How to Track Shipments and Deliveries to Avoid Delays in Inventory

 Tracking shipments and deliveries is crucial for maintaining accurate inventory levels and ensuring that products arrive on time to meet customer demand. By proactively monitoring shipments, you can identify potential delays before they become a problem and take action to minimize their impact. Here’s how you can effectively track shipments and deliveries to avoid delays in inventory:

1. Use Shipment Tracking Software

Investing in shipment tracking software can give you real-time visibility into the status of your orders and shipments. These systems allow you to track deliveries from the moment they leave the supplier until they arrive at your warehouse or store. They provide detailed information, including current location, expected delivery times, and potential delays.

Action Steps:

• Choose a reliable tracking system: Use software like ShipBob, AfterShip, or 17track that integrates with your e-commerce platform or inventory management system.
• Automate tracking notifications: Set up automated alerts to receive notifications for any changes in delivery status, delays, or exceptions.

2. Request Tracking Information from Suppliers

Ensure that your suppliers provide you with tracking numbers and shipment details as soon as the goods are dispatched. This enables you to monitor the shipments independently and act swiftly if any issues arise.

Action Steps:

• Establish tracking protocols: Make it a requirement for your suppliers to provide tracking numbers and estimated delivery dates with each shipment.
• Set expectations for communication: Ask suppliers to notify you immediately if there are any expected delays or issues that could affect the delivery.

3. Leverage Third-Party Logistics (3PL) Providers

Using a third-party logistics provider (3PL) can streamline your shipment tracking process. Many 3PL providers offer comprehensive tracking services and can handle multiple shipments at once, helping you manage your inventory more efficiently.

Action Steps:

• Select a 3PL provider: Choose a 3PL provider with integrated tracking systems to provide end-to-end visibility on your shipments.
• Integrate with your system: Ensure the 3PL’s tracking system integrates seamlessly with your existing inventory or e-commerce platform for easy data sharing.

4. Monitor Delivery Performance with KPIs

Key performance indicators (KPIs) are essential for evaluating your suppliers' delivery performance. By regularly assessing metrics such as on-time delivery rates, order fulfillment times, and shipment accuracy, you can identify any patterns of delays and work on improving them.

Action Steps:

• Track on-time delivery: Measure how often shipments arrive on time and identify recurring delays.
• Monitor shipment lead times: Track the average lead time for deliveries and look for ways to reduce it.
• Review order accuracy: Keep tabs on the accuracy of the shipments, such as whether the correct products and quantities were delivered.

5. Utilize Inventory Management Systems with Shipment Tracking Integration

Many modern inventory management systems come with built-in shipment tracking integration. These systems can automatically update your inventory levels and send alerts for any changes in delivery status, ensuring that you are always up-to-date on your stock levels.

Action Steps:

• Implement an integrated system: Use an inventory management system (e.g., TradeGecko, NetSuite) that integrates with your shipping carriers to track inventory as it moves through the supply chain.
• Sync data in real-time: Ensure that your system updates inventory quantities in real-time as shipments are received, so you can quickly react to delays and adjust accordingly.

6. Set Up Contingency Plans for Shipment Delays

Even with the best tracking tools, delays can still occur. Having contingency plans in place can minimize the impact of delayed shipments and prevent stockouts.

Action Steps:

• Identify critical products: Identify your best-selling or most critical items and prioritize their shipments to avoid inventory gaps.
• Establish alternative suppliers: Have backup suppliers or alternate sources of inventory for critical products in case of delays.
• Build buffer stock: Maintain buffer stock or safety stock for high-demand products to ensure that your business can continue running smoothly in case of shipment delays.

7. Collaborate with Your Suppliers on Shipping Schedules

Regularly communicate with your suppliers about upcoming shipments, delivery schedules, and any potential disruptions in the supply chain. By working closely with suppliers, you can anticipate delays and adjust your inventory management strategy accordingly.

Action Steps:

• Set regular meetings: Schedule periodic check-ins with suppliers to discuss upcoming shipments, timelines, and any possible disruptions.
• Share your sales forecast: Provide your suppliers with an accurate sales forecast to help them plan shipments more effectively and avoid delays.
• Review historical performance: Discuss past delivery performance with suppliers to improve future reliability and align expectations.

8. Track Delivery Trends and Identify Patterns

Regularly reviewing past shipment data helps identify trends and potential bottlenecks in your supply chain. By analyzing your historical data, you can make better decisions about future orders and improve your shipping practices.

Action Steps:

• Analyze past delivery data: Track the average delivery times, common delays, and successful deliveries over time to identify trends.
• Improve forecast accuracy: Use historical data to better forecast demand and stock levels, ensuring that you have the right inventory available at the right time.
• Address recurring issues: If a specific carrier or supplier consistently causes delays, take proactive steps to resolve the issue, such as finding a new carrier or negotiating better terms with the supplier.

9. Implement Real-Time Inventory Updates

Integrating real-time inventory updates ensures that your stock levels are always accurate. When shipments are delayed or early, you can adjust your inventory projections and inform your team or customers about potential stockouts.

Action Steps:

• Use barcodes or RFID systems: Implement barcode or RFID systems to scan and update your inventory levels as shipments arrive, keeping your records up-to-date.
• Automate stock level adjustments: Set up automated systems to adjust stock levels in real time based on incoming shipments or order fulfillment.

10. Use Multimodal Tracking for International Shipments

For international shipments, delays can often occur due to customs, transportation changes, or international regulations. Multimodal tracking systems that monitor the entire journey of your products can help you stay informed about potential delays and take action accordingly.

Action Steps:

• Choose international tracking tools: Use tracking systems that offer multimodal capabilities for both domestic and international shipments (e.g., 17track, Transporeon).
• Stay informed on customs status: Regularly monitor the customs clearance status and proactively address any customs issues that may cause delays.

Conclusion

Tracking shipments and deliveries is essential for avoiding delays in inventory and ensuring that products are available when needed. By utilizing shipment tracking software, collaborating closely with suppliers, implementing contingency plans, and leveraging integrated inventory management systems, you can effectively track your shipments in real time and proactively address any issues that arise. This not only improves operational efficiency but also ensures that your business can continue meeting customer demand without interruptions.