Editor's Blog Section

From Opinion column issue 42 – August-September 2009

The next few months are traditionally among the busiest for logistics companies. In the run-up to Xmas, there is a lot of retail-driven economic activity as sales for food and drink and general consumer goods rise.

Will the credit crunch affect spending patterns this year? It’s probably too early to tell, but certainly a lot of businesses will be relying on a seasonal sales boost to keep them afloat. However, optimistic you are for 2010, there are bound to be casualties.

It is becoming harder for companies to predict exactly where their businesses will be in 12 months’ time, and that uncertainty has led to an outbreak of “short-termism”. After all, if customers are refusing to commit to a long-term contract, it is perfectly understandable that businesses are reluctant to risk invest in outright purchase or long-term leases for new equipment, whatever the benefits may be for their business.

One consequence for the tracking and telematics sector, as we report elsewhere in this issue, is that some transport and logistics companies are demanding short-term pay-as-you-go financial packages, which transfer the risk from the buyer to the supplier. A debate has broken out how this will affect future investment in research and development, and whether it might compromise the long-term health of the industry.

The turmoil in the banking sector also means that third-party finance deals are not the gold-plated solution they once might have been – assuming you can get the credit in the first place.

What is not in question that real-time mobile data does offer a host of long-term benefits for any company with a mobile workforce. The current economic situation might mean a delay in deploying a telematics solution, or a decision to finance it through more costly shorter-term means. Few business are arguing any longer that they can manage perfectly well without knowing what is happening to their mobile workers in real time or without the business performance data that telematics can deliver.

Mobile data is going to play a key role in managing costs in future, and delivering the sort business benefits that ensures the business stays in health financial shape.