6 Keys to Next-Level Customer Order Tracking

December 4, 2024 - 11 minutes read

Technology, tools, and tips to remove order fulfillment blind spots

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When Federal Express launched their first package tracking system in 1979, it signaled a shift in the way retail and transportation businesses approached customer service and quality control. For the first time, buyers could do more than patiently wait for deliveries with no advance knowledge of delays, errors, and other issues that might impact service. As E-commerce continues to redefine order fulfillment expectations, timely and accurate tracking is now mandatory in the eyes of consumers and the millions of retailers competing for their business.

Despite ongoing tracking and inventory management advancements, shipping processes and carrier hand-offs are still prone to blind spots and long periods of radio silence between scans that can leave customers in the dark. Next-level tracking is all about enhancing visibility throughout the fulfillment lifecycle.

“My innovation involved taking an idea from the telecommunications and banking industries and applying that idea to the transportation business.” – Frederick Smith (FedEx)

The stages of order fulfillment  

The term order fulfillment is often associated with last mile delivery processes that place items into the hands of customers, but this is just one piece of an interconnected puzzle. The process begins even before customers make their selections, with cloud-based inventory management software providing up-to-date information on pricing, lead times, and availability. Multi-channel and omni-channel commerce platforms now give buyers multiple online and in-person options for viewing products and placing their orders. Additional milestones in the fulfillment cycle include:   

• Order picking to locate items in the warehouse and pull them from inventory
• Packing processes to place items in appropriate containers and affix labeling
• Arrangement of shipping services through third-parties or internal carriers
• Transacting products out of inventory and notifying customers on status changes

Why is tracking important?

Expectations for overnight (or faster) delivery have now been woven into the E-commerce landscape, even as the demand for error-free, on time delivery increases. Almost 25% of consumers will shop elsewhere if delivery within 3.5 days cannot be promised. Enhanced tracking provides the visibility needed to reduce uncertainty and improve trust from order through delivery. Along with improved on-time delivery performance, enhanced tracking processes also create a valuable source of data that feeds into forecasting, procurement, and customer relationship management (CRM) systems.      

As supply chains grow more complex by incorporating multiple carriers, geographies, and tracking systems, managing and analyzing this data consistently becomes more challenging. Gaps, delays, and inaccuracies in tracking information can lead to frustrated customers and negative feedback that cannot be undone through apologies or simply shifting blame to third parties. Readily available and accurate tracking information create a sense of security and peace of mind, even when the information is never accessed.

6 keys to next-level tracking

There is no single tool that can establish next-level tracking alone, but a thoughtful combination of software, technology, and inventory management practices can elevate tracking processes to the next plateau. 

1. Cross-carrier tracking

Hand-offs between carriers can lead to blind spots, confusion, and delays during the order fulfillment process. Cross-carrier tracking overcomes this challenge by consolidating tracking information from all carriers in a unified platform. Retailers and their customers can access this real-time data and monitor the journey of their orders more precisely. Cross-carrier tracking platforms also provide valuable information on delivery performance that helps E-commerce businesses and other logistics customers decide on the best options.

2. RFID tags     

The ability to determine the precise location of a package or other object without seeing or touching it is another key to next-level order tracking. This is the concept behind the radio frequency identification (RFID) tags deployed by many companies to track part location and quality remotely. Passive (unpowered) tags with limited range are extremely useful for inventory counts and order picking in the warehouse. Active RFID tags with a self-contained power source hold more promise for package tracking, as wider adoption continues and tag cost decreases.   

3. IoT monitoring  

The internet of things (IoT) supplements RFID tag capabilities by streaming real-time position, status, and quality information from almost any object in any location. Sensors embedded in packages, ships, planes, and storage locations can communicate GPS location, along with timely information on temperature, humidity, pressure, speed, and other factors of interest. With over 18 billion IoT connections already established, and more created each day, next level IoT sensing and monitoring are poised to deliver next-level tracking capabilities. Additional IoT applications that will directly impact and improve order fulfillment processes include:

• Geofencing systems that are triggered when packages leave or enter a geographic area
• Connected cars that continuously transmit information on their location, route and ETA
• IoT equipped drones for last mile deliveries in remote or difficult to access areas
• Bluetooth beacons to track high-value items throughout their lifespan and ensure their exact location is always known. 

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4. AI and machine learning    

Artificial intelligence (AI) and machine learning (ML) are creating new inventory management possibilities, including more advanced and intuitive order management software. AI predictive algorithms leverage a combination of historical and real-time data to choose the best shipping routes and avoid unnecessary delays. AI-based systems are also capable of detecting situations like packaging errors or route changes more quickly so that disruptions are minimized, and customers have access to the latest information.

Machine learning is an equally valuable tracking tool, allowing retailers to generate more accurate order fulfillment updates for customers by analyzing large volumes of data, identifying trends, and automating customer alerts and responses. Machine learning is also a valuable tool for evaluating carrier performance, refining tracking algorithms, and other data-intensive continuous improvement processes.   

“I think that’s the single best piece of advice: Constantly think about how you could be doing things better and questioning yourself.” – Elon Musk

5. Inventory management software      

Next-level tracking requires a centralized platform from which to send and receive real-time order status information. Inventory management software provides this important hub, allowing data from both inside and outside the warehouse to be consolidated and analyzed in one location to create a single source of truth. This combination of data collection and data analysis makes it possible to accurately predict delivery times and avail the complete order fulfillment process to customers in greater detail. Enhanced visibility also feeds into integrated warehouse management, point of sale (POS), and CRM platforms to improve overall performance. 

6. Customer feedback    

With customers driving the demand for improved delivery visibility, it may be surprising to learn that they are also one of the greatest sources of tracking improvement. For example, customer feedback is likely to reveal variations between buyers in their preferences for automated tracking notifications. While this information should always be easy to find, a personalized experience with tracking information organized based on past history can proactively address concerns while minimizing the need for offline customer service inquiries. Some additional ways customer feedback can improve the tracking process include:

• Delivery times and locations tailored to customer schedules and preferences
• Real-time customer input on late deliveries, damage, and other carrier performance issues
• Post-delivery surveys to gather information on tracking data accuracy and availability

Next-level tracking: Final thoughts    

Electronic package tracking was a novel idea that quickly became a customer expectation when it made its debut over four decades ago. As the speed of E-commerce accelerates, so does the appetite for up-to-date order status throughout the fulfillment cycle. The advanced tools needed to make real-time delivery, location, and quality data available 24/7 have arrived, along with the software required to capture, analyze, and report order status information to anxious businesses and shoppers.  

Agiliron provides a comprehensive software suite including inventory management, warehouse management, POS, and full-featured CRM modules that integrate seamlessly with all your favorite E-commerce applications. Cloud-based software and mobile-friendly apps put real-time inventory status at your fingertips. It’s no surprise over 2,500 brands rely on Agiliron to power their business while improving their visibility and efficiency.

Next-level tracking was once just a goal, but the IoT and advanced inventory management software are quickly bringing this idea to fruition. Cloud-based software is the centerpiece delivering unprecedented visibility to retailers, carriers, and their customers. Contact us today and let our solution experts explain how our software can form a foundation for next-level performance.