Introduction
Approximately 90% of global trade is achieved through the use of containers using different means of transport (Miler, 2015). Due to the complexity and process characteristics, container trade faces challenges in its daily activities. It consists of container tracking, intrusion detection, real-time monitoring, and real-time theft detection and reporting as well as status reporting of container shipping are some of the major issues facing intermodal transport managers. On any given day regardless of weather condition and time, there are approximately 16 million maritime containers being transported in the entire global supply chain (Miler, 2015). From an economic view, misplaced containers may cause significant operational and financial risk. Delays in delivery lead to missed sales opportunities, increased transaction costs, production mishaps, and higher costs of products to the end consumer (Miler, 2015). Due to the challenges, there is a need for new container tracking devices that will enhance international intermodal transportation of goods.
Discussion
The amount of container goods that are lost because of damage, theft, accidents, and piracy is increasing daily. Real-time remote containers monitoring and tracking can assist in preventing loss of goods and containers while providing actionable information to minimize damage or retrieve goods ( Francisco and Swanson, 2018) . One of the main benefits of new tracking technologies is enhancing supply chain visibility. Supply chain visibility is the status, identity, and location of goods and shipment along the supply chain and monitored in timely messages and delivery. A study conducted in Europe and North America among 524 companies indicates that 80% of the respondents cited visibility as one of the challenges facing international intermodal transportation of goods (Miler, 2015). Furthermore, all the respondents insisted that new visibility related technology will enhance tracking in the global supply chains. There are four key factors that are essential in enhancing tracking:
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Rapid new product introductions according to new designs and market trends.
Visibility across the global supply chain
Responsiveness and flexibility to changes in product lead times and customer demand
Flexibility of sourcing and supply chains
One of the primary factors that are encouraging companies to improve tracking technologies is to remain competitive or distinguish their services from those of their competitors. Some of the customer related objectives include:
Ability to make corrections during shipment
Enhancing on-time delivery performance
Lean and Just-In-Time programs that will cause shorter delivery windows
Proactively alerting customers about late shipments
Reducing lead time variability
The achievement of the customer related objectives is translated into a series of needs and benefits of new technology solutions that will enhance tracking in the entire supply chain. The benefits include:
Transparency
Transparency describes the availability of timely and accurate information about the location of goods in the supply chain. New technologies will enhance container availability and utilization. It will also improve in better last mile recovery and organization of receipts that will lead to more effective management of local fleets (Muñuzuri et al., 2016). Once the container leaves the port and is being transported to its intended destinations, any person or party for whom the information is essential can check on the containers’ whereabouts. New tracking devices will make the tracking process efficient and easy. A person just requires an internet connection, and they can keep track of the movement and progress online. It often involves basic tools, such as Google Maps, to evaluate progress in real team. Most systems use RFID microchips that are combined with GPS satellite while other companies use the Internet of Things (IoT) ( Gnimpieba et al., 2015) .
Security
Enhanced visibility in the entire supply chain will reduce losses and damages while alert notifications about unauthorized access will ensure secure container transport. One of the worst statement that a first party or company that manufactured the goods wants to hear is that a good was in the manifest and should be on the ship, but it is not (Muñuzuri et al., 2016). It is important to note that liners are often held liable for stolen or lost containers. Container tracking systems will provide valuable information about what could have gone wrong. Adhering a tracking device to the outer side of a container and communicating its position through GPS or satellite, or through localized short-range wireless system will ensure the security of containers as they are transported in the supply chain ( Liukkonen, 2015) .
Reliability
New technologies will allow operators to improve customer satisfaction while strengthening their company profile by offering reliable services. Also, during international shipping, it requires a lot of paperwork and long processes. New tracking devices used in monitoring containers may incorporate all the necessary paperwork, including all the necessary internal and external audits (Muñuzuri et al., 2016). It will eliminate unnecessary paperwork, reduce bureaucracy, and ensure that paperwork is no longer a hassle because most processes are completed through automated processes.
Timeliness
The availability of accurate information about containers’ estimated time of arrival would automatically have a positive impact on supply chain processes, such as faster customs clearance and better arrangement of terminal positions (Muñuzuri et al., 2016). Ultimately, it will reduce lead time, achieve faster and timely delivery of goods, and minimizing door-to-door lead time.
Costs
One of the main goals of new tracking technologies is reducing costs within the supply chain. New technologies will enhance visibility, and reduce administration costs due to fewer requirements and fewer customs physical inspection (Muñuzuri et al., 2016). It will also reduce communication costs because of improved access to all players involved in the supply chain data. When a client experiences challenges moving merchandise and goods in the supply chain and distribution, it may have a significant impact on operational costs. Although improved container tracking devices cannot solve all shipment issues, it can prevent the accumulation of additional expenses by providing first parties with accurate information about compromised, delayed, or lost equipment.
Efficiency
Better arrangement/management in the entire supply chain will cause better organization and connection of intermodal connections, such as better management of rail and truck operations (Muñuzuri et al., 2016). Also, it will cause an improved arrangement of terminal procedures such as yard planning.
Return on Investment (ROI)
New container tracking devices will have a significant ROI for both the first party and second party. There are benefits associated with ROI when the first party is confident there will be no disruption of containers in the distribution chain and supply chain. Also, it is worth to an organization to know that a container has experienced some delays and that it may not reach the intended destination on time. Having such information may allow the first party to consider other methods to ensure they meet their obligations in the supply chain. Liners or the second party will gain additional ROI by ensuring they do not leave the port without the correct containers on the ship. Moreover, new container tracking devices will ensure faster identification of containers in a ship. Moreover, there are significant gains when considering the loss of customers and compromise of customer relationships because of loss or mishandling of cargo in the supply chain.
Conclusion
The term paper has evaluated how new container tracking devices will enhance international intermodal transportation of goods. The benefits of new tracking devices include reliability, timeliness, costs, efficiency, and return on investment. As mentioned earlier, intermodal transportation of goods faces many challenges such as damage, theft, accidents, and piracy. However, incorporating new tracking technologies will reduce or prevent most of the challenges while enhancing the efficiency of the entire supply chain process.
References
Francisco, K., & Swanson, D. (2018). The supply chain has no clothes: Technology adoption of blockchain for supply chain transparency. Logistics , 2 (1), 2.
Gnimpieba, Z. D. R., Nait-Sidi-Moh, A., Durand, D., & Fortin, J. (2015). Using the Internet of Things technologies for a collaborative supply chain: Application to tracking of pallets and containers. Procedia Computer Science , 56 , 550-557.
Liukkonen, M. (2015). RFID technology in manufacturing and supply chain. International Journal of Computer Integrated Manufacturing , 28 (8), 861-880.
Miler, R. K. (2015). Electronic container tracking system as a cost-effective tool in intermodal and maritime transport management. Economic Alternatives , 1 (1), 40-52.
Muñuzuri, J., Onieva, L., Escudero Santana, A., & Cortés, P. (2016). Impacts of a tracking and tracing system for containers in a port-based supply chain. Brazilian Journal of Operations and Production Management, 13 (3), 352-359.
