Boosting supply chain visibility and efficiency

Global logistics networks have endured unprecedented challenges in recent years. The COVID-19 pandemic alone cost the shipping industry $10 billion, while ongoing geopolitical tensions and climate-related disruptions have caused costly delays¹. While some delays are inevitable, these disruptions have exposed a critical weakness in traditional logistics: a lack of real-time visibility. 

Despite investing billions in logistics every year, many businesses are left in the dark about the location and condition of their shipments. This has far-reaching economic consequences downstream. Logistics and transportation companies end up investing in larger fleets than they need, manufacturers struggle to plan production schedules, and retailers struggle with inventory management.

"Traditional tracking methods no longer align with the requirements of modern trade," says David Weinberg, Head of Portfolio Management IoT Solutions, G+D. “Today's interconnected supply chains demand granular, real-time tracking solutions. Businesses and consumers expect more transparency and insights with their goods in transit – and the technology is there to deliver it.”

The visibility problem in global supply chains

Consider a familiar scenario: You order a new kitchen appliance scheduled for delivery on Tuesday. The retailer's tracking page shows that your order has left the warehouse, but beyond that, you're in the dark. Tuesday arrives, and your order is marked "out for delivery" – but no estimated time is provided. As a result, you're stuck at home, unable to risk missing the delivery. Finally, at 5:30 PM, you receive an unfortunate notification: "Delivery rescheduled for tomorrow due to unexpected delays."

This outdated checkpoint model creates frustration for consumers who increasingly expect precise delivery times, sometimes within 24 hours of purchase.

However, the consequences at an industrial level are far more severe.

Now let’s imagine an electric vehicle manufacturing plant in South America awaiting critical components from Europe. The shipment’s last scan shows it departed a European port, but beyond that, its whereabouts are unknown. All you know is that it’s somewhere in the Atlantic. Without real-time tracking, logistics and plant managers must make critical decisions based on guesswork: Will the shipment arrive on time? What if it goes missing or gets stolen? Should we halt the assembly line and reassign staff? Should we alert downstream customers about possible delays?

There’s also the issue of accountability. If a shipment is delayed – or worse, goes missing – pinpointing responsibility becomes more difficult because it depends on the last known location, which won’t be accurate without precise tracking. 

All this uncertainty triggers a ripple of disruptions throughout the production network and supply chain: 

• Assembly lines grind to a halt, costing manufacturers heavily in terms of lost productivity.
• Vehicle deliveries are delayed, frustrating retailers.
• Customer satisfaction drops, and customers cancel orders, abandoning the company for a competitor.
• Brand reputation and loyalty suffer long-term damage as angry customers vent their frustrations on social media. 

All of this results in substantial financial losses. According to a report by the Economist Intelligence Unit, supply chain disruptions can cost businesses between 6-10% of annual revenues² – losses that could be significantly avoided by simply improving visibility.

However, it’s not all about protecting the bottom line. Transportation activities account for 17% of global greenhouse emissions. With tightening emissions regulations and growing ESG expectations from investors and consumers, industry players are under increasing pressure to improve environmental sustainability. This convergence of operational and environmental challenges is just one of the reasons the industry is increasingly turning to smart logistics and IoT-powered real-time tracking solutions.

With tightening emissions regulations and growing ESG expectations from investors, companies that fail to optimize their logistics emissions will soon face compliance risks and shrinking margins

The case for real-time tracking

According to Berg Insight estimates, the number of tracking devices on cargo-carrying shipments (such as trailers, shipping containers, and freight vehicles) is projected to rise from 8.8 million in 2022 to 20.3 million in 2027³. This reflects the industry trend of investing in digital solutions, driven by IoT technologies, to solve traditional supply chain challenges of visibility and security. 

Through an increasingly interconnected network of devices and sensors, IoT provides unprecedented visibility across supply chains, transmitting real-time data on much more than the shipment's real-time location. Furthermore, integrating AI offers even more insights that benefit both the companies shipping and transporting the goods, and those receiving them. 

"IoT technology doesn’t just facilitate locating assets – it also provides insight on the security and environmental conditions of a shipment, helping logistics managers stay in the loop and make the right decisions," explains Johannes Forster, Head of IoT Solutions, G+D Mobile Security. "This shift from reactive to proactive logistics also helps improvements in efficiency and sustainability downstream."

The benefits of this technology are felt across the supply chain. Logistics managers can react quicker to disruptions, business executives can optimize operations and investment decisions with data-driven decisions, and consumers get time back thanks to more precise delivery windows. It’s a win-win for all. 

And this is before considering the positive contribution optimizing routes can have on the environment. Smart fleet management solutions can reduce fuel consumption by an average of 15%⁴ – making a notable contribution to reducing the industry’s global footprint. 

Simplifying IoT for supply chain visibility

Despite these clear advantages, many organizations have hesitated to adopt IoT tracking solutions, deterred by the perceived complexity and infrastructure costs of implementation. Fortunately, recent innovations are making real-time tracking more accessible to organizations of all sizes.

One such solution is the Smart Label, an innovative, real-time tracking solution that turns any package into an intelligent IoT device. Slightly larger than a credit card in size, these sophisticated, yet cost-effective labels provide enterprise-grade visibility without the complexity traditionally associated with IoT infrastructure. 

Unlike conventional IoT tracking solutions that require extensive set-up and technical expertise, a Smart Label uses a simple peel-and-apply mechanism. Once applied, is immediately starts transmitting data on a shipment’s location, temperature, and tampering attempts, giving organizations and logistics managers full visibility from dispatch to delivery.

However, more data isn’t always better. Without the right tools, managing such large volumes of data can be overwhelming – especially for larger organizations tracking thousands of shipments across the globe. Platforms like G+D’s Track-Fleet address this challenge, providing logistics managers with a real-time, browser-based dashboard that offers full oversight of shipments. The platform’s advanced analytics capabilities enable organizations to make smarter, data-driven decisions, optimize routes, and anticipate costly disruptions before they escalate.

“The combination of a Smart Label and Track-Fleet eliminates the visibility gap in supply chains,” says Sharath Muddaiah, Head of Customer Success & Business Strategy for IoT solutions, G+D. “As global logistics become more complex, embracing real-time tracking solutions will be critical for maintaining competitiveness, while meeting efficiency goals.”

As a global leader in IoT tracking solutions, G+D partners with leading logistics providers to build more resilient and transparent supply chains. The result is a more efficient, sustainable, and ultimately reliable global logistics network that benefits everyone – from manufacturers and retailers to end consumers and the environment.