According to a new whitepaper by HERE Technologies, a location data and technology platform, and Amazon Web Services, fleet managers in Singapore express significant need to reduce vehicle dwell time and improve vehicle and driver safety.
Recognized by the World Bank as the leading logistics hub globally in 2023, Singapore boasts exceptional connectivity both regionally and internationally. The remarkable surge in cross-border trade and regional consumption further solidifies Singapore’s position as a reliable and highly efficient center for logistics and supply chain management.
Fleet management is critical to efficient 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 survey
- Driving safety and efficiency forward. Fleet managers in Singapore (34%) have indicated that key performance indicators (KPIs) related to reducing vehicle dwell time are not being met effectively. Additionally, 25% reported challenges in improving vehicle and driver safety. These issues are critical, as vehicle downtime and safety can have a cascading effect on overall fleet performance and end-customer requirements.
- Turning data into decisions. The rise in asset tracking technology has resulted in a wealth of data at the disposal of fleet managers. However, the ability to leverage this data effectively remains a significant challenge. Respondents identified better data capabilities (71%) and using predictive analytics to drive greater estimated time of arrival (ETA) accuracy (62%) as the top barriers to achieving supply chain and fleet visibility. This highlights the need for applications and integrated solutions that make data analytics actionable.
- Efficiency and revenue – the twin engines of growth. The survey revealed that 29% of respondents in Singapore ranked “improve operational efficiency” and 27% ranked “prevent additional costs on accidents and insurance premiums” as their primary investment drivers. This underscores the critical role of innovative technologies in driving business growth and minimize costs.
- Steering towards sustainability. Sustainability is increasingly becoming a central focus in operational decision-making. Companies are heavily relying on their fleets to meet sustainability targets and comply with growing regulations. According to the survey, 8% of fleet managers in Singapore plan to adopt electric vehicles (EVs) within three to four years, while 83% anticipate adoption within five to six years. While electrifying fleets is an obvious step, EV infrastructure challenges and cost concerns delay widespread adoption.
- Mapping the road to success. Real-time tracking of shipments and fuel management emerged as the top requirements within a fleet management solution, with 80% and 72% of respondents, respectively, prioritizing these features. Furthermore, asset tracking and driver routing applications were identified as key uses of mapping technology and location data, highlighting their importance in improving operational efficiency, ETA calculations and customer satisfaction.
- Partnering for progress. The fear of disruption to existing processes and services, along with high costs, were cited by 42% of respondents as primary barriers to adopting new fleet management solutions. The same reasons were cited as a major obstacle in HERE Technologies’ 2023 APAC on the move study last year, where majority of transport and logistics firms surveyed in Singapore also cited the challenge of costs and identifying the right partners and/or suppliers as their biggest barrier to technology implementation.
In today’s competitive logistics market, building a comprehensive ecosystem of partners and independent software vendors (ISVs) emerges as a critical source of competitive advantage.
Moreover, 71% of Singaporean 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. Additionally, 57.1% of respondents plan to increase spending on data analytics capabilities, with 47.6% doing so within the next 18 months.
Photo credit: HERE Technologies