Logistics to drive telematics traffic monitoring

An initial study by consulting firm ABI Research finds that the commercial logistics sector, especially delivery fleets, will provide the biggest boost to advanced real-time traffic information services delivered via onboard telematics systems

An initial study by consulting firm ABI Research finds that the commercial logistics sector, especially delivery fleets, will provide the biggest boost to advanced real-time traffic information services delivered via onboard telematics systems.

“Advanced real-time traffic information services must handle complex two-way data transfers, requiring much more bandwidth in both directions, so it remains to be seen whether consumers will be willing to pay for that,” said principal analyst Dan Benjamin.

But in the time-sensitive commercial fleet market the prospects seem more certain, he noted. “If logistics companies such as Federal Express, United Parcel Service, and even local delivery services and taxi fleets can cut a few minutes off each trip, if they can do more intelligent route and schedule planning, and if they can reduce their fuel costs, they stand to save a great deal of money,” Benjamin explained.

He said that accurate real-time traffic flow and road speed information allow dispatchers to avoid costly delays as they develop. Even shaving ten minutes off driving per vehicle per day could deliver substantial financial returns, he added.

“Granted, there are integration issues to be resolved, and the traffic data providers are going to have to deliver on their promise of high-quality information,” Benjamin said. “But given that logistics companies already have and are currently paying for advanced telematics systems as well, they should be ready to pay a premium for traffic information that will enable them to use their resources to the fullest.”

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