Improved Fleet Management enables a 42% Increase in Work Order Completion for Best-in-Class Service Firms

Improved Customer Satisfaction and Workforce Productivity a Key Goal for Leading Organizations

 

04/01/2008

BOSTON, MA – April 1, 2008 – Leading service firms are turning to improved vehicle management practices not only as a medium to cut costs but also to drive service delivery and customer satisfaction, according to a recent research report entitled “Improving Productivity and Profitability through Service Fleet Management” published by the Aberdeen Group, a Harte-Hanks Company (NYSE:HHS).

Aberdeen’s benchmark survey investigated the pressures that are increasing the focus on fleet management as attained through enhanced location tracking and scheduling, improved in-vehicle navigation, and improved maintenance practices. Of the 200+ companies surveyed, resource cost pressures were cited as the most important driver, as reported by 60% of responding firms. However, leading firms were more likely to consider fleet management initiatives as enablers of improved workforce productivity and customer satisfaction.

“With oil prices at record levels near $100/barrel, there is an increasing focus on fleet management and vehicle tracking to alleviate resource cost pressures.” said Sumair Dutta, Research Analyst at the AberdeenGroup. “While fleet tracking initiatives have enabled adopting firms to experience significant reductions in operating costs to the tune of $1100/vehicle, the most successful fleet initiatives have also looked to drive workforce productivity to ensure service delivery as per customer expectations.”

The report also finds that leading service firms are also twice as likely as all other firms to currently follow a preventive model with regards to the maintenance of their service vehicles, primarily to reduce breakdowns and other service-related interruptions. Coupled with increased adoption of processes and technology in support vehicle tracking and navigation, these firms are experiencing:

  • A 42% increase in work order completion over the last two years, compared to a 12% increase for other firms.
  • A 23% reduction in maintenance costs/vehicle over the last two years, compared to a 1% reduction for all other firms.
  • A 69% wrench time perfOllllance for their technicians, when compared to a 40% performance for technicians of all other firms.

Over 200 companies participated in this quantitative shldy, including: AmeriGas, Bell, DHL Global Management. Fujitsu, Honeywell International, IBM, MT Trucking Company, SHK Transport, Southwestern Energy Company, Thermo Fisher Scientific, UPS Logistics, and Volvo Trucks North America.

A complimentary copy of this report is made available due in part by the following underwriters: Navtrak Inc., Teletrac and Discrete Wireless. To obtain a complimentaly copy of the report, visit: http://www.aberdeen.comllink/sponsor.asp?cid=4656.

 

About Aberdeen Group, a Harte-Hanks Company

Aberdeen is a leading provider of fact-based research and market intelligence that delivers demonstrable results. Having benchmarked more than 30,000 companies in the past two years, Aberdeen is uniquely positioned to educate users to action: driving market awareness, creating demand, enabling sales, and delivering meaningful return-on-investment analysis. As the trusted advisor to the global technology markets, corporations turn to Aberdeen™ for insights that drive decisions.

As a Harte-Hanks Company, Aberdeen plays a key role ofpuning content in context for the global direct and targeted marketing company. Aberdeen's analytical and independent view of the "customer optimization" process of Harte-Hanks (Information - Opportunity - Insight- Engagement - Interaction) extends the client value and accentuates the strategic role Harte-Hanks brings to the market. For additional infonnation, visit Aberdeen http://www.aberdeen.com or call (617) 723-7890, or to learn more about Harte-Hanks, call (800) 456-9748 or go to http://www.harte-hanks.com.