How Telematics Is Helping Carriers Of All Sizes Boost Their Bottom Line
Telematics is not a new concept and has been around for at least 30 years but the advancement in technology, the recent IoT revolution and reduced costs have made it accessible to all.
This accessibility has made telematics become a necessity for today’s fleets, and with more widespread adoption there’s now hard data to support the return on investment.
In this article we will dive into some of the most common ROI scenarios that prove that although in the past fleets of all sizes that had been slow to adopt the technology, they are now looking at telematics as a means to drive more efficient operations, improve the bottom line and remain competitive.
Just ten years ago, when trailers arrived at job sites, carrier companies had to wait for their customer’s to call and notify them of the arrival, when their transport unit had been unloaded and when they could pick up their trailer. As carriers make money only if trailers and containers are in use, this business cycle caused many carriers to lose money over underutilized assets.
Fast forward to 2018 and telematics is the driving force in helping carriers drastically improve their revenue, efficiency and the tracking of their trailers. Telematics has eliminated this old world process and automated key insights such as location, drop-off and pick-up times. It helped companies actually SAVE money as they are now able to account for all of their inventory.
As an example, one of our carrier customers has set up a geofence boundary around their own customer, so once their trailers arrive at the destination they get an alert. The use our Piccolo Hybrid+ dual mode trailer tracking device. They get alerts on trailer door open and close so that they know when trailers are being unloaded and reloaded and alerts on engine “ON” so they know when the trailer is ready to go.
This valuable information skyrocketed their ROI as they can now speed up the cycle of using their trailers and containers and rarely operate with underutilized trailers.
2018 brought about FSMA new regulations in regards to food safety that carriers and shippers must comply with. Attaching a portable telematics unit with temperature sensors to cargo, containers or trailers, provides new visibility into these previous “dumb” pieces of equipment. Telematics integrated with temperature sensors gives visibility into the location, time and temperature of the valuable assets and alerts on temperature deviations in real time. This provides companies with information they previously did not have and allows them to respond quickly to avoid product spoilage which eventually lowers their insurance costs. They can now receive greater control of refrigeration and gain cold chain visibility in minutes while complying with regulatory compliance.
Cargo theft is a big issue for carriers and when containers run for upwards of $10k, this issue is expensive. Cargo theft alone costs US businesses up to $30 billion each year, according to the FBI. And just one stolen trailer or piece of equipment can cost a business hundreds of thousands of dollars and cause insurance premiums to skyrocket. Trailers and containers are prone to theft anywhere, even if they are parked at a customer’s site for a few hours. Telematics tracking devices integrated with vibration/motion sensors are able to monitor and locate assets and containers even in remote sites. They are able to locate misplaced assets or stolen equipment by alerting on unauthorized use or when containers are taken outside of designated areas, so you can detect unusual movement and theft and save your assets.
Operators receive immediate alerts in the form of emails and sms notifications if unauthorized vibration/motion has been detected and continue to receive alerts and real time location for the duration of the vibration. This allows companies to respond to theft immediately and gain visibility on their containers at all times.
Fleet Tracking devices along with temperature and vibration sensors have become an integral part of a complete asset management solution. As technology continues to evolve and advancement continue to occur, telematics will continue to improve operation efficiency, saving the industry millions of dollar in theft and asset wear and tear. Wireless Links is proud to lead the telematics industry with innovative products for carriers of all sizes.
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