2 THEORETICAL FRAMEWORK
Although several researches have highlighted the
benefits of tracking system for supply and logistics
chain management over decades, companies are still
lacking behind to implement such technology
(Hinkka, 2012). Supply chain tracking or visibility is
nowadays getting much more attention from
companies in order to ensure security and minimizing
associated risks. According to Musa et al. (2014),
supply chain visibility can be defined to mean the
capacity of the supply chain to view a product’s
lifecycle from concept generation to product’s end-
of-life activities and processes. This tracking system
supports manufacturing companies to adopting just in
time operations (Hui, 2008).
The tracking of supply network often used to
describe a product in the forward direction, whereas
tracing is used to infer the product’s path and history
from downstream to upstream of the supply chain
(Dabbene et al., 2014). It is therefore essential to
establish an efficient interface between the upstream
and downstream of the tracking system. In order to
make a tracking system it is required to establish a
real time information flow. Such real-time
information flow ensure to minimize potential risks
and events within the supply network. The supply
chain tracking enables companies to support
managers in choosing activities, methods and
technologies to increase supply chain security
without reducing its efficiency (Pero and Sudy,
2014).
The functionality of tracking system concerns
with three basic attributes, which can be explained as
to identify an item, to locate its current position and
current time. At the entry point usually the
consignment is tracked by automatic identification
technology that reads the code of the consignment
and updates its status (Kärkkäinen et al., 2010). In
continuous tracking system the assignment position
in any time is tracked by interrogating the tracking
database. In case of multi-company networks, there
need close cooperation and collaboration with each
other in order to fulfil the requirements for tracking
systems (Shamsuzzoha and Helo, 2012). The
information content can be varied between tracking
systems (Liwei et al., 2009).
Often a tracking system mainly records the
identity of an item, its position and both arrival and
departure time. However, there are many occasions
that also records other attributes like temperature,
humidity, vibration, etc., (Shamsuzzoha et al., 2013).
Such additional attributes protect tracked items from
unnoticed damage and ensure quality delivery. In
general, any company stores its tracking information
to its central database, which can be used further if
needed. In a network system, the information is stored
centrally and retrieves according to the tracking needs
(Helo and Szekely, 2005).
3 BASIC REQUIREMENTS OF
TRACKING WITHIN SUPPLY
CHAIN LOGISTICS
Nowadays different companies are choosing to
implement more advanced and intelligent tracking
systems. At the same time, there is a significant
amount of cost savings for the companies in terms of
better overview of flow of goods. However,
beforehand several critical questions are needed to be
answered by a company such as: what are the tracking
requirements, what are the relevant goods and flows,
what kind of information is available out there, and
what type of technology should be used? This
tracking requirement can be for specific product
centric and/or inbound outbound tracking.
3.1 Itemized Tracking: Perspectives
from Independent Transporters
In today’s business, it is nowadays a common trend
to outsource in order to meet up companies supply
and logistics requirements. From this strategic shift,
companies also expect real-time tracking solutions
from the logistics providers. However, several issues
create complicacy within the companies for both
inbound and outbound delivery of items. Both the
inbound and outbound transports companies usually
have for a relatively take long time and needs to track
their items. Some of these transport companies do
have sophisticated tracking systems that are used to
track their delivery items. None of these are able to
(automatically) track shipments once they are on
board a truck/vessel.
Furthermore, under logistical strategy choosing a
single transport company to monitor the entire supply
chain of a company would be complicated if not
impossible. In such a case, the monitoring will always
be reactive, not proactive - no transport company
knows enough about a company’s production and
business to be able to predict upcoming problems, and
correct accordingly.
In order to maintain a steady tracking of delivery
items, any companies need to formulate its own
tracking system rather than depending on the tracking
system provided by individual delivery companies. In