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The Benefits Of Using Geofencing In Logistics

Updated: Jul 26

Improving supply chains requires understanding how products move and what abnormalities are causing those shipments to be delayed. To receive this real-time data logistical information, companies are turning to automated methods such as geofencing for logistics. What is geofencing? Geofencing for logistics involves tracking assets such as fleets or containers at specific locations.

How Geofencing Works?

Geofencing system software for logistics uses GPS to triangulate the location of a truck or shipment. The concept of geofencing is to create virtual boundaries around a specific location such as the perimeter of a warehouse, distribution center, or transportation node. It can also be a larger location, for example, a section of a neighborhood or well-known geographic area such as a park or market district.

You program the software to create these virtual boundaries, which may be 100 feet around the specific location. Once these parameters are established, the programmed information is placed into GPS devices and RFID tags, as well as Wi-Fi and cellular geofencing-enabled apps. The tracking devices are placed onto trucks or containers. When the truck or container moves into or from a virtual boundary, a signal is sent from the device to the geofencing-enabled app. You receive an alert — such as an email, text message, or specific app alert — that the truck or container has passed through the virtual boundary.

Why Use Geofencing?

Geofencing provides geographical snapshots of your supply chain and shipping methods. You obtain data regarding what your carrier fleet or shipments are doing at a specific time. With this data, you can further refine your logistical strategies to make your supply chain more efficient, minimize risks, and perform accountability. You can track assets the entire time they are within your control so you can make more cost-effective decisions.

Benefits of Geofencing for Fleets

Many asset-based transportation companies use geofencing to understand the movements of their vehicles. They can instantly see where the truck is based on the GPS tracking data. With this data, they can simplify fleet management work to create a streamlined supply chain. This information can be used for a variety of purposes:

  • Modifying routes for more efficient deliveries

  • Rerouting fleet vehicles in case of emergencies such as unexpected road work, accidents, or weather-related hazards

  • Locating disabled trucks to perform immediate maintenance

  • Tracking driver movements in case they deviate from a chosen route

  • Providing real-time delivery information to customers

Benefits of Geofencing for Shipping

Geofencing can also be used at various logistical points such as loading docks and warehouses. A shipment can be tagged with a geofence tracker as it moves between various delivery points.

When it approaches a warehouse, a signal can be sent to alert the loading dock of the approaching shipment. The technology can be used to understand how long it takes that shipment to be unloaded from a truck or how much time it sits at a loading dock waiting for a delivery truck to arrive.

You may also use geofencing in other ways to protect shipments. A warehouse manager may send out an alert when a shipment leaves the warehouse without previous authorization. This method can lower the amount of theft that occurs. If a shipment becomes damaged, logistics geofencing allows you to know where in the supply chain that damage could have occurred to further evaluate your product handling policies.

Asset-Based Trucking Solutions

For better asset and fleet management, more transportation companies are turning to automated technologies such as geofencing logistical software to better assist their customers when tracking shipments. Here at GP Transco, we have advanced geofencing technology that tracks trailers and trucks. We then send text messages or emails to inform you when freight has arrived or left a specified location. Learn more about our trucking solutions by contacting us today.

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