Abhijit Sengupta, Senior Director and Head of Business for Southeast Asia & India, HERE Technologies
The transportation and logistics industry in APAC – often hampered by a vast and diverse landscape, and the lack of data analytics and insights – has always faced challenges in adopting new digital technologies. The growing use of the cloud and advent of new technologies is giving the industry a monumental boost, particularly in fleet management.
To learn more about how transport companies are benefiting from new technologies such as location intelligence, as well as their challenges they face, ITNews Asia speaks to Abhijit Sengupta, Senior Director and Head of Business for Southeast Asia & India, HERE Technologies.
ITNA: What do you see as existing challenges in the fleet operations of companies in the transport and logistics industry? Can location intelligence help address these challenges?
Sengupta: The transport and logistics industry faces several existing challenges in fleet operations, highlighted in a recent HERE Technologies/AWS survey across different regions, including Singapore, India, and Australia.
Two key challenges stood out: Firstly, Safety and efficiency: Fleet managers see challenges in improving vehicle and driver safety. Our survey found that a third of fleet managers in Singapore worry they are not meeting safety KPIs and close to a third in India highlight safety as a continuing concern. Addressing these safety issues is crucial as they have a cascading effect on other performance metrics.
Secondly, companies said they are struggling to leverage data effectively: Despite the abundance of data from asset tracking technologies, Singapore organisations still face barriers in achieving supply chain visibility due to insufficient data capabilities and challenges in obtaining actionable insights from tracking hardware. This is mirrored in India and Australia, where better data capabilities and real-time information access are seen as critical needs.
Real-time tracking enhances safety by allowing fleet managers to monitor vehicle and driver behaviour. These insights that can be used to improve safety protocols and reduce incidents. Additionally, location data can optimise routing and fuel management, leading to reduced emissions and more efficient resource utilisation, which is crucial for companies to meet sustainability targets and adhere to regulations.
Real-time data also facilitates proactive management of fleet operations, allowing for timely interventions and adjustments, which improves efficiency, reduces downtime, and ultimately increases revenue. This technology enables fleet managers to improve vehicle and driver safety, address sustainability challenges, and utilise data more effectively, driving operational efficiency and revenue growth.
ITNA: How important is it for transportation and logistics companies to be able to integrate their own data into a fleet management solution?
Sengupta: Integrating one’s own data into a fleet management solution is critically important as it allows companies to tailor the solution to their specific operational needs, ensuring that the unique aspects of their business are adequately addressed. By integrating proprietary data, companies can achieve a more comprehensive view of their fleet operations, leading to more accurate and relevant insights.
This integration enhances the ability to make informed, real-time decisions that improve efficiency, safety, and overall performance. For instance, by combining their data with advanced analytics and AI, companies can optimise routes, better manage fuel consumption, and predict maintenance needs, which can significantly reduce downtime and operational costs.
Our survey findings indicate that 71 percent of Singaporean and 67 percent of Indian respondents value the ability to integrate their own data into a fleet management solution, with integration with existing systems being the top reason for considering a new provider. This underscores the critical role this capability plays in achieving operational excellence and competitive advantage.
ITNA: From a business performance perspective, how much have new location-based capabilities improved delivery times and decreased operational costs? Do you have any examples to share?
Sengupta: Location intelligence can substantially improve delivery times and decrease operational costs. By leveraging real-time data, advanced routing, and asset tracking technologies, companies can enhance their operational efficiency and customer service.
For instance, PSA Singapore (PSA) which operates the world’s largest transhipment hub, is leveraging a cloud-based transport management solution which features automated scheduling and asset pooling for truck drivers that allocates jobs to drivers based on their location, offering real-time optimisation of routes and truck assignments.
Companies using cloud-based transport management reported a 50 percent reduction in empty runs, which is equivalent to an annual reduction of approximately 10 million kg of carbon emissions in a year.
ITNA: How important is it for companies in the sector to include sustainability in their digital transformation efforts?
Sengupta: As environmental concerns and regulatory pressures continue to rise, integrating sustainability into digital initiatives has become a strategic business necessity. There are two ways to see sustainability – sustainability as a driving force and sustainable value creation.
Firstly, Sustainability is now a driving force for the industry – Companies are heavily relying on their fleets to meet sustainability targets and comply with growing regulations. Our survey found that about two of five Indian fleet managers plan to adopt electric vehicles (EVs) within four years, while more than half anticipate adoption within six years. Among the Singapore respondents, about four out of five fleet managers anticipate adoption within five to six years. While electrifying fleets is an obvious step, EV infrastructure challenges and cost concerns delay widespread adoption.
Secondly, Sustainability leads to value creation. AI and advanced analytics are helping businesses to operate more resiliently and sustainably. The integration of location-based technologies plays a crucial role in these efforts, enabling more efficient routing, fuel management, and predictive maintenance, which collectively reduce the environmental impact of fleet operations.
ITNA: Can AI help deliver solve existing challenges faced by fleet managers?
Sengupta: According to our survey, a significant percentage of fleet managers in India reported challenges in meeting vehicle and driver safety KPIs. AI can enhance safety through predictive analytics and real-time monitoring, analysing driver behaviour, predicting potential safety incidents, and recommending corrective actions. Additionally, AI can optimise vehicle utilisation and route planning, addressing operational efficiency issues.
The survey indicates that many companies struggle with leveraging data from asset tracking technologies, a gap AI can bridge by providing real-time analysis, identifying patterns, and offering predictive insights to enhance visibility and decision-making.
Sustainability is a growing priority, with fleet managers focused on reducing CO2 emissions. AI can optimise fuel consumption and reduce emissions through efficient route planning and load optimisation, supporting sustainability efforts. Furthermore, AI can significantly enhance operational efficiency by automating routine tasks and optimising complex processes, helping fleet managers make informed decisions that boost efficiency and revenue – as in the case of PSA Singapore.