April 19, 2007

GPS Navigation Reduces Fleet Costs


NAVTEQ has commissioned a research study which highlighted significant benefits for integrated navigation solutions, such as a 40% reduction in communications costs, a 15% reduction in fuel costs, and an 18% reduction in driver hours, among many other benefits for mobile enterprise applications. No big surprise, but nice to see the numbers; having a GPS in a fleet vehicle reduces costs..... maybe that's why TomTom went with the GO 715 with integrated mobile communication so that dispatch can "talk" to the mobile GPS fleets sending service call informaiton to the fleet. I htink it's huge; the last time the cable guy came, he had a GPS and he said it helped him tremendously.

Huge results, you should read on....

The concept of Integrated Navigation entails “connecting” an in-vehicle navigation solution with enterprise IT systems with navigation functionality to improve communication and operational efficiency. Examples include fleet dispatching systems, field force optimisation solutions and CRM (Customer Relationship Management). Two-way information flow from the enterprise to the mobile environment improves information sharing, reduces job allocation errors, lowers communication costs between fleet and dispatcher, and improves man-machine interface safety. To determine the benefits and the market potential of integrated navigation solutions for the distribution and service industries, NAVTEQ conducted an analysis with Frost & Sullivan.

“NAVTEQ has a unique view of the enterprise industry given our interactions across verticals,” shared Eric Fumat, Enterprise Europe Vice President and General Manager for NAVTEQ. “We saw an opportunity to facilitate the development of enterprise solutions that really meet the needs of end users. NAVTEQ’s study spotlighted the benefits of integrating satellite navigation solutions with enterprise IT systems - enabling, for instance, field workers to receive details of their next job directly through their navigation system which then guides them to the job address. We see many opportunities like this that will provide business efficiencies and improve the end user experience.”

The research included face to face interviews with leading companies in both the distribution and service industries which have been able to leverage return on investment (ROI) through integrated navigation. The findings reflected clear differences between the two industries in the perception, use and benefits of the integrated navigation concept. Overall, the results were extremely positive, highlighting many potential business benefits and a progressive level of return - supporting NAVTEQ’s belief in the concept.

Key benefits included:

• 18% reduction in driver hours
• 15% fuel saving
• 11% reduction in driving distance
• reduced downtime for breakdowns
• increased productivity
• improved customer satisfaction
• up to 40% savings on communication costs

In addition to direct cost savings and operational efficiency improvements, it seems returns from increased revenue generation had previously been underestimated. The study showed repeat business in the service industry could increase by as much as 10% as a result of more punctual arrivals and the subsequent increase in customer satisfaction. Fleet operators in the distribution industry could, for example, increase their customer base by up to 30%. In time, staff turnover could also be reduced and driver training may, in some cases, be cut by as much as a month. Above all, the study highlighted the implementation of integrated navigation solutions can provide real value to the enterprise industry.

“Although the first pioneering companies introduced integrated navigation in the late 90’s, the technology – including wireless communication – has since become more widespread and accessible in price” added Eric Fumat. “Consequently, we believe the time is right for mass adoption in the enterprise, particularly as our research found that assimilating integrated navigation into existing structures and processes is a relatively straightforward task. “

Participating fleet operators are continuing to roll out their strategies across entire fleets and this is the best possible testimony to the success of these existing integrated navigation solutions. NAVTEQ’s Enterprise Europe Business Unit will be working with various companies in the enterprise sector to promote the Integrated Navigation concept and highlights of the research to demonstrate that the successful implementation of integrated navigation into mobile enterprise applications can provide direct cost savings, improvements to operational efficiency and a significant increase in revenue generation.

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Posted by Scott Martin at April 19, 2007 8:07 AM

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