Real-Time tracking and ETA alerts: the key to Just-in-Time delivery performance
Just-in-Time is a delivery strategy allowing for significant cost cutting and increased efficiency. Not an easy task to handle, it is becoming more and more feasible to achieve due to the expansion of real-time tracking solutions and more precise arrival time estimates.
Just-in-Time delivery is a supply chain strategy that synchronises the shipment of raw materials and production input with manufacturing schedules. In other words, companies employing the just-in-time strategy order small quantities of materials that are delivered just before they are needed in the production cycle. The aim is to reduce inventory costs and improve efficiency, as the goods are not being stored for weeks in warehouses prior to being used.
The approach thus helps companies significantly reduce the costs of storage, as well as the costs of insuring the materials. Furthermore, it prevents overproduction, excess inventory, and, as a result, reduces post-production waste. The just-in-time policy towards the manufacturing process also leads to shorter lead and turnaround times. Which results in a key competitive advantage.
Significant financial gains
The benefits are numerous, particularly to the company’s finances. A 2022 study by McKinsey showed that companies implementing Just-in-Time deliveries have seen a 20-50% reduction in inventory costs and a 10-30% improvement in productivity. The Association of Manufacturing Excellence recorded a 20-50% reduction in lead times among firms with Just-in-Time delivery model.
Also according to a report on Just-in-Time logistics market by Verified Market Reports, over 60% of manufacturers have reported improved margins through JIT models.
There is no wonder that an increasing number of companies want to reap the afore mentioned benefits by introducing the just-in-time delivery scheme.
As per a report by Data Intelo, the global Just In Time (JIT) logistics market size was valued at approximately USD 234 billion in 2023 and is projected to reach around USD 389 billion by 2032, growing at a CAGR of 5.6% during the forecast period. Other reports point to different market values but also hint at a similar, around 5-6% CAGR over the next 10 year-period.
Tracking, as it happens
However, when it comes to employing the just-in-time strategy, the proverb „it is easier said than done” fits perfectly. This type of delivery requires very precise coordination of various stages of the supply chain.
The proliferation of advanced tracking and management systems has enabled businesses to optimize their logistics operations, enabling the adaptation of the Just-in-Time scheme and propelling its market growth.
And as far as that is concerned, real-time tracking and estimated time of arrival (ETA) solutions are absolutely crucial for the success of the just-in-time approach.
Real-time tracking offers a comprehensive view of the entire supply chain, from the supplier all the way to the production line. This ensures that all the parties are informed about the status of shipments.
Furthermore, by providing alerts and notifications about potential delays as they happen, real-time tracking systems help businesses mitigate risks related to disruptions in the supply chain.
It allows for active route optimization, enabling the choice of the most efficient routes and minimizing transportation time. And helps make sure that the ordered goods are delivered right on time when needed.
Arriving precisely on time
Now, combine the real-time tracking data with algorithms, and one can get accurate ETA predictions.
Knowing when exactly the production inputs and materials arrive are at the very essance of just-in-time delivery. Accurate ETAs allow for precise scheduling of deliveries, ensuring materials are available exactly when needed. The timely arrival of the freight prevents overstocking and minimizes the need for keeping large inventories – thus reducing costs.
ETA and the resulting knowledge about delivery dates also help eliminate waste and additional costs, such as those related to additional transportation due to extra routes and mileage realized.
Necessity is not a luxury
Sounds sophisticated, but real-time tracking is no longer a luxury in modern logistics – it is now a necessity and a basic requirement for carriers to have. According to the „State of Visibility 2024” survey by visibility services provider Tive, 77% of respondents (among whom were logistics operators, transport firms, as well as retail and manufacturing ones) consider real-time visibility a must-have.
Nevertheless, only 53% were actually utilising Internet of Things devices for real-time shipment tracking in 2024. However, this is a significant increase from 25% in 2023. What’s more, an additional 25% of surveyed entities signalled plans to adopt real-time tracking in the next 12 months. This shows the rapid spread and development of the technology, which is becoming an „operational necessity and customer requirement”.
Thus it is widely expected that the real-time tracking systems market will experience significant growth in the coming decade. Research and Markets envisions that the real-time location systems market is to grow from around 8.1 bn USD in 2025 to 22.5 bn by 2034 at an annual rate of around 12% – indicating a very rapid development.
CargoON is in line with this global trend with its Visibility Monitoring product, which is its parent company Trans.eu Group developed together with project44, a global leader in real-time visibility technologies.
Visibility Monitoring on the CargoON platform provides shippers with:
- real-time shipment tracking, precise ETAs,
- automated status updates,
- proactive exception management,
all presented in a unified, standardized format, ensuring seamless operations and improved decision-making.
SUMMING UP
Real-time tracking provides visibility into shipment locations and their progress, enabling the estimation of ETAs and efficient route planning.
This, in turn, allows for timely deliveries, reduces the risk of delays, and ensures that materials arrive exactly when needed for production.
Thus, real-time visibility and accurate ETAs are fundamental to efficient and effective operation of just-in-time deliveries, helping optimize resource usage, minimize waste, and reduce costs.
