Geofencing & Its Advantages in Supply Chain Management

  • November 16, 2018
  • Blog

If you take the etymology of the word Geofencing, the prefix “geo-” is a Greek word meaning “earth or land” and fencing in our context means “drawing an imaginary border.” So, in simpler terms, you get to draw an imaginary perimeter which will notify you whenever an object enters the boundaries.

Geofencing requires a location-based application which uses GPS, Radio Frequency identification, Wi-fi or cellular data to perform the pre-programmed application created by the administrator. The administrator sets-up an invisible perimeter set around a specific location so that when an object enters the boundary, an alert is issued.
One of the important reasons for preferring geofencing technology in supply chain management is the safety aspect which it provides to your products by keeping a track through GPS or RFID. If you are using the application, you get a minute-to-minute update from the time the goods get into the perimeter and also ensure that the equipment doesn’t stray away from the predetermined route. This application is widely used by the freight forwarders and logistics company as it helps them in tracing and tracking, stopping unauthorized entry, an inbuilt smart thermostat and many more.

Impact of Geo-fencing on different supply chain management activities:

> Transportation:
For instance, let’s take Ola or Uber, they are providing their customers with information which shows drivers the distance from their location along with time. But, in the case of fleet Management, it doesn’t just stop with providing information on distance and time but also tends to manage routes which increase total visibility and accountability. On par with tracking and tracing, if an organization decides a predefined geographic area where if vehicle containing containers enter then an alert or push notification will come on the mobile devices.

> Freight:
In the supply chain management process, mostly the shipping of goods needs to be safe and many times, the temperature must be controlled where geofencing technology can help. Additionally, they can also know when the trucks enter the specific radius, and they also can protect their containers as it is inbuilt with door sensors, panic buttons and more.

> Warehousing:
Managing time is an important aspect in the supply chain management, with geofencing the applicant can organize the loading, unloading, and transportation with ease. They also get information on the reasons for delays and the ways for minimizing it in future activities. With the above information, the applicant can engage in planning, improving scheduling, reducing manual reports and more.

> Logistics:
Geofencing will provide applicants with mobile GPS, tracking systems, real-time communications channels, and better customer service levels.
In 20Cube modern warehouses in India, we provide Geofencing or Perimeter Monitoring facilities to our customers which leads to better customer service and high safety for goods.
The companies which embrace Geofencing in supply chain management will have a better edge to those who didn’t have it. The reason for opting geofencing is because they provide accuracy, supply chain visibility, operational efficiency, high flexibility in tracking systems, low on-site investment, high visibility and better control over the whole supply chain.