Software-Tracking Firms are now making Millions due to the Amazon Effect

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Many companies nowadays are paying millions in currency to be able to track in real time several things. Companies that specialize in deliveries have integrated online location tracking systems for the items that they are required to deliver for their clients. Private and common carriers also have the same options for their paying clientele. Logistics providers are currently making multi-billion deals with software firms that use location data and traffic information to make it easier for them to monitor shipments. They also use the information alert their customers to the events from receipt to actual delivery and if ever there circumstances that could delay the delivery.

Just in the past month, MacroPoint LLC was bought by supply chain software firm Descartes Systems Group. MacroPoint is a company that provides location-based truck tracking. Descartes successfully purchased the company for 107 million dollars. Just like Descartes, other startups have started to broaden their scope when it comes to location monitoring by adding services such as real-time temperature monitoring.

There is a need to constantly update such GPS Location Tracking data software as retailers are currently demanding faster, more efficient and more precise delivery especially with the growth of online shopping sites such as Amazon.com. Due to the efficiency of the delivery and tracking service of this popular online shopping site, customers have been demanding other retailers to offer the same kind of service which is more efficient and significantly faster. Business with such demands from their customers are now urging suppliers to offer the same service. This domino effect for demand of more efficient deliveries from customers all the way up to the suppliers is also known as the Amazon effect dubbed by Bart De Muynck, a supply chain analyst at Gartner, Inc.

With this current trend and demand from customers, businesses are competing more on delivery speed with other similar or related retailers. Some business can even put premium price on their products as long as they can efficiently deliver the item in less time than their competitors.

Recently, Convey, a logistics software company which specializes in last-mile delivery monitoring has stated that it successfully raised $8.25 million in a Series B funding round conducted by Techstars Venture Capital Fund. Convey plans to focus on expanding into additional markets and increasing supply chains even going international. Additional markets that Convey has been looking into are the medical devices market, construction and building materials market.

Convey’s software has been used by several other companies to help in the monitoring of clients’ shipments of different goods such as electronics, apparel, toys and other items from China straight to their customers’ delivery addresses. Ingram Micro Inc. which uses the Convey software is able to track containers from the time they leave the factory, shipped across the Pacific until it reaches U.S. customs and after it is loaded into the delivery truck. The software itself even includes a survey to measure the carrier’s performance and subsequently merges such information with collected customer order data to efficiently predict when a shipment is likely to arrive.
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Muriel Fulmer

Author:Muriel Fulmer
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