Remote asset management yields a significant return on investment, study finds
Jan 1, 2009 12:00 PM
CSMG, the strategy division of TMNG Global, and SkyBitz announced the early findings of an industry research study, The Impact of Remote Asset Management Technology on the Goods Transportation Industry. Among the results was the finding that early adopters recouped their investment within the first 12 months of deployment and saw returns well over 100 percent within the first five years of implementation.
The report quantifies the value created through adoption of remote asset management technology by shippers, logistics and third-party logistics (3PL) firms, and truck transporters.
CSMG analysts interviewed more than 25 transportation services companies and independent industry experts to gather and analyze qualitative and quantitative inputs for the study. Research identified substantial savings in both operating expenses and capital spending and found that implementation of these technology solutions also supports additional revenue generation. The full report, scheduled for distribution in early January 2009, will detail these and other findings.
A major focus of the study was an ROI analysis among early adopters of remote asset management solutions. CSMG gathered pre-adoption and post-adoption metrics to measure the positive impact of the technology on capital expenditures, operating expenses, incremental revenue generation and improved asset security. Among the findings:
Improved trailer utilization — Remote asset management solutions enable better use of trailers by increasing utilization frequency, maximizing loads, and reducing excess detention, thereby reducing the costs of buying or leasing trailers. The average trucking customer is able to increase trailer utilization by 2 percent per year, reducing new trailer purchases by an average of 20 percent per year over five years, and reducing the number of trailers rented every year by 60 percent.
Fuel savings — Fuel prices are one of the biggest challenges faced by transporters. As fuel prices continue to fluctuate, companies must make significant changes to maintain operating margins. Even with the recent dip in diesel prices, trucking companies can achieve savings on the order of $500-$1,000 per tractor per year depending on diesel prices.
The report reveals many opportunities and approaches that can allow carriers, shippers and 3PL providers to realize savings, efficiencies and higher customer retention in:
In-transit visibility — Status and progress reports on movement of goods keep all players in the value chain better informed of delivery schedules.
Fleet dispatch optimization — Companies achieve increased asset utilization and lower costs through right-sizing of fleet resource allocations and optimized transportation routing.
Supply chain management — Users can optimize efficiency of goods movement along the supply chain by analyzing data regarding location, movement, and status of those goods.
Remote monitoring and control — Intelligent sensors monitor mobile or fixed assets to measure and collect operational data, diagnose and locate problems, and reduce costs of transportation to and from remote sites.
Safety and security — Assets such as high-value goods receive better proactive and reactive protection. Potential liabilities are limited by monitoring hazardous materials or explosives that represent potential threats to human safety or environmental integrity.
The CSMG research was sponsored by SkyBitz.
© 2013 Penton Media Inc.