Strengthening Your Supply Chain: New Applications of GPS Tracking for Original Equipment Manufacturers (OEMs)

“Every part is a relationship,” begins Mitch Belsley, Vice President of Logistimatics and GPX Intelligence. When it comes to supply chain issues for B2B inventory management, complications with original equipment manufacturers (OEMs) can cause logistical hurdles. “It increases risk, cost, and damages these relationships,” Belsley continues.

At the same time, in today’s rapidly evolving industrial landscape, OEMs face increasing pressure to optimize operations, enhance efficiency, and maintain competitive advantage. While often associated with consumer navigation and fleet management, GPS tracking technology offers significant benefits for OEMs and their supply chains.

An Original Equipment Manufacturer (OEM) is a company that makes parts or equipment that are sold or rebranded by another company. Automotive and IT industries especially rely on OEMs as a vital part of their supply chain.

Explore how GPS tracking technology can revolutionize your OEM operations, streamline your supply chains, upkeep and maintain parts relationships, and drive overall business performance.

Benefits of GPS tracking for OEM management

First and foremost, GPS tracking can enhance OEM management in several ways. Often, these are applied to closed-loop systems like the world of returnable containers, reusable racks, and other cycle-driven equipment. However, even open-loop supply chains can leverage GPS-driven insights. Here’s why OEM businesses have stepped up to tackle this challenge:

• Parts and labor. Keep track of equipment, parts, and returnable item movement along the supply chain.
• Environmental concerns. Tracked returnable containers and racks cut down on use of cardboard and other materials in boxing and reboxing due to supply chain hiccups.
• Cutting costs. Save money by not having to urgently reship or pause the production process — making sure it runs smoothly the first time saves in the long run.
• Inefficiencies. Help solve logistical headaches along the supply chain with increased visibility on parts – especially those supplied and managed in closed-loop systems.
• Business relationships. Help enhance relationships with manufacturers by maintaining visibility on all parts and equipment throughout the supply chain.
• Temperature and damage. Developing Bluetooth technology helps you keep an eye on the physical surroundings, especially those that can weather or destroy parts and equipment.
• Theft. Help prevent goods and equipment from being stolen and get fast recovery on parts that go missing from the supply chain.

As you can see, the primary benefit of GPS tracking in solving OEM complications boils down to visibility. Maintain an eye on all the parts, equipment, and labor throughout the process to ultimately ensure customers get everything they pay for in a timely manner.

Enhanced closed-loop asset management: returnable containers and racks

“This is about creating a smoother process for companies and the OEMs that are a part of their supply chain—and it gives OEMs what they need: more data,” Belsley continues. We can see this in the integration of Bluetooth technology all the way down to simple monitoring.

For OEMs like yours, managing assets such as returnable container inventory, rack inventory, machinery, and equipment is crucial. This is especially true for closed-loop systems that need to be optimized for maximum production line output. GPS tracking provides real-time visibility into the location and status of these assets. This capability is especially beneficial for high-value parts or critical equipment that needs to be closely monitored. Two key factors that enhance this capability include:

• Real-time monitoring | GPS tracking allows OEMs like yours to monitor the location of assets in real time. This helps prevent loss or theft and ensures that your equipment is where it’s supposed to be.
• Preventive maintenance | By tracking the usage and movement of machinery, you can schedule preventive maintenance based on actual usage rather than arbitrary timelines. This approach can extend the life of equipment and reduce unexpected breakdowns.

For example, GPS trackers deployed on assets within shipping loops can provide the visibility needed to drive operational efficiency. This is accomplished by:

• Reducing cycle times through the isolation and remediation of dwell at key points
• Driving accountability through the identification of misappropriated assets
• Helping reduce the need for reshipments after mis-shipping
• Utilizing geofences to automatically capture entry or exit times from a specific area of the loop
  

Without this kind of visibility and without proper planning ahead of time, shipments can result in increased risk, cost, and damages.

Improved operational efficiency for OEMs

Operational efficiency is a key factor in the success of any manufacturing operation, including your OEM. GPS tracking technology helps by streamlining your processes and improving overall efficiency in several ways. Two primary ways in which it helps streamline are:

• Optimized resource allocation | GPS tracking provides data on asset usage patterns, helping OEMs like yours allocate resources more effectively. For example, if a piece of equipment is frequently used in one area, it may be beneficial to keep it closer to that location to minimize transportation time.
• Reduced downtime | By monitoring equipment usage and performance, your OEM can identify issues before they lead to significant downtime. Real-time alerts can be set up for anomalies, allowing for immediate intervention and reducing the impact on production. For example, large automobile parts like hoods be subject to environmental concerns like rust and weather if they’re left in stasis for too long.

Enhanced OEM supply chain visibility

As you know, supply chains are complex, involving multiple stakeholders and numerous moving parts. GPS tracking can help enhance visibility across the entire supply chain, providing several benefits to OEMs like yours included:

• Real-time tracking of shipments | GPS tracking allows OEMs to monitor the location of shipments in real time. This visibility helps in managing delivery times and ensures that goods arrive as scheduled.
• Reduced transit times | By analyzing GPS data, you can identify inefficiencies in the supply chain and make adjustments to reduce transit times. For example, if a shipment is consistently delayed due to complications or environmental concerns along specific routes, you can save time while alternative routes can be explored.

Improved OEM customer service

We understand that customer satisfaction is an utmost priority of yours. We also understand customer satisfaction is closely tied to the efficiency and reliability of OEM operations like yours.  GPS tracking technology can significantly enhance customer service in several ways.

• Accurate delivery estimates | GPS tracking provides accurate data on delivery times, allowing OEMs like yours to give customers more precise estimates. This transparency builds trust and improves customer satisfaction.
• Real-time updates | Your customers can receive real-time updates on the status of their orders, including location and estimated delivery times. This level of communication enhances your customer’s experience and reduces inquiries about order status.

Ultimately, GPS tracking technology is continually improving, staying ahead to meet the needs of OEM managers like yourself. 

Enhanced safety and security

We know this one is huge. Safety and security are paramount concerns for OEMs like yours, especially when dealing with high-value or sensitive equipment. GPS tracking provides several safety and security benefits.

• Theft prevention and recovery | GPS trackers can help prevent theft by providing real-time location data. In the event of theft, the location information can be used to recover stolen assets quickly.
• Geofencing | GPS tracking allows for the creation of virtual boundaries known as geofences. Alerts can be set up if an asset moves outside of these boundaries, helping to detect unauthorized use or movement.

How GPS tracking benefits the supply chain: A quick rundown

You can extrapolate the benefits of GPS tracking for OEM management to the larger supply chain as a whole. Overall, these include:

1) Enhanced returnable container, inventory management
Inventory management is a critical aspect of supply chain operations. GPS tracking technology provides valuable insights into inventory locations, leading to more efficient management. Both real-time inventory tracking and improved accuracy of inventory data are crucial for effective supply chain management.

2) Efficient transportation management & cycle-time reduction
Transportation is a key component of the supply chain, and GPS tracking plays a significant role in optimizing transportation operations. Both container fleet management and warehouse operations (supporting the closed-loop cycle) are bolstered by GPS tracking technology through enhanced data on loop conditions. And if you have your own trucks to manage part or all of the loop logistics, GPS tracking helps in managing vehicle usage and ETA’s, improving overall fleet efficiency.

3) Better supplier coordination
If you help run a company that uses OEMs, effective coordination with your suppliers is essential for a smooth supply chain. And if you run an OEM, the same is true: GPS tracking technology enhances communication and coordination with suppliers (and your suppliees) in several ways. Maintain real-time tracking over your supplier’s parts and equipment—this visibility helps in managing supplier performance, ensuring timely deliveries. Overall, this leads to improved collaboration with your suppliers or those companies your OEM supports.

4) Enhanced risk management
As you’re surely aware, supply chains are subject to various risks, including delays, disruptions, and unforeseen events. GPS tracking technology helps mitigate these risks and improve overall risk management via incident detection, which provides alerts for unusual activities or deviations from planned routes. This is data-driven decision-making at its finest: valuable insights become useful data to make informed decisions and develop evergreen strategies for your place in the supply chain.

OEM benefits and beyond

GPS tracking technology offers a multitude of benefits for larger companies and OEMs like yours. From enhancing asset management and operational efficiency to improving customer service and risk management, GPS tracking provides valuable insights and capabilities that drive business success.

As the industrial landscape continues to evolve, OEMs that leverage GPS tracking technology will be better positioned to navigate challenges, optimize operations, and maintain a competitive edge. In an increasingly connected world, embracing GPS tracking technology is not just a strategic advantage—it’s a necessity for OEMs like yours looking to thrive in the modern marketplace.

OEM FAQs

• What is an Original Equipment Manufacturer (OEM)?
  • An Original Equipment Manufacturer (OEM) is a company that designs and produces components or systems that are used in the end products of another company. OEMs often supply parts or equipment that are integrated into a final product sold under a different brand name. For example, an OEM might produce engines for a car manufacturer or components for consumer electronics.

• What types of OEM assets can be tracked using GPS technology?
  • GPS technology can track a wide range of assets, including:
    • Machinery and equipment: Heavy machinery, production equipment, and tools
    • Vehicles: Delivery trucks, company cars, and service vehicles.
    • Inventory: Raw materials, finished goods, and parts.
    • Personnel: Field technicians or service teams, for better route planning and safety.

• Can GPS tracking technology help with preventive maintenance for OEMs?
  • Yes, GPS tracking can aid in preventive maintenance by:
    • Monitoring usage. Tracking the usage patterns of equipment helps schedule maintenance based on actual wear and tear rather than fixed intervals.
    • Identifying issues early. Real-time data on equipment performance can highlight potential problems before they lead to significant breakdowns.
    • Reducing downtime. Timely maintenance based on GPS data ensures that equipment remains in optimal condition, minimizing unexpected downtime.

• What are the potential challenges of implementing GPS tracking in OEM operations?
  • Potential challenges include:
    • Initial costs. There may be upfront costs associated with purchasing GPS tracking devices and integrating them into existing systems.
    • Data management. Handling and analyzing the large volumes of data generated by GPS tracking requires appropriate systems and expertise.
    • Privacy concerns. Ensuring that the tracking of employees and assets complies with privacy regulations and policies is crucial.

• How can OEMs choose the right GPS tracking solution?
  • When choosing a GPS tracking solution, OEMs should consider:
    • Compatibility. Ensure the solution integrates well with existing systems and equipment.
    • Scalability. The solution should be able to scale with the company’s growth and changing needs.
    • Features. Look for features that meet specific requirements, such as real-time tracking, geofencing, and reporting capabilities.
    • Cost. Evaluate the total cost of ownership, including installation, subscription fees, and any additional expenses.