Vertical Markets Offer Prospects for Fleet Management Systems Growth

(Business News & Technology News, 19 Nov 2008)

As the overall market for fleet management systems grows, it is becoming clear that no single solution meets the needs of all potential customers. While the basic functionality is shared, different vertical markets have specific requirements for maximizing return on investment.

"One major area of future growth is in real-time dispatch," says David Alexander, ABI Research principal analyst. "Long a focus for emergency services, the need for accurate routing is now seen as a source of competitive advantage for local service, delivery, and utility companies. And the emergency services themselves are beginning to see potential for improved performance in their processes from the development of new features driven by business needs."

The latest telematics-based dispatch systems are incorporating new optimization software so that fleets can meet their schedules using a minimum number of vehicles traveling the fewest miles. Appointments can also be easily changed during the work day to allow for delays and additional last-minute requests. The availability of traffic data—both historical and real-time—will soon be incorporated so that fleet managers can choose to assign their vehicles to travel using routes that minimize distance, fuel used, or time taken. And different routes will be selected depending on the time of day and day of the week.

"Other vertical markets such as construction equipment and buses have their own special needs," adds Alexander. "Construction, mining, and oil field exploration typically take place in very remote areas, and the data tracked is more focused on engine and environmental parameters than routing. Buses are usually not able to change their routes, but accurate information on the status and timing of an individual bus can be of great value in improving customer relationships."

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