Tracking the trail for sustainable fleet operations

Achieve operational visibility, decrease expenses, and eliminate carbon emissions from fleet operations

Living past the era of fighting climate fatalism and educating the world on how important it is to breed a culture of sustainable operations across organizations. We are in the middle of an AI revolution, and industry leaders are leveraging cutting-edge technologies to gain a competitive advantage and boldly assert their position in the market.

We are not interested in sustainability, we are invested in it.

The energy sector is responsible for 52% of global greenhouse gas emissions, while the construction and logistics sectors together account for 33% of emissions, and the remaining 15% of emissions come from other sectors according to the International Energy Agency in 2022. To achieve net-zero targets and contribute to the transition to a low-carbon economy, these sectors must adopt more sustainable practices and reduce energy-intensive and wasteful operations.

Operating mainly on fleet operations, these industries represent the majority of global carbon emissions across the supply chain. As consumers increasingly demand environment-friendly options and governments implement regulations to achieve net zero targets, companies are adopting innovative technology to create carbon-neutral value chains from start to finish. This transition represents a step forward in the pursuit of sustainable fleet operations.

Using AI technology in fleet management is crucial as companies around the world strive to achieve net zero targets, improve their brand positioning and retain employees and investors to benefit at large. Fleet management gives an overview of entire fleet operations, including the use of vehicles for logistics, heavy equipment for the construction of mega projects, and vessels for offshore operations. The fleet size, age, and efficiency can be monitored at every step and results can be analyzed to make data-driven decisions.  

Fleet operations that rely on traditional fossil fuels, such as gasoline or diesel, produce a significant amount of carbon dioxide and other greenhouse gasses as a result of fuel combustion. Even fleet operations that use alternative fuels or electric vehicles may still contribute to carbon emissions, depending on how they generate electricity. By optimizing fleet efficiency and reducing fuel consumption, companies can significantly reduce their carbon footprint and contribute to a more sustainable future.

It's never too late for climate action. The best time to start is now.

Adopting and investing in sustainable fleet management practices has been a challenge for many companies, and this was especially true a decade ago. The fleet managers were hesitant in investing in new technology given the risk and costs associated with implementing new operational models, training their employees on how to use it, and many other unidentified risks.

Companies that had invested in fleet management could clearly differentiate themselves in the market on how they operate and the value proposition they bring to the table. Fast forward today, some companies are beginning to realize the need for such practices and are willing to make the shift. However, others are still struggling, resulting in a fallback on the sustainability curve, and are on the brink of losing the majority of market share.

Cost-Benefit Analysis of Fleet Management Solutions

Before committing, companies conduct a cost-benefit analysis to determine if the investment is worth the risk. This involves evaluating the cost and revenue at every stage, including the initial purchase price, employee training costs, subscription costs, potential cost savings, efficiency gains, and contribution to sustainable initiatives. By carefully considering these factors, companies can make informed decisions.

Fleet management software comes in various forms ranging from basic tracking solutions (that only provide location services) to feature-rich solutions going machine specific enabling more efficiency gains and cost savings. The solution of choice should yield the highest efficiency and significant reduction in operational costs (fuel and maintenance) while minimizing the carbon footprint.

Using fleet sustainability to leave a sustainable ecological footprint

A recent analysis by Tenderd showed that, using real-time data on productivity and emissions, the average fleet operating company sees a ~25% reduction in emissions and fuel wastage from idling within a year of adopting Tenderd.* Some companies may see even greater results. Looking ahead, Sustainable Fleet Operations has the potential to be game-changing for various industries.

While there are certainly costs to take into account, it's important to also consider the benefits. Investing in operational intelligence helps in cost-effective operations, providing real-time visibility on equipment utilization, productivity, and carbon emissions along with AI-driven insights that allow companies to make data-driven decisions.

Companies incorporating feature-rich fleet management that captures equipment-specific productivity and real-time carbon emissions monitoring have significant levels of operational efficiency. Resulting in timely delivery of projects, with more safety and visibility compared to those who don’t. When it comes to mega projects and tenders, MNCs prefer companies with greener value chains promising higher efficiency and ROI.

While digitizing operations and value chains to generate data is one step, using that wealth of data is another challenge. Many companies struggle to use this data efficiently, losing sight of areas that need improvement and failing to recognize opportunities, resulting in uninformed decisions. Feature-rich fleet management software would analyze terabytes of data from their site operations, providing actionable intelligence using AI and machine learning to make data-driven decisions.

The few companies that have leveraged advanced fleet management technologies have an edge, revolutionizing the transition to a low-carbon net-zero economy and thinking for the future.

About Tenderd

Tenderd (YC S18) is an AI-powered analytics platform for efficient and sustainable fleet operations. Its platform is designed to help companies increase the productivity of their capital equipment and vehicles, optimize logistics, and maintenance, and reduce fuel consumption and carbon emissions during operations. Tenderd has redefined the future with an array of powerful AI product solutions to transform equipment, vehicles, and vessels into "smart" machines enabling sustainable operations.

From real-time monitoring to predictive maintenance and productivity metrics to emissions monitoring, Tenderd’s suite of products captures every aspect of fleet operations on one platform. Tenderd solution is used by many of the largest E-commerce, Logistics, Energy, and Construction companies across the globe, helping them reduce their operational cost using actionable insights and intelligence using AI.

*Based on analysis of anonymized data from a few Tenderd customers