Logistics drive telematics traffic monitoring

Sept. 1, 2006
Delivery fleets and other logistics operations will provide the biggest boost to advanced real-time traffic information services delivered via onboard telematics systems

Delivery fleets and other logistics operations will provide the biggest boost to advanced real-time traffic information services delivered via onboard telematics systems, according to a study by consulting firm ABI Research.

“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,” says principal analyst Dan Benjamin.

But in the time-sensitive commercial fleet market the prospects seem more certain, he notes. “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 explains.

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

“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 says.

“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.”

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!

Sponsored Recommendations

Leveraging telematics to get the most from insurance

Fleet owners are quickly adopting telematics as part of their risk mitigation strategy. Here’s why.

Reliable EV Charging Solution for Last-Mile Delivery Fleets

Selecting the right EV charging infrastructure and the right partner to best solve your needs are critical. Learn which solution PepsiCo is choosing to power their fleet and help...

Overcoming Common Roadblocks Associated with Fleet Electrification at Scale

Fleets in the United States, are increasingly transitioning from internal combustion engine vehicles to electric vehicles. While this shift presents challenges, there are strategies...

Report: The 2024 State of Heavy-Duty Repair

From capitalizing on the latest revenue trends to implementing strategic financial planning—this report serves as a roadmap for navigating the challenges and opportunities of ...