April/May 2007

Integrated navigation solutions can cut fleet communication costs by 40 per cent, fuel use by 18 per cent, drivers' hours by 18 per cent and journey lengths by 11 per cent. That's the conclusion of a market evaluation conducted by digital mapping specialist Navteq in association with consultancy Frost & Sullivan.

What exactly is integrated navigation? The two organisations define is as a connected system in which an in-vehicle navigation solution is linked to enterprise IT systems with navigation functionality. Examples include fleet despatching systems, field force optimisation solutions and customer relationship management.

A classic implementation would be where jobs are conveyed wirelessly to drivers, who are then given detailed satnav-based route guidance from one call to the next. Such systems have become increasingly popular lately, but until now there has been little definitive evidence about the magnitude of any potential savings.

The research included face to face interviews with leading companies in both the distribution and service industries.

 

In addition to direct cost savings and improvements in operational efficiency, the study suggests that better punctuality and customer service can increase repeat business in the service industry by up to 10 per cent, while distribution fleet operators could increase their customer base by up to 30 per cent.