Technology Activity to Pick Up Among Fleets This Year

Trucking executives are more optimistic about the use of technology in the year ahead, with 44 percent planning to boost their information technology investment in the next 12 months.

According to Eyefortransport's 2010 truckIT Report, which surveyed over 400 fleet operators, only about 20 percent of respondents expect to cut their IT budget this year, compared to almost 50 percent in 2009.

"As such, 2010 could prove to be the year where firms with a competitive edge and innovative ideas, begin to prosper once more," Eyefortransport said in the report. "This year has brought with it optimism and opportunity."

When asked about their company's IT investment strategy, about 38 percent of respondents believe they should invest only when there is a clear and quick return on investment. However, when compared to 2009, a greater number of fleets seek to purchase technologies to leave them better placed when the economy picks up. A much smaller number, 2 percent, plan to cut all technology investments this year.

The key areas where fleets planned to make purchases were route/schedule optimization, customer service, fuel management, track and trace, handheld devices, driver communications and security, which all saw an increased percentage over 2009.

When asked what factors they consider when investing in or upgrading their technology, reliability was the most important factor for over 70 percent of respondents. Technical quality and cost were also key factors, while functionality to core objectives, long-term ROI (over 12 months) and fast ROI (under 12 months) were all seen as being key factors by around 50 percent of respondents.

The initiatives that have had the greatest impact on reducing costs for fleets included optimizing routes/loads/scheduling and improving internal processes, which were the most popular responses. An increased focus on reducing fuel use was also seen as a beneficial initiative by a number of respondents.

Specific Technologies

Eyefortransport also asked respondents about their use of specific types of technologies. When asked about whether they're operating in the cloud, or on the Internet, only 4 percent said they rely solely on applications in the cloud, though 38 percent indicated they use it for some applications. In addition, 25 percent were considering using the cloud, while 33 percent have no plans to use it.

Most fleets surveyed, 65 percent, offer their customers real-time Web-based visibility of their load, up from 50 percent last year. Other popular track-and-trace mechanisms included text alerts, at 57 percent, and call centers, at 41 percent.

This year, more fleets felt radio-frequency identification technology was cost prohibitive and not improving their operations. While 29 percent were using it in 2009, now only 22 percent are using it.

When asked whether they have installed on-board recorders, 27 percent said they installed the devices a while ago, while 12 percent installed them recently and 18 percent are in the process. However, 43 percent don't think it's necessary to install them.

The biggest obstacle fleet operators were facing was integrating technology with their back office systems; this was not seen as a big obstacle last year. This year, convincing senior management of the business case and ROI of technology became a larger challenge, while reduced or eliminated budgets was less of an obstacle.

"Although increased IT/technology spending has begun, it will still be some time before the trucking industry sees dramatic improvements," the report concluded.