One of the most important trends in the development of logistics companies is the digital optimization of truck fleets.
Innovation in data and technology solutions has the potential to completely transform fleet management operations, 85% of shippers and consignees believe their industry is still lagging behind when it comes to adopting new technologies. Meanwhile, logistics companies that have early adopted tools such as artificial intelligence (AI), predictive analytics, and Internet of Things (IoT) devices are quickly achieving high ROI and improving the efficiency of their business. Enterprise digital tools are now becoming essential for monitoring, analyzing and performing sustainable fleet optimization.
As devices become smaller and digital tools become more accessible and powerful, logistics companies of all sizes will be able to use them more effectively to optimize their fleet and workforce through real-time visualization and automation. The ROI on these solutions speaks for itself: for example, operators at the Port of Rotterdam are now using real-time analytics, saving significant amounts (up to $80,000 each time they dock).
Important technologies include telematics and IoT, AI-powered analytics, and HR applications, all of which are key tools needed to effectively work on fleet optimization. How can logistics companies improve the current state of the art in fleet management?
Telematics, IoT and tracking of vehicles connected to telecommunications networks
Real-time data on performance, location, and equipment maintenance is becoming an increasingly common feature of industry-wide operations. According to McKinsey, today IoT and other intelligent sensor applications are among the most developed and in demand among the latest logistics technologies. According to Cisco and DHL, the potential economic value of these IoT technologies in the world is estimated at $1.9 trillion.
According to Deloitte, between 40% and 45% of vehicles in the US are now equipped with telematics devices that allow fleet operators to perform real-time remote monitoring, tracking the location, status and activities of vehicles. Such devices increase the efficiency of the fleet. 56% of operators using telematics see increased productivity and 53% see significant reductions in fuel consumption.
Real-time vehicle tracking is no longer limited to GPS, with operators dynamically scheduling fleets based on weather and traffic data for accurate forecasts. With both personalized vehicle monitoring (such as theft protection) and improved fleet management features (such as environmental metrics), vehicle tracking has become a fleet optimization tool for many large companies. Fleet operators can use the data to improve fuel efficiency, perform preventive maintenance, and more.
At present, the Internet of Things (IoT), as well as telematics and communication devices, has a great impact on fleet optimization, enabling real-time routing, dynamic vehicle scheduling, and resource and personnel management optimization. IoT systems provide operators with detailed analysis, report failure rates, and even provide various additional insights, such as which truck drivers are most likely to be behind schedule or speeding.
A prime example is the telematics company Geotab. Earlier this year, Geotab, a global leader in IoT and related freight, announced that it had surpassed 2 million subscribers, making it the world’s largest commercial telematics company. The software was launched in 2006, the average annual growth rate in the number of subscribers over the past five years was 40%, and since the 1st quarter of 2018 – 100%.
“In February 2018, we announced that Geotab had achieved its goal of becoming the first telematics company to bring together 1 million connected vehicles on one open platform. In less than two years, we have doubled that number and set an unprecedented new record,” said Geotab CEO Neil Kaus. “As our vehicle base continues to expand globally, we have demonstrated that by adhering to our motto “You can’t manage what you can’t measure,” our customers and the wider community can benefit from streamlined and analytics-driven fleet management. understanding data to solve a myriad of problems related to traffic safety, urban planning, climate change and more.”
Geotab GO devices are used in more than 130 countries. Geotab customers average 585 million miles a week. Over 40 billion pieces of data are collected every day from Geotab-connected vehicles around the world.
Susan Beardsley, Principal Analyst at ABI Research, praised the company’s achievements: “ABI Research believes that as of January 2020, Geotab, with over two million commercial telematics subscribers worldwide, is officially the world’s largest commercial telematics company.”
Geotab provides actionable insights to businesses of all sizes to help them manage fleets more efficiently and make data-driven decisions. A key industry differentiator for Geotab is its open platform, allowing businesses to integrate Geotab data into any system, regardless of business size or operational needs.
As these tools will be rolled out en masse soon, telematics, IoT and vehicle tracking will drive green initiatives forward. According to Forbes, such solutions will allow fleet operators to control various parameters, including speeding and other inefficient driving methods, which often cause excessive fuel consumption and excessive CO2 emissions into the atmosphere.
Artificial intelligence: analytics, forecasting and predictive optimization
AI is an indispensable tool for building an extended supply chain and automating operations, with a wide range of applications in areas such as bidding, last mile delivery, and predictive optimization.
By 2030, McKinsey predicts that AI will create an entirely new “logistics paradigm” as it continues to outperform humans in performing repetitive but mission-critical tasks.
AI tools are based on the availability of data provided by the IoT and other sensor technologies, and predictive analytics has become one of the most important tools today.
Freight AI predictive optimization tools help logistics professionals plan for more efficient fleet utilization and reduce truck empty mileage, with potential savings for millions of customers. These results are achieved through an AI-in-the-loop approach that streamlines decision-making for highly skilled logistics professionals by combining the power of human intelligence with AI-automated processes.
Tools for optimizing fleet personnel management
Logistics planners in Europe, Asia and the Americas are currently facing a persistent shortage of truck drivers, with the US alone recording a shortage of 50,000 in 2018.
Fortunately, modern data processing solutions and new technologies help streamline workforce management. This is especially important because the workforce is becoming increasingly mobile in logistics operations and fleet management.
Separate tools allow fleet employees to track mileage, provide real-time reports, and enforce all rules during individual interactions and transactions. These inputs feed into predictive tools that help organizations optimize driver assignments, analyze employee satisfaction, and more.
For example, Navisphere® is a virtual network system that connects drivers and carriers to streamline truck inventory and cargo management, including driver assignment and billing. The platform has two versions: the version for the operator and the version for the driver. Drivers can use it to scan and download documents, get updates, and find the information they need for a delivery. The service allows you to manage your business (from searching and managing cargo to receiving payment), regardless of your location – on the road or in the office. Users get access to thousands of shipments, choose their preferred destinations and receive notifications. The application allows you to assign drivers and vehicles, receive updates on the go and easily manage your shipments online, upload documents and check payments for delivered shipments.
As HR systems become more efficient, standards and performance tend to improve. For example, leaders in the auto insurance world such as Progressive and GMAC allow companies to implement customized PAYD insurance packages based on carriers’ personalized traffic profiles. In addition, fleet operators can apply additional predictive tools to HR decisions to help reduce employee turnover, improve driver assignment patterns, and analyze employee sentiment data to boost company morale.
Foundation for the future
The future of the fleet management industry is ultimately about the adoption of IT, cloud and data-driven solutions. Deloitte predicts that logistics companies managing fleets should focus on three pillars: digitalization, process optimization and operational efficiency. With the introduction of core technologies, fleet operators, logistics industry leaders will use more practical industry technologies in areas such as automatic diagnostics, last mile delivery and enhanced intelligence.
Trucking leaders must start the optimization process by improving the reliability and scalability of existing processes, improving the quality of data and analytics, and building in-house competencies for disruptive technologies that will simplify fleet operations. Leading companies will develop a culture of innovation for long-term value as business models, technologies change, and customer expectations evolve, paving the way for the future of digital fleet optimization.
International trucking in Ukraine is successfully performed by M&M Ukraine (head office in Kiev, subdivision in Boryspil and Odessa) in all promising and popular global destinations. “M&M Ukraine” provides high-quality and safe cargo transportation to European countries.
Based onwww.transmetrics.eu,www.iotbusinessnews.com, www.navispherecarrier.com and open source data.