More operators in all fleet segments are planning or have introduced wireless technology applications compared with last year, according to eyefortransport’s survey: The Use of Wireless and Mobile Technology in Fleet Operations Annual Report 2006/2007.

The results of this year’s survey confirm that wireless technology is well established, as it is being used for both fleet and back-end operations.

Some of the key findings include:

84 percent of respondents are taking advantage of their systems for tracking, compared to 75 percent last year.
72 percent of respondents use the systems to improve driver communications (compared to 65 percent in 2005) and 68 percent for optimizing their routing and scheduling (compared to 50 percent in 2005).
Usage of wireless technology for security purposes (reducing theft, shrinkage, damage), yard and dock operations, remote diagnostics and monitoring (temperature, etc.) have all increased since last year.
Half of last year’s respondents said they used wireless technology for proof of delivery and mobile imaging, but this year’s figure dropped to 44 percent.
The most dramatic change during the past 12 months is the in the use of mobile phones, with a complete switch around between voice (65 percent in 2006; 11 percent in 2005) and text messages (26 percent in 2006; 66 percent in 2005).

“New handhelds with voice recognition systems are widely used and mobile networks were greatly developed in the last year,” said Director at eyefortransport, Rodrigo Canete. “The majority of the big fleets have adopted a system of voice recognition that makes communications with drivers safer and quicker.”

ROI
Survey respondents were asked what ROI they aim for when implementing wireless technology—the results showed very little change since last year’s survey.

Executives were looking for a return on their wireless investments mostly in two areas: “Improved internal efficiencies” (48 percent) and “Improved customer services” (36 percent).

Twelve percent hope to improve security through their investment in wireless technology. Although driver communication is the second highest area of investment, it appears that drivers’ working standards aren’t much of an issue, with only 4 percent of respondents seeing this is a priority ROI.

In terms of project versus realized ROI, the area that produced the highest ROI was track and trace solutions—52 percent of survey respondents are seeing a high return in this area. Although proof of delivery and mobile imaging isn’t high on the priorities list, this is the area that produced the highest ROI, said 54 percent of the respondents. Data shows that fleets are still not realizing the potential for remote diagnostic or monitoring, according the report. Sixty nine percent rate the return from their investments as low or average.

Roadblocks
According to this year’s survey, the biggest challenges to over half of respondents remain the initial cost of the solutions, and integrating the new technology with existing back-end solutions. Although, the number has decreased from last year: 60 percent in 2006 compared to 65 percent in 2005.

Convincing drivers to accept and appreciate the new technology is considered an obstacle by 40 percent of the respondents—compared with 35 percent last year. The report notes, however, that this increase is a likely consequence of the increased adoption of the technology during the past 12 months.

When asked if he thought these roadblocks would become less of an issue in the coming years, Canete said yes, and the answer lies in the debate between handhelds and back-end systems.

“The ready to use handhelds make the whole process more cost effective,” he said, “but the problem is that the use of handhelds is limited for route management and remote diagnostics.”

The most important of the survey: Canete says realizing that wireless technologies are here to stay. “Everybody is deploying them,” he said. “This year more industry verticals and segments are going wireless…Now the question is not only about communication but also about security.”

Methodology
Eyefortransport’s survey was conducted via the Internet and responses were solicited by targeted email lists, select trade association memberships, various related-industry databases, and other targeted methods. The responses were consolidated and analyzed.

The survey includes responses from 420 respondents across the three trucking segments (private fleet, for-hire LTL, for-hire TL).

Much of the data gathered in this survey will be discussed and debated at the 5th eyefortransport Wireless Fleet Conference being held in Miami, February 20th and 21st. For more information click here.