Fleet Management ROI Discussion at NPTC

From NPTC – While the attendance at this week’s National Private Truck Council’s conference was a bit light compared to year’s past, there was no shortage of news and interesting discussion across the industry. The Benchmarking data presented by NPTC’s Tom Moore highlighted a number of significant trends and observations:

- Customer service (mainly on-time arrivals) remains far and away the number one reason why companies operate their own fleet
- Reducing out of route miles is the top method of increasing fuel efficiency
- There is a increasing interest in leasing of tractors among private fleets
- The amount of Empty Miles Driven increased in 2008 (possible correlation with the increase in fuel prices)
- There has been a major increase in Going Green initiatives in private fleets
- With reduced number of drivers, incentive-based pay plans have increased and are working
- Technology is #10 in the Top 10 Challenges facing Private Fleets (Economy/Costs was #1)

Also, the ROI session was very interesting as leading executives from Giant Eagle, Bridgestone Tire and Cadec customer Mennel Milling presented on ROI from On-board Technology. While the current returns were not surprising (efficiency & productivity gains, automating manual processes, route optimization, reduced idle time, etc.) it was the concerns they highlighted that were of most interest. Common to all speakers and consistent at the conference was the concern about the amount of data their technology systems provided and the challenges around integrating their systems and interpreting the data into meaningful business intelligence.

The concept of supply chain visibility, business intelligence and actionable information is becoming a theme across many vendors. Be sure to consider a system’s ability to provide visibility not just into its own system, but across multiple transportation systems within the infrastructure (such as Cadec’s Insight system). Cadec will be sponsoring an upcoming webcast on this topic with Fleet Owner and NPTC in June. Visit www.cadec.com for details in the coming weeks.
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