Tracking goods through the supply chain

Tracking goods through the supply chain

 Over the last few weeks, we have looked at various ways companies and logistics providers are adding value in terms of reducing cost and also expanding customer markets. One of the biggest challenges, however is tracking goods moving through the supply chain from production to receipt. Lack of visibility particularly during the import/export handling stages leads to lack of control, along with inefficiency and waste.

Importers and distributors rely on having accurate, up-to-date information on the status of their shipments - this is particularly important in sectors such as apparel, domestic appliances, industrial equipment, cosmetics and toiletries. For instance, a UK company can place production orders with factories in, say, Thailand, Bangladesh, China and Lithuania, and then have little visibility of the status of that order in terms of quantities made, in terms of container loading and in terms of dispatch and transit.
Problems are further exacerbated when the shipping container is received and takes hours (or in some cases days) to unload, to check, and to put away the stock. This problem of course isn't just related to geography, it can apply to a manufacturing plant around the corner from (or within the same region as) its customer.
Thanks to low-cost barcode scanners and label printers, and widespread internet access there are now cost-effective labelling and tracking systems available to help. These systems work by sending details of the importers' orders electronically to the overseas manufacturing facility. Information sent can include details of the full order and then details of each call-off/dispatch and export request.
The overseas manufacturer then produces labels for each carton or unit produced. Each label has a unique barcode identification number against which is held details of the carton contents - e.g. SKU, order reference, quantity, batch code and so on. The barcode is to the international GS1 (a Global Standard) and can be either a one- or two-dimensional (1D or 2D) code.
Labels are produced on a near-real-time basis, meaning that production information can be reported on a near-real-time basis back to the importer. Conformance information including weights and quantities can be recorded against the unique label ID.
Cartons can then be scanned into shipping containers, providing an electronic ASN (advanced shipping note) and container manifest. This provides the importer with exact and timely information of what has been shipped, how it has been packed and loaded and what container it is in.
At the importer's warehouse, for instance in the UK, the task of unloading a container becomes significantly faster and more accurate. The individually labelled and identified cartons are unloaded and scanned, the warehouse management system in place can then guide the operator where to put the item - either in the optimum stock location or cross docked straight to the dispatch bay.
The solutions should, of course, need to be easy to use across multiple languages and cultures. The better syatemss on the market can work in environments where internet connectivity is limited and spasmodic and where IT skills and equipment are basic. Solutions can run on the "cloud" as hosted solutions, giving the option to pay by transaction rather than pay a licence fee.
Other modules of such offerings can provide remote stock control and tracking. This capability centres around the use of the latest mobile handheld computers with in-built mobile phone Internet connections, including 3G and GPRS. This means that zero IT infrastructure is required making the module useful for the control of remote or temporary warehouses, open storage yards, unmanned stores, control of inventory at customer or supplier sites.

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Steve Cross is managing director of ATMS Plc, warehouse management and supply chain systems specialist with offices in the UK, Manila and Dubai. He can be contacted at