information gathered from these sensors can be beneficial for quality assurance, as well as improving packaging and handling procedures.

Integration with e-commerce and logistics software

Integrating advanced tracking technologies like GPS, RFID and IoT into e-commerce platforms and logistics management software is crucial for achieving seamless operations and ensuring data consistency. By effectively incorporating these technologies, businesses can streamline inventory management, order processing, and delivery scheduling, enhancing the overall efficiency of their operations.

Moreover, these technologies allow for the accurate reflection of data collected from various tracking devices within the logistical system, providing stakeholders with reliable and up-to-date information. As a result, key stakeholders can make informed decisions on the business’s logistics operations. This may include adjusting shipping routes based on real-time traffic conditions, managing inventory levels according to current stock and demand forecasts, and enhancing the responsiveness of the entire supply chain.

Benefits of advanced tracking systems for e-commerce businesses

Advanced tracking technologies offer a multitude of benefits for e-commerce businesses, including:

1. Reduced lost shipments

One of the most tangible benefits of advanced tracking technology is the significant reduction in lost shipments. With the use of technologies like GPS, RFID, and IoT sensors in e-commerce platforms or logistics software, businesses can maintain real-time visibility over their shipments. This continuous monitoring not only helps in preventing package oversight but also facilitates the quick recovery if they go astray. By minimising the incidences of lost shipments, companies can avoid the costs associated with replacements and the logistical hassle of re-delivery.

2. Enhanced customer trust and loyalty

Transparency in shipping processes plays a crucial role in building customer trust. When customers are kept in the loop with timely and accurate updates about their orders, their confidence in the e-commerce platform increases; this is because their transparency in the shipping process shows customers how committed the business can be when it comes to delivery and reliability. Consequently, satisfied customers are more likely to return, which enhances retention rates and fosters loyalty. For further insight, learn how to improve customer loyalty with every delivery.

3. Operational cost savings

Implementing advanced tracking systems can lead to substantial operational cost savings across various aspects of the business. Firstly, by reducing the frequency of lost shipments, companies save on the costs of replacing lost goods and managing logistics to redeliver them. Additionally, enhanced tracking capabilities decrease the workload on customer service teams, who otherwise spend a significant amount of time addressing customer inquiries about shipment statuses. By minimising customer service interactions due to shipping concerns, staff can focus on more strategic tasks, which can further improve operational efficiency.

Work with DHL Express for tracking solutions for your shipment

DHL Express can be a trusted logistics partner for e-commerce businesses that are seeking to enhance their operational efficiencies and customer service. As a leader in international logistics in Indonesia, our team offers tracking systems that are integral to managing global shipping demands effectively. We also have the expertise in implementing these technologies in the delivery operations of e-commerce businesses so that they have a robust system for monitoring shipments in real-time. As a result, they can significantly reduce the risk of lost packages and streamline international shipping services. This partnership not only provides technical support but also strategic advice to optimise logistics operations and improve overall service delivery.

Moreover, DHL Express has developed shipment tracking technologies and services that can best suit the needs of e-commerce businesses. These include a sophisticated IoT-based shipment monitoring system, comprising of RFID and GPS trackers, that offer detailed insights into the shipment process, from warehousing to final delivery. Being transparent in the shipping process can enhance the customer experience and promote satisfaction, as consumers appreciate real-time updates and the assurance that their orders are handled with care and precision. 

If you want to experience the benefits of our advanced tracking solutions, open a business account today.