As a logistics professional, you know that container tracking is essential. But have you considered the true cost of your current tracking solution? In this article, I'll break down why seemingly inexpensive tracking options might be bleeding your bottom line dry.
The true price of "cheap" tracking
I recently spoke with a freight forwarder who proudly told me they were paying just $0.60 per container for tracking. Yet they were paying thousands in demurrage charges every month. This stark contrast highlights a costly mistake many companies make—focusing on the lowest tracking fee while ignoring the much larger financial impact of poor visibility.
The hidden labor costs
When calculating the cost of container tracking, most companies focus solely on the direct expense. But here's what they're missing: The enormous hidden costs of their experienced team spending time on manual track-and-trace tasks.
Think about your best people. These are highly trained professionals whose time is incredibly valuable. Yet how many hours per week do they spend on manual tracking tasks? More importantly, what high-value activities are they not doing because they're tied up with routine tracking?
From "heads down" to "heads up" work
The most successful logistics operations are those that enable their teams to transition from "heads down" work (like manual tracking) to "heads up" work – building relationships, solving complex problems, and driving successful customer outcomes.
Consider this: If you could give your best people 30% more time, what could they achieve? Beyond just time savings, think about the cognitive overhead. When your team isn't constantly context-switching to check container status or stressed about missing critical updates, they can focus on what truly matters.
The false economy of EDI and single-source solutions
Many companies believe they're saving money with EDI or basic tracking solutions. Here's the reality: If you're using these systems, your operations team is likely still doing manual verification anyway. You're essentially paying twice – once for the system and again in labor costs.
This creates a dangerous false sense of security while adding a line item to your budget without solving the underlying problem.
The outsourcing trap
Outsourcing tracking to offshore teams might seem like a cost-effective solution, but consider these hidden expenses:
- Training and management overhead
- Quality control and mistake correction
- Information latency affecting decision-making
- Scaling challenges and unpredictable performance
- Administrative costs of managing an external workforce
These hidden costs add up quickly. High turnover means constant retraining, while quality control demands significant management time. As your operation grows, these challenges multiply. The promised savings from lower hourly rates often vanish when you factor in operational inefficiencies and the potential cost of manual errors in shipment handling and compliance.
A better way forward
At OpenTrack, we've designed our pricing model to align with your actual needs. Unlike traditional solutions, we charge only for containers tracked – not for users, API access, or platform fees. This transparent approach means:
- You pay once for tracking, not monthly recurring fees
- No hidden charges for additional users or support
- Predictable costs that scale with your business
- No minimum commitments – start at any scale
Understand your true cost of tracking
The real cost of container tracking isn't just about the per-container price – it's about the total impact on your operation. To understand what you're really paying, ask yourself:
- How many hours per week does your team spend manually checking container status, and what's the total cost of this time at their hourly rate?
- What revenue-generating activities are being postponed or neglected because your staff is tied up with routine tracking tasks?
- How much are you losing annually in demurrage, detention, and other charges that could be prevented with better visibility?
By choosing a comprehensive solution that truly automates tracking, you free your team to focus on what they do best: Driving value for your customers and growing your business.
