Modern freight shipping technology has improved to a great degree. Geo-location tracking technology can make all the difference in a container company investment. Learn about the connection between container investing and technology.
Where Is My Freight?
The World Wide Web has created a real-time immediacy in the minds of many consumers. Because they talk with celebrities in real-time, people think that it is possible to know where everything is at any time. This geo-location technology has made its way into the container industry.
Why does it matter where your freight is located? The Japanese mastered the Just in Time Inventory System. What does this allow your business to do? Perhaps, the best example is in the Japanese automobile industry.
The Japanese were able to sell higher quality automobiles at a lower price. They did not need to spend a lot of money on expensive warehouse space because they did not keep a lot of inventory on site. Just in Time Inventory saved money and the Japanese knew where their parts were, at all times.
Increasing Supply Chain Efficiency
Statista estimates that smartphone ownership is at more than 2.3 billion on Planet Earth. These smartphone users are changing the way that business is run. This includes the container freight industry.
Why can’t businesses know the status of their freight in real-time? Now, ocean carriers are investing in technology start-ups to take advantage of accurate, real-time information tracking. Some container companies are deploying these solutions themselves.
It is a work in progress. Sensor technology is being used to track international freight to see what is possible. Gradually, shippers can advertise the advantages of more accurate, real-time tracking.
Container Value Differentiation
It used to be that a phone was a phone. Now, you have a smartphone or a dumb phone. The same could be true for containers.
Warehouse companies have used tracking software for their inventory. Now, there might be a divergence between smart containers and dumb containers. Which would you want to invest in?
Smart Containers Are More Valuable Than Dumb Containers
If your customers want to optimize efficiency, then they might want to use the smart containers. When everything else is similar, this can be a key differentiation. There might develop two different tiers of pricing for containers based on the tracking system used.
When there is a natural disaster on the open seas, a company naturally wants to know if its merchandise was involved. With real-time tracking systems, smart containers can provide this vital information. Smart containers could become the standard.
Jacques Piccard is the Co-Founder and managing director of Davenport Laroche.