Local Matters: The Impact Of Geofencing On Deliveries

Efficiency in home deliveries has become one of the most valuable assets for companies looking to grow their businesses. Why? Consumer expectations in last mile delivery keep growing, with almost 72 percent of retailers implementing same-day delivery operations and 56 percent shipping their products worldwide.

Logistics managers are pushing their fleet’s capabilities to the limit, looking for innovative ways to guarantee their delivery promise and reduce home delivery failure rates as much as possible — a necessity in the Amazon age. Over the years, the transportation and delivery industry became one of the most expensive channels for most logistics companies; consequently, technology has proven to be an excellent ally to keep those cost at the minimum and improve the overall experience.

Technology in supply chain operations is not a novelty, and today these processes have been enhanced even more by the use of smartphones and mobile web. As such, one concept in particular has gained attention from logistics managers: Geofencing.

Geofencing technology is used to create a virtual barrier around an object — e.g. Vehicles, Packages, Persons, etc. — that is tracked and monitored through GPS in defined, real-world geographical boundary. It’s usually thought of as a way to deliver ads or messages to mobile consumers within a particular radius, but from a logistics perspective, it’s an invisible “fence” created by software and hardware devices across a targeted object that is part of the supply chain operation.

The objects, in this case usually vehicles or packages, which are tracked inside the delineated area, and notifications are sent if they leave the geofence perimeter. The technology is already used by large companies like Amazon or Wal-mart to track and monitor their assets, and it gives the organization the ability to respond in real-time to potential delivery problems.

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