• Survey of T&L decision-makers globally, conducted by ABI Research, identifies key barriers to adopting new fleet management solutions. 

June 17, 2024

Amsterdam, The Netherlands – HERE Technologies, the leading location data and technology platform, in collaboration with Amazon Web Services (AWS), has released a new whitepaper that sheds light on the current sentiment of transportation and logistics (T&L) professionals, the critical challenges faced by fleet managers, and the innovative solutions driving the industry forward.

This extensive global study, conducted by ABI Research, includes responses from 300 T&L decision-makers across the Americas, EMEA and APAC regions, highlighting the shifting priorities and challenges faced by companies managing fleets. The majority of respondents come from medium to large enterprises, with fleets ranging from 100 to 1,000 vehicles, representing a cross-section of an industry going through significant technological transformation.

Fleet management is critical to logistics operations, especially in today’s challenging environment with driver shortages, fluctuating fuel costs, shipping delays and regulatory pressures. Companies are increasingly digitizing their fleet management operations to enhance decision-making and operational efficiency.

Key findings of the global survey conducted by ABI Research:

1.   Digital Transformation:

• More than 82% of fleet managers reported that less than half of their shipment tracking is manual documentation (paper logs, spreadsheets, etc.).
• Nearly 74% of respondents have a digital transformation strategy in place, with an additional 18% having already digitized their operations.
  

2.   Criteria for Software Selection:

• The main barriers to adopting new fleet management solutions include cost and lack of internal expertise. Additionally, fear of disruption to existing processes were noted as significant challenges.
• Most companies favor off-the-shelf software solutions (46%), while 40% use a hybrid approach, combining off-the-shelf and in-house developed solutions. Only 14% rely entirely on in-house developed software.
• Customizable solutions are highly valued, with 90% of respondents indicating their importance. The ability to integrate their own data into fleet management solutions is seen as a key differentiator. 

3.   Key Performance Indicators (KPIs):

• The top KPIs tracked by fleet managers include on-time delivery (73%), lower fuel costs per vehicle (67%), and regulatory compliance (63%). These KPIs are identified as crucial for achieving business objectives and enhancing customer satisfaction.
• Respondents cited vehicle utilization and dwell time as most in need of improvement.
  

4.   Maximizing Vehicle Usage:

• Respondents stated vehicle utilization KPIs are frequently unmet, impacting overall operational efficiency.
• Real-time tracking of trucks and shipments, demand/load planning, route optimization, and fuel management are identified as the most important components of fleet management solutions.
  

5.   Data Utilization:

• While data availability is high, companies struggle to consolidate and leverage this information effectively.
• Better data capabilities and actionable insights are top barriers to achieving supply chain visibility.
  

6.   Revenue and Operational Efficiency:

• Increasing revenue and improving operational efficiency are top technology investment drivers for 55% and 52% of respondents, respectively.
• Streamlining logistics operations is crucial in the face of labor shortages, price inflation and geopolitical pressures.
  

7.   Sustainability and Future Needs:

• More than half of the respondents have specific sustainability goals, and 77% plan to adopt electric vehicles (EVs) within the next 3-6 years.
• Data analytics, route planning, and optimization were highlighted as key areas for future investment to improve fleet visibility and operational efficiency.
  

Ryan Wiggin, Senior Analyst at ABI Research: “Our research has highlighted the critical shift toward adopting advanced technologies in fleet management to tackle continued operational pressures. Fleet managers are increasingly digitizing their operations but continue to face challenges with utilizing available assets and fully leveraging the data they have available. Comprehensive fleet management solutions underpinned by effective mapping and location data are crucial to continue to drive profitable and sustainable fleet operations.”

Severin Bredahl-Banovic, Vice President of Solution Architecture at HERE Technologies: "We are committed to providing cutting-edge mapping and location data solutions that address the pressing needs of fleet managers. Our advanced routing and traffic analysis capabilities are designed to optimize vehicle utilization, enhance ETA accuracy, and support diverse fleets, including the integration of electric vehicles. As the industry continues to evolve, HERE remains focused on delivering reliable, data-driven insights that empower fleet managers to achieve greater efficiency and sustainability in their operations."

HERE and AWS are working to solve location-related challenges for the supply chain and logistics industry across the globe. Together, HERE and AWS combine the power of location technology and leading cloud and IT services to deliver impactful solutions, accelerating speed to market and time-to-value. To explore customer stories powered by HERE and AWS or learn more about our joint solutions, visit https://www.here.com/AWS.

To read the full ABI Research whitepaper on T&L trends, please visit: https://www.here.com/solutions/fleet-management/purchasing-trends-and-criteria-in-fleet-software.

Methodology
The survey conducted recently by ABI Research targeted professionals responsible for fleet management software decisions. More than 70% of respondents were from companies in manufacturing, courier/express/postal (CEP) delivery, general freight and last-mile delivery, on-demand mobility (ride-share) and food delivery, and retail/wholesale sectors. The majority of these companies employ between 1,000 and 20,000 employees, with over 50% managing fleets of 100 to 1,000 vehicles.

Media Contact
Jordan Stark 
+1 312 316 4537
jordan.stark@here.com

Dr. Sebastian Kurme 
+49 173 515 3549 
sebastian.kurme@here.com

About HERE Technologies
HERE has been a pioneer in mapping and location technology for almost 40 years. HERE’s location platform is recognized as the most complete in the industry, powering location-based products, services and custom maps for organizations and enterprises across the globe. From autonomous driving and seamless logistics to new mobility experiences, HERE allows its partners and customers to innovate while retaining control over their data and safeguarding privacy. Find out how HERE is moving the world forward at here.com.