Operators can increase productivity without adding vehicles.
Singapore logistics companies are using artificial intelligence (AI)-powered fleet management systems to track vehicles, optimize routes and monitor performance to extract more work from their existing fleets, rather than buying more vehicles as high ownership costs weigh on profits.
Roger Callisto, CEO of Cartrack Technologies Asia Pte. Ltd., said, “Vehicles are very expensive in Singapore. There is a huge emphasis on efficiently maximizing the use of assets.” Ltd. spoke to Singapore Business Review via Zoom.
Analysts said AI and real-time fleet data are helping companies reduce idle time, improve route planning and keep vehicles loaded with cargo rather than empty.
“Connected vehicle technology doesn’t really help logistics companies grow, but it basically helps improve their business,” said Mark Goh, director of industry research at the Asia-Pacific Logistics Institute at the National University of Singapore Business School. “The last thing you want is for your vehicle to have to move around looking for your luggage.”
Sugutam Ghosh, head of the Graduate Diploma in Logistics and Supply Chain Management program at the Singapore University of Social Sciences, said AI-powered route planning and real-time traffic information offers one of the biggest opportunities to improve fleet performance.
Goh said companies can also use historical shipment data to predict demand, improve load planning and decide when to dispatch vehicles. “With the help of AI, supply chain planning becomes even more important,” he noted.
Kalisto said AI can also improve driver safety through cameras that detect fatigue, distraction and cell phone use, while helping fleet managers identify underutilized vehicles and predict maintenance needs.
Ghosh said companies should measure success not by fleet size, but by vehicle usage, on-time delivery, fuel and energy costs per delivery, maintenance costs, downtime and driver safety.
While high implementation costs remain a hurdle for some businesses, especially small and medium-sized businesses, Goh said small businesses often lack the scale to test these systems across multiple operations.
But Callisto said the biggest barrier is often mindset rather than cost.
“The reality is…it’s more or less a matter of mindset,” he said. “We certainly need to adopt new technologies that increase efficiency.”
