Continental Study: Increasing Satisfaction With Software In Road Transport, But Many Companies Not Using It

Satisfaction in the transport industry with the software  used for managing drivers, vehicles and logistics operations is growing, but more than a third of the  companies surveyed are not using these solutions. This is a key finding of the study “The Connected Truck”, which was carried out for the second time since 2016 by the renowned social  research institute infas on behalf of the technology company Continental. The percentage of non users – most of them small companies – is roughly the same as in the previous survey. In a  reflection of current developments in this sector, it was also shown that when it comes to  equipment, logistics providers are mainly interested in driver-assistance functions and fuel-saving  technologies. Vehicle tracking and software security are also considered important, but companies  are careful to invest.

Software: The industry needs tailor-made solutions – including for small businesses 

A direct comparison with the previous study (2016) reveals a clear trend. Logistics and transport  companies that use software solutions are now more satisfied with them on the whole. In  particular, the companies surveyed rate software for monitoring driver behavior roughly half a point  better on a scale from 1 to 6 than in 2016. In day-to-day work, this software is also the most  important kind, followed by software for planning driver deployment, vehicle management and  logistics operations. 

On the other hand, although a majority of the companies surveyed use such software, many others  use it rarely or not at all. More than a third – especially smaller companies – are non-users.

“Logistics companies that operate small fleets are just as much affected by rising costs and  pressure to increase efficiency as large transport companies,” says Gilles Mabire, who heads  Continental’s Commercial Vehicles and Services Business Unit. “But small companies are not yet  convinced that software can significantly benefit them. The industry must address this issue and  provide solutions that are tailor-made for these customers. It must also point out the advantages of  existing solutions for smaller companies. If these big differences in use continue to prevail, the gap  might grow between large, profitable companies that make extensive use of technology on the one  hand and smaller ones with shrinking profits on the other.” 

Technology requirements: demand for driver-assistance systems and fuel-saving solutions 

As in the previous study (2016), about two thirds of the companies surveyed expressed a wish for  more driver-assistance functions, and more than half would welcome further fuel-saving  technologies. In decreasing order of importance, they showed an interest in more comfort functions  in the interior, tire pressure monitoring systems and systems for better communication with drivers.  “These needs are in keeping with current changes in the transport sector,” says Mabire. “New  regulations have been introduced to improve road safety and reduce vehicle emissions. An  example is the EU directive to reduce CO2 emissions. As a consequence, the demand for these  technologies will remain high, and it can be expected to increase.” In addition, cost pressure  continues to be a major factor in the industry, so companies must save money where they can.  “Fuel accounts for a large portion of the costs in a fleet, and this is where logistics providers can  achieve the biggest savings.” 

Investments must pay off quickly 

The pressure to cut costs and increase efficiency also plays an important role when it comes to  willingness to invest. Logistics providers need their investments to pay off quickly. More than three  quarters of the companies surveyed stated that investments in fuel-saving driving have to pay for  themselves within two years – and for companies with small numbers of vehicles this period is  even shorter. “Their requirements are challenging, which means that significant benefits are  expected from new technologies,” says Mabire. “Manufacturers and suppliers must therefore  develop solutions that yield economic benefits within a short time.”

High security requirements for software, but little willingness to invest 

The survey participants also emphasized their need for software that fulfills high security  standards. “Increasing data traffic has opened up greater potential areas of attack for  cybercriminals,” says Mabire. “The industry must offer solutions that are suitably sophisticated and  practice-proven. But security costs money; it can’t be provided for free.” Only about half of the  companies surveyed had already taken defensive measures for an attack on logistics or fleet  management systems. Three quarters said they were not planning any major investments within  the next six to twelve months. “Real willingness to invest is not keeping up with statements about  the importance of this topic. One reason might be that no transport company has yet been the  victim of a cyberattack. But the growing number of attempted attacks is a sign that the problem is  becoming increasingly important.”