11 Nov Transportation and Logistics ROI
The return on investment for a functional asset and transportation management system (RFID GPS) is significant among industries that rely on rapid transit and delivery to be an effective business model. Transportation and logistics can go from a harrowing worry to an easily manageable process. RFID allows the company to oversee the entire transportation phase, pinpoint problems, and optimize for efficiency.
Transportation and logistics ROI is only a part of the ultimate returns from investing in asset tracking software, but the gains solely in the mobile phase of the supply chain are monumental.
Tracking, Mapping, and Optimizing
The services provided by RFID and GPS allow for optimal delivery routes. Navigation and mapping can eradicate time wasted searching for the next location by providing real-time, turn-by-turn directions that reach target sites with speed and efficiency.
Real-time alerts on weather, food, gas, and traffic allow for a smooth day on the job for field employees delivering goods to the customer. They can use wireless timecards to clock into a shift from their device, giving the employer the ability to verify the whereabouts of the employee upon punching in or out.
The real-time location of a delivery truck allows for route optimization software to minimize the number of miles driven. Dispatchers can follow a worker’s route exactly and reassign or reschedule jobs based on the worker’s current job and location, changing the driver’s route to reach an optimal base of customers per capita.
Geofencing, or using RFID to map and define locational boundaries, can be used to set parameters for high-access areas or to ascertain that employees follow the track they must. It is even a security tool: with geofencing, administrators receive alerts whenever someone enters a certain area (locational boundaries set by geofencing). This can be useful in high-security areas, preventing access from anyone without clearance. Theft can be made nearly impossible and access to important sectors can be exclusive only to those with the right to enter.
Transportation even sees advantages in the field: the mobile devices for asset management, customer service, GPS, and more are the most rugged, functional devices in the field. They are built to withstand harsh environments (manufacturers, warehouses, distribution centers) and they become more intuitive every day. Newest models are an all-in-one device, including full smartphone capabilities, GPS, cameras, high-speed processors, WAN radios, developing data capture techniques, RFID, credit card payment, signature capture, and even more. Their presence in the field will revolutionize the industry for those in transportation, allowing for every vital function to be accomplished on one rugged device, built to last longer than any cell phone.
The immediate benefits of RFID are astounding. Processes, that prior to the implementation of an RFID system were manual, become instantaneous via radio frequency signal.
Quantifying the Benefits
The benefits cover such a wide breadth of facets within the transportation process that it’s hard to monetize the returns of RFID and GPS systems. But the labor statistics depicting the benefits of GPS locations demonstrate that there is certainly money to be saved. A Motorola survey of U.S. transportation companies revealed a 53% decrease in travel downtime and a 26% increase in employee accountability. It is an investment in efficiency, both financially and chronologically, and an investment in the employee.
Per day, the average company saves 54 minutes of employee time per day due to location. In tune with saving time, the company saves mileage, gas, and money as well. Of the 31% of companies that estimated that their drivers are saving 101 or more miles per week with GPS, the average estimate was 231.2 miles saved per week.
54 minutes per day (or 270 per week) and 231 miles per week can net a total $55,000 in savings over the course of a year. These are savings only from a small portion of the transportation phase in the supply chain. Across a company’s business model, the investment pays for itself just about everywhere.
As spending across the board drops, customer service and satisfaction increase. The value of the company increases while saving money. With such palpable benefits, it seems foolish not to explore RFID. Invest today, and reap the benefits from the industry of tomorrow.