Thursday, August 11, 2011

Mobility ROI Weekly - Week of August 8, 2011

This weekly ROI (return on investment) report includes ROIs that I come across in my weekly enterprise mobility and mobile data collection research. My goal is to create an archive of mobility related ROIs that we can all use when we need them. I hope you find this useful.

UK based freight companies John Lewis and Waitrose both implemented fleet telematics systems on their trucks in 2010. Their investments into telematics solutions were for the purpose of improving fuel efficiency and reducing emissions. To date the reported ROIs are:
  • Reduced driving times
  • Reduced truck maintenance requirements
  • Reduced carbon emissions from shipping trucks by 4%
  • Reduced fuel costs
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The results of a new vehicle tracking survey shows that businesses using fleet GPS tracking systems are saving money in many ways. The ROIs reported are:
  • 70% of survey participants saw overall reduced operational costs due to an increased awareness of driver habits and actions.
  • 15.3% of businesses reported that the telematics solution reduced the amount of overtime claims that employees filed.
  • 13.3% of businesses reported lower communications costs as a result of making deliveries more efficient and manageable.
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UPS recently announced that it has been using a fleet management system that allows the company to view data on how each vehicle performs mechanically, as well as the driver’s route and behavior behind the wheel. UPS reported the following ROIs:
  • An overall fuel savings of 3.3% per package delivered after routes became more efficient through vehicle tracking.
  • Savings of 15.4 million minutes of vehicles idling, this also increased overall productivity with less unproductive driver time used.
  • Eliminated 63.5 million miles of unnecessary driving after supervisors were able to more carefully monitor drivers and their delivery habits.
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Mission Foods, the world’s largest supplier of tortillas and other food products recently made the switch from disposable wooden shipping pallets to reusable plastic containers that are significantly more expensive. In order to keep track of the plastic shipping containers and to prevent losses Mission Foods installed RFID tracking tags to each unit. The overall cost to equip containers and warehouses with RFID technology was $100,000. Their reported ROIs are:
  • Savings of $15 million within the first five years resulting from being able to reuse the new plastic RFID-enabled containers compared to the previously disposable units. 
  • A 91% decrease in energy consumption by Mission Foods activities.
  • A 90% reduction in greenhouse gas emissions.
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Kevin Benedict, Independent Mobile and M2M Industry Analyst, SAP Mentor Volunteer
Follow me on Twitter @krbenedict
Full Disclosure: I am an independent mobility analyst, consultant and blogger. I work with and have worked with many of the companies mentioned in my articles.