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Why is freight tracking important?

These days, it’s becoming more and more uncommon for companies to not offer a way for you to track your order. While it seems like such a simple thing, how can it truly help your business? 

Freight tracking has become an integral part of customer service as well as a way to analyze personal efficiency. And in today’s market, efficiency and customer service are needed in order to stay relevant. 

What Is Freight Tracking?

Freight tracking is the method by which shippers and customers can track orders in real time. This allows both parties to stay on top of the location of the freight that is being shipped. The tracking element not only covers the physical location of the freight but it also covers the preparation of the freight once it is ordered as well. 

How Does Freight Tracking Work?

There is quite a bit behind the scenes that goes on to make sure freight can be tracked. This process outlines how it is possible to track your freight shipments this way. 

  • Order Confirmation: The order is established and the shipper arranges logistics with a carrier to deliver the freight. 
  • Create Order Numbers: Once the order is confirmed, the PRO number is created by the carrier and assigned. 
  • Create Bill of Lading: The next step is for the carrier to create the bill of lading which contains the PRO number as well as any additional information from the shipper and the buyer. 
  • Create Shipping Labels: After the bill of lading is created, all that is left is to create the shipping labels for the shipment. On these is the SCAC, or the standard carrier alpha code, which is combined with the PRO number to create a barcode. This barcode is scanned to keep track of receiving and shipment of the items. At that point, the freight is ready to be shipped. 

Terms You Need To Know for Freight Tracking

Here are some of the more important and common terms that you will hear whenever working with freight shipments. Knowing these terms will definitely help you better understand the process: 

  • Transportation Management System (TMS): This is the actual program through which you track your freight. This program can also store the shipping information and sometimes offer options for carriers that will increase savings as well as cut down on time. 
  • Bill of Lading Number (BOL): A bill of lading acts basically as a receipt. This is a document that stores information of both the shipper and the purchaser as well as detailed information regarding the descriptions of the freight. 
  • Pro Number: A pro number, which stands for the “progressive rotating order number,” is a part of the tracking number that is assigned to your freight. While it is a part of the tracking number, it also is a number used to organize shipments. 
  • Shipment Reference Number: A shipment reference number is a number that is designated to identify a shipment. This could be a number pulled from another part of the shipment such as the purchase order number, bill of lading number, customer number or just simply a phrase. 
  • PO Number: The PO number, also known as the purchase order number, is a simplified and unique way for a shipment to be identified. 

Different Types of Freight Shipments

There are different methods by which your freight can be shipped. Each method has its own benefits as well as some drawbacks. Generally, the easier it is on your shipment the more expensive it can be and the cheaper it is the more possibility there is for your items to be damaged. 

  • LTL Shipping: LTL stands for less than truckload. This just means that the freight in question does not take up an entire truck for the shipment. This method is only as difficult as the region that it is in. When you order an LTL shipment, it will be stopped throughout the trip at hubs and terminals where it can be loaded and unloaded.
  • FTL Shipping: FTL stands for full truck load. This means that the freight shipment in question will take an entire truck to ship. When tracking, these are a direct shipment only being loaded or unloaded at their original spot and the destination.
  • STL Shipping: STL stands for shared truck load. This is when your shipment is LTL but is in a truck with other LTL shipments that are headed in the same direction. But they are shipped in a way that they are only loaded and unloaded once despite stopping at different locations. 

What Technology Tracks Freight?

Generally, freight tracking is performed via either barcode scanning or GPS tracking. With freight tracking, your freight will be scanned at certain locations soon after it arrives, and from there, the tracking information will be updated for the buyer and the shipper alike. Essentially, this alerts everyone involved to the whereabouts of the items. Additionally, the other method is GPS tracking, which is done by tracking the truck or trailer that is carrying your freight. 

Importance of Freight Tracking for a Successful Business

There are so many ways by which freight tracking can help your company. Below, you will see the ways it can truly benefit you and your company. 

Increases Efficiency

Freight tracking is key to increasing efficiency. It keeps track of where along the process a shipment is, keeping everyone accountable to complete the task and get the shipment out. Increasing efficiency is important because of the modern standards that have been set on shipping by larger companies that have the ability to do so. To keep up and stay relevant, efficiency is key. 

Keeps Your Business Competitive

Hand in hand with efficiency is competitiveness. The few companies that have no form of tracking shipments either already are or should be considering some sort of tracking in the near future.  

This seemingly minor component of the process is actually a major detail as it may be the determining factor as to whether or not a customer chooses to work with your company. Being able to track shipments takes away a lot of stress for the person receiving the shipment and people will be willing to pay more for that security.

Improves Customer Satisfaction

Since tracking shipments will attract customers and help them to appreciate your company, it will improve overall customer satisfaction. Being informed changes the entire system in favor of both parties. 

Knowing the whereabouts to plan ahead helps the buyer know when to expect the items and when to be prepared to receive them, or even know if they are delayed. Guaranteed delivery is important to buyers because late shipments on your end can cause delays on their end of things as well. 

Tracks Delays

Tracking delays can be integral to your company because you will learn to adapt. Keeping track of routes with your freight tracking will help you to know when to reroute. 

Just simply knowing what possible delays there are with certain routes can improve your shipments. Also knowing there is an unavoidable delay, you can inform your customer ahead of time to avoid any anger, disappointment, or frustration when their shipment hasn’t arrived when they expected it to.  

Makes a Data-Based Shipping Strategy

To adapt to freight tracking, there will be a certain level of analysis required of you. But by using your tracking program, you can spot patterns and notice anomalies as they arise. 

Details like the carriers that you use often, the routes that you take, and the issues that cause delays are examples of situations that you’ll be able to pinpoint with the proper strategy. This will help you to strategize as you implement better methods that your company and customers will all benefit from. 

Manages Inventory

When you properly track your shipments, you’ll be able to find so many new ways to keep track of what you have left in your inventory. This can help you more accurately serve your customers because you’ll know when to restock or when it’s time to inform customers that something is unavailable. All of this and more will help you avoid complaints and refunds that might have otherwise been pursued by dissatisfied customers. 

Finalize Your Freight Tracking

Freight tracking is a blessing to the entire shipping industry. From something as simple as ordering tape on Amazon to purchasing trucks full of freight for a warehouse, everyone wants to stay informed about the state of their items while the items are in transit. Keeping yourself and your customers informed will improve their overall satisfaction and experience with you as a company! 

FAQ

What are the benefits of freight tracking?

Freight tracking provides real-time visibility into the location and status of shipments, which can help to improve efficiency, reduce costs, and improve customer satisfaction.

Can I reduce costs by tracking my freight?

Yes, tracking your freight can help you reduce costs by identifying inefficiencies and making better decisions.

Why is tracking important in supply chains?

Tracking is an important tool or software that can help businesses to improve the efficiency, visibility, and security of their supply chains.

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