Ericsson report addresses transport and logistics disruptions with ZF and Orange Belgium to demonstrate the value of cellular IoT connectivity

Via Ericsson

Apr 22, 2022

Today, Ericsson (NASDAQ: ERIC) released a new Connected Truck Transport report in partnership with ZF, Orange Belgium, and Arthur D. Little. The report analyzes the power of IoT connectivity to mitigate the complexities brought on by disruptions in the logistics supply chain, including soaring fuel prices, driver shortages, and governmental regulations.

A competitive landscape, elevated customer expectations, and environmental pressures are just some of the challenges facing the transport and logistics industry. As older trucks are retrofitted and new trucks equipped with fleet telematics — a technology enabled by cellular IoT connectivity, giving fleet managers and drivers access to data from an array of onboard sensors – the potential for connected trucks is indisputable. Cellular IoT connections continue to grow exponentially, however, their full capabilities are just scratching the surface. In the transport industry alone, IoT connections are expected to grow from 100 million in 2020 to 292 million in 2030, with connected devices sending more data and augmenting growth beyond the number of connected devices available.

Two use cases developed with ZF’s Transics branded Fleet Management Solutions – an industry leading telematics solution and Orange Belgium are explored in the report that clearly demonstrate the power of IoT-enabled fleet telematics, particularly through truck and trailer monitoring and driver assistance. As we shift the industry into a new gear, the use cases serve as key indicators of the benefits of levering real-time data. In fact, the potential cost savings could be well over 6% for a mid-size truck company’s total cost, with one-third coming from driver assistance and two-thirds from truck and trailer monitoring.

Also highlighted in the report is the “Amazon Effect,” which has pushed supply chains to develop and adopt new business models and standards that match Amazon’s logistics capabilities. This includes incorporating fleet telematics, which not only alleviates challenges but can also support turning data into actionable insights. Fleets that have been impacted by the Amazon Effect can include any type of vehicle from planes to micromobility scooters but are especially impactful for the truck transportation industry.

Hjalmar Van Raemdonck, Head of Digital Solutions with ZF’s Commercial Vehicle Solutions division, says: “We recognize the pressure that many industries are under as they strive to overcome logistics operational challenges, driven by ever more demanding supply chains. Accelerated by the growing requirements and benefits of digitalization, cellular IoT connectivity has become a key enabler for commercial shippers and carriers. Providing real-time operational visibility and supporting asset optimization has an increasingly important role in solving many current and future business challenges.”

Werner de Laet, Chief Enterprise, Innovation & Wholesale Officer of Orange Belgium, says: “We have been supporting ZF’s Transics Fleet Management Solutions since 2004, providing global connectivity to help simplify operations for their end customers who frequently drive trucks across borders. With our eSIMS, global roaming connectivity is readily available, enabling ZF to manage long haul trucks for international deliveries.”

Kyle Okamoto, General Manager IoT, Ericsson, says: “Implementation of fleet telematics enabled by cellular IoT connectivity allows enterprises to deploy, manage and scale their IoT businesses in ways never previously possible, from acquisition through disposal. These industries will see an immediate impact as their businesses transform and economize substantially through IoT connectivity.”

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