Opinion: The Case for Open Technology
B>By Marc Mitchell
I>Transportation Practice Director
nterprise Information Solutions
To combat these problems, which constrain the rates that providers can set, fleet owners are increasingly turning to the important commodity of onboard wireless computing devices. These rapidly improving cost-optimization systems are enabling many in the industry to streamline the supply chain and keep tabs on cargo in transit.
Unfortunately, a lingering concern remains as to whether the investment in such technologies can deliver a return, and whether the up-front capital expenditure will be in line with an operator’s financial vision and comfort zone. Contrary to conventional wisdom, though, technology does not necessarily need to be only a trade-off of one expense for another.
Unlike the unstable cost of fuel — with its wild fluctuations tied to world news events — many technologies have continually demonstrated the ability to increase in power even as their prices steadily fall. The trick is to deploy technology that rides that trend so it can be a driver of efficiency and profitability.
Today, two important concepts help ensure that technology serves a useful financial purpose and does not just exchange one expense for another. The first is “open systems” technology.
While the adjective “open” remains somewhat confusing, and even controversial, when coupled with technology, the meaning and value are made plain in this context: “Open” means something is built to an established standard, so that systems can come from multiple providers.
This ultimately results in competition that benefits consumers. It should be noted, however, that not every trucking company’s operational needs are the same, so managers should investigate a product and its competitors carefully before making a final choice.
Open, as defined above, plays an important role when it comes to onboard and mobile computing. New technologies today offer many options for carriers, ranging from improved tracking and tracing of goods to enhanced communications capabilities between driver, dispatch and consignee.
The result is improved security and the more timely delivery of cargo. At the same time, the devices used to execute such services are merging into the small, convenient package of a cellphone or personal digital assistant, reducing the cost of hardware needed to outfit truck fleets.
Onboard computing is an important commodity for the success of the transport and delivery industry. Not only is this technology a cost-saving benefit, but new onboard systems can also create dramatically improved efficiencies at lower costs. More and more we see these dispatch and tracking-and-tracing devices with expanded capabilities and functionality becoming available in smaller and less expensive hand-held devices that offer ease of use.
But it is only recently that solutions are emerging in the freight-transportation market that combine all those functions into one package that is affordable, given the thin profit margins of the industry.
Furthermore, the efficient combination of technologies means that the services can address a wider array of goals for in-cab computing. For example, they can assist in route optimization, pickup-and-delivery communication, the tracking of trucks and trailers and general security concerns. In this way, return on investment can come from an array of efficiencies — and limit buyer remorse after a purchase is made.
The other important concept, again building on the word open, is that of the “open source,” commonly referred to as the ultimate expression of the open systems concept. While often seen as the domain of the technologically elite, the business reality is that many of these services have more power than it takes to supply the transportation industry’s general needs. Areas where open source offerings hold considerable potential include:
Clearly, the choices offered today’s transportation industry through the use of open technologies present a wide range of computing options that were not possible even a few years ago. These optimization methods are available today from multiple providers at increasingly lower costs, with more operating power and in smaller packages for ease of use than ever before.
With these new cost- and service-efficient logistics alternatives now in play, any lingering concerns over the return on technology investment are abating as more and more fleet owners and drivers realize the potential benefits of open technology options. When these options are properly analyzed and designed to meet the specific needs of each user, these systems offer a value proposition for critical operating systems and relief to severely constrained transportation budgets.
Enterprise Information Solutions, of Downers Grove, Ill., is a systems integration and computer engineering firm.
This story appeared in the Oct. 18 edition of Transport Topics. Subscribe today.
