What Is Freight Visibility? A Complete Guide to Road Freight Visibility
Freight visibility is a popular discussion topic in many supply chain circles.
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And rightfully so. In the wake of the pandemic, eCommerce boom, and subsequent supply chain crisis, the world needs solutions.
Road freight visibility is paramount for businesses seeking to thrive in today’s dynamic logistics environment.
Real-time tracking completes after the load has been delivered and enables streamlined operations, enhanced customer satisfaction, and improved supply chain efficiency. By leveraging advanced predictive models, companies can gain transparency by knowing the ETA to pickup and the ETA to destination. This allows for operations to plan the loading or receipt of goods, product teams can operate in a just-in-time (JIT) nature, and transportation teams can focus on at-risk shipments.
Let’s discover freight visibility in more detail in today’s guide. Here’s what we will cover in it:
- Understanding the basics of freight visibility and the 2 sides to it
- How it benefits your business
- Best practices for freight visibility
- Importance of Real-Time Transportation Visibility Platforms (RTTVPs)
- Vector’s role in freight visibility
What Is Road Freight and How Does It Work?
Road freight refers to transporting goods via roadways using vehicles such as trucks, lorries, or vans. As one of the most common and versatile modes of freight transport, it offers flexibility, accessibility, and cost-effectiveness for both short and long-haul shipments. Whether transporting raw materials to factories or delivering finished products to retail stores, road freight is a vital component of the supply chain.
A key aspect of road freight operations is shipment visibility, particularly the ability to provide an accurate estimated arrival time (ETA). Knowing when a product will arrive is critical for businesses to plan their operations effectively and meet customer expectations. Real-time tracking tools enhance this process by allowing companies to monitor the movement of goods, anticipate potential delays, and make proactive adjustments when necessary.
This level of transparency improves operational efficiency and builds trust with customers by keeping them informed about their shipments.
How Does Road Freight Work?
- Planning and Scheduling
The process begins with planning the route, determining the type of vehicle required, and scheduling pickup and delivery times.
- Loading and Transportation
Goods are loaded onto vehicles, ensuring proper packaging and securing to prevent damage. During transportation, real-time tracking systems provide shipment visibility, enabling businesses to monitor the cargo’s location and condition throughout the journey.
- Delivery and Unloading
Once the vehicle reaches its destination, the goods are carefully unloaded and inspected to ensure they meet the expected standards. This step often involves verifying the shipment against its accompanying documentation, such as bills of lading and invoices, to confirm accuracy. Businesses review what the documentation states—such as quantities, conditions, and specifications—and compare it to the delivered goods to identify discrepancies.
A critical part of this process is generating proof of delivery (POD) documents, which officially confirm that the shipment has been received. This documentation ensures accountability, helps resolve disputes, and supports record-keeping for future reference. Companies maintain transparency and ensure smooth, efficient operations by aligning the documentation with the physical delivery.
What Is Freight Visibility: Understanding Its 2 Dimensions
Freight visibility represents the ability to track the movement of goods throughout the entire journey, from the initial planning stage to the moment they reach their final destination. Freight visibility is the essential backbone of modern logistics and supply chain management. But not long ago, things were quite different.
Real-time tracking meant giving the driver a check call on their cell phone. You’d ask the driver for their location, a rough estimated time of arrival, and maybe give them your fax number for the bill of lading. Internally, maybe we shared a little data on a spreadsheet. Looking back, we were sharing real-time data in a way. If you squint hard enough, I guess that was technically freight visibility.
Fast-forward to today and real-time tracking has transformed. The precision and accuracy enabled by modern technology are light-years ahead of the check-call era. Tools like GPS, IoT (Internet of Things) devices, telematics, and digitization software have revolutionized tracking shipments. This technological evolution has also introduced specialized capabilities like long haul visibility for cross-country tracking and line haul visibility for managing specific segments of a shipment’s journey. These innovations have given rise to an industry focused entirely on enhancing freight visibility.
However, this concept is not one-dimensional; rather, it has two critical sides that converge to streamline the shipping process.
The Planning Side
Freight visibility begins with planning shipments. Supply chain and logistics teams must answer two fundamental questions: Where does the shipment need to go, and how should it get there? This planning is all about making informed decisions, from selecting the optimal transportation routes to choosing the most efficient carriers. Consider factors like transportation costs, delivery timelines, and the nature of the cargo.
The planning stage relies heavily on data, historical trends, and real-time information to make well-informed choices. This is where technologies like route optimization algorithms and demand forecasting tools come into play. With these tools, businesses can strategize and create detailed plans for the timely and cost-effective movement of goods.
The Role of ePOD, ePOS, and eBOL in Road Freight Visibility:
To fully digitize and connect the supply chain, companies need to go beyond GPS tracking and integrate electronic documentation such as ePOD, ePOS, and eBOL. These technologies are crucial for modern road freight operations:
• ePOS (Electronic Proof of Shipment): In road freight, ePOS provides real-time document access to the Proof of Shipment. The Proof of Shipment is the signed BOL at origin by the shipping location and carrier. This includes commodity details that are on the trailer, seal information, and carrier information. This eDocument can be leveraged for receiving preparation, inventory allocation, accessible for invoicing and inventory purposes.
• eBOL (Electronic Bill of Lading): The eBOL replaces the traditional bill of lading with a digital document that simplifies tracking shipments and ensures that all parties involved have access to accurate and up-to-date shipping information. This digitization enables quicker processing, fewer errors, and greater efficiency across the supply chain. Documents can no longer be lost with the digital file cabinet adhering to BOL retention policies.
• ePOD (Electronic Proof of Delivery): A digital version of the traditional paper-based Proof of Delivery, ePOD provides real-time confirmation that goods have been delivered to the correct location including the arrival date/time and the departure date/time. This time stamp provides the actual dwell time and whether detention would apply. Any exceptions are digitally notated on the eBOL, such as OS&D. By capturing the entire story on a digitally native document, data is instantly available to all stakeholders. Gone are the days of chasing carriers for weeks for copies of the BOL and POD and customer invoice deductions can be acted on in hours, not 3 months after the fact.
Technology Enabling Road Freight Visibility
Freight visibility has come a long way from the era of manual tracking and check calls. Today, road freight operations are increasingly powered by technologies such as ELDs, GPS, IoT sensors, and real-time tracking systems. These tools allow businesses to monitor shipments continuously, adjust routes, or address delays in real time.
When combined with eBOL, ePOS and ePOD, these technologies form a comprehensive, digitally connected supply chain that integrates into WMS, YMS, and receiving systems. For instance, an eBOL can be updated in real-time as the shipment progresses, and the ePOD can be captured at the point of delivery, immediately syncing with the the TMS and freight audit and pay system to initiate freight invoice.
End customers can receive the eBOL before delivery and augment the check-in and the WMS purchase order (PO) to update inventory, invoicing, and more. This real-time data flow makes it easier for companies to plan, execute, and adjust operations as needed.
Benefits of Road Freight Visibility and Digitization
The impact of road freight visibility on businesses is substantial:
When 80% of incoming calls are customers asking where their shipments are, freight visibility is everything for any business. Time to see how it benefits yours.
01. Enhanced Shipment Tracking & Tracing
Imagine having the ability to pinpoint the exact location of your shipments in real-time, like tracking a package you ordered online. That’s what enhanced shipment tracking and tracing, a key component of freight visibility, offers your business.
With this capability, you can monitor your goods moving through the supply chain. You will know when your products leave your facility, reach a distribution center, and arrive at their final destination.
Why does this matter? It eliminates the guessing game and the frustration of not knowing where your shipments are. In the world of logistics, information is power. With shipment visibility, you can respond to any unforeseen issues quickly, whether it’s a delay because of weather, a traffic jam, or a problem with a carrier.
With eBOL, ePOS, and ePOD companies can gain real-time insights into where their shipments are, how long they’ll take to arrive, and any potential issues. This not only improves operational efficiency but also ensures that customers are kept in the loop, enhancing trust and satisfaction.
02. Improved On-Time Delivery Performance
On-time delivery is not just a matter of meeting commitments; it’s about keeping customers satisfied and loyal. Poor freight visibility can cause missed delivery windows and disappointed customers. But with freight visibility solutions in place, you gain the upper hand.
You can plan with precision, knowing exactly when your shipments are expected to arrive. This lets you optimize your scheduling and ensure that you allocate resources efficiently and meet delivery deadlines consistently. No more last-minute scrambling to handle delays or unexpected bottlenecks.
Digitizing road freight processes with eBOL, ePOS, and ePOD ensures that every step from pickup to delivery is accounted for. Digital documentation automates much of the record-keeping process, reducing administrative overhead and human error.
03. Better Inventory Management & Planning
Inventory management can be complex. Too much inventory ties up capital and storage space while too little can cause stockouts and lost sales. Enter freight visibility, which brings a new level of clarity to these situations.
When you know your shipments’ arrival times, you can align your inventory levels precisely with demand. You reduce the risk of overstocking or understocking and optimize your use of warehouse space and capital. This, in turn, saves costs and improves profitability.
Also, you can plan promotions and marketing campaigns with confidence, knowing that you have the goods in hand when you need them. Freight visibility transforms inventory management from a headache into a strategic advantage.
With real-time updates on shipment status, businesses can synchronize inventory levels with incoming goods more efficiently, avoiding stockouts or overstocking and improving the accuracy of supply chain planning.
04. Enhanced Supply Chain Visibility
Your supply chain is a complex network of interconnected nodes, from suppliers to manufacturers to distributors. A freight visibility platform gives you a crystal-clear view of your supply chain which means everything for your business.
You get access to large volumes of supply chain data that lets you understand how each element of your logistics network is performing. This real-time insight helps you identify bottlenecks, inefficiencies, and areas for optimization.
With this, you can make informed decisions to improve your supply chain’s overall efficiency. Whether it’s optimizing routes, adjusting inventory levels, or renegotiating contracts with suppliers, you have the data to drive meaningful improvements.
05. Streamlined Operations & Reduced Downtime
In the world of logistics, downtime can be a silent profit killer. Every minute your operations stall because of unforeseen issues is a minute of lost productivity and potential revenue. Freight visibility is your solution to minimize these costly disruptions.
When you have clear insight into your shipment’s movement, you can plan and allocate resources more effectively. You’re not caught off guard by delays or disruptions because you can anticipate and react to them in real time. This proactive approach minimizes downtime, keeps your operations running smoothly, and ultimately saves you money.
Imagine a manufacturing line that never grinds to a halt because of missing raw materials or a distribution center that efficiently manages incoming shipments, reducing the need for overtime. That’s the power of streamlined operations through logistics visibility.
06. Improved Customer Service & Satisfaction
Exceptional customer service is what sets businesses apart. Freight visibility platforms play a pivotal role in improving your customer service and, consequently, customer satisfaction.
Imagine when a customer wants to inquire about their order’s status With freight visibility at their fingertips, they can get accurate, real-time information. They know precisely where their shipment is and when it’s expected to arrive. This transparency not only satisfies the customer’s curiosity but also instills confidence in your reliability.
Also, when you consistently meet delivery commitments, your customers become more than satisfied – they become loyal advocates for your brand. They’ll trust you to deliver on your promises time and again, resulting in repeat business and positive word-of-mouth referrals.
07. Better Utilization Of Resources & Assets
Freight visibility transforms how logistics companies allocate and manage their resources and assets. It’s about making every element of your supply chain count, whether it’s warehouse space, labor, or equipment. When you know exactly when shipments are arriving and departing, you can allocate your resources more effectively.
Also, better resource utilization means that your assets, like trucks and warehouses, are used to their maximum capacity. Empty trucks and underused storage facilities become exceptions rather than the norm, which increases efficiency and profitability for your logistics company.
08. Proactive Issue Resolution & Exception Management
Issues are bound to arise in dynamic supply chains. They could be a weather-related delay, a logistical hiccup, or a damaged shipment. Freight visibility empowers you to be proactive in addressing these challenges.
Instead of reacting to issues as they surface, you can foresee and manage exceptions in real time. This means rerouting shipments to avoid disruptions, alerting customers about delays before they become a concern, and resolving problems swiftly. The result? A smoother, more reliable supply chain with fewer hiccups along the way.
09. Reduced Transportation Costs & Overhead Expenses
Reducing transportation costs and overhead expenses is a critical goal for logistics companies and freight visibility is a powerful tool in achieving this objective.
With comprehensive insights into shipment movements, you can optimize transportation routes and carrier choices. This reduces fuel consumption, lowers transportation distances, and offers better rates with carriers.
Improved visibility also helps mitigate overhead expenses associated with disruptions and inefficiencies. Downtime, rush orders, and emergency rescheduling are all costly and can be minimized with proactive issue resolution made possible.
10. Compliance & Regulatory Adherence
Compliance and regulatory adherence are non-negotiable aspects of logistics, especially for international shipments. Freight visibility makes it easier.
When you can track shipments and access the necessary documentation in real time, you are in control. Compliance becomes less of a headache because you are consistently meeting the necessary standards and regulations. This minimizes the risk of costly delays, fines, or legal issues associated with non-compliance.
Also, compliance becomes more manageable when you have access to supply chain insights that let you track and report on the necessary compliance data. It’s all about staying on the right side of the law without breaking a sweat.
6 Effective Strategies To Achieve Freight Visibility
Let’s discuss how you achieve freight visibility across your supply chain.
01. Implementing Real-Time Tracking Systems
- Select the Right Tracking Technology: Start by choosing tracking systems that fit your needs. GPS and RFID are common options. Consider factors like coverage, accuracy, and cost.
- Install Hardware: Once chosen, install tracking hardware on your trucks, containers, or packages. Ensure proper calibration and maintenance for reliable data.
- Implement Alerts: Set up automated alerts for deviations from the plan. This could be delays, route changes, or temperature fluctuations for sensitive cargo.
- Use Mobile Apps: Equip drivers with mobile apps that connect to the tracking system. This way, they can access real-time data on their routes, delays, or potential issues.
- Connect to a Central Hub: Link tracking devices to a central system that collects real-time data. This hub can be on-site or cloud-based, depending on your infrastructure and budget.
02. Integrating Telematics for Fleet Visibility & Optimization
- Choose Telematics Solutions: Invest in telematics systems that suit your fleet. These can include vehicle monitoring, fuel management, and driver behavior tracking.
- Install Telematics Hardware: Like tracking systems, install telematics hardware in your vehicles. Ensure it’s compatible with your chosen telematics software.
- Data Integration: Integrate telematics data into your broader freight visibility tools. This lets you monitor vehicle health, fuel efficiency, and driver performance in real time.
- Predictive Maintenance: Leverage telematics to predict maintenance needs to reduce downtime and costly breakdowns.
- Driver Training: Use telematics data to train drivers for better safety and fuel efficiency. Real-time feedback can improve behaviors like idling or harsh braking.
03. Breaking Down Data Silos & Integration Solutions
- Identify Data Sources: Identify all the data sources in your logistics operations. This includes tracking systems, telematics, warehouse management, and more.
- Data Standardization: Ensure data from different sources is standardized, so it’s compatible for integration. This involves using common data formats or APIs.
- Integration Platforms: Invest in integration platforms or middleware solutions that can connect various data sources and make the data available in a unified dashboard.
- Scalability: Ensure that your integration solutions are scalable to accommodate future data sources and technologies.
- Real-Time Analytics: Implement real-time analytics tools to extract actionable insights from integrated data. This can help in making informed decisions quickly.
- Cross-Functional Collaboration: Encourage collaboration between different departments within your organization (e.g., logistics, finance, sales) to ensure that everyone benefits from the integrated data.
04. Adopting Cloud-Based Communication Platforms
- Choose a Cloud Solution: Select a reliable cloud-based communication platform with scalability, security, and integration capabilities in mind.
- Data Migration: Migrate your existing communication and collaboration tools to the cloud platform. Ensure a seamless transition for your team.
- Real-Time Communication: Use the platform for real-time communication with your team, partners, and customers. This can include messaging, video conferencing, and document sharing.
- Mobile Accessibility: Make sure that the cloud platform is accessible via mobile devices to support field personnel and drivers.
- Integration with Freight Systems: Integrate the cloud platform with your freight management systems to streamline communication and data flow.
- Centralized Data Storage: Store essential data and documents on the cloud for easy access and sharing. Ensure proper data organization and security measures.
05. Leveraging Advanced Data Analytics & Predictive Insights
- Data Collection: Collect and centralize data from various sources, including tracking systems, telematics, and IoT devices.
- Advanced Analytics Tools: Invest in advanced analytics tools or software that can handle large datasets and complex algorithms.
- Predictive Modeling: Develop predictive models to forecast demand, optimize routes, and identify potential disruptions.
- Real-Time Monitoring: Implement real-time monitoring dashboards that display KPIs and provide alerts for anomalies.
- Continuous Improvement: Use analytics to continually refine your logistics processes and make data-driven decisions.
06. Collaborating with Freight Partners & Service Providers
- Data Sharing Agreements: Establish data-sharing agreements with partners in your logistics network, like carriers, 3PLs, and suppliers, ensuring they have access to relevant real-time data and vice versa.
- Performance Tracking: Monitor your partners’ and service providers’ performance using shared data and KPIs.
- Shared Visibility Goals: Make sure that your partners share your commitment to freight visibility and align on common goals.
- Continuous Communication: Maintain an open line of communication to quickly address issues or changes in real time.
- Collaborative Platforms: Use collaboration platforms or portals to facilitate real-time communication and data exchange with partners.
The Role Of Real-Time Transportation Visibility Platforms (RTTVPs) In Freight Visibility
Real-Time Transportation Visibility Platforms (RTTVPs) are advanced software solutions used in the logistics and supply chain industry. They use a combination of technologies like GPS, RFID, and IoT (Internet of Things) sensors to track the location and condition of shipments in real time. These platforms collect data from various sources, like trucking companies, warehouses, and even individual delivery vehicles.
Once they have all this data, RTTVPs process it in real-time to provide a comprehensive view of the entire transportation network. This means you can see where your goods are at any given moment whether they’re in transit on a truck, sitting in a warehouse, or awaiting customs clearance at a port.
In general, RTTVPs align with the overall supply chain trend toward digital transformation. Freight visibility sells itself through a host of hard and soft benefits. These include:
- Integrate with a digital twin
- More accurate transit times
- Integrate with control towers
- Improved yard management
- Increased customer satisfaction
- Improved exception management
- Reduced dwell times and detention costs
- Maximized on time in full (OTIF) compliance
- Improved planning and inventory management
Challenges in Road Freight Visibility and How Digitization Overcomes Them
While freight visibility offers many advantages, the road freight industry faces challenges, such as relying on outdated, paper-based systems or struggling with poor data integration between various systems. These hurdles often lead to delays, inaccurate tracking, and inefficiencies.
Adopting eBOL, ePOS, and ePOD can largely eliminate these challenges. Digitizing the process ensures that information is accurate, updated in real time, and available to all relevant parties. For instance, eBOL guarantees that the correct documentation is in place before a shipment is processed, while ePOD ensures that proof of delivery is immediately available upon delivery.
Embrace Vector For Automation & Digitalization In Freight Processes
Vector’s yard management system (YMS) illuminates every corner of your yard operations to significantly enhance your freight visibility. It brings unparalleled visibility, efficiency, and control to your yard management. Let’s see how it revolutionizes your business:
01. Real-Time Shipment Tracking
Vector’s YMS provides real-time visibility into the location and status of every shipment in your yard. With digitalized processes and automated tracking, you can monitor the movement of goods as they arrive, depart, and move within your facility. This ensures you get the maximum visibility to reduce the chances of misplaced or lost shipments.
02. Streamlined Operations
Automation through our YMS optimizes your yard management processes. It manages the movement of trailers, containers, and assets with precision. No more manual, error-prone procedures. This streamlined operation means shorter wait times, quicker turnaround, and reduced congestion in your yard, ultimately contributing to smoother and more efficient logistics.
03. Dock Scheduling & Appointment Scheduling
Vector’s YMS optimizes dock assignments so that each shipment is assigned to the most appropriate dock based on factors like product type, size, and delivery priority. Also, our solution lets carriers and drivers schedule their appointments online, aligning with their availability and the facility’s capacity.
This not only reduces congestion but also minimizes waiting times for trucks and enhances visibility into upcoming shipments to help businesses better allocate resources.
04. Document Digitization
At Vector, our YMS digitizes critical documents like bills of lading (BOLs). It can even scan paper-based documents and convert them to high-quality electronic documents that are stored on the cloud.
This eliminates the need for physical paperwork and reduces the risk of document loss. With digitized documents, you can also automate document validation and compliance checks, ensuring that all necessary documentation is in place before a shipment is processed.
05. Data-Driven Decision-Making
Vector’s YMS collects and processes different types of data about your yard operations. This data becomes critical for informed decision-making. You can analyze historical trends, identify areas for improvement, and fine-tune your yard processes. It’s all about making smarter, more strategic decisions that result in efficiency and cost savings.
Achieve Shipment Visibility and Transform Your Supply Chain with Vector
Many organizations are dysfunctional because of a lack of freight visibility. People hoard information like it’s all patented trade secrets. They operate under tribal knowledge and hardly ever share their secret tricks with outsiders. Information barely gets written down on paper, let alone logged into the software system.
We’ve been staring at a two-dimensional supply chain with our eyes crossed for long enough. But technological tools are converging and iterating. Things are getting better. The dream of end-to-end tracking has made it through the Overton window into reality.
Let’s digitize, de-silo the data—and watch the supply chain evolve into another dimension. If you want to achieve freight visibility, start by partnering with a digitization company like Vector.
Whether you’re looking to increase your freight visibility, streamline operations, or just make your supply chain more agile, remember this: partnering with us at Vector can take you places you’ve never been. Book a free consultation to know more.
Frequently Asked Questions:
. What is the difference between intermodal and road freight?
Intermodal freight involves the use of more than one mode of transportation to move goods. In the United States, intermodal typically refers to trailers or intermodal containers that travel via road to a ramp, loaded onto a train, and then at destination offloaded on a ramp and delivered via road freight to the destination. By definition, and in many other countries, intermodal is the combination of multiple modes which can include rail, road, short sea, deep sea, air freight and sea-air freight. ..
Road freight refers to the transportation of goods using motor vehicles which includes modes such as truckload, less-than-truckload (LTL), flatbed, and courier. Road freight is a single mode of transport that operates on roadways and is most commonly used for short-haul or long-haul delivery within regions or between cities and countries. It is more flexible because it doesn’t require a shift between different transport types, but it can be more affected by road conditions, traffic, and weather.
- What are the advantages of road freight?
Road freight remains one of the most widely used methods of transporting goods due to several key advantages:
1. Flexibility and Reach:
• Road freight is incredibly flexible, enabling door-to-door delivery. Trucks can access remote or urban areas that other transport modes (like rail or sea) can’t reach directly.
. It’s ideal for just-in-time deliveries, ensuring goods arrive quickly when needed.
2. Speed and Efficiency:
• Road transport is often the fastest way to move goods over short to medium distances, especially for goods that don’t need to go through ports or complex terminals.
. With real-time tracking tools integrated into road freight management, businesses can monitor and adjust deliveries dynamically, optimizing route planning to avoid delays and congestion.
3. Cost-Effectiveness (For Short Distances):
• Road freight can be more cost-effective for short-distance shipments, especially when compared to rail or air transport. There’s no need for costly infrastructure like rail networks or port handling fees.
. Less-than-truckload (LTL) and full truckload (FTL) shipping options give businesses flexibility in choosing the most economical way to ship.
4. Direct Delivery and Minimal Handling:
• Unlike intermodal freight, which may require multiple transfers between different transportation modes, road freight ensures fewer touchpoints. This reduces the potential for cargo damage and loss.
. It’s ideal for time-sensitive goods that require direct, uninterrupted delivery.
5. Control and Visibility:
• Technologies like real-time GPS tracking, ePOD, and eBOL (electronic Bill of Lading) provide excellent visibility into the movement of goods and allow companies to track their shipments accurately.
. Advanced transportation visibility platforms (RTTVPs) further enhance road freight visibility, helping to anticipate delays and improve planning.
This post was written by Brian Deines. Brian believes that every day is a referendum on a brand’s relevance, and he’s excited to bring that kind of thinking to the world of modern manufacturing and logistics. He deploys a full-stack of business development, sales, and marketing tools built through years of work in the logistics, packaging, and tier-1 part supply industries serving a customer base comprised of Fortune 1000 OEMs.
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