Online orders have long been part of everyday life. After making a purchase, many people start waiting – and wondering where their shipment is. This is where Track and Trace comes in: a system that brings transparency to the shipping process and shows you where your parcel is at any given time.

The ability to track shipments seamlessly has fundamentally changed the logistics industry. What used to be opaque can now be traced with just a few clicks. This article explains how Track and Trace works, the technologies behind it, and the benefits the system offers to senders and recipients. You will also learn what information you receive when tracking a parcel and how the individual stations in the logistics network work together.

What does track and trace mean?

Track and trace refers to a process for completely tracking shipments along their entire transport route. The term consists of two components: ‘tracking’ means real-time tracking of a shipment from its current location to its destination. ‘Tracing’, on the other hand, describes the tracing of transport steps that have already been completed.

Both functions are interlinked and provide a complete overview of the delivery route. Each parcel is given a unique identification number, which is used to record all relevant data. This number acts as a digital fingerprint for the shipment and links all stages together.

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The concept originally comes from industrial logistics, but has become established as standard with the growth of e-commerce. Parcel service providers use track and trace, as do freight forwarders, courier services and mail order companies. The technology is used wherever goods are moved from one place to another and transparency is required. For you as the recipient, this means maximum control over your delivery.

How does Track & Trace parcel tracking work?

Track & Trace parcel tracking is based on the systematic collection of data at every point of contact with the shipment. When your parcel is posted, it is given a barcode or QR code containing all the essential information. Scanners at the various transfer points read these codes and transmit the data to central databases.

An overview of the technologies used:

Barcode and QR code: Classic identification methods that are scanned at each transfer point
RFID chips: Enable contactless reading even at high throughput speeds
GPS trackers: Satellite-based tracking for high-value or time-critical shipments
Sensors: Monitoring of temperature, vibrations or other transport conditions

Each scan generates a new status entry with a time stamp and location information. When your parcel leaves the distribution centre, this is documented, as is its transfer to the delivery driver. Communication between the systems is automated, so that you, the customer, can be informed of status changes within seconds. Errors or delays are quickly identified through this close monitoring, enabling rapid problem resolution.

The journey through the distribution centre Track Trace

The distribution centre Track Trace is a central hub in the transport network. Thousands of parcels converge here every day, where they are sorted and sent on their way. As soon as your shipment reaches the centre, it is automatically scanned at the goods receipt area. This process confirms its arrival and starts the sorting process.

Conveyor systems transport the parcels through the centre, while scanners read the codes several times. Based on the destination information, the shipments are assigned to the appropriate regions and delivery areas. Modern systems can handle several thousand sorting operations per hour and operate with virtually no errors.

When leaving the distribution centre, another scan is performed to document which vehicle your parcel has been loaded onto. This information is particularly valuable because it shows you that the shipment is approaching delivery. Larger centres have several transfer points, which means that a shipment can pass through the system several times. Each of these steps is recorded seamlessly and made visible in your personal shipment tracking.

What information do you receive when tracking your shipment?

When tracking your shipment, you have access to a wealth of relevant data. The most important information is the current status of your parcel: has it already been picked up, is it in transit, or is delivery scheduled for today? In addition, you can see the previous stages with exact times.

Type of information	Exemplary information
Current status	In delivery, At distribution centre, Delivered
Location	Town, postcode, distribution centre
Time specifications	Arrival, departure, estimated delivery
Additional information	Delivery attempt, notification left

Location details show you in which city or distribution centre your shipment is currently located. Many services also offer a map view that visually displays the transport route. The estimated delivery date, which is based on experience and the current location, is particularly helpful.

If there are any delays or problems, you will be informed. Status messages such as ‘Delivery not possible’ or ‘Parcel will be stored at the depot’ give you certainty. Some systems also allow notifications by email or text message, so you receive important updates immediately. In some cases, you can even use special links to adjust delivery options or specify drop-off locations.

Advantages of track and trace for senders and recipients

Transparency is the number one advantage. As the recipient, you know at all times when you can expect the delivery and can plan your day accordingly. Senders benefit from fewer customer enquiries, as status queries can be clarified independently. This significantly reduces the workload for customer service.

Key advantages for recipients:

Planning reliability thanks to transparent delivery dates
Independent status queries without waiting times
Option to customise delivery options
Quick information in case of problems or delays

Key advantages for senders:

Reduction in customer enquiries and support costs
Early problem detection and quick response
Data-based process optimisation
Increased customer satisfaction and customer loyalty

The ability to track shipments also increases security. Lost shipments are easier to locate and thefts are detected more quickly. Insured goods benefit particularly from this seamless documentation. Customer confidence grows when delivery promises are kept and transparency is a matter of course. In the long term, track and trace leads to more efficient processes, lower costs and more satisfied customers on both sides of the supply chain.

Track and trace in various industries

Parcel services were pioneers in the introduction of shipment tracking systems. Nowadays, almost all logistics service providers use such technologies. Courier services often offer even more detailed information, as they transport smaller volumes with higher priority.

Food logistics poses special challenges. In addition to location, temperature and transport conditions must also be monitored. Cold chains can only be ensured through continuous monitoring. Sensors record critical parameters and automatically alert when deviations occur.

The pharmaceutical industry is subject to strict regulations regarding traceability. Medicines and medical products must be traceable at all times to prevent counterfeiting and enable recalls. Industrial supply chains also benefit significantly: production parts are delivered just-in-time, reducing storage costs. Precise tracking enables better planning and prevents expensive production downtime due to missing components.

Frequently asked questions about parcel tracking

Sometimes the status does not update for a long time. There can be various reasons for this: technical problems with scanning, weekends or public holidays delay the recording. Often, the parcel is still moving, but the documentation is lagging behind. It is usually best to be patient before contacting customer service.

Common reasons for missing status updates:

Weekends and public holidays with reduced operations
Technical malfunctions with scanners or in the IT infrastructure
Parcels in transport vehicles without intermediate scanning
High utilisation during peak times

The accuracy of the time information depends on the service provider. Experienced providers can predict delivery times quite accurately because they have access to extensive data sets. However, unforeseeable events such as traffic jams or extreme weather conditions can cause deviations. A guaranteed delivery time is only available for express shipments at an additional cost.

Subsequent redirections are sometimes possible if the shipment has not yet been prepared for delivery. Many services offer apps or online portals where you can adjust your delivery preferences. Data protection plays an important role in shipment tracking: your personal data is encrypted during transmission and is usually deleted once delivery is complete.

Conclusion

Track and trace has revolutionised the logistics industry and creates transparency for all parties involved. Seamless shipment tracking enables you, the recipient, to plan reliably and gives shippers control over their processes. Modern technologies such as automated scanning systems, RFID and GPS are making parcel tracking increasingly accurate.

In future, the technology will become even more intelligent: artificial intelligence will predict delivery times even more accurately and dynamically optimise routes. Sustainability aspects are becoming increasingly important, so that in future, Track and Trace could also show the carbon footprint of individual shipments. Take advantage of the possibilities of shipment tracking today – check the status of your orders regularly and adjust delivery options to suit your needs.

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Klara Mirzakhanian

Ich bin seit März 2022 bei Lufapak im Bereich Sales tätig. Im Tagesgeschäft bin ich der Erstkontakt für unsere nationale und internationale Kunden. Die Projektarbeit, wie beispielsweise die Ausarbeitung und Optimierung diverser Prozesse sowie die Unterstützung im Bereich Marketing gehören zu meinen täglichen Aufgaben.