Solution For Lost Packages In The Logistics Industry — TheCodeWork

TheCodeWork
12 min readAug 9, 2023

Every year, millions of packages make their way around the world, from sprawling warehouses to the consumers. However, not every package completes its journey. In fact, a report by the National Consumer League says approximately 1.7 million packages have been reported as lost every quarter. It’s a logistical nightmare that costs the industry an estimated $50 billion annually.

Unbelievable, right? And yet, people are not even addressing this in the way that it demands. However, our extensive research on Global logistics has highlighted the crucial need for a flexible & cost-cutting approach, when we talk of Lost Packages! So, that’s why, I have decided to delve into the intricacies of this issue & explore its impact. And, provide you with the most innovative technological solution for lost packages in the logistics industry.

In 2020, the global logistics industry reported an estimated loss of around $30 billion due to lost or stolen packages. Can you imagine? The numbers indicate the urgency of addressing this issue to maintain the efficiency of the logistics ecosystem. Also, lost packages not only result in financial losses but also breaks the trust between businesses and customers.

So, the ability to swiftly resolve this issue will definitely set you apart from the rest! By harnessing the power of technology, logistics companies can unlock a future where they can minimize the loss of package.

And for that TheCodeWork is there to back you up.

Book a free Consultation today!

Now, let’s see how businesses can adopt innovative technologies and supply chain models to provide — solution for lost packages in the logistics industry. Here we go!

Understanding the Causes of Lost Packages

A study by the Pitney Bowes Parcel Shipping Index revealed that the global average parcel loss rate in 2020 — was approximately 1.5%. So, comprehending the causes of lost packages is crucial. These causes can range from human errors in labeling and handling, to logistical inefficiencies resulting in improper routing.

In recent years, the logistics industry has witnessed several trends and changes in the frequency of lost packages. These trends highlight the evolving challenges and opportunities within the sector:

  1. E-Commerce Boom and Package Volumes:
  • The rapid growth of e-commerce has led to a significant increase in package volumes. This surge in package volumes has put added pressure and increased the likelihood of lost packages, especially during peak seasons.
  • Last-Mile Delivery Challenges:

This phase involves delivering products to their final recipients, whether individual consumers or businesses. It remains a critical and challenging phase of the logistics process. As e-commerce flourishes, ensuring timely and accurate delivery to individual doorsteps has become more complex.

  • Technological Innovations and Solutions:

With the advent of advanced technologies like GPS, RFID, and AI-driven algorithms, the logistics industry has seen a positive impact. Many companies have invested in these technologies to enhance package tracking, optimize routes, and predict potential risks. For example; Amazon, UPS, Maersk and C.H. Robinson.

You too can embrace it and stay ahead of the curve! Embrace TheCodeWork’s innovative logistics solutions and lead the way in a rapidly evolving business landscape. In short, you should prioritize supply chain visibility!

P.S: check out our blog on “Supply Chain Visibility & Risk Management: Empowering CEOs

The Impact of Lost Packages on Stakeholders

A business’s ability to fulfill orders accurately and reliably is crucial for building long-term customer relationships. So, when customers experience lost packages, they may doubt the company’s competency and reliability.

Ultimately, it leads to a loss of trust in future transactions. Isn’t that just obvious? Well, let me put it in this way, there are two consequences- Financial and Reputational. Each of them has its own vices!

Let’s have a peek through on them:

  • Financial Consequences:
  • E-commerce companies and retailers invest significant resources in manufacturing, shipping, and marketing products. Thus loss of packages also result in direct financial losses.
  • Increased operational costs due to payment refunds.
  • Acquiring new customers requires marketing efforts and costs.
  • Reputational Consequences
  • Unhappy customers are more likely to share their negative experiences on social media platforms, review websites, and forums.
  • Negative reviews and word-of-mouth can spread rapidly, damaging the business’s reputation and discouraging potential customers.
  • The loss of a package isn’t just a single transaction failure; it’s a failure of the overall customer experience.

It is evident that These consequences encompass direct financial losses, increased operational costs, & erosion of trust. But, Fret Not! I will be guiding you on strategies that will provide the ultimate solution for lost packages in the logistics industry.

Tracking and Visibility

With advanced tracking technologies, including GPS (Global Positioning System) & RFID (Radio-Frequency Identification). Let’s see how these technology work in tandem to provide real-time insights and a comprehensive view of a package’s journey:

Real-Time Monitoring: Businesses and customers can access up-to-the-minute information about the package’s location and movement, ensuring transparency.

Around 85% of customers consider real-time package tracking to be an essential feature when shopping online.

  • Loss Prevention: Real-time tracking helps prevent the occurrence of lost packages by promptly identifying any anomalies or deviations from the expected route.
  • Efficient Route Optimization: Armed with accurate location data, logistics companies can optimize routes, allocate resources effectively, and minimize delays.
  • Data-Driven Decision Making: You can analyze the data collected through tracking technologies can identify trends, bottlenecks, and areas for improvement.

Bonus Pointer:-

Supply Chain Security: Tracking and visibility technologies enhance security by deterring theft, enabling quicker recovery of lost items.

Real-Life Example:

FedEx’s SenseAware allows for secure access to sensitive shipments. It includes features like tamper-evident packaging and real-time alerts. All this, if someone opens a package without authorization. Cool! Isn’t it?

Also, Studies say that companies that implement efficient tracking systems have experienced up to a 50% reduction in lost packages! So, boost your logistics efficiency today!

Reach out to TheCodeWork and unlock seamless solution for lost packages in the logistics industry.

Block-Chain Technology

The Blockchain offers a decentralized and transparent ledger that keeps track of all transactions and changes to package ownership. This can improve accountability and security by lowering the possibility of losing or tampering shipments during transit. Accenture indicated that blockchain could potentially reduce supply chain administrative costs by up to 20%. It will streamline processes and reduce the need for intermediaries.

An examination of how blockchain can achieve the goal:

  • Security and Traceability: Inherent security features make it an ideal technology for ensuring the integrity of package data. Each time a package changes hands or moves along the supply chain, a new block is added to the blockchain. This cryptographic security prevents unauthorized access, tampering, or altering of package data.
  • Accountability and Transparency: Blockchain’s transparency ensures that every participant in the supply chain is accountable for their actions. With a shared & unalterable record of events, it becomes easier to identify the party responsible for transit issues. For example, damaged or lost packages.

Trivia: In case of discrepancies, Blockchain provides an auditable and timestamped trail of events, eliminating ambiguity and facilitating efficient resolution.

Smart Contracts Automation: Automates various processes in the supply chain, such as triggering payments upon successful delivery or initiating actions — in response to certain events (E.g., temperature fluctuations for perishable goods).

Given all these reasons, I think we can be confident that blockchain technology is well on its way in logistics. So, what’s stopping you to unleash the power blockchain? Contact TheCodeWork Tech Team today.

Real-Life Scenario:

Walmart conducted a pilot project using Blockchain to track the origin & movement of mangoes. It reduced the time it took to trace the source of a product from seven days to 2.2 seconds.

Blockchain holds immense promise in transforming the logistics industry by offering enhanced package visibility, security, and accountability. By providing immutable and transparent package movements, it will lead to greater efficiency & trust across the supply chain.

Internet of Things (IoT)

The global IoT market was projected to grow at a compound annual growth rate (CAGR) of around 20% from 2021 to 2026. It indicates the increasing adoption of IoT technologies across various industries, including logistics.

IoT sensors are integrated into the packaging itself or attached to the items within the package. These sensors are equipped with various capabilities depending on the type of data they need to collect. This innovation has profound implications for identifying potential issues that could lead to package loss or damage.

Here’s how it works:

  • Data Collection: As the package begins its journey, the sensors continuously gather data from their surroundings or the items they are monitoring.
  • Wireless Communication: The collected data is wirelessly transmitted using technologies such as Bluetooth, RFID (Radio-Frequency Identification), or cellular networks. This allows the sensors to send real-time updates to a central monitoring system or a cloud platform.
  • Cloud Storage and Processing: Transmitted data is stored in the cloud, where it can be accessed & analyzed by logistics companies, or other authorized stakeholders.

Insight- Companies invested billions of dollars in developing smart packaging solutions, aiming to enhance package tracking and security.

Real-Time Alerts: In response to critical changes in conditions, the system can generate real-time alerts. These alerts can be sent via email, text messages, or notifications to relevant parties, including logistics teams, carriers, and customers.

Integrate IoT services with your services — reach out to us today!

This level of real-time visibility empowers logistics providers to address issues promptly and prevent potential damages. Additionally, it arms you with real-time data and insights to make informed decisions.

Artificial Intelligence (AI) & Machine Learning (ML)

AI and ML can allow logistics companies to implement proactive measures that safeguard packages throughout their journey. As such, advanced algorithms possess the capacity to process vast amounts of historical data. It extracts valuable insights that can predict and prevent potential package loss incidents.

Let us see how:

  • Risk Identification: Through pattern recognition, AI and ML algorithms can identify risk factors associated with package loss. These factors may include specific transit routes prone to delays, locations with high theft rates, or seasonal variations.
  • Recommendation Generation: AI-driven systems not only predict risks but also formulate actionable recommendations. These recommendations could range from adjusting shipment routes to selecting more secure packaging materials — aimed at minimizing the chances of package loss.
  • Adaptive Learning: ML algorithms continuously learn and adapt based on new data, refining their predictive accuracy over time. This adaptive learning enhances the algorithms’ ability to identify emerging patterns of package loss.

AI and ML algorithms have demonstrated the capability to identify up to 85% of potential risk factors contributing to package loss incidents.

Continuous Improvement: As systems gather more data and learn from their outcomes, their accuracy in predicting and preventing package loss continually improves.

By 2025, it was predicted that around 60% of logistics companies would be effectively utilizing AI and ML.

Looking for top-tier talent in AI & ML? There is no need to look any further! The tech team at TheCodeWork is available to help you integrate technology into your projects. Work with our talented developers and engineers to make your find solution for lost packages in the logistics industry. Contact with us today to enhance your AI game!

Cloud Computing

It has emerged as a transformative technology within the logistics industry, offering a dynamic and scalable platform for managing data. This technology has profound implications for preventing package loss. Cloud computing has been linked to up to a 30% reduction in IT infrastructure costs for logistics companies. It allows them to allocate resources more effectively. Such accessibility fosters transparency and ensures that everyone is on the same page regarding package movements.

Here’s how cloud computing helps in preventing package loss:

  • Real-Time Accessibility: Cloud computing enables real-time access to logistics data from anywhere, anytime. Stakeholders such as manufacturers, logistics providers, carriers, and customers can access the cloud platform to retrieve the most up-to-date information
  • Supply Chain Visibility: By integrating data from various points in the supply chain into a unified cloud platform, stakeholders get a view of — (The entire logistics processing unit). This visibility extends from the point of origin to the final destination, reducing blind spots and prevents any deviations.

Trivia: A report by Accenture indicated that cloud-based platforms have contributed to up to a 20% increase in supply chain visibility.

  • Scalability and Flexibility: Ensures that the platform can handle increased data volumes, especially during peak seasons. This adaptability is crucial to accommodating fluctuations in package shipments and maintaining seamless operations.
  • Reduced IT Infrastructure Complexity: Cloud-based solutions reduce the need for extensive on-premises IT infrastructure. This simplifies logistics management and allows companies to focus on their core operations.

Linked to up to 30% reduction in IT infrastructure costs for logistics companies, allowing them to allocate resources more effectively.

Bonus Pointer:

  • Disaster Recovery and Security: Offers robust data protection measures and disaster recovery solutions. This contributes to data security and ensures that critical logistics information is safeguarded against potential loss or disruption.

To sum up, cloud computing offers a transformative solution to prevent package loss by creating an environment of real-time accessibility. It proactively approaches package security, ultimately reducing the likelihood of packages getting lost.

Need a team for the same? Have a look here — https://thecodework.com/cloud-migration/

Case Studies

Here are a couple of case studies of real-life logistics companies that have utilized technology to prevent package loss:

DHL Express: SmartSensors for Precise Monitoring

To sum up, cloud computing offers a transformative solution to prevent package loss by creating an environment of real-time accessibility. It proactively approaches package security, ultimately reducing the likelihood of packages getting lost.

Need a team for the same? Have a look here — https://thecodework.com/cloud-migration/

Case Studies

Here are a couple of case studies of real-life logistics companies that have utilized technology to prevent package loss:

DHL Express: SmartSensors for Precise Monitoring

DHL Express, a global logistics leader, introduced a solution known as “SmartSensors” to prevent package loss. SmartSensors are IoT-enabled devices that monitor conditions such as temperature, humidity, light exposure, and shock during transit. These sensors are integrated into packages containing items like pharmaceuticals and electronics.

How It Works: SmartSensors continuously collect real-time data and transmit it to a cloud-based platform. Stakeholders, including customers and logistics teams, can access the data through a dedicated portal. In case of deviations from predetermined thresholds, immediate alerts are generated. For example; If the temperature of a package containing perishable goods rises above the safe limit, an alert is sent.

Impact: DHL’s SmartSensors have significantly reduced instances of package loss and damage due to factors like temperature fluctuations or mishandling. By preventing spoilage and preserving the quality of sensitive goods. They have enhanced customer satisfaction and strengthened its reputation as a reliable logistics provider.

UPS: Orion Project for Route Optimization

United Parcel Service (UPS), a prominent global courier and package delivery company, implemented the Orion (On-Road Integrated Optimization and Navigation). The project prevents package loss and improves operational efficiency through route optimization.

How It Works: Orion employs advanced algorithms that analyze various factors, including package volume, delivery locations, traffic patterns, and delivery windows. This data is processed to generate optimized delivery routes for drivers. By minimizing unnecessary turns and stops, Orion reduces the risk of packages being lost or misrouted.

Impact: The Orion project has led to significant improvements in UPS’s delivery operations. Optimized routes not only prevent package loss but also enhance fuel efficiency, reduce carbon emissions, and improve overall delivery times. This technology has enabled UPS to efficiently manage its extensive package delivery network.

For more insight, You can’t read our detailed Case Study on UPS.

Bottom Line

Addressing the issue of lost packages is not only a matter of rectifying operational inefficiencies; it is a strategic imperative that directly influences the growth and trustworthiness of the entire logistics sector. Repercussions of lost packages ripple through businesses, customers, and the industry as a whole.

The importance of addressing the issue of lost packages cannot be overstated. It’s a dual-force driver that fuels trust and growth in the logistics sector. From embracing IoT sensors and smart packaging to harnessing the power of AI, Ml, & Cloud Computing — logistics companies are actively transforming their operations to enhance visibility, security, and accountability throughout the supply chain.

And, Now you can Join our LinkedIn Logistics Forum — to keep up with the latest trends on logistics

As technology continues to shape the logistics landscape, the ongoing collaboration between industry players & technology developers will be instrumental. It will foster a secure and efficient ecosystem of solution for lost packages in the logistics industry. The collective efforts to prevent package loss not only safeguard financial investments but also foster customer trust and satisfaction.

Ultimately shaping the future of logistics for the better.

To know more, Contact TheCodeWork Today!

Originally published at https://thecodework.com on August 9, 2023.

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TheCodeWork

TheCodeWork is a team of innovative problem solvers, who look into various aspects of business and build solutions to simplify them with tech.