BY LARA L. SOWINSKI 

As part of this month’s special coverage on Software & Technology, we contacted over a dozen industry executives at companies that play a significant role in the food and beverage supply chain to ask them about the impact of Big Data, the Internet of Things (IoT), analytics, cloud technology, apps and more to get a sense of the changes underway and what they portend for the future. Without a doubt, Software & Technology represents one of the fastest-moving, promising and disruptive segments in the business and consumer worlds today. In the food/bev supply chain it facilitates visibility from farm-to-fork, compliance, improved food safety, productivity, better management of people and processes, and cost reductions and accuracy, among other benefits.

Who: Mike Meehan, CTP, VP of Sales, Fleet Advantage

Key Topic: Mining Big Data for competitive advantage

Takeaway: Rethinking the fleet lifecycle management practice

“In the arena of food distribution, understanding the financial impact of integrating technologies that continually increase fuel efficiency and reduce emissions is imperative,” emphasizes Meehan. “Leveraging data can be the catalyst to elevate a distribution operation from a support function to competitive differentiator with quantifiable revenue enhancement strategies. Using newly-available technology that generates data from a wide variety of sources, then combining and mining that data to discover new ways of cutting costs is the key to gaining competitive advantage.”

Meehan says that, “While data has long been used for route optimization, only recently could it be leveraged to provide new insight into the equipment performance, operating costs and fleet lifecycle management practices. By combining equipment performance data with maintenance and finance data, it is possible to determine each vehicle’s point of economic obsolescence—the exact time that a tractor starts costing more to run than it does to replace it with a new model.  The data essentially provides a P&L statement on each truck.”

On the topic of fuel-related regulations, Meehan notes, “Fuel economy mandates on heavy duty trucks focused on emissions reduction and resource conservation and will be in effect through 2027. That means only one thing—continuous improvement in fuel economy for years to come. Since fuel is approximately 70 percent of a fleet’s operating cost, this is good news for the industry as a whole. Effective in model years 2014, Phase I mandates are indeed proving to save transportation operations millions of dollars annually in fuel and maintenance costs. The new data intelligence is prompting fleets to address long held fleet lifecycle management practices. Fleets are increasingly moving from a purchase/bank financing model to a short-term, more flexible leasing solution that allows them to capture the benefits of the fuel economy improvements (and) reduce their maintenance—gaining efficiencies and competitive advantage.”

To read the full article click here:http://www.foodlogistics.com/article/12088071/how-is-software-technology-impacting-the-food-beverage-supply-chain