Fleet Management News & Business Info | Commercial Carrier Journal
Issue link: http://read.uberflip.com/i/129328
TECHNOLOGY: BIG DATA III BIG DATA III: PREDICTIVE ANAL YTICS DATA MINING ALLOWS FLEETS TO LOOK BY AARON HUFF INTO THE CRYSTAL BALL K eep it simple" is a phrase heard often in management circles, but even simple decisions may require complex analysis to be certain they are correct. With business intelligence tools, fleets can gain instant visibility into what already happened and what is happening now. However, by the time an error is detected, the damage already has been done. Ultimately, fleets need to know what will happen – and why. Predictive analytics, also called modeling, can deliver this insight using a variety of techniques and technologies that mine historical and current data. The aim is to find relationships among complex data sets that become predictors of certain outcomes. An outcome could be a simple event – like the time and place that a driver will be available for dispatch – or a serious accident. In any case, these predictions help determine the best decisions and actions that can create more favorable results. In the third and final installment of CCJ's series on "Big Data" (part one in March covered exception monitoring, while part two in April highlighted business intelligence), we look at predictive analytics, which can be applied to a number of operational challenges. Due to the complexity and amount of data required, fleets and technology suppliers are focused on areas with the biggest potential for savings. FUEL SAVINGS Predictive analytics can be used not only for catching exceptions before they occur, but also for determining what outcomes can – and should – be expected after taking specific actions. Jeff Foster Trucking – a 225-truck carrier based in Superior, Wis. – is planning to purchase about 50 new trucks. As part of its $6 million decision, management also is determining which older vehicles to replace in its fleet. Fuel performance is the major decision point; the final choice could come down to a difference of 0.1 to 0.2 mpg. "In the purchasing world, that is a profound amount," says Dean Norrell, manager of operations and driver development. As part of the company's decision process, Norrell extracted and analyzed fuel performance for all the fleet's vehicles using data from the first quarter of 2013. One source of data was the vehicles' It is important to us to position our assets in the right market at the right time. – Steve Gordon, chief operating officer, Gordon Trucking COMMERCIAL CARRIER JOURNAL 0513_TECHFeature.indd 53 | MAY 2013 53 4/22/13 10:44 AM