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Key takeaways

The challenge

For decades, commercial road transport businesses have relied on a blend of expertise, experience and data to support their decision-making process when it comes to identifying the most effective routes for their fleets. But, with so many competing tools and technologies available on today’s market – and an abundance of data to asses – how do fleet operators know they are making the most of the information available to them?

The solution

Modern route management technology relies on vast swathes of data. However, it is what the software can do with that data that is the most valuable asset for any fleet manager looking to identify operational efficiencies. A programme like Shell Telematics, for instance, uses real-time data integration to help improve fuel economy by up to 20%.³

In the automotive industry, it’s not just the vehicles that move quickly. While 1978 saw the first GPS satellite launched¹, fast forward just fifty years later, and it is projected that more than 35 million trucks will be connected to telematics worldwide by 2028.² Built around the advancement of connectivity, telematics, specifically route management technology, is one of the most powerful tools available for fleets aiming to achieve productivity, profitability, and sustainability goals. This is evident by its capacity to reduce driving hours by up to 20%.³

At its core, route management software is an algorithm that helps fleet managers and drivers identify the shortest, most efficient or quickest route between two points. With the first consumer-focused car navigation system released in 1985, its capabilities are familiar to most – if not all – drivers.⁴ However, in the hands of a multi-vehicle fleet, this technology is more than simply a tool to prevent drivers from getting lost – it’s a means to lower-emissions, lower-cost fleet management.

Automated routing helps address two key challenges, which also happen to be two of most fleets’ largest financial outlays: labour and fuel costs.⁵ With less controllable factors like fuel prices and labour shortages having both affected fleet operating margins in recent times, a ready-to-go solution that can save up to 9% in fuel, 12% in labour and 17% in accident costs, regardless of market volatilities, is worth its weight in gold.⁶

When paired with driver monitoring systems, route management tools can also help fleet managers to track vehicle movements. Doing so not only promotes greater driver safety by notifying managers of when vehicles veer from their designated routes but can also be used to inform future driver training. That is due to the ability to aggregate individual driver behaviour around actions that impact fuel efficiency, such as idling, braking or acceleration.

Of course, it’s not just about the data you can collect, but what you do with that data once you have it. Thankfully, leading telematics software makes it simple to turn vehicle and driver insights into action, that can save fleets time and money. From weather or road conditions to traffic reports, route management technology can help fleets assess and adapt their decisions based on live, real-time information, allowing managers to approach routing and scheduling more proactively, while drivers benefit from more productive journeys.

As the last fifty years prove, this is an area of technology that is continually evolving, with innovations always just around the corner.

The combination, and integration, of AI and ML is one such example. While route management technology has long been relied on to power the algorithms behind the software, recent rapid improvements have the potential to shift its capabilities up a gear. Today’s AI solutions can process larger datasets much faster, accelerating the decision-making process, while the increased sophistication of ML can make fleets smarter.

Perhaps the most futuristic-seeming development being touted across the industry is smart road technology. Often involving sensor-based devices being embedded directly into the road, this encompasses everything from traffic management networks to Internet of Things (IoT) connectivity to traffic light optimisation. All of which could help a fleet’s own route management software connect with the live environment around it, helping to make routing decisions even more proactive and data-driven.

Often seen as the ‘final frontier’ when it comes to road transport and logistics, autonomous vehicle technology is potentially where route management will finally come into its own. A US pilot project by Boston Consulting Group’s (BCG) data analytics group, GAMMA, and Kodiak, revealed that an autonomous vehicle revolution could help ease driver shortages, reduce emissions and overcome cost barriers, saving a potential 30% or more in total cost of ownership.⁷ However, even as this technology does become more widely used – human drivers remain an important part of the equation, especially for first- and last-mile tasks.

Compared to many of its peers, the automotive industry has always been a fast-moving field, and the developments around GPS and route management technology over the last half-century really put this pace of innovation into perspective. While it’s not completely clear what another fifty years of evolution might look like for this technology, one thing is for certain: route management and optimisation is a currently available solution that today’s fleets can – and should – be using to lower their emissions and future-proof their business.

To find out how Shell’s own telematics software can help shift your fleet into the future, visit: /business-customers/shell-fleet-solutions/fleet-management/shell-telematics.html

_{¹ Beverley Wise. “.” WebFleet. 29 March, 2018.}

_{² Mordor Intelligence. “.”}

_{³ The Standard. “.” August, 2020.}

_{⁴ Benj Edwards. “.” Fast Company. 26 June, 2015.}

_{⁵ Fraikin. “.” May, 2021.}

_{⁶ Verizon Connect. “.” 2023.} 

_{⁷ Brian Collie et al. “.” BCG. 25 October, 2022.}

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