Commercial Fleets Looking to Tech to Accelerate ROI in the Face of Rising Costs

Over 60% of fleet operators are planning to increase tech investments in 2020

Commercial fleet managers from SMB’s to large enterprise are seeking effective technology solutions to enhance their operations and bottom-line results through data-driven insights and reduced risks to their rapidly evolving business.  ABI Research, a global tech market advisory firm assessed the market from the end user’s perspective and found that over 60% of operators are planning to increase their investments in technology over the next year.

Adoption of targeted technology solutions allow fleets to track drivers, vehicles, and other assets including cargo in near real-time. Early commercial deployments of SAE Level 2 ADAS  will provide easier and safer operations. It is expected that full autonomy will include electrification, which will also bring greatly reduced maintenance costs.  Managers are also looking for predictive insights to better anticipate everything from at- risk drivers to unplanned vehicle downtime.    “Asset utilization is a key driver of operational costs, which averages $1.74 a mile,” states Susan Beardslee, Principal Analyst, Freight Transportation & Logistics at ABI Research.  Other costs with proven ROI solutions include safety and liability, idle time, and theft of cargo and fuel. Many fleets are in the midst of transitioning to an asset light model to better predict costs and enable both factory-fit telematics and newer technologies in-cab.

“No singular technology will address every need or provide the same benefit to every fleet,” says Beardslee. Over 60% of operators are planning to increase their investments in technology. “To succeed, they will need to develop greater knowledge of the fundamentals at a minimum and form trusted relationships with external experts. The ability to integrate and scale are major considerations, as well as taking a long-term perspective on fleet needs as well as provider capabilities and viability,” she concludes.

These findings are from ABI Research’s Fleet Operations: Trends and Key Drivers application analysis report.

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