Solange Velazquez Writes How Next Gen Tech is Transforming Safety in Transportation

In 30 years, GPS technology has become indispensable to the commercial vehicle industry. It’s impossible to imagine a company sending its fleet onto highways without the ability to map routes and track vehicles. But relying on GPS alone to manage a modern fleet is a little like having air-traffic control monitor a busy airport with only radar and without the benefit of newer tools such as satellite and automation—cumbersome, inefficient, and dangerous.

With commercial driving companies navigating a perilous business environment marked by sky-high insurance premiums and tight margins, the question becomes: Is GPS enough?

After analyzing both the available options and the cost of doing business, the answer is exceedingly clear. Fleet managers who want to remain profitable in a high-cost and uncertain environment must adopt state-of-the-art transportation technology to provide better business insights.

FROM GPS TO PREDICTIVE ANALYTICS

Transportation technology has progressed significantly since the introduction of GPS in the 1990s that allowed fleet managers to map truck routes, track and trace shipments, and access real-time information. Thirty years later, fleet managers can choose from more than 200 devices that monitor everything including maintenance requirements, driver safety and behavior, and personnel management.

How do fleet companies use these tools? Modern transportation solutions employ a combination of software and hardware such as inward and outward facing cameras and sensors to analyze both internal and third-party data, providing real-time visibility into operations and workflows. These tools enable a company to see if its driver is distracted or braking harshly and then alert the driver in the moment to correct their behavior. AI also provides predictive intelligence, allowing fleet owners to plan routes to optimize fuel consumption or prioritize preventative maintenance to keep trucks on the roads longer.

REDUCING COSTS, IMPROVING DRIVER SAFETY & RETENTION

For fleet operators, improving driver safety has become a major imperative.

In 2022, transportation incidents were the leading cause of workplace deaths, accounting for 38% of all workplace fatalities.  The rising number of vehicle accidents—led in large part by two factors: speeding and distracted driving—is making it more difficult for fleet operators to obtain and afford commercial auto insurance.

According to the Consumer Price Index, auto insurance is the No. 1 driver of inflation, with costs rising monthly since December 2021. More specifically, commercial truck insurance premiums hit a high annual increase rate of 13% in 2023—making it one of the fastest-rising operational costs.  But with the addition of monitoring devices such as cameras and sensors that alert the driver to when they are speeding or engaging in other risky behavior, fleet operators can significantly lower risks.

An efficacy Study from SambaSafety, a leading North American provider of cloud-based risk-management technology for organizations with commercial and non-commercial drivers, found that monitored drivers have 32% fewer violations on average after the first year, while monitoring and training together produced a 77% reduction for the same time period.

These positive outcomes have led many insurance companies to “put their money where their mouth is,” offering incentives to fleet operators that employ this technology. According to a 2023-2024 survey of fleet operator interest in mobile resource management systems and services, more than half (54%) of insured fleets received a discount for equipping their fleets with this technology.

Beyond accident avoidance, monitoring can be used to create incentive programs to attract and retain qualified drivers in an otherwise tight labor market. Some companies are using devices to reward employees for safe driving, offering prizes based on driver-scoring algorithms. Insurance companies are also providing incentives to companies deploying safety-improving solutions.

ASSESSING THE COST-BENEFIT

While the ROI on technology usage is often tough to gauge, transportation tools offer a clear benefit. According to a white paper from IDC, the average commercial vehicle operator lowered their total cost of buying, running, and supporting their fleets by 6%, saving more than $2 million per organization per year—or an 815% ROI.

Most notably, the IDC survey—which was based on 130 users of Samsara (maker of all-in-one transportation solutions)—found that these tools are driving savings across multiple categories, which includes spending less on fuel by reducing idling time, lowering maintenance costs and extending vehicle life span, and reducing costs related to vehicle crashes, among others.

USING DATA TO MAP A BRIGHTER FUTURE

When it comes to adoption of new technologies, there are always holdouts resistant to change. But the commercial vehicle industry is hitting an inflection point, where companies will have little choice but to get off the sidelines.

Beginning in December of 2019, federal law required commercial vehicle operators to have electronic logging devices to ensure compliance with hours of service (HOS) laws—also known as the ELD mandate. Meanwhile, insurance companies are offering discounted pricing to companies that install various technology solutions.

As insurance rates continue to skyrocket, will favorable pricing for companies using electronic monitoring devices provide the sea change the industry needs to get to 100% adoption?

Time will tell, but as we’ve seen in other industries, the need for usable data is driving much of the decision-making. Operating commercial fleets is costly and can have a profound impact on every single other industry—as the soaring cost of transportation inflates the prices of all goods. With new transportation technology solutions, commercial fleets can turn data into intelligence, helping them transport goods safely, efficiently, and more compliantly.