Departments› Procurement Management› Module VII› Distribution Of Stored Goods› Ch 4: Track goods and fleet movement
Procurement Management  ·  Level 6
Distribution Of Stored Goods
Chapter 4: Track goods and fleet movement
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⚑ What you will be able to do

By the end of this chapter, you will be able to:

  • install goods and fleet tracking systems correctly following your organization's procurement policy
  • monitor goods and fleet tracking systems accurately to keep track of movement and status
  • evaluate the performance of goods and fleet tracking systems based on your organization's procurement policy
  • review tracking systems thoroughly according to your organization's procedures to ensure they work well

Mastering these skills helps you keep goods and vehicles moving smoothly and safely, which is essential for successful distribution and customer satisfaction.

Compiled by: Simon Ngugi

4.1 Technology tools in transportation

Technology tools in transportation are the software, devices and communication systems a distribution function uses to plan trips, follow vehicles and goods on the road, communicate with drivers and customers, and record what happened on each delivery. They replace phone calls, paper trip sheets and guesswork with data that is captured automatically and seen by the transport office as it happens. Used together, they let a transport manager answer at any moment where each vehicle is, what it is carrying, whether it will arrive on time and what the trip is costing.

Example: the transport office of a beverage distributor may plan the next day's routes in a transport management system, follow each truck on a GPS map during the day, receive an alert when a truck stops for longer than allowed, and close each delivery when the driver captures the customer's signature on a phone.

Main technology tools

Name Specification Use
Transport management system (TMS) Software, often cloud-based, linked to the organisation's ERP or order system Plans loads and routes, selects carriers, issues trip documents, tracks shipments and checks freight bills
Telematics unit (vehicle tracker) A GPS receiver with a SIM card or other communication link, wired to the vehicle's power and sensors Reports position, speed, ignition status, idling and harsh driving to a tracking platform
Route planning and optimisation software Uses digital maps, customer locations, delivery windows and vehicle capacities Works out the best order of drops and the shortest or cheapest routes
Electronic proof of delivery (ePOD) app Mobile application on a smartphone or rugged handheld Captures the receiver's name, signature, photographs, time and location of delivery
Handheld scanners and mobile computers Barcode or RFID reader with Wi-Fi or mobile data Scans goods at loading and delivery so the system knows what left and what was received
RFID tags and readers Tags on pallets, containers or vehicles; fixed readers at gates and dock doors Records goods and vehicles passing a point without line-of-sight scanning
Fuel monitoring system Fuel level sensors in the tank, fuel cards or flow meters linked to the tracker Records fuel used and refuels, and shows sudden drops that may mean fuel theft
Temperature data loggers and sensors Probes in refrigerated bodies or containers, logging or transmitting readings Proves the cold chain was kept for perishables and medicines
Electronic seals Seals on container or truck doors that report if they are opened Shows tampering during the journey
Dashboard cameras and driver monitoring Forward and cab-facing cameras, with recording Supports driver training and accident investigation
Electronic data interchange (EDI) and web portals Standard electronic messages or online platforms between partners Exchanges orders, dispatch advice, invoices and status updates without re-typing
Two-way communication Mobile phones, messaging apps or in-cab terminals Keeps drivers and the transport office in contact

How the tools work together

  1. Orders from the order or ERP system pass to the transport management system.
  2. The planner uses the routing software to group orders into loads and plan each vehicle's route and delivery times.
  3. Goods are scanned as they are loaded, so the system records exactly what is on each vehicle.
  4. During the trip, the telematics unit sends the vehicle's position and status to the tracking platform, and sensors report fuel, temperature and door status.
  5. The system compares actual progress with the plan and alerts the transport office to delays, route deviations, long stops or unsafe driving.
  6. At each drop the driver scans the goods and captures proof of delivery on the ePOD app, which updates the system at once.
  7. Customers can be sent arrival times and delivery confirmations automatically.
  8. At the end of the trip, the data is used for reports on cost, timeliness, fuel and driver behaviour.

Points to consider when adopting technology tools

  • Fit with operations: The tool must suit the fleet size, the type of goods and the routes served.
  • Integration: It should link with the organisation's existing order, warehouse and accounting systems.
  • Network coverage: Some routes have weak mobile signal, so devices should store data and send it when coverage returns.
  • Cost and return: Purchase, installation, subscription and training costs are weighed against the expected savings.
  • Training and acceptance: Drivers and office staff must be trained and understand why the tools are used.
  • Data security and privacy: Location and personal data are protected and used only for legitimate business purposes, in line with the Data Protection Act, 2019.
  • Support and reliability: The supplier should provide maintenance, repairs and help when devices fail.
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🔒4.2 Goods and fleet tracking systems

A goods and fleet tracking system is a combination of devices, communication links and software that records where goods and vehicles are, and what state they are in, from the time they leave the store until they are delivered. Fleet tracking follows the vehic…

🔒4.3 Benefits of using technology in transportation

Technology in transportation turns each vehicle and consignment into a source of reliable, timely information. The benefits are felt by the transport office (better control), by the organisation (lower cost and risk) and by customers (reliable, visible deliver…

🔒4.4 Ways of monitoring and evaluating efficiency of tracking systems

A tracking system is efficient when it gives accurate, timely and complete information at a reasonable cost, and when that information is used to improve deliveries. Monitoring is the day-to-day checking that the system is working (devices reporting, labels sc…

Am I competent?

At the start of this chapter we promised you would be able to:

  • install goods and fleet tracking systems correctly following your organization's procurement policy
  • monitor goods and fleet tracking systems accurately to keep track of movement and status
  • evaluate the performance of goods and fleet tracking systems based on your organization's procurement policy
  • review tracking systems thoroughly according to your organization's procedures to ensure they work well

Tick each one you can genuinely do.

So, are you there yet?

You're competent when you can confidently do 50% or more of what this chapter promised.

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