Digital transformation is being discussed in almost every industry and at almost every organization. Businesses know they need to adopt technology to remain competitive, be agile and maximize their people and revenue. Trucking is no different. So what is the state of digital transformation in this industry?
Our 3rd Annual Telematics Benchmark Report uncovered some interesting trends around the transportation sector’s use of fleet management solutions. Some responses showed great progress in trucking’s digital transformation, while others showed severe gaps in use of technology to manage a more efficient and profitable business.
Let's start with the good:
- 86% of fleets now use telematics, up significantly from just 48% two years ago and 82% in 2018.
- 55% of fleets reported reduced fuel costs from telematics software - a huge win considering that fuel is the largest expense for 32% of fleets.
- 42% have seen fewer safety incidents since using fleet tracking software to monitor driver behavior.
- Most fleets (74%) monitor vehicle and equipment location with telematics and a good number track hours of service (66%) and speed (61%), which are all key to efficient operations.
- Telematics improves safety all around, with more than a quarter citing driver monitoring (32%), speed prevention (26%) and preventing driver fatigue/exhaustion (30%) as top telematics-related safety benefits.
Now here's the bad:
- Just 23% of fleets surveyed say they use big data analytics to guide strategic decision-making, and only another 15% plan to in the future. This is a big missed opportunity for fleets to improve operations by using the rich data telematics provides.
- Despite the known benefits of telematics, on average companies only use 3 (of 12 listed) telematics features; they could be getting more ROI out of their technology investments.
- A minority of fleets use their telematics solution to track idling (37%) harsh braking (33%), maintenance (32%) and fuel usage (30%), all important factors in safety and cost savings.
- While 66% use ELDs to track HOS, 24% still (unlawfully) use paper logs and 19% are using AOBRDS despite the rapidly approaching December deadline.
Download the 2019 Telematics Benchmark Report for additional insights on the state of the transportation industry, including top challenges and plans for the year ahead .