The logistics and transportation industry has grown rapidly over the past few decades as customers are looking for faster and more efficient deliveries of their goods.

To remain competitive, businesses in this sector constantly seek out and invest in innovative solutions to improve their operations and stay ahead of their competitors.

Geofencing technology has been one of many innovations in recent years that have revolutionized the logistics industry.

With GPS technology, the system can locate users and send them alerts whenever they are about to enter or depart from predefined boundaries.

It has been reported that nearly 70% of companies have been able to improve driver behavior as well as utilize resources more efficiently after implementing geofencing technologies within their management systems.

Geofencing alerts integrated with Transport & Logistics IT Solutions assist fleet managers in tracking driver delays, preventing vehicle theft, enhancing the efficiency of shipping and receiving, and informing customers about delivery times.

In this article, we help you uncover Geofencing and how it is beneficial in adding security and efficiency across the logistics and transportation sector.

What is Geofencing?

Geofencing technology is a method of defining virtual boundaries around a specific land area. The boundaries or zones within the virtual world can be a road within the country or a particular road.

Geofences can be created using GPS, wireless technology, or cellular data. In general, automatic actions, such as notifications, alerts, or specific actions, are triggered when a user or object enters or leaves a geofenced area.

How implementing Geofencing has enhanced the efficiency and security of the logistics and transportation Industry?

Geofencing systems are used primarily by the transportation and logistics industries to keep track of vehicle movements. Access to geofencing technology will give companies a significant competitive advantage. Vehicle Tracking Solutions for logistics companies provide better visibility and more efficiency in real-time, improving their overall operational efficiency and security levels.

These are ways geofencing has improved logistics and transportation security and efficiency:

Communication made easy

Whether it involves coordination regarding a specific field task or tracking compliance with a service level agreement, geofencing helps eliminate communication difficulties. Using Vehicle Tracking Solutions integrated with geofencing technologies, sending out triggered communication ensures the field job is completed as efficiently as possible.

Depending upon the situation, you may send an alert to your customers when the delivery personnel arrives near the address, an alert when a return shipment is being processed, or simply an update regarding your route.

A geofencing system may be configured to enhance field communication. In addition, this will eliminate frequent back-and-forth phone calls for clarification, allowing the fieldwork to run smoothly.

Improving security and preventing theft

Using geofencing technology provides you with enhanced asset tracking and security features. With this, you will receive notifications when your vehicles leave the predefined routes and virtual boundaries so you can manage your fleet assets more effectively.

You will receive an alert whenever your vehicles do not remain in the geofenced area. As a result, you can investigate the incident to determine whether the deviation was authorized, was justified, or if your assets had been stolen. Alerts provided by geofencing systems in real-time can allow you to react promptly.

Enhance fleet safety and compliance

Using geofencing is another great way of improving the safety and compliance of your fleet. To do that, you can initiate the process of managing your traffic restrictions.

Often, in urban places where large commercial vehicles are used, authorities restrict the use of these vehicles at certain times of the day or even forbid certain types of vehicle types from traveling on certain roads. When your trucks enter these off-limits areas, geofences notify you.

Monitor performance, utilization, and efficiency

Fleet managers utilize geofencing to monitor their fleet vehicles’ performance and impact on their company’s bottom line.

Tracking GPS data and geofencing can provide useful data and insights: for instance, how long it takes them to get from one point to another, how many turnarounds they take, their operational costs, fuel expenses, etc.

An action that is triggered by an event

In the logistics and transportation industry, geofencing can trigger an event response. Taking advantage of the triggered event can enable the team to prepare for the arrival of incoming shipments and carriers by preparing the team for handling them.

Thus, carriers must spend less time waiting on the docks, resulting in a shorter period of detention and a faster dispatch time for the carriers.

Keeping expenses to a minimum

With the help of field management software equipped with geofencing technology, unnecessary fuel, vehicle, and human resources can be saved.

A geofencing alert ensures your delivery agents and drivers are kept from the right locations.

The geofencing feature will send you an instant alert if your agent enters an incorrect location, guiding them to the correct location if the location they entered is incorrect.

Traveling to the right location saves you time and money on fuel and vehicle maintenance. Additionally, this will increase fleet and workforce efficiency, resulting in substantial financial gain in the long run.

Better management of fleets

Using geofencing software makes fleet management an easier affair, and it becomes a less time-consuming one.

To track your fleet’s movement daily, you can monitor its movements within and outside the geofence to see how it is used. Using the geofencing, you can check how long drivers are idling and take safety measures.

Planning routes better will save fuel and money

With real-time Vehicle tracking and the ability to get customized reports based on geocoded data points, you can keep track of your fleet in real-time and optimize the performance of each vehicle.

Conclusion

The logistics and transportation companies differ greatly in the size and scale of their operations. As a result, it is essential to utilize the custom solutions that apply to the companies since their size and scope differ greatly. GPS tracking, geofencing, and geolocation can simplify and improve the management of fleets in the logistics and transportation industry.

With geofencing, fleet managers can improve customer experience and gain valuable insight.