Vehicle Tracking Systems: How Do You Leverage Tracking Data in Supply Chain?

India’s supply chain and logistics network has grown substantially in recent years and is set to grow much faster in those to come. 

As announced by the central government, India plans to improve its LPI (Logistics Performance Index) ranking from the 38th position in 2023 to the 25th by 2030. What’s the plan? Bolstering every logistic parameter, right from the digitization of multi-modal logistics, tracking and sharing logistics data across industries, and enhancing national and international connectivity along industrial corridors.

But hey, that’s a discussion for another time. For now, did you notice a common parameter across these projects?

It’s the capture and sharing of actionable data to reform India’s logistics infrastructure at its core.

As shippers and logistics providers, it's not just about tracking vehicle movements from A to B anymore. We must now focus on gathering more intrinsic datasets, including vehicle usage patterns, emissions data, route compatibility, etc., and leverage them to optimize operational efficiency.

So, how do modern vehicle tracking systems cope with these changing landscapes? More importantly, how can shippers and logistics providers leverage this newfound ‘data mine’? Read on to find out…

What are Vehicle Tracking Systems?

Vehicle tracking systems are a tech-powered ecosystem offering real-time visibility of end-to-end supply chain operations. These solutions go beyond pinpointing positions on the map. They also monitor the condition of in-transit goods, identify high-risk routes based on historical pilferage/theft data, optimize routes, mitigate disruptions, measure scope 3 emissions, and more.

It is this captured data that aids in making insightful decisions and optimizing supply chain operations.

Data Captured by Different Types of Vehicle Tracking Devices

Commercial vehicle tracking systems usually rely on 3 location tracking methods, namely GPS, SIM-based, and mobile application-based tracking. 

However, the use cases and device structure for these tracking systems vary depending upon multiple business-centric parameters such as the level of tracking accuracy required, logistics budgets, quality/quantity/value of assets in transit, and the type of movements (milk runs, intracity, interstate, etc.).

For example, some high-value shipments would require smart locks – these are digital locks with built-in GPS for tracking location and sending tamper alerts across the logistics network. Other examples could be portable GPS devices in a use-and-throw format that can be placed inside packages to mitigate theft and pilferage.

Before delving into the use cases, let’s first understand the type of data captured by different vehicle tracking devices:

1. GPS Vehicle Tracking System

   GPS trackers use a mechanism called trilateration that helps them tap into a series of 3 or more satellites from the Global Navigation Satellite System. The trilateration process uses the data from these satellites to calculate the device's latitude, longitude, and elevation in real time.

   
   

   GPS devices provide real-time tracking data of in-transit goods or vehicles accurate up to 5-10 meters.
   
   

   There are three types of GPS tracking devices, namely wired, portable, and built-in.

   
   

   • Wired GPS Tracking System

     Commercial vehicle tracking systems usually leverage wired GPS devices to manage their fleets. Being hardwired into a vehicle, these tracking devices offer stable connectivity and a seamless collection and transmission of geopositioning data.
     
     

   • Portable GPS Fleet Tracking Devices

     Portable GPS devices are usually mounted on the dashboard of the vehicle for seamless connectivity. These devices function on their own batteries and have in-built SIM cards that assist in data transmission. 

     
     A challenge with portable GPS devices is that they need to be placed without any obstructions around them to capture tracking data successfully. Thus, you can’t keep them inside containers, at the back of the vehicle, or anywhere else.
     
     

   • Built-In GPS Tracking System

     In-built GPS systems are ideal when you own a vehicle fleet rather than relying on market-sourced vehicles. The reason is the extraction of GPS data. Dismantling the GPS module and importing tracking data for each vehicle becomes a hassle, especially since you don’t own it.

     They function similarly to wired GPS trackers.
     
     

2. SIM-Based Vehicle Tracking System

   SIM-based vehicle tracking systems are a ‘zero-hardware-cost’ tracking solution. All you need is a basic smartphone and a SIM card.
   
   

   In this method, vehicle location is triangulated by tapping into 3 or more network towers in the closest proximity and determining the difference between the various signal strengths. This helps in calculating the SIM-carrying vehicle’s exact location.
   
   

   However, it has lower accuracy (100-200m) as compared to GPS devices (5-10m) and is mostly used for tracking long-haul movements.
   
   

3. Mobile Application Based Tracking

   Some vehicle tracking systems comprise mobile applications that the respective drivers need to install on their mobile phones. These are usually easy to use and require very little tech knowledge to operate.
   
   

   The tracking accuracy is close to that of GPS devices. However, a challenge in mobile application-based tracking is the necessity of a smartphone, which most drivers won’t have.
   
   

   You can check out this blog, ‘The Best Choice for Tracking Fleet Vehicles,’ for further information on the major vehicle tracking systems and their business-centric feasibility.

   
   

Another crucial tracking data for companies (especially after the government mandated it) is their scope 3 emissions. The government mandate states that the top 1000 companies in India (as per market capitalization) must necessarily disclose their scope 3 emissions and sustainability efforts in their BRSR (Business Responsibility and  Sustainability Reporting).

4. EcoTrace for Carbon Visibility

   EcoTrace leverages Intugine’s extensive database of over one million trucks and commercial vehicles to help companies:
   
   

   • Gain visibility over fleet emissions

   • Determine the source of emissions

   • Ideate solutions to neutralize Scope 3 emissions

   • Predict possible emissions up to the next 5 years (using historical data)
     
     

   How does it function? It uses a proprietary algorithm that calculates the emissions for each trip by taking into account variables such as truck model, manufacturer, capacity, load being carried, lane-wise emissions, etc.

   
   

   While EcoTrace's algorithm renders visibility over an organizations Scope 3 emissions, it's transporter benchmarking feature enables organizations to compare transporters with carbon-efficient practices in place and partner with them to curb the overall ecological impact.
   
   

Now that we understand the methods and types of data captured by different vehicle tracking systems let's understand how you can use it to reform India’s logistics infrastructure at the root level.

How do You Leverage Data Captured by Vehicle Tracking Systems?

Analyzing data sets captured across supply chain touchpoints can prove a competitive edge for your business. More importantly, centralizing data silos and ensuring transparency between operational units could prove pivotal in executing the insights garnered from these data sets.

Here’s how you can leverage data sets to reform your supply chain operations:

1. Route Optimization

   You can leverage data on SLA breaches, reasons for logistics disruptions, accessibility and condition of certain routes, etc., to formulate the ideal route for transporting assets within a stipulated time.

   
   You can also flag off pilferage or theft-prone routes in your Transportation Management Systems (TMS) and send alerts to respective drivers who tread on such routes. Sharing this data across the Indian logistics network could help initiate government action in remedying such inaccessible routes.
   
   

2. Risk Analysis and Mitigations

   Data on pilferage and theft across supply chain logistics can help determine apt solutions and mitigate disruptions. 
   
   

   For example, when you use smart locks to secure your goods, you get immediate tamper alerts and geopositioning data to help mitigate and also levy appropriate fines to the respective parties.

   
   Similarly, vehicle tracking systems also provide control towers that notify shippers about supply chain disruptions and assist in mitigating them. Analytics reports like halt analysis, speed analysis and driving behaviors, deviation analysis, theft, and pilferage analysis can help identify the causes of disruptions. This actionable data set can be used to optimize routes for future trips.
   
   

3. Inventory Management via Demand Forecasting

   Historical data on the number of trips scheduled by a particular shipper can help identify trends and patterns in the customer's purchasing habits. Thus, shippers can plan in advance for a predicted spike in demand, thereby alleviating the need for maintaining buffer stocks or loss of sales due to shortage.
   
   

   Another use-case associated with purchase patterns, especially in the e-commerce industry, could be the size of goods bought by customers and their demographics during said time periods.
   
   

   For example, the Neilson Media survey showed that 3 out of 4 customers tend to buy large appliances during the festive season thanks to multiple offers and discounts.

   Predicting the size of goods in advance can also help optimize the loading process, ensuring optimal utilization of truck space and reducing the number of trucks used for delivery.
   
   

4. Warehouse Management

   Data on purchase patterns and GPS fleet tracking data for real-time visibility of in-transit goods and assets can help optimize warehouse operations.
   
   

   For example, knowledge of in-transit truck arrivals at warehouses can help mobilize your workforce beforehand, thereby reducing the loading/unloading times.

   
   Imagine the amount of time you would save and operational efficiency in cases of milk runs!
   
   

5. Implementing Sustainable Logistics

   Tracking sustainability data like the emission count for a particular vehicle model or the fuel consumption for different commercial vehicles can help you from an eco-friendly standpoint.

   
   Similarly, carbon visibility solutions like EcoTrace provide you with a rich database of over 1 million commercial vehicles. Knowledge about a vehicle’s mileage, load-carrying capacity, and respective emissions can give you visibility over your company's scope 3 emissions.

   
   These are especially helpful in complying with government norms and global sustainability standards, such as the Greenhouse Gas Protocol, BRSR’s scope 3 reporting, ISO 14083, and more.
   
   

Key Takeaways

With India’s expanding logistics and supply chain landscape, the transformative power of vehicle tracking systems takes center stage. 

Beyond the traditional function of monitoring vehicle movements, these tech-driven solutions capture a wide spectrum of data, ranging from GPS-based location tracking to carbon visibility metrics through innovations like EcoTrace. The introduction of such sustainable practices not only aligns with global standards but also signifies a shift towards responsible business operations.

Having said that, the true potential of this data lies in its strategic application. Leveraging use cases like route optimization, risk analysis, demand forecasting, warehouse management, and sustainable logistics can help shippers as well as boost India’s supply chain network.

P.S. – It's not merely about reaching destinations anymore; it's about utilizing insights to make informed choices and steering the logistics sector toward a future characterized by efficiency, resilience, and environmental responsibility.