1、A case study demonstrating cellular IoT value to the transport and logistics industryConnectedTruck Transport2Ericsson|Connected Truck TransportThe transport and logistics industry is facing several significant challenges now and in the immediate future.Established business models have been disrupte

2、d both by Amazon and the global pandemic.The result is a more competitive landscape,squeezed by elevated customer expectations and increased operational complexity,including one-and two-day shipping models,real-time product tracking and concerns over environmental impact.Add to this soaring fuel pri

3、ces,driver shortages and tighter governmental regulations,and the conditions are set for a perfect storm.Many of these challenges can be addressed by adding fleet telematics a technology enabled by cellular IoT-connectivity,giving fleet managers and drivers access to data from an array of onboard se

4、nsors that deliver detailed real-time data and enable more control over fuel consumption,maintenance scheduling,insurance costs,and more.To demonstrate the power of IoT-enabled fleet telematics,we explored two use cases developed together with telematics provider ZF and their connectivity partner Or

5、ange Belgium:truck and trailer monitoring and driver assistance.These two use cases alone can provide cost savings up to 876,000 or just over 6%of a mid-size truck transport companys total cost,a huge amount of money thats left on the table today.Let us show you what IoT-connectivity can do for your

6、 business with the Ericsson IoT Accelerator.ContentsIntroduction02 Understanding the big picture03 Trailblazing ahead with IoTInternet of things05 IoT meets the transport industryA new world of expectations07 Understanding the Amazon effect08 Theres a sensor for that09 A closer look at industry road

7、blocks10 Transforming operations proactively11 Promising logistics use casesDiving deeper into use cases13 Use case 1:Truck and trailer monitoringDriver assistance15 Use case 2:Driver assistanceOrange Belgium enabling connected truck transport use cases with cellular IoT16Ericsson IoT Accelerator:Ke

8、y platform services17Ready.Set.Go.18Understanding thebig picture of truck transportAn industry with challenges in every directionThis report is based on a joint study by Ericsson,ZF,Orange Belgium and Arthur D Little.It examines and quantifies the potential value of cellular IoT for the truck transp

9、ort industry.3Ericsson|Connected Truck TransportTrailblazing ahead with IoTShifting the industry into a new gear with real-time dataThere are a broad range of value-generating use cases for the truck transport industry,and this report examines two specific approaches:truck and trailer monitoring,and

10、 driver assistance.Truck and trailer monitoring can gather data on each vehicles fuel consumption,tire pressure,time since last maintenance and many other key indicators related to truck assets and performance.Trucking companies get data on individual vehicles as well as aggregated information that

11、provides insights into the state of the entire fleet.With this information,trucking companies can reduce unplanned maintenance,cut vehicle downtime and reduce theft all of which reduces overall costs and improves on-time delivery.Additionally,by optimizing tire pressure,trucking companies can signif

12、icantly increase fuel efficiency.The second use case,driver assistance,leverages cellular IoT to provide critical,real-time information to drivers and their employers.Driver coaching provides the driver with information about their driving that helps instill preventative,forward looking driving beha

13、vior over time.The benefits are many.Encouraging eco-driving can significantly lower fuel consumption,and safe driving habits-backed up by data-can provide strong evidence to obtain better insurance rates for the transport companies.Automated tachograph reporting reduces manual labor and increases t

14、he accuracy of tracking working hours to meet regulatory requirements.Cellular IoT connectivity provides the potential to achieve cost savings of more than 876,000 or just over 6%of a mid-size companys total costs,one-third coming from driver assistance and two-thirds from truck and trailer monitori

15、ng.4Ericsson|Connected Truck TransportInternet of things:Connectivity without borders5Ericsson|Connected Truck TransportIoT meets the transport industryAdoption is growing rapidly,but just scratching the surfaceIoT offers enormous potential value by unlocking new levels of efficiency,sustainability

16、and safety for many industries,from agriculture and utilities to smart cities and industrial applications.According to the U.S.Census Bureau,in 2017 trucks transported$10.4 trillion worth of goods,which is 71.6%of all goods shipped in the United StatesCellular IoT is growing exponentially.For exampl

17、e,the number of total global IoT connections is expected to rise from 1.7 billion in 2020 to 5.9 billion in 2026 for a CAGR of 23%.Massive IoT(NB-IoT/Cat-M)is the most rapidly growing sector,expected to increase over that same period with a CAGR of 57%from 2020 to 2026.The number of IoT connections

18、within transport is expected to grow from 100 million in 2020 to 292 million in 2030,for a CAGR of 11%.4 Connected devices are also sending more data,amplifying growth beyond just the number of devices.80 percent of commercial vehicles are predicted to be connected by 20305.During the last few decad

19、es,global trucking has experienced major transformations driven by new customer demands,new technologies and the rapid growth of e-commerce.The number of IoT connections within transport is expected to grow from 100 million in 2020 to 292 million in 2030.6Ericsson|Connected Truck TransportA new worl

20、d of expectations7Ericsson|Connected Truck TransportThe“Amazon Effect”refers to As ability to have products perpetually in stock at low prices with delivery in no more than a few days and often in a single day.It has rewritten consumer expectations of delivery.Tasked with ever-faster delivery times,

21、supply chains must develop and adapt solutions to meet these new standards.Four major supply chain models have emerged:First Party Logistics(1PL):An enterprise that sends goods or products directly from one location to another.Example:A farm that ships its eggs directly to a grocery store.Second Par

22、ty Logistics(2PL):In this approach,transport is outsourced to a second party with its own assets such as vehicles,planes or ships.Example:A farm hires a trucking firm to transport its eggs to grocery stores.Third Party Logistics(3PL):This method outsources functions such as packaging,warehousing and

23、 transport,but logistics(i.e.organizing and orchestrating delivery)is kept in house.Example:Packaging of the eggs,warehouse storage for further distribution and transportation are done by separate companies.Fourth Party Logistics(4PL):In this model,management of logistics activities as well as the e

24、xecution across the supply chain are outsourced.The provider typically offers more strategic insight and management over the enterprises supply chain.Example:Organizing logistics,packaging,warehousing and transport of the farmers eggs are performed by separate service providers.All players could be

25、contracted by the farmer or subcontracted by the logistics service provider.Understanding the Amazon effect How supply chain models have adapted to meetnew expectations3PL and 4PL models are becoming more common as organizations work to match Amazons logistics capabilities.1PL2PL3PL4PLDefinitionCove

26、rage of supply chainAn enterprise that sends goods or products from one location to anotherTransport outsourced to an enterprise owning assets such as vehicles/planes/shipsOperations of transportation and logistics outsourced to a provider who may subcontract out some or all of the executionManageme

27、nt of logistics activities as well as the execution across the supply chain outsourcedManufacturerLogisticsPackagingWarehouseTransportFocus of StudyCustomer21Source:Warehouse Anywhere,Arthur D.Little1 PL means“Party logistics”and indicates the role played in the supply chain2 Includes all modes of t

28、ransportation,including truck/air/sea/rail freight.This study focuses on truck transport8Ericsson|Connected Truck TransportTheres a sensor for thatAdding to this complexity are smarter trucks.Every year,a greater number of trucks are connected through cellular networks,which can can be equipped with

29、 up to dozens of sensors6.But even older trucks can be retrofitted to enable“smart”technologies like IoT to enable advanced features and over the air updates enabled by cellular connectivity.The potential for connected trucks is limitless.Within the next ten years,analysts expect more advanced featu

30、res to become standard,many of which are expected to benefit from cellular connectivity.Features-that might be considered to be on-board solutions-are very much dependent upon over-the air updates that realized as on-board solutions would still depend on cellular connectivity for lifecycle managemen

31、t.There are also implications that go beyond the truck itself.For example,IoT-enabled trucks can make data-driven insurance a reality.The most common truck insurance options are calculated according to the type of truck,goods carried,credit history,distance driven and the drivers experience.7 IoT is

32、 enabling a more accurate way to assess risk:usage-based insurance,which results in fewer claims for insurers and better rates for trucking companies.Empowering drivers and fleet managers with actionable dataUsage-based insurance is growing within the car industry and paving the way for trucking.IoT

33、 empowers businesses and insurers to measure and manage a full range of safe driving metrics,including hard braking,speeding,harsh acceleration and seat belt use.8 This dashboard of data helps fleet managers build a safer workforce of drivers and provides usage-based insurance carriers with real-tim

34、e safety records.Some personal auto insurance companies claim the safest drivers save up to 50%on premium costs.9 Commercial drivers could see similar cost reductions or greater.9Ericsson|Connected Truck TransportA closer look at industry roadblocksHigh fuel costs:A commercial truck can consume more

35、 than$70,000 of fuel every year.10 Fuel is one of the largest expenses for a trucking company,and the cost of diesel rose dramatically from 2021 to 2022,increasing by 41.6%.11 Trucking companies are eager to reduce fuel consumption.Driver shortages:Trucking companies are facing extreme difficulty st

36、affing their fleets.The UK is struggling with a shortage of more than 100,000 qualified drivers while the U.S faces a shortage of 80,000 drivers12.Its a global problem with roots in the early part of the pandemic as companies laid off drivers to survive.Now,demand for deliveries is outpacing their a

37、bility to hire drivers.Increasingly strict regulations:Trucking companies are required to comply with a wide variety of compliance requirements from many different regulatory authorities.Examples include tachographs to monitor drivers working hours and fuel tax reporting.Compliance is often managed

38、manually,making it cumbersome and expensive.High costs,driver shortages,and industry disruptionDowntime:One truck down for a day can cost up to$760.13 Plus,there are additional drawbacks that are more difficult to quantify,such as the damage to customer relationships when shipments are delayed.Susta

39、inability:Environmental concerns regarding sustainability is rapidly becoming a mandate for operations.Customers and governments are pressuring trucking companies to reduce their carbon footprint even as the transport industry is challenged with escalating demand fueled by e-commerce.Trucks make up

40、2%of vehicles on the road,but account for 22%of vehicle greenhouse gas emissions.14 Disruptive business models:Startups are launching crowd-based,last-mile solutions that threaten the market share of established companies.Examples include Postmates,Shyp and Deliv,while tech giants like Google,eBay a

41、nd Amazon have or are developing their own internal delivery services.Lack of automation:Many aspects of trucking operations such as drivers time logging remain manual,which is inefficient,wasting time and money.Trucks make up 2%of traffic but account for 22%of vehicle greenhouse gas emissions.10Eri

42、csson|Connected Truck TransportTransforming operations proactivelyFleet telematics can be defined as“the process your business uses to manage all fleet and asset information,from acquisition through to disposal.”15 Fleets can contain any type of vehicles,from planes to micromobility electical scoote

43、rs,but this paper will focus on trucks.To develop this report,Ericsson collaborated with ZFs cargo telematics product group(branded Transics)based in Belgium.Over 1,600 commercial fleet customers in 23 countries use ZFs Transics solutions.As a result,by enabling the connection of 200,000 connected v

44、ehicles,ZF is one of the largest telematics providers in the world.In 2020,more than 320 employees were working on ZFs Transics solutions.ZFs innovative IoT-enabled fleet telematics solutions enable commercial fleets to track their assets and improve their operational management to create more effic

45、ient and cost-effective processes and safer,eco-friendly driving behaviors internationally.The Transics solutions provide trip management,real-time ECO-driving feedback and location tracking,among other features.Optional add-ons can provide tachometer tracking,route guidance,truck health optimizatio

46、n and vehicle temperature management.How ZF is providing fleet telematics tooptimize operations on a global scale11Ericsson|Connected Truck TransportPromising logistics use casesThis paper focuses on two exciting use cases:truck and trailer monitoring,and driver assistance.To understand the financia

47、l impact of these two use cases,we analyzed their impact on a baseline company.For our model,we created a baseline mid-sized European trucking company with a fleet of 50 trucks and 100 drivers,annual revenue of about 15 million and a net margin of about 5%.The company transports medium-value product

48、s and has no pre-existing telematics solutions.Truck and trailer monitoring,and driver assistance two promising use casesTruck and trailer monitoring Predictive asset diagnostics and maintenance Security and smart trailer locks Reduced fuel consumption with tire and engine monitoring Trailer climate

49、 control Vehicle,driver and goods tracking GeofencingDriver assistance Eco-driving Achograph data manager Detection of shock events Driver focus checks Electronic loggingTruck&trailermonitoringTruck driverassistanceIoT usecasesFleetmanagement3rd partyconnectionsAutonomousshipmentsOther12Ericsson|Con

50、nected Truck TransportDiving deeper into use cases13Ericsson|Connected Truck TransportUse case 1:Truck and trailer monitoringWe examined fleets of commercial trucks with a gross vehicle weight rating of more than 10,000 pounds/4,500 kilograms.These trucks were not manufactured with onboard IoT connn

51、ectivity,so this technology would have to be retrofitted.Cellular IoT enables the vehicles to monitor,measure and maintain vehicle performance,health and security.Specifically,this use case measures fuel consumption,location,engine performance,tire pressure,time since last maintenance and deviations

52、 in performance that indicate a need for repairs.Once collected,data is transferred to a cloud-based application environment for data analysis.Results and insights are also displayed on the in-vehicle dashboard within the connected truck.Truck/Trailer MonitoringConnecting the truck and/or trailer to

53、 help monitor,measure and maintain the vehicle performance,health and security with the help of IoT.These case benefits originate from:Reductions in costs from vehicle downtime:49%Reductions in costs from unplanned repairs:26%Tire pressure optimization,which increases fuel efficiency:17%Fewer thefts

54、 and lower insurance costs:16%There are significant benefits to all stakeholders:Consignor:This sender wants to reduce customer complaints from delayed transport and reduce expensive customer service operations.Truck and trailer monitoring makes delivery much more reliable,increasing customer retent

55、ion and reduce traffic to call centers for logistics-related matters and associated costs.Transport company:These organizations are challenged with expensive,unpredictable truck maintenance to keep up with shifting regulatory requirements.Theft of vehicles,trailers and cargo is also a significant pr

56、oblem.In addition,high fuel costs and calls to reduce CO2 emissions are growing in parallel.This use case improves maintenance efficiency by detecting the need for required repairs and maintenance well ahead of time,so it can be scheduled in a non-disruptive manner.Security and smart lock monitoring

57、 reduce theft,which can result in lower insurance premiums.Additionally,optimized tire pressure increases fuel efficiency,lowering costs and reducing environmental impact.Consignee:Those awaiting delivery of products want to eliminate or reduce late delivery,and often have very little insight into t

58、he process.Truck and trailer monitoring increase the likelihood of on-time,fulfilled delivery,and enable logistics companies to provide accurate and timely information on delivery status.Additional benefits include reduced CO2 emissions from lower fuel consumption,optimized operations and higher cus

59、tomer satisfaction due to consistent,reliable deliveries.The estimated total benefit to the baseline company16 is 613,000,or 4.3%of total company costs.Reducing costs,maintenance,and CO2 emissions across entire fleetsFeed back to fleet managerTruck/Trailer vehicle informationEngineTireEBSTemp.Mainte

60、nanceschedulingTransportplanning.14Ericsson|Connected Truck TransportDriver assistance15Ericsson|Connected Truck TransportUse case 2:Driver assistanceThe second use case,truck driver assistance,focuses on large commercial trucks used for long freight transportation,which employ cellular IoT to conti

61、nuously monitor the vehicle.On-board digital recorders measure the driving and resting times of drivers to ensure compliance with regulations.Additionally,it enables driver coaching,which uses analytics to provide real-time insights into driving behavior for individual drivers as well as an aggregat

62、ed view of driving behavior across the entire fleet.This feedback loop can dramatically improve driving behavior and fuel consumption,and lower carbon emissions.Inefficient truck driving such as hard braking or harsh acceleration increases fuel consumption,which in turn increases costs and CO2 emiss

63、ions.Trucks account for an outsized proportion of carbon emissions with the global transport sector accounting for more than one-fifth of the global total.17More than a quarter(29%)of all transport emissions come from freight-carrying trucks.18 Another pain point is that many drivers exceed regulate

64、d work hours,which is a problem because fatigue is the most common cause of road accidents.In fact,4 out of 10 truck accidents are related to drowsiness and prolonged work hours.19 Theres also the enormous global shortage of truck drivers,forcing transport companies to make operations more efficient

65、.Australia and Central Asia have 20%fewer heavy goods vehicle drivers than they need.20 To attract and retain drivers,companies need to improve working conditions.Driver coaching optimizes fuel costs by enabling eco-driving,and the data it produces can be used to negotiate lower insurance premiums,s

66、o long as it demonstrates safe driving behaviors.Better driving also creates less wear and tear,which reduces repair costs.The individualized training that driver coaching provides can also improve employee retention.Automated tachograph reporting optimizes administrative operations with electronic

67、logging devices(ELD).By automating the logging of work hours,trucking companies can ensure accuracy and compliance with regulatory requirements.As a result of employees having ensured legal work hours,employee retention will also rise.Altogether,truck driver assistance provides 264,000 in estimated

68、cost savings to our baseline company16,or about 1.8%of total company costs.Unlocking new levels of driver efficiency,safety,and securityInsights and alertsData drivenDrivercoachingAutomatedtachographreportingTruck driver assistanceThe ability to provide data-driven truck driver coaching and automate

69、d tachograph reporting due to IoT.The benefits are:Reduced fuel costs due to IoT-enabled eco-driving:60%Reduction of administrative costs:23%Reduced insurance premiums:17%Additional benefits include reduced CO2 emissions due to eco-driving,improved employee satisfaction and a lower number of acciden

70、ts.16Ericsson|Connected Truck TransportOrange Belgium enabling connected truck transport use cases with cellular IoTOrange Belgium began partnering with ZF in 2004 to enable global connectivity,which helps ZF simplify operations for its customers,who drive their trucks across borders frequently.Oran

71、ge Belgium also offers a service value add-ons,including dedicated customer support,access to proactive information systems for change management and more.Through this partnership,trucking companies gain global cellular connectivity and a related connectivity management service,which is powered by t

72、he Ericsson IoT Accelerator.In this service,each truck is equipped with one eSIM(eUICC),which facilitates global roaming connectivity an important capability since long-haul truckers often cross national borders.Data is transmitted from trucks to local telecommunications services providers via roami

73、ng agreements on 4G LTE through local cellular networks,and it flows through the Orange Belgium Connectivity Management Platform to the cloud.Data-driven insights appear in logistics company and vehicle dashboards.In addition to its long-time collaboration with ZF,Orange Belgium combines extensive k

74、nowledge of IoT and enterprise mobility solutions with years of experience.The offering includes connectivity and a comprehensive set of services:Mobile,landline and IoT connectivity:Orange Belgium combines its mobile,landline and IoT networks to offer reliable,high-performance solutions.24/7 servic

75、e support:A team of experts,specialized in various areas of IoT and M2M-communications,is available 24/7 for assistance.Customization:Orange Belgium provides the ZF Transics-solution with a highly-customized service ranging from SIM handling and SIM applet programming to a flexible commercial setup.

76、International coverage:Orange Belgium is part of a larger international group of companies offering effective,wide-ranging solutions to more than 220 countries.Ecosystem of qualified partners:These partners specialize in multiple domains of IoT and M2M-communications.Delivering market-leading connec

77、tivity,control and customization17Ericsson|Connected Truck TransportEricsson IoT Accelerator:Key platform servicesEricsson IoT Accelerator enables enterprises to easily deploy,manage and scale their global IoT business from a single IoT platform.Delivered as a service through our global partner netw

78、ork,Ericssons one core network provides complete visibility and control of all IoT devices throughout their entire lifecycle,no matter where in the world they are located.Key platform services include:1)Subscription Lifecycle Management:This service manages the complete lifecycle of SIMs and eSIMs,i

79、ncluding ordering,activation and deactivation.Management occurs both individually and across large batches to enable highly scalable operations.IoT connectivity services for ZFs Transics portfolio powered by the Ericsson IoT AcceleratorWhat is eSIM?An eSIM is an embedded universal integrated circuit

80、 card(eUICC)soldered directly into a device.As opposed to removable SIM cards,an eSIM can be updated remotely to facilitate M2M communications and connect to different carrier networks.Ericsson helped pioneer eSIM management in the IoT platform market and has been helping businesses leverage connect

81、ivity since 2012.2)Service Management and Business Insights:The analytics engine of the Ericsson IoT Accelerator examines data consumption and device communication behaviour,which helps any Communications Service Provider to adapt its commercial offering to the telematics providers(and its customers

82、)needs.The analytics engine also allows real-time troubleshooting enabling high service level requirements.3)The Ericsson IoT Accelerator eSIM hub:Manages all process related to eSIM operations,including localization where needed.ZF used the hub to leverage eUICC to optimize their production and log

83、istics processes.4)Automation through API and Developer Portal:With support from the Communications Service Provider the telematics solution provider is integrating connectivity insights and lifecycle management through IoT Accelerator APIs into their IT environment to allow for end-to-end business

84、process automation.This is facilitated through extensive on-line documentation through the Ericsson Developer Portal.18Ericsson|Connected Truck TransportReady.Set.Go.The trucking industry faces unprecedented demand due to the rapidly growing popularity of e-commerce,a global shortage of drivers,high

85、 expectations for rapid delivery and rising fuel costs,just to name a few.IoT-enabled trucks can reduce the impact of many of these challenges.By applying just two use cases,companies can save up to 876,000,which is just over 6%of mid-size companys total costs.As IoT connectivity continues to expand

86、 across trucking fleets,additional use cases will become feasible,unlocking additional benefits and savings.Theres no need to wait.Truck Transport companies can implement IoT today toreduce fuel consumption and costs,maintenance and repair,vehicle downtime,and increase consistent on-time delivery.Wo

87、rking closely with mobile operators and telematic service providers,the trucking industry can continuously innovate with IoT to meet new expecations and new challenges on the road ahead.19Ericsson|Connected Truck TransportCitationsHait,Andrew and Lee,Lynda.“Most Goods Americans use in Their Daily Li

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89、mber 2020.https:/ 23 January 2022.4Gartner.IoT database:Forecast Years 2021-2030.5“The Future of Commercial Vehicles.”Man Truck&Bus.June 15,2020.https:/ 15 February 2022.6ZF.Use case expert interview.7Forerunner Insurance Group.“What does Average semi truck insurance costs for owner operators?”15 De

90、cember 2018.https:/ 23 January 2022.8Automotive Fleet.“Usage-Based Insurance Growing in Popularity with Fleets.”13 December 2018.https:/www.automotive- 23 January 2022.9Hearst Autos Research.“Usage Based Insurance:Everything You Need To Know.”Car&Driver.https:/ 23 January 2022.10Trucking Report.“The

91、 Real Cost of Trucking Per Mile Operating Cost of a Commercial Truck.”https:/ 23 January 2022.11YCharts.US Retail Diesel Price.https:/ Retrieved 1 February 2022.12BBC News.“How serious is the shortage of lorry drivers?”15 October 2021.https:/ 23 January 2022.13Menzies,Frank.“Dealing with Downtime.”T

92、ruck News.1 February 2013.https:/ 23 January 2022.14Transport Environment.“T&E Annual Report 2018.”https:/www.transportenvironment.org/annual-report-2018/campaigns/trucks.html.Retrieved 23 January 2022.15Sowerby,Ellen.“Everything You Need to Know About Fleet Management.”Chevin.20 September 2021.http

93、s:/ 1 February 2022.16A fleet of 50 trucks and 100 drivers,annual revenue of about 15 million and a net margin of about 5%.17Ritchie,Hannah.“Cars,planes,trains:where do CO2 emissions from transport come from?”Our World in Data.6 October 2020.https:/ourworldindata.org/co2-emissions-from-transport.Ret

94、rieved 23 January 2022.18Ritchie,Hannah.“Cars,planes,trains:where do CO2 emissions from transport come from?”Our World in Data.6 October 2020.https:/ourworldindata.org/co2-emissions-from-transport.Retrieved 23 January 2022.19Ross,David.“Trucking Insurance Rates and the ELD Mandate.”American Insuring

95、 Group.6 May 2018.https:/ 23 January 2022.20Ertico.“Global Shortage of Truck Drivers since Mid-2000s.”7 September 2021.https:/ 23 January 2022.20Ericsson|Connected Truck TransportThe content of this document is subject to revision without notice due to continued progress in methodology,design and manufacturing.Ericsson shall have no liability for any error or damage of any kind resulting from the use of this documentEricsson SE-164 80 Stockholm,Sweden Telephone+46 10 719 0000 Ericsson 2022At Ericsson,we connect businessesLets talk about howyou can connect yours.Get in touch atIoTOr read more