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NAVTEQ Study Shows Integrated Navigation Reduces Fuel Costs by 15%

April 24, 2007

PARIS – NAVTEQ, a global provider of digital maps for vehicle navigation and location-based solutions, has launched an Integrated Navigation initiative intended to facilitate the development of solutions based on enterprise user needs. To support the initiative, NAVTEQ’s Enterprise Europe Business Unit commissioned a research study that highlighted significant benefits for integrated navigation solutions, such as a 40-percent reduction in communications costs, a 15-percent reduction in fuel costs, and an 18-percent reduction in driver hours.The concept of Integrated Navigation entails “connecting” an in-vehicle navigation solution with enterprise IT systems with navigation functionality to improve communication and operational efficiency. Examples include fleet dispatching systems, field force optimization solutions, and CRM (Customer Relationship Management). Two-way information flow from the enterprise to the mobile environment improves information sharing, reduces job allocation errors, lowers communication costs between fleet and dispatcher, and improves man-machine interface safety. To determine the benefits and the market potential of integrated navigation solutions for the distribution and service industries, NAVTEQ conducted an analysis with Frost & Sullivan. The research included face-to-face interviews with leading companies in both the distribution and service industries, which have been able to leverage return on investment (ROI) through integrated navigation.In addition to direct cost savings and operational efficiency improvements, returns from increased revenue generation had previously been underestimated. The study showed repeat business in the service industry could increase by as much as 10 percent as a result of more punctual arrivals and the subsequent increase in customer satisfaction. Fleet operators in the distribution industry could, for example, increase their customer base by up to 30 percent. In time, staff turnover could also be reduced and driver training may, in some cases, be cut by as much as a month.For more information on this study and its methodology, contact Benoit Vaille at [email protected]
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