Delivery tracking and security: A higher level of transparency

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  Quantumrun Foresight
• November 9, 2023

Insight highlights

The surge in demand for precise delivery times and advanced tracking technology, amplified by the COVID-19 pandemic, has led to innovative solutions for real-time package tracking and enhanced security across the supply chain. Increased transparency not only bolsters customer satisfaction and trust but also optimizes logistics and inventory management. The wider implications include improved supply chain efficiency, compliance with international regulations, increased demand for cybersecurity expertise, promotion of sustainable practices, and potential cyberattack vulnerabilities.

Delivery tracking and security context

The demand for knowing the exact arrival time of an order had significantly increased among consumers, a trend amplified during the COVID-19 pandemic when delivery tracking became widely adopted. The tracking technology has advanced so much that customers can now identify the specific container carrying their product, marked by its stock-keeping unit (SKU). This enhanced tracking process provides transparency and serves as a security protocol, safeguarding both merchandise and personnel.

Real-time tracking enables products to be traced through their journey within the supply chain, from specific cargo containers to warehouse bins. Various companies are advancing in this field, such as Chicago-based ShipBob, which offers real-time SKU tracking for full transparency into inventory levels and replenishment timing. Meanwhile, Flexport provides a global platform for monitoring goods transported via planes, trucks, ships, and railways. And Arviem, a Swiss company, utilizes IoT-enabled smart containers for real-time cargo monitoring.

The increasing consumer expectation for same-day delivery requires package tracking advancements and efficiency. A thoroughly transparent delivery model could even track packages at a micro level, encompassing raw materials. In addition to predicting theft and delivery timings, drones and AI might also be utilized to confirm product authenticity. However, while many supply chain and logistics firms have adopted real-time tracking, a standard industry-wide practice is yet to be established. 

Disruptive impact

Enhanced tracking technologies would give consumers and businesses unprecedented visibility into their orders, boosting accountability. This level of transparency would not only improve customer satisfaction and trust but could also lead to greater efficiency in logistics and inventory management as companies gain a more granular understanding of their supply chain's performance. It could help identify bottlenecks, reduce excess inventory, and increase responsiveness to demand fluctuations.

An emerging use case of delivery tracking is cold chain storage monitoring. A 2022 study published in the Journal of Shipping and Trade proposed a tracking mechanism to prevent bacteria from developing in medicine and foodstuff deliveries due to temperature changes. This mechanism comprises a wireless sensor network (WSN), a radio frequency identification (RFID), and the Internet of Things. Another potential technology is blockchain, which enables everyone in the supply chain to see the progress of the deliveries through a public ledger that can't be tampered with.

However, implementing these advanced tracking and security measures could raise new challenges. Regulatory compliance, particularly regarding data privacy and drone usage, could become more complex. Consumers and regulators may express concerns about the collection, storage, and use of data generated through real-time tracking. 

Implications of delivery tracking and security

Wider implications of delivery tracking and security may include: 

• Consumers' trust in online purchasing and delivery increasing, resulting in increased orders and loyalty, particularly among ethical consumers.
• Reduced losses and disruptions in the supply chain, leading to lower operational costs. With fewer resources wasted, companies can focus on growth and investment.
• Companies being able to comply with international trade and customs regulations, encouraging more open and efficient cross-border trade policies.
• Increased demand for cybersecurity and automation experts as more sophisticated tracking systems are developed.
• A circular economy that promotes sustainable sourcing, recycling, and reusing.
• Increased cyberattacks that could disrupt a country's critical infrastructure, such as energy and healthcare.
• Governments creating regulations that oversee data collection and usage of tracking devices like sensors, cameras, and drones.

Questions to consider

• If you work in logistics, how is your company using delivery tracking technologies?
• What are the other potential technologies that can enhance delivery tracking transparency?