2 THEORETICAL FRAMEWORK 
Although several researches have highlighted the 
benefits of tracking system for supply and logistics 
chain management over decades, companies are still 
lacking behind to implement such technology 
(Hinkka, 2012). Supply chain tracking or visibility is 
nowadays getting much more attention from 
companies in order to ensure security and minimizing 
associated risks.  According to Musa et al. (2014), 
supply chain visibility can be defined to mean the 
capacity of the supply chain to view a product’s 
lifecycle from concept generation to product’s end-
of-life activities and processes. This tracking system 
supports manufacturing companies to adopting just in 
time operations (Hui, 2008). 
The tracking of supply network often used to 
describe a product in the forward direction, whereas 
tracing is used to infer the product’s path and history 
from downstream to upstream of the supply chain 
(Dabbene et al., 2014). It is therefore essential to 
establish an efficient interface between the upstream 
and downstream of the tracking system.  In order to 
make a tracking system it is required to establish a 
real time information flow. Such real-time 
information flow ensure to minimize potential risks 
and events within the supply network. The supply 
chain tracking enables companies to support 
managers in choosing activities, methods and 
technologies to increase supply chain security 
without reducing its efficiency (Pero and Sudy, 
2014).  
The functionality of tracking system concerns 
with three basic attributes, which can be explained as 
to identify an item, to locate its current position and 
current time. At the entry point usually the 
consignment is tracked by automatic identification 
technology that reads the code of the consignment 
and updates its status (Kärkkäinen et al., 2010). In 
continuous tracking system the assignment position 
in any time is tracked by interrogating the tracking 
database. In case of multi-company networks, there 
need close cooperation and collaboration with each 
other in order to fulfil the requirements for tracking 
systems (Shamsuzzoha and Helo, 2012). The 
information content can be varied between tracking 
systems (Liwei et al., 2009).  
Often a tracking system mainly records the 
identity of an item, its position and both arrival and 
departure time.  However, there are many occasions 
that also records other attributes like temperature, 
humidity, vibration, etc., (Shamsuzzoha et al., 2013). 
Such additional attributes protect tracked items from 
unnoticed damage and ensure quality delivery. In 
general, any company stores its tracking information 
to its central database, which can be used further if 
needed. In a network system, the information is stored 
centrally and retrieves according to the tracking needs 
(Helo and Szekely, 2005).  
3  BASIC REQUIREMENTS OF 
TRACKING WITHIN SUPPLY 
CHAIN LOGISTICS  
Nowadays different companies are choosing to 
implement more advanced and intelligent tracking 
systems. At the same time, there is a significant 
amount of cost savings for the companies in terms of 
better overview of flow of goods. However, 
beforehand several critical questions are needed to be 
answered by a company such as: what are the tracking 
requirements, what are the relevant goods and flows, 
what kind of information is available out there, and 
what type of technology should be used? This 
tracking requirement can be for specific product 
centric and/or inbound outbound tracking. 
3.1 Itemized Tracking: Perspectives 
from Independent Transporters 
In today’s business, it is nowadays a common trend 
to outsource in order to meet up companies supply 
and logistics requirements. From this strategic shift, 
companies also expect real-time tracking solutions 
from the logistics providers. However, several issues 
create complicacy within the companies for both 
inbound and outbound delivery of items. Both the 
inbound and outbound transports companies usually 
have for a relatively take long time and needs to track 
their items. Some of these transport companies do 
have sophisticated tracking systems that are used to 
track their delivery items. None of these are able to 
(automatically) track shipments once they are on 
board a truck/vessel.  
Furthermore, under logistical strategy choosing a 
single transport company to monitor the entire supply 
chain of a company would be complicated if not 
impossible. In such a case, the monitoring will always 
be reactive, not proactive - no transport company 
knows enough about a company’s production and 
business to be able to predict upcoming problems, and 
correct accordingly.  
In order to maintain a steady tracking of delivery 
items, any companies need to formulate its own 
tracking system rather than depending on the tracking 
system provided by individual delivery companies. In