Shipment Tracking
Shipment tracking is the seamless monitoring of a parcel from hand-over to the carrier through to delivery. A unique tracking number captures every stage of transport and makes it visible to sender and recipient in real time.
Shipment tracking is the end-to-end monitoring of a parcel from hand-over to the carrier through to delivery to the recipient. Each shipment is assigned a unique tracking number at dispatch, under which the carrier records a status event (scan) at every stage – acceptance, handling in the sorting hub, delivery vehicle, delivery. These events are bundled and made available via a tracking page or interface, so that sender and recipient can see at any time where the parcel is and when it is expected to arrive.
Shipment tracking is thus the informational twin of the physical transport: while the goods travel through the logistics network, a chain of status data mirrors this journey digitally. It creates transparency about the delivery status, serves as proof of delivery and is a matter of course in modern e-commerce – customers today expect to be able to track their order from click to doorstep. For the merchant, tracking is at the same time a tool to spot delivery problems early and to reduce inquiries about the shipment status.
At a glance
- Seamless monitoring of a parcel from dispatch to delivery
- Based on the unique tracking number with status scans at each stage
- Creates transparency, serves as proof of delivery and reduces inquiries about the delivery status
- In the ERP linked to the order, delivery note, goods issue and carrier
- The tracking number is returned via API and communicated to the customer automatically
How does shipment tracking work?
The basis of every shipment tracking is a unique tracking number assigned by the carrier when the shipping label is created. It is printed on the label as a barcode or Data Matrix code and identifies the shipment throughout the transport network. At each processing point – acceptance, inbound and outbound at the sorting hub, loading onto the delivery vehicle, delivery or delivery attempt – the label is scanned. Every scan generates a status event with a timestamp, location and event type.
From the sequence of these events emerges the shipment status, which is expressed in typical stages: "shipment announced" (label created, goods not yet handed in), "out for delivery", "delivered" or "delivery not possible". The customer retrieves the status via a tracking page using the tracking number or receives it automatically by email and link. Many carriers also display an expected delivery window.
Components and status events
Shipment tracking comprises three building blocks: the tracking number as the key, the status events (tracking events) as the history data, and the output channels through which the status becomes visible – web portal, app, email or a tracking view embedded in the shop. The proof of delivery forms the conclusion: it documents the time and manner of delivery, sometimes with a signature, drop-off location or photo. This data is the decisive evidence in the event of complaints and loss.
Why shipment tracking matters
The benefit of shipment tracking lies above all in transparency. Customers who can follow the journey of their order experience shipping as predictable and trustworthy – a central factor for satisfaction and repeat purchases in e-commerce. At the same time, tracking noticeably relieves customer service: a large share of inquiries in online retail revolves around "Where is my order?" (WISMO). A visible, up-to-date shipment status intercepts these questions before they reach support.
For the merchant, tracking is moreover an early-warning system. If a shipment remains stuck on a status for an unusually long time or the carrier reports a failed delivery attempt, the merchant can intervene proactively, inform the customer or trigger a replacement delivery. In the event of loss or damage, the documented shipment history is at the same time the basis for tracing requests and claims settlement with the carrier.
Shipment tracking in the ERP system
In the ERP system, shipment tracking is closely intertwined with order processing. As soon as the goods issue is posted and the shipping label is created, the carrier returns the tracking number via an API or interface. The ERP stores this number on the associated order or delivery note and thereby assigns it unambiguously to the customer and the order. The shipping status thus becomes part of the end-to-end process chain from order to delivery.
The practical added value comes from automation: the ERP – or a connected shipping software – automatically sends the shipping confirmation and tracking link to the customer and updates the order status as soon as status events are reported back. In multichannel scenarios, the tracking number is additionally passed back to the online shop and marketplaces, where it is often mandatory for rating the seller performance. This keeps the shipping status consistent across all channels without staff having to maintain it manually.
Multi-carrier tracking and shipping software
Anyone working with several carriers faces the problem of inconsistent tracking numbers and status codes. Multi-carrier shipping software and tracking services solve this by collecting the shipment data of various carriers via their APIs, translating it into unified status stages and delivering it bundled to the ERP or a branded tracking page. This way the customer sees a uniform experience regardless of the chosen carrier, and the merchant keeps an eye on all shipments centrally.
Distinction: shipment tracking, track and trace and proof of delivery
Shipment tracking and "track and trace" are often used synonymously, but they emphasise different aspects. "Tracking" means the ongoing monitoring of the current location and status of a shipment, "tracing" the subsequent reconstruction of the entire transport route based on the recorded events. In practice, modern systems deliver both from the same event chain; the distinction is primarily terminological.
Shipment tracking must also be distinguished from the proof of delivery, which only evidences the result – the completed delivery – while tracking maps the entire journey. Tracking in shipping should not be confused with batch or serial number management: these follow a product along the supply chain for the traceability of origin and quality, whereas shipment tracking maps the transport route of a specific parcel. Both serve traceability but apply to different objects.
DACH specifics
In the DACH region, a few large parcel carriers dominate the market, and their tracking systems are widely known. For cross-border shipments within the DACH region – for example from Germany to Austria or Switzerland – a shipment frequently changes between networks and partners, so that status events from different carriers line up. For deliveries to Switzerland, customs clearance and import processing are added as separate stages visible in the tracking, which affect the delivery time.
From a data protection perspective, note that shipment data is personal: address and delivery data are subject to the GDPR, and additional features such as photo proof of delivery or location data must be handled in a correspondingly purpose-bound manner. For merchants, this means storing and sharing tracking data only to the extent necessary.
Example
Example: automated tracking dispatch in online retail
A mid-sized online retailer for household goods processes its orders via its ERP system and ships through two parcel carriers. Previously, staff entered the tracking numbers into a spreadsheet by hand after packing and sent shipping confirmations manually – at peak load, tracking numbers piled up and customer service was flooded with "Where is my parcel?" inquiries.
After connecting the shipping software to the ERP, the process runs automatically: when the goods issue is posted, the system creates the shipping label, the carrier returns the tracking number via API, and the ERP stores it on the order. The customer immediately receives a shipping confirmation with a tracking link, and the order status updates with every status event. The WISMO inquiries in support dropped noticeably, and for delayed shipments the team sees the standstill in the tracking and can react proactively before the customer complains.
Frequently asked questions
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