The general definition of geofencing technology is the virtual boundary set in real geographic areas. The area where the virtual boundary is determined is commonly referred to as the geofence. A location-based device is required to access assets entering or exiting the predetermined limit. Access to assets within the virtual boundary is of interest to many different sectors. Geofence alerts are particularly appealing to the marketing world. The biggest example of this would be advertising. A company in that area can send advertising messages to users who enter the specified virtual limit. The location-based device used in this example would of course be phones.
Geofencing technology companies continue to adapt versatile applications to different industry needs. Another example was a scenario used in 2020. This application, which was applied at the time of the pandemic, played a great role in preventing the Covid-19 epidemic. When approaching areas under quarantine or at risk, users received a warning with a message. Scenarios developed by geofencing companies by various scenarios play a big role in terms of impact. In this article, we will look at how geofencing technology plays a role in working environments such as warehouses, construction sites, and factories.
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How to Use Geofencing in Logistics?
The biggest challenge for a warehouse manager is to manage the entire operation cost-effectively. In the logistics world, problems with travel, route changes, unexpected accidents, or collisions play a big role in the disruption of work orders. Geofencing technology companies take a step at this point and aim to eliminate such problems.
When used in the geofencing logistics area, it allows warehouse managers to receive notifications about the whole operation. In an example scenario, the manager who receives the notification that a vehicle that is expected to be delivered is exactly 2 kilometers away from the warehouse can prepare the team for this action in advance. This way it becomes more efficient to manage the loading/unloading time in the delivery process.
How does Geofencing Technology Work in Logistics?
Geofencing technology is applied in logistics, as it is used in other sectors, to build an artistic fence in a specific geographical area. When predetermined actions occur within this virtual fence, interested parties receive geofence alerts. Location-based software with GPS (Global Positioning System) or RFID (Radio Frequency Identification) can be used as a geofence device.
The most applied method in the field of logistics is to create geofencing based on RFID technology. All kinds of movements of the assets equipped with RFID tags within the designated area begin to be monitored. Logistics companies using geofencing technology have the opportunity to perform accurate and regular shipment management with real-time updates.
According to a study by Market Watch, the global geofencing market is predicted to grow to $7.4 billion on a CAGR basis by 2030. In other words, around a 24.9% growth rate is expected to be recorded in the forecast period from 2022 to 2030. This means: The use of geofencing technology in your logistics will become more dominant in the coming years. Therefore, you are expected to anticipate the developing technology and adapt your company accordingly.
Now let’s take a look at the benefits of geofencing technology in the field of logistics.
Real-Time Alerts About Deliveries
As a logistics company, efficiency needs to improve operational work in ports or warehouses. Geo-fence technology, on the other hand, can be installed on receiving notifications when entering or exiting a region. Notifications based on real-time data help effectively manage the time trucks or forklifts spend in warehouses.
For example, receiving notifications about upcoming shipments allows you to manage teams within your company about workforce and machine usage. When better coordinated, your team can be more productive in terms of both time and energy. This coordination can be maximized in geofencing applications integrated with IoT. It becomes easier and more effective to follow the density within the limits you set in the warehouse.
Get Instant Notification of Last Minute Changes
As a logistics company, one of your duties is to make sure that the shipment runs smoothly. Timely delivery of goods and ensuring customer satisfaction become one of the chief tasks of the company. However, due to sudden weather changes, accidents, traffic, or other unforeseen events, your fleet vehicles may have to change their route. As a manager, you may experience difficulties in terms of the organization if you are not aware of the departure from the planned route.
One of the advantages of the geo-fence alert system is that you are instantly informed about last-minute changes. There is no need for drivers or operators to notify you of this. In cases such as route changes, you can receive an instant notification and make plans accordingly.
Securing Assets in Warehouses
A logistics company can geographically define warehouse areas using RFID tags. In this way, the probability of the assets in the warehouse being misplaced or stolen is minimized. The RFID-based geofencing app continuously monitors assets or goods based on real-time data. RFID-enabled employee cards, on the other hand, provide an additional security advantage by monitoring the entrance and exit of the warehouse.
Geofencing-based applications bring solution packages such as collision avoidance. In other words, not only property safety but also employee safety is ensured.
Contrary to popular belief, geofencing does not have an expensive cost. It does not require complex system setups other than special equipment such as RFID tags. Display devices such as tablets are sufficient for monitoring real-time data. It can also be easily integrated with other location-based technologies owned by companies. Contact Boni Global to learn more about geofencing technology!
