What is Automated Shipment Tracking and it's Features

Whether you're managing a growing eCommerce store or an enterprise logistics network, the pressure to deliver accurately and on time has never been higher.

Imagine running an online store or managing a busy supply chain, and every day you’re juggling dozens (or hundreds) of packages. If you’re still manually copying tracking numbers into spreadsheets or checking multiple carrier websites, you know how tiring and error-prone it can be. 

The good news? It doesn’t have to be that way. Automate shipment tracking addresses these problems through technology to provide real-time shipment feedback without human intervention. 

This means your staff can focus on strategy and not spend time on mundane data management. 

This guide delves into the common challenges associated with manual tracking, clearly defines automated shipment tracking, highlights its key benefits, and outlines implementation steps, recommended tools, real-world examples, potential pitfalls, and emerging trends.

What is Automated Shipment Tracking?

Automated shipment tracking means using software and technology to monitor your shipments for you, instead of doing everything by hand. 

In a computerized system, all your tracking information is gathered and updated in one place without constant manual input.

How Automated Tracking Works

Automated shipment tracking connects your system to shipping carriers using APIs (Application Programming Interfaces) and webhooks. 

These connections pull live updates from the airline when a package status changes—no manual input is needed.

All automate shipment tracking updates are automatically collected and displayed in a centralized dashboard, giving your team and customers instant visibility.

Key Features

• Real-time shipment tracking: Instantly see where every package is at any moment.
• Automated status alerts: Send email or SMS updates automatically when the shipment status changes.
• Integrates with your tools: Seamlessly connects with CRMs, order systems, and e-commerce platforms like Shopify or WooCommerce.

Together, these features make it easier to automate shipment tracking while improving transparency and customer satisfaction.

How Automated Shipment Tracking Differs from Manual Tracking

Manual shipment tracking typically involves logging into multiple carrier websites, copying tracking numbers into spreadsheets, and checking each order’s status individually. 

This process is time-consuming and mentally taxing for teams managing dozens or hundreds of packages daily. Any updates must be manually recorded and communicated to customers, leading to inconsistencies and delays.

Main Limitations of Manual Tracking

Manual tracking lacks the speed, accuracy, and visibility businesses need in today’s fast-paced delivery environment. 

Without an automate shipment tracking system, operations remain slow and error-prone.

Manual tracking presents several limitations.

• Time-Consuming: Teams spend hours each week manually checking statuses.
• Error-Prone: Typos and missed updates can cause confusion or delays.
• Lack of Visibility: Getting real-time updates across all carriers is problematic without automation.
• Customer Frustration: Poor visibility means more support calls and unhappy customers.
• Not Scalable: Manual tracking becomes nearly impossible to manage as order volume grows.

Manual vs Automated Shipment Tracking: A Feature-by-Feature Comparison

Understanding the difference between manual and automated shipment tracking helps identify where inefficiencies lie. 

This table outlines how automation transforms tracking processes across key business areas.

Switching from manual to automate shipment tracking leads to better accuracy, reduced workload, and improved customer experience. 

It's a more intelligent, scalable solution for growing logistics demands.

Key Features of Automated Shipment Tracking

Automating shipment tracking delivers measurable improvements across operations, customer experience, and scalability. 

From real-time visibility to faster workflows, the advantages compound as your business grows.

1) Real-time Location Updates

With automated shipment tracking, businesses can monitor the location of every shipment in real time. This continuous visibility empowers customers and logistics teams to know exactly where a package is at any moment. 

It drastically reduces customer support calls by eliminating the uncertainty that leads to “Where is my order?” inquiries. 

Real-time data from carrier APIs keeps dashboards up to date, enabling proactive communication and faster resolutions to issues.

2) Automatic Notifications

Automate shipment tracking tools that automatically send email and SMS updates to customers whenever a status changes, from dispatch to delivery. This keeps customers in the loop without any manual intervention. 

Businesses can configure alerts for delays, failed delivery attempts, or package handovers. 

These notifications help reduce anxiety, build customer trust, and significantly lower the volume of incoming support requests related to delivery updates.

3) Estimated Delivery Time (ETA)

An essential feature of automated shipment tracking systems is the ability to provide highly accurate estimated delivery times. 

These ETAs are calculated based on historical carrier performance, traffic data, and weather conditions. 

With this data, businesses can better manage customer expectations and reduce frustration caused by vague or missed delivery promises. It also helps warehouse and fulfillment teams prepare in advance, improving overall logistics.

4) Exception Alerts

One of the most powerful features of automate shipment tracking is exception management. 

When a package encounters a delay, failed delivery, or unusual route deviation, the system immediately alerts the business and/or customer. 

This enables rapid response, such as rescheduling delivery or contacting the courier. Exception alerts prevent minor issues from turning into customer complaints and help logistics teams maintain high service reliability.

5) Multi-carrier Support

Today’s supply chains rely on multiple carriers across regions and countries. Automated shipment tracking platforms support multi-carrier integration, consolidating all tracking information into a single interface. 

This removes the need to log into multiple carrier websites and manually compile tracking data. 

It also allows businesses to standardize their tracking workflow regardless of which shipping provider is used, increasing operational efficiency and consistency.

6) Analytics and Reporting

Automate shipment tracking systems go beyond just tracking — they collect data and present actionable insights. 

Businesses can analyze delivery times, late shipments, carrier performance, and customer communication metrics. 

These reports support data-driven decisions, such as choosing better-performing carriers or identifying bottlenecks in the supply chain. Over time, this leads to optimized routes, better vendor relationships, and improved logistics strategy.

Benefits of Automating Shipment Tracking

If you automate shipment tracking, it will deliver measurable improvements across operations, customer experience, and scalability. 

From real-time visibility to faster workflows, the advantages compound as your business grows.

A) Benefits for Businesses

When businesses automate their shipment tracking processes, the returns are immediately visible. 

From smoother operations to stronger customer trust, automation unlocks key operational advantages that manual processes simply can’t match.

1) Saves Time and Manual Effort

By adopting automated shipment tracking, businesses significantly reduce the time spent on repetitive tracking tasks. 

Automated systems manage the updates, ensuring faster workflows and improved operational speed. This frees your team to focus on strategic initiatives rather than administrative chores.

2) Improves Customer Experience

A smoother tracking process means better communication with customers. With automated shipment tracking, real-time updates and notifications are shared automatically. 

This builds transparency and trust, dramatically reducing "where is my order" inquiries and improving overall customer satisfaction.

3) Cuts Costs in the Long Run

Though automation requires upfront investment, it pays off by reducing labor costs, minimizing errors, and lowering the volume of customer complaints. 

Over time, the efficiency of automate shipment tracking translates to cost savings that support sustainable growth.

4) Helps in Better Planning and Decision Making

Analytics generated from automated shipment tracking allow businesses to make informed decisions. 

Companies can proactively improve logistics strategies and streamline operations by identifying delivery delays, tracking patterns, and monitoring carrier performance.

B) Benefits for Customers

Customers today expect clarity, convenience, and control. Automating shipment tracking delivers on all three fronts, making the delivery experience as seamless as the purchase.

1) Transparency on Where the Product Is

With automate shipment tracking, customers always know where their orders are. 

Live updates via email or SMS empower them with real-time information, improving trust and reducing uncertainty.

2) Less Anxiety and Fewer Complaints

Access to consistent and accurate tracking data means customers aren’t left guessing. 

This reduces stress and significantly reduces support queries, contributing to a more positive post-purchase experience.

3) Easy Returns and Support

By automating returns tracking, customers receive better visibility throughout the return journey.

 This makes the return process more seamless and manageable, enhancing the brand’s reliability in customer service. 

If you automate shipment tracking, it will deliver measurable improvements across operations, customer experience, and scalability. From real-time visibility to faster workflows, the advantages compound as your business grows.

Step-by-Step: How to Automate Shipment Tracking

Implementing an automate shipment tracking system might sound technical, but it mustn’t be daunting. Here’s a step-by-step roadmap to roll out an automated shipment tracking system in your business.

Step 1: Assess Your Needs and Current Process

Start by evaluating how you currently track shipments and where the pain points are. How many packages do you ship per day or month? How many different carriers do you use? Where do delays or errors typically occur? 

Also, consider what you want from an automated shipment tracking system – e.g., “I want to reduce customer inquiries” or “I need to consolidate tracking for all five carriers we use.” This clarity will help you choose the right solution.

Step 2: Research and Choose a Solution

Based on your needs, research the tools that might fit. If you’re an e-commerce retailer, maybe a platform like AfterShip or an all-in-one shipping app works. 

If you run a more complex operation, maybe an API-based approach or a specific logistics software is better. 

Compare features and pricing. Many providers offer demos or free trials – take advantage of those to see the tool in action. 

Key things to look for are integration capability (with your shop or systems), ease of use, carrier support, and support/customer service provided by the vendor (you might need help during onboarding).

Step 3: Set Up the System and Integrate

Once you’ve picked a solution, it’s time to set it up. This usually involves creating an account and connecting it to your sales channels or databases. 

For example, if you have an online store on Shopify, you might install the tracking app and grant it access to your orders. 

If it’s an API solution, your developer must write a connection between the API and your system. 

During this step, you’ll likely input which carriers you use and provide any necessary credentials (some airlines require an API key or account login to fetch tracking info). 

The goal is to ensure the tracking tool can automatically pull data for all your shipments.

Step 4:Configure Notifications and Preferences

Next, customize the system to fit your workflows and branding. Decide what automated notifications you want to send customers (shipping confirmation, out-for-delivery alert, delivery confirmation, delay notices, etc.) and set those up in the tool. 

Most platforms let you customize the message templates – you can add your logo, adjust the wording, and choose the timing. 

Also, configure any internal alerts (e.g., you might set an alert for your team if a shipment is delayed more than 2 days, so customer service can proactively reach out). 

If the platform offers a branded tracking page, design it to match your website—tail all the settings – from time zones to languages to data format – to suit your business.

Step 5: Import or Sync Existing Orders

If you have orders currently in transit, you’ll want to get them into the system so they’re tracked. 

Many tools will automatically sync all open shipments from your integrated channels. If not, you might need to upload a file of current shipments or enter them manually once. 

Ensure that from now on, the system is capturing every new order with a tracking number (this might happen automatically if integrated, or through a simple workflow like scanning the tracking barcode into the system at shipment time). 

No shipment must fall through the cracks – double-check the first few to confirm everything’s syncing correctly.

Step 6: Test with a Few Shipments

Before you entirely rely on the new system, do a test run. Monitor a handful of new shipments through the automated tracker and compare them against the old way. 

Are all statuses updating correctly? Did customers receive the notification emails or texts as expected? 

Open some emails (perhaps send test notifications to your address) to ensure they look right.

If you find any hiccups – maybe a particular carrier isn’t updating, or a notification template has a typo – fix them now. 

This pilot phase can be as short as a day or two for smaller volumes, or a complete shipping cycle for more extensive operations. It’s essentially a sanity check that the automation works end-to-end.

Step 7: Train Staff and Launch

Ensure everyone involved knows about the new system and how to use it. Train your customer support on the new tracking dashboard so they can confidently answer customer questions (“I see your package left our facility and is on its way – here’s the latest update…”). 

Train your warehouse/shipping staff on any new steps they need to take (like ensuring orders are appropriately entered into the system or scanning labels if required). 

The good news is these tools are usually user-friendly, so training shouldn’t be too tricky – often it’s more about showing what’s available on the screen. Once the team is comfortable, start using the automated shipment tracking system for all shipments. Make it the central hub for shipment status.

Real-World Use Case Example

Now we will discuss the real world use cases of Automated Shipment Tracking Software-

Case Study: SCM System

Problem: One of Sweden’s leading shipping providers faced challenges in shipment visibility and operational bottlenecks. 

The company transformed its logistics operations through a centralized supply chain management (SCM) platform.

Solution: The new SCM system integrates with various services, including mapping, analytics, aviation logistics, and route optimization, to offer end-to-end visibility and automated route and shipment management. 

This allowed real-time tracking of shipment status, including distance, weight, in-transit updates, and estimated time of arrival.

Results:

• 54% Faster Shipment Processing — While exact shipment-speed gains vary by provider, automation platforms like Automation Anywhere report similarly significant improvements in processing time.
  
   
• 95% On-time Delivery Rate Achieved — According to delivery performance benchmarks, an on-time delivery rate of 95% or higher is considered excellent.

By consolidating logistics, tracking, and analytics into a unified SCM system, the company streamlined operations, improved delivery accuracy, and gained the operational leverage needed to scale efficiently across international markets.

Challenges and Limitations of Automate Shipment Tracking 

While automating shipment tracking offers significant benefits, it has challenges. Being aware of potential hurdles helps ensure a smoother implementation and long-term success.

Integration Complexity

Problem: Consider integration complexity when setting up automated shipment tracking systems. Technical expertise may be required to handle intricate integration scenarios involving multiple carriers and systems.

Solution: Detailed planning and potential vendor support can simplify integration processes and mitigate unforeseen challenges.

Data Accuracy Concerns

Problem: Reliability of automated tracking depends heavily on carrier data accuracy. Regularly monitor data feeds to identify and correct discrepancies or delayed updates quickly.

Solution: Setting up alerts for inconsistent or missing data ensures rapid issue resolution and maintains customer trust and operational integrity.

Carrier Coverage Limitations

Problem: Ensure comprehensive carrier coverage in your automated system to avoid gaps in tracking capabilities. Some smaller or regional carriers lack robust integration options.

Solution: Use supplementary tools like RPA to bridge gaps and ensure consistent carrier tracking capabilities.

Cost Management

Problem: Automation tools typically incur ongoing operational costs. Regularly evaluate cost-effectiveness against performance improvements to maintain a positive ROI.

Solution: Careful monitoring helps ensure automation remains financially sustainable and continually beneficial to your business.

Future Trends in Automate Shipment Tracking

As customer expectations evolve, so does the technology powering shipment tracking. 

The future promises more precision, transparency, and automation across every stage of the delivery journey.

Advanced IoT Tracking

IoT devices revolutionize supply chain management by providing detailed, real-time tracking, including temperature and humidity. 

This enhanced visibility allows businesses to manage potential issues related to shipment conditions proactively, ensuring product quality and customer satisfaction.

IoT tracking significantly enhances shipment visibility, allowing businesses to manage potential issues related to sensitive cargo proactively.

AI-Powered Predictive Analytics

Artificial intelligence is increasingly utilized to predict and mitigate shipment delays proactively. AI analyzes weather, traffic conditions, and historical data to optimize routes and delivery times.

Implementing AI-driven analytics ensures businesses remain agile, responsive, and highly reliable in their delivery operations.

Blockchain for Enhanced Transparency

Blockchain technology promises enhanced security, transparency, and traceability in shipment tracking. 

Blockchain records shipment transactions securely and transparently, reducing fraud and errors.

Adopting blockchain technology ensures high-value or sensitive shipments are reliably tracked, building increased customer and stakeholder trust.

Conclusion

Automate shipment tracking is essential for any modern e-commerce or logistics operation aiming to enhance efficiency, accuracy, and customer satisfaction. 

The numerous benefits, ranging from significant time and cost savings to improved scalability, make automation an apparent strategic choice.

Yes, there’s a bit of effort upfront to get set up, and you’ll need to choose the right tools and processes for your situation. 

But as we’ve seen, even a modest improvement like reducing delays by 30% or cutting support tickets can significantly impact. (Source: FasterCapital)

Starting with a clear assessment and gradually integrating robust tracking solutions enables a smooth transition. Embrace this technological shift to stay competitive, enhance operational excellence, and deliver unmatched customer service.

Platforms like AppsRhino can help tailor logistics solutions to your operational needs, ensuring a seamless integration and optimized tracking processes.

Frequently Asked Questions (FAQs)

What industries benefit most from automated shipment tracking?

Automated shipment tracking uses software to monitor deliveries in real time, eliminating manual updates and improving customer visibility through carrier integrations and instant notifications.

Can automated shipment tracking integrate with custom-built platforms?

Even small businesses can automate shipment tracking using affordable tools, reducing manual work and enhancing the customer experience with minimal setup.

How does automated shipment tracking impact customer retention?

Automated shipment tracking improves transparency and reduces delivery anxiety, which builds trust and enhances post-purchase satisfaction—key factors in boosting repeat purchases and long-term customer retention.

Is it possible to automate shipment tracking for international deliveries?

Absolutely. Most automate shipment tracking software supports international carriers and provides multilingual updates, customs visibility, and estimated delivery timelines for seamless global logistics management across borders.

What is the cost of implementing automated shipment tracking?

Costs vary by platform. Entry-level tools offer basic features affordably, while enterprise-grade automated shipment tracking systems may include advanced analytics and integrations at a higher monthly subscription.

How secure is data within shipment tracking platforms?

Most automated shipment tracking systems use encryption, GDPR compliance, and secure carrier APIs to protect sensitive customer and logistics data from unauthorized access and cyber threats.