The Rise of Cutting-Edge Technologies in Transportation
November 23, 2021
Technology is moving at the speed of light, and new developments within the transportation and logistics arena seem to have companies questioning whether upgrading their fleets with artificial intelligence and other rapidly evolving transportation technologies are truly smart investments.
Taking a step back, it’s important to understand the role that technology plays in transportation. Beyond GPS, fleet management software provides invaluable data analyzing everything from fuel consumption and driver habits to mileage and overall performance. But while fleet management software is a vital investment, it’s a long way from investing in autonomous vehicles.
So, in which situations can investing in AI and other technologies create long-term cost savings?
From skilled technicians to qualified drivers, constraint limits in workforce availability has created staffing challenges within the transportation industry. Using AI where applicable, allows for better allocation of an already limited workforce. Additionally, technology has also played a role in drier scorecards, which measure a driver’s capabilities on the road. From determining behaviors that cause wear and tear, such as hard braking and acceleration, to managing fuel economy and ensuring on-time deliveries, technology can help a business improve operators’ abilities and cut down on potentially expensive expenditures.
While loss prevention may be the first thing that comes to mind, tracking software is much more complex than an Apple Air Tag. Of course, tracking software allows companies to monitor where trailers are going and pull up red flags if trailers are heading into high-theft areas, but today’s technologies are combining trackers to do significantly more. From providing analytics on trailer utilization to maintenance records, companies are seeing opportunities to use technologies to maximize routes, control wear and tear, and even realize opportunities to increase loads in certain areas.
Collision Avoidance Technology
According to the Federal Motor Carrier Safety Administration, although heavy trucks and buses only accounted for about 4% of registered vehicles, they were involved in 13% of accidents and 13% of overall traffic fatalities. Collision avoidance technology has been critical in cutting down the number of crashes and other roadside emergencies, which translates into cost savings by costly insurance claims and expensive lawsuits.
With the prevalence of electric vehicles, the emergence of electric trucks was a natural next step in the transportation arena. Yet, despite the benefits of cleaner-running rigs, there are a lot of big questions about whether it makes financial sense for companies to begin converting their diesel-powered fleets to electric vehicles. From charging station availability over long-haul routes to load capacity and delivery timelines, an investment in electric fleets can potentially result in decreased profitability.
For more information about how Western Alliance Bank’s Equipment Finance Group can help you navigate through emerging technologies and find smart financial solutions for your fleet investment, connect with Brian Scott, Managing Director; or Lance Waller, Vice President: