Large-scale Hydrogen HGV Deployment

Novuna Vehicle Solutions, one of the UK’s largest fleet leasing providers and a leading advocate for zero-emission vehicles, today announces it has been awarded funding of over £2.1 million as part of the Tees Valley Hydrogen Vehicle Ecosystem (HYVE) Consortium, which will showcase the first large-scale deployment of fuel cell electric HGVs in the UK.

The £7 million project, part of the Tees Valley Hydrogen Transport Hub, is being funded by the Department for Transport and delivered in partnership by Innovate UK. The programme will unlock at least £15 million of private investment. Led by project coordinator ERM, the consortium will support the rollout and maintenance of fleets of fuel cell HGVs in the Tees Valley commencing later this year, supported by the construction of a strategically located hydrogen refuelling station by Exolum at their Riverside Terminal.

The publicly accessible refuelling station, near to Middlesbrough town centre and at the intersection of the A19 and A66, will be capable of dispensing up to 1.5 tonnes of hydrogen per day.

As the selected HGV leasing partner within the consortium, Novuna Vehicle Solutions will work alongside German manufacturer Quantron AG, to build, fund and manage the in-life maintenance of more than 20 fuel cell electric HGVs ranging from 4.2 to 27 tonnes deployed in the project.

These vehicles, which will be used by some of the region’s largest vehicle operators within the logistics, infrastructure, utilities and home delivery sectors, will replace diesel vehicles, reducing local air pollution and carbon emissions. Data monitoring and performance evaluation will be provided by the School of Computer Engineering and Digital Technologies at Teesside University, who have extensive experience in the fuel cell field.

Jon Lawes, Managing Director of Novuna Vehicle Solutions, said:

“This project is crucial to removing barriers and addressing the needs of operators at every stage of the ecosystem, in turn realising the commercial viability of hydrogen, at scale, and transforming the heavy transport sector which has been left behind in the road to net zero fleets. With our experience and unique capability to build, fund and manage the in-life maintenance across all vehicle types, including HGVs, we’re looking forward to collaborating with other selected participants to create a cleaner transport sector and ultimately unlock the vast potential of fuel cell hydrogen vehicles.

“Being firmly at the forefront in addressing the challenges of decarbonising heavy-duty vehicles complements our broader zero emissions strategy which is already comprehensively supporting fleets transition to Electric Vehicles.”

Novuna Vehicle Solutions, which manages over 140,000 vehicles across the UK and Europe ranging from cars and vans to HGVs and specialised assets, is also currently in discussion to support separate trials of Hydrogen vehicles for Network Rail.

Andreas Haller, CEO and Founder of Quantron AG, added:

“We are proud to be a part of this initiative. Bringing our innovative QUANTRON INSIDE technology to the UK marks a significant step forward in our global strategy and we are delighted to do this in collaboration with our partner Novuna. We are building hydrogen vehicles that reflect our commitment to sustainability to set a new environmentally friendly standard for long-haul transportation.”

The Future of Physical Operations

Senior Executives at Samsara are forecasting trends in physical operations for next year and beyond.

Philip van der Wilt (pictured), SVP and GM EMEA of Samsara says, “physical operations will continue to be challenged by the uncertainty surrounding fleet electrification and the need to double down on fuel efficiency. Businesses are waking up to the fact that it’s not petrol, diesel or electricity that powers fleets — it’s data.

“Those who have already invested in technology and IoT platforms to manage their fleets are already better off. Fleets that have already invested in connected data platforms are better able to identify which routes, vehicles, and tasks are best suited to the electrification of their fleets.

“They’re also using these same fuel-agnostic systems to identify other technologies that will lead to fleet decarbonisation. It’s now up to the rest of the industry to play catch-up or risk being hit with a double whammy — falling behind on electrification plans while being unable to manage sprawling fuel costs.”

Stephen Franchetti, CIO, Samsara, added: “As the AI explosion continues, an organization’s ability to stay competitive and innovate will come down to their enterprise data strategy. Over the past year and a half, there’s been a significant explosion of ‘ready for prime time’ generative AI, opening opportunities for enterprises to benefit from intelligent automation. There’s no denying that AI will continue to increase efficiency, accuracy, and overall business agility in 2024.

“With this, we’ll start to see an increased need for a robust foundation of reliable and well-governed enterprise data. Utilizing the power of this data is paramount for training precise machine learning models, deriving insightful analytics, and enabling intelligent decision-making. As AI technologies continue to evolve, the quality and accessibility of enterprise data could significantly impact an organization’s ability to assess large datasets in real-time, stay competitive, eliminate bias, and free up more time for innovation.

“Expect to see an increase in vertical use cases for AI and a tight race between incumbents and emerging vendors to solve more nuanced, complex problems for these users.

“There’s already a race for incumbent players to infuse AI into every facet of their platforms. At the same time, we’re seeing several new emerging apps coming onto the scene that are purpose-built for vertical use cases within the business – like Sales, Marketing, Legal, and IT. As AI models become more robust and sophisticated, they will be able to handle the nuanced and complex tasks needed for these vertical teams. This will ultimately enable better integration between systems and processes and lead to improved operational efficiencies, as well as cost savings.

“Amidst emerging threats, increased regulation and data privacy laws, organizations will lean on technology for management and protection. With a global focus on data privacy, organizations must leverage technology to identify and mitigate risks quickly and effectively. In 2024, leaders will invest in AI-driven security to monitor network behavior, detect anomalies, and protect against potential threats – all in real time. This proactive approach will allow organizations to enhance their ability to safeguard data and operations.

“This technology, however, is only effective when coupled with a robust data strategy that leverages a zero-trust model. In the new year, more leaders will adopt this approach, which requires verification at every step of the data access and transfer process, significantly reducing the potential for breaches.”

Finally, Evan Welbourne, Head of AI and Data for Samsara, says, “explainable AI will play a key role in the broader acceptance and trust of AI systems as adoption continues to increase.

“The next frontier in AI for physical operations lies in the synergy between AI, IoT, and real-time insights across a diversity of data. In 2024, we’ll see substantial advancements in predictive maintenance, real-time monitoring, and workflow automation. We may also begin to see multimodal foundation models that combine not just text and images, but equipment diagnostics, sensor data, and other sources from the field. As leaders seek new ways to gain deeper insights into model predictions and modernize their tech stack, I expect organizations to become more interested in explainable AI (XAI).

“XAI is essential for earning trust among AI users – it sheds light on the black-box nature of AI systems by providing deeper insights into model predictions and it will afford users a better understanding of how their AI systems are interacting with their data. Ultimately, this will foster a greater sense of reliability and predictability. In the context of AI Assistants, XAI will reveal more of the decision-making process and empower users to better steer the Assistant toward desired behaviors. In the new year, I anticipate XAI will advance both the functionality of AI Assistant and the trust of AI systems.

“The evolution of generative AI across industries will focus on advancements in domain-specific knowledge and expertise, making specialized talent increasingly competitive.

“The advent of ChatGPT this past year showcased the potency of large language models (LLMs) in understanding and generating human-like text, which has accelerated investments and innovations in generative AI. Moving into 2024, I anticipate a continuous maturation of generative AI technologies, particularly emphasizing domain-specific knowledge and real-time adaptation to evolving scenarios. This convergence of generative AI with domain expertise will facilitate more nuanced and valuable insights, making AI a quintessential partner in decision-making processes across industries.

“With this, the demand for AI and machine learning talent will continue to surge in 2024, as businesses increasingly integrate AI not just into their products, but into their operational frameworks. Apart from foundational skills in machine learning, statistics, and programming, I expect to see an increased demand for expertise in domain-specific AI applications and AI governance.”

EV Supply Chain Transforms Air Charter

Aircraft charter specialist, Air Charter Service, has said that since the start of 2020 it has seen a much more diverse spread of airports used in the supply chain for automotive charters, with the rise of the electric vehicle resulting in the company arranging charters from or to more than 100 new airports.

Dan Morgan-Evans (pictured), Group Cargo Director at ACS, commented: “Purchases of electric vehicles have more than doubled in the past two years and production has obviously been ramped up to cope with this fresh demand. The EV market has not only led to major manufacturers opening up new plants specifically for EVs, but also a huge amount of new suppliers in locations that we previously haven’t flown from, so we are seeing a large number of new destinations popping up for our just-in-time automotive charters.

“In a normal year, we would arrange charter flights to around 350-400 airports for automotive charters, including many familiar destinations, multiple times. But, since 2020, when EV production really started to step up, our charters have flown from and into more than 100 new airports, that weren’t even on the map for traditional car manufacturers beforehand. To put that into perspective, that figure of new airports is higher than the entire destination network of major airlines such as Air India, SouthWest Airlines and China Airlines.”

Air Charter Service is a global aircraft charter broker with 33 offices worldwide, spanning all six major continents and offers private jet, commercial airliner and cargo aircraft charters, as well as onboard courier solutions. ACS arranges over 28,000 charter flights annually with revenue of more than 1.3 billion dollars in 2022.

Visa’s Fleet 2.0 Solution

Issuer processor Enfuce has announced it is expanding its partnership with Visa with the launch of Visa’s cutting-edge mobility card solution, the ‘Visa Fleet 2.0.’

Through the certification, Enfuce is now uniquely positioned to deliver the Visa Fleet 2.0 solution to their joint, prospective customers. The continued collaboration between Enfuce and Visa is set to revolutionise fleet management across Europe, offering enhanced efficiency through rich data and insights, cost reduction, and a crucial pivot toward sustainable transportation and mobility budgets.

Unlike traditional closed-loop cards used by most fleet operators worldwide, the Visa Fleet 2.0 solution is not restricted to specific fuel retailers or specific types of product like petrol or diesel, and can be used at any location accepting Visa cards. This not only enhances operational efficiency by enabling drivers to choose the most efficient routes and access optimal fuel prices but also provides unmatched convenience with an all-in-one, fully integrated card, accessible via both physical and digital wallets, thus eliminating the need to carry multiple fuel cards.

This fleet and mobility card can be used for all types of expenses chosen by the issuer, beyond fuel-related payments, thus accommodating for the evolving landscape of electric vehicles (EVs). Indeed, Visa reports that 70% of fleet managers plan to transition to electric, hybrid, or hydrogen cell vehicles within the next five years. Conventional fuel cards designed for fossil fuel fleets lack the flexibility to accommodate EV charging without substantial investment on the issuer’s part. Visa Fleet 2.0 addresses these evolving needs by incorporating a plethora of different use cases such as EV charging, tolls, mass transit, and micro-mobility.

Thanks to its advanced, modular and customisable tech stack, the fleet and mobility card solution will introduce a range of other benefits, which include:

● Detailed transaction data: Comprehensive financial reporting and operational efficiency by consolidating detailed transaction data, including purchased items, unit prices, and associated VAT on a single card. Real-time data, including driver identification, vehicle identification, and vehicle mileage, can also help with fraud prevention.
● Purchase restrictions & spend controls: Visa Fleet 2.0 enables cards to be restricted for specific types of purchases, providing companies with greater control over card usage, mitigating the risk of inappropriate spending.
● Enhanced security: Enfuce also ensures the security of every issued card through the deployment of secure EMV technology and robust authentication methods like 3DS.

Denise Johansson, Co-Founder & Co-CEO of Enfuce, comments: “We are proud to lead the European market by being the first to offer the Visa Fleet 2.0 solution to our prospective customers. The card will help card issuers right across Europe thrive in the current market, while also equipping them for the fossil-free future. Considering the majority of fleet operators are looking to transition to petrol-free vehicles, it’s crucial for fuel card issuers to adapt to these changing market dynamics. By offering enhanced flexibility, security, and convenience, our new card aims to meet these evolving needs of fleet operators.”

Monika Liikamaa, Co-Founder & Co-CEO of Enfuce, comments: “This certification means we can support our valued customers in revolutionising the outdated fuel card, streamlining fleet management, and bolstering security measures through comprehensive data tracking to combat fraudulent activities. This collaboration marks a significant milestone in the financial landscape, showcasing a joint effort to introduce forward-thinking solutions that cater to the changing demands of the modern mobility ecosystem.”

Richard Campion, Head of Fleet and Mobility, Visa, added: “Expanding access to financial tools and services is core to Visa’s purpose as we seek to uplift everyone everywhere. We’re excited to continue our work with Enfuce, helping them deliver our mobility card solution to their customers across Europe as they work to revolutionise the fleet management space.”

Fleet Panel Pushes for Sustainability

Members of the Michelin Fleet Panel have called for the industry to accelerate progress towards more sustainable tyres and improve support for fleet managers transitioning to electric vehicles (EVs).

The panel, comprising representatives from some of the UK’s biggest leasing, fleet management and rental companies, as well as several major end-user fleets, addressed a series of industry challenges at a meeting held at the Wakefield site of Aston Barclay, the independent remarketing group and vehicle auction house.

Chairing the Michelin Fleet Panel, Martin Thompson, Michelin’s Brand Manager UK & Ireland, briefed the panel on the manufacturer’s target of using 100 per cent sustainable materials in its tyres by 2050, and 40 per cent by 2030, and urged the industry to make quicker progress in reducing the environmental impacts of tyres.

He also reinforced the importance of extracting the full performance out of every tyre, saying: “It’s vitally important we better educate fleet managers and customers about how to avoid unnecessary raw material wastage, specifically that it is safe to use tyres down to the 1.6mm legal tread depth limit.”

Some panel members called for the industry to put a greater focus on analysing tyre wear on EVs, saying the current lack of data was making it difficult to make informed buying decisions.

Thompson said: “Leasing and rental companies want to be able to communicate that data to their customers so they can speed up their transition to EVs. Michelin is manufacturing tyres specifically for EVs to help with tyre wear and battery range, and that’s a message we are communicating more widely.”

Lorna McAtear, Head of Fleet at National Grid, who manages 9,000 vehicles, including 1,500 EVs, said the industry needed to tackle some myths around EVs. “There are some misconceptions that all tyres wear out quicker on EVs. The industry needs to deliver clearer messaging to ensure people have the best performing and safest tyres on their EVs, and that they don’t cost more than tyres for internal combustion-engined vehicles.”

She added: “It was an excellent panel for learning about the innovations in tyre developments being driven by Michelin and its partners. I was reassured that they are working hard on sustainability and going in the right direction.”

At the first meeting of the Michelin Fleet Panel since the pandemic, Michelin representatives and its partners, including Canopy Simulations and MICHELIN Connected Fleet, gave presentations of their work towards more sustainable mobility, whilst ProovStation provided a live demonstration of its AI-powered inspection scanner. Aston Barclay is the first company in the UK to install the technology, deploying the system to quickly and accurately appraise vehicles ahead of auction.

Matt Childs, Marketing Manager at MICHELIN Connected Fleet, said the next generation of drivers and decision-makers are increasingly aware of sustainability and vote with their wallets on what, where and who they work with. “With connected fleet management solutions, this is an opportunity rather than a challenge. Turning the data into actions can help fleets operate more efficiently and unlock savings,” he added.

Sean Russell, Chief Marketing Officer at Aston Barclay, said: “It was a pleasure to host the Michelin Fleet Panel, which was a fabulous knowledge sharing and networking event. We received some excellent feedback and we look forward to collaborating with our partners again in the future.”

The Michelin Fleet Panel has been meeting for more than 20 years; membership is voluntary and participants are not required to be Michelin customers.

Adopting EV Fleets Presents Challenges

EV is fast becoming a top priority for many businesses, fuelled by the significant benefits that can be realised through making the switch, writes Dee Humphries (pictured), Managing Director, Equans EV Solutions. With reduced carbon emissions, financial savings, increased sustainability credentials, improved productivity, enhanced employee experience – the benefits of transitioning to an electric fleet are undeniable.

Whilst there are clear benefits on paper, it’s important to acknowledge that transitioning a fleet to EV can come with challenges. In fact, many businesses are presented with multiple barriers when they begin to adopt EV that can sometimes halt the process. However, the solution isn’t to simply admit defeat, but rather to navigate and manage the challenges effectively to ensure the transition is seamless, enabling the gain of long-term benefits.

Here, Dee Humphries, Managing Director of Equans EV Solutions, highlights some of common challenges businesses are facing when it comes to adopting EV, with the strategy to overcome them – alongside a proven framework for EV adoption.

Challenges and solutions for businesses adopting EV

A common challenge fleet operators face in the early stages of their EV transition is a lack of internal buy-in. This can come in the form of resistance from those who do not understand the benefits of EV, as well as from those who see EV as an unnecessary business cost. This is typically prevalent in industries that have historically been dependant on conventional fuel options.

To overcome this barrier, it’s important to ensure these stakeholders are engaged from the offset and the programme is aligned to the business’ overall goals. Overcoming this barrier doesn’t need to be complex, but rather about education and demonstration. Consider sharing success stories of similar businesses via case studies, reports or testimonials. This can help bring the benefits of transitioning to life, building the case for EV adoption.

Another challenge is having the capital to invest in both the required vehicles and charging infrastructure. This can be particularly challenging if EVs weren’t accounted for in long-term budgeting. However, it’s important to think of EVs in terms of total cost of ownership, instead of initial investment costs. Whilst transitioning to EV might be expensive initially, the long-term savings through lower fuel costs, reduced maintenance costs and an extended vehicle lifespan make the investment more than worthwhile. There are also ample government initiatives and schemes that are available for both infrastructure and vehicle costs, plus leasing options available, to make EVs more economically viable.

As with most things, failing to properly plan and prepare is a challenge many businesses will face as this will result in an ineffective EV integration strategy. Transitioning to EV requires an in depth understanding of new technologies, assessing operational requirements and much more. However, often resources to develop this knowledge are limited – meaning hesitations can occur, halting the transition. The solution here is to bring in the experts. This means a specialised organisation who can develop a detailed and tailored EV transition strategy that is aligned with the goals and needs of your business. This will remove any uncertainty and ensure the transition is smooth and successful.

Why now is the time to transition your fleet to EV

Despite the challenges that transitioning to EV presents, the reality is that businesses who don’t start to make the transition will get left behind. The time to start the transition is now and thankfully, with the right strategy and approach, these challenges can be overcome – meaning there’s never been a better time to do so. EV adoption has become more convenient than ever for businesses across the UK. Recent electric commercial vehicle ownership stats highlight many have already implemented EV for their fleets, with vans up 67.3%, buses and coaches increasing by 34.9%, and the number of zero emission trucks almost trebling since last year.

Concerns that would usually be front of mind for businesses looking to adopt EV their fleet would be cost and range. Both of these are steadily becoming worries of the past. Take cost – battery prices have plummeted by 89% over the past decade, making EV models increasingly competitive against petrol and diesel vehicles. There are also multiple incentives for EV adoption and charging infrastructure from the government, offering a breadth of financial support to meet the needs of all businesses.

Range capabilities have expanded considerably meaning the average modern EV can now travel over 200 miles on a full charge. This has significantly reduced the concern of range anxiety for fleets and means EV is no longer a barrier for businesses that need to travel hundreds of miles on a daily basis. Infrastructure has also grown and improved, offering a solution to keep drivers on the move when required. It’s been noted that there are now 77,531 charging connectors in 29,709 locations across the UK. This is a 194% increase compared to 2019 – meaning charging convenience has substantially improved for drivers.

A Proven Framework for Electric Vehicle Adoption

To navigate this transformative shift in fleet management, Equans EV Solutions has released a whitepaper that addresses the common questions and obstacles faced by logistics fleet operations. Drawing on over a decade of industry expertise, the whitepaper adopts a barrier-to-solution approach, focusing on challenges such as how to gain internal buy-in for EV adoption, the considerations required for designing an appropriate charging solution, and how to pilot the necessary operational and organisational changes to make EV charging a triumph.

Backed by more than 10 years of industry expertise, this whitepaper delivers critical insights logistics operators need to transition to EVs confidently and effectively. The key features include:
• Completing a comprehensive financial analysis to realise the true total cost of ownership for an electric fleet.
• Creating a strategic EV integration plan that covers organisational adjustments, infrastructure development, fleet management and training needs.
• Adopting transparent communication and assigning ‘EV champions’ to illuminate the long-term benefits of EVs to internal stakeholders which align with environmental and operational gains.

With this strategic, yet adaptable, approach towards fleet management, Equans is not only solidifying the position of businesses that adopt EVs, but also shaping a promising and eco-responsible future for the global transportation industry.

DHL Transitions Fuelling from Diesel to HVO

DHL Supply Chain has announced the acceleration of its UK road transport decarbonisation strategy. In addition to investments already made in deploying vehicles running on biogas and electric vehicles, hydrotreated vegetable oil (HVO) fuel is now actively being rolled out across the majority of its on-site fuelling stations throughout the UK, enabling DHL to assess operational processes and the performance of the fuel. With installation scheduled for completion by the end of the year, transitioning to HVO fuel will deliver 80-90% carbon savings compared to diesel; with an estimated total of 15,000 tonnes of CO2e savings being expected to be delivered.

Produced from biomass such as used cooking oils and waste from food manufacture, HVO is a drop-in fuel, meaning it can be used within existing vehicles without compromising operational performance; removing the need for new infrastructure or fleet.

Saul Resnick, CEO, DHL Supply Chain UK & Ireland said, “The installation of HVO fuel across our bunkered sites represents a critical moment in our multi-fuel decarbonisation strategy. HVO improves our service to customers by introducing a low-carbon renewable alternative fuel with minimal disruption. As an industry leader, we are rolling out HVO at scale and with impressive pace, to deliver immediate and substantial carbon savings while we continue to work towards viable zero-emission alternatives. We are extending an invitation to our customers to join us on this transformative journey, and actively collaborate with us in adopting these greener alternatives, we can provide them with a powerful tool to make their supply chains greener.”

More than six million litres of HVO fuel will be rolled out within DHL’s on-site fuelling stations this year, replacing diesel in 20 locations across the UK. In 2024, the business plans to install additional fuel bunkers across its network, increasing its use of HVO fuel to over 24 million litres, and with the effect of a full year, the carbon savings impact will be even greater.

The roll-out of HVO fuel in the UK brings to life DHL’s recently announced Green Transport Policy, a global standard on the most suitable green alternative per market. The Policy comes with an investment of around 200 million euros in alternative technologies and fuels to reduce close to 300,000 tons of CO2 emissions in the next three years in partnership with customers.

Emission-free Truck Fleet

A lower chassis and battery-powered too – they are the main features of a new generation of emission-free truck tractor units that the freight forwarding and logistics company, Duvenbeck, has welcomed into its fleet.

The new vehicle is a so-called ‘low deck’ tractor unit. Low deck means that it can only haul trailers with an interior loading height of three metres due to its low chassis height. These trailers, which are described as mega trailers, are particularly efficient and suitable for services in the automobile industry, because they enable the space to be fully used in the best possible way. The low-deck tractor unit is based on the MID CAB model in Volvo’s FM range of vehicles. It has been electrified by the Volvo subsidiary, Designwerk Technologies, which has its headquarters in Switzerland.

Duvenbeck is using the vehicle for highly productive shuttle services for selected customers in the automobile industry – for example, between Herne in Germany and Ghent in Belgium. The battery-powered version is the first low-deck tractor unit that Duvenbeck is using for long-distance services in Germany.

“We’re taking another step towards electrifying our fleet by using the battery-powered electric tractor unit. In our role as a logistics partner for the automobile industry, we’ll support our customers’ transformation process towards e-mobility by providing even more electrical and eco-friendly transport services for goods in future,” says Bernd Reining, the Fleet Manager at Duvenbeck, explaining the latest development.

“The new low-deck electric truck has already demonstrated its suitability for long-distance services during the last few weeks. If the battery is charged to a level of 340 kilowatt hours, the vehicle is able to travel up to 275 kilometres – even when fully loaded. When used in conjunction with the suitable charging infrastructure, this electric truck is making a market-ready and long-term contribution to reducing environmentally-damaging emissions in our customers’ transport networks,” says Robert Frehen, the Chief of Staff at Duvenbeck, adding his comments.

Half of Large CV Fleets Could be Hybrid or Electric by 2025

Samsara Inc. (NYSE: IOT), a pioneer of the Connected Operations™ Cloud, today announced new research, revealing that over half (55%) of physical operations leaders surveyed in the UK and Ireland could have a hybrid or electric fleet by 2025, rising from 42% currently.

Samsara’s 2023 State of Connected Operations Report, which surveyed 300 physical operations leaders in the UK and Ireland who are running fleets of 150+ vehicles, reveals sustainability of operations is a critical priority for more than half (53%) of these leaders.

Half of those surveyed are in the process of purchasing or leasing electric vehicles (EVs) for their fleets, while 45% are training their drivers to reduce fuel usage and idling as a way to combat the emissions they produce. In addition, two in five (41%) fleets are already using clean or sustainable fuels, and of those, 45% are using hydrogen fuel cells and 68% battery electric vehicles.

Growing social and investor demands for more sustainable operations are also influencing leaders in their day-to-day decisions to reduce carbon emissions, with the primary drivers being to meet customer and partner expectations (45%) and investor expectations (38%).

However, fleet operations face challenges when it comes to being more sustainable, with around half (49%) of leaders saying a major hurdle for electrifying their fleet is the lack of fast-charging stations. Another obstacle for many (46%) is the cost of electrifying their fleet.

Philip van der Wilt, SVP and General Manager EMEA at Samsara, said: “With sustainability a clear priority for physical operations leaders in the UK and Ireland, investing in ways to transform their fleet has never been more important. Connected technologies can play an important role in enabling operations leaders to create a modern, sustainable fleet, providing data that can improve fuel economy, create more efficient vehicle routing, and promote more eco-friendly driver behaviour.”

Physical Operations Leaders Invest in Workforce and Tech

The leaders of physical operations-led organisations are focusing investment on supply chain improvements, employee skills, and sustainability strategies to reinvent their operations in 2023, reveals a new 2023 State of Connected Operations Report, from Samsara, the pioneer of the Connected Operations™ Cloud.

The report draws on perspectives from more than 1,500 physical operations leaders across nine countries, including 300 in the UK and Ireland, to uncover the strategies leaders are pursuing to build new revenue streams, leverage emerging technologies, and rise above economic and geopolitical uncertainty.

The research shows that 72% of leaders in the UK and Ireland are increasing their technology budgets this year, and going all-in on generative artificial intelligence (AI), automation, and digital workflows in 2023. Notably, the Connected Operations Leaders—those who reported the highest level of digital maturity–were 6x more likely to exceed their financial goals by 25% or more.

“There is no denying that monumental shifts are underway in operations. Leaders across the UK and Ireland are making investments aimed at strengthening their organisations and improving the customer experience for millions of people,” said Jeff Hausman, Chief Product Officer at Samsara. “Our research shows that those who have made digital transformation a key priority are better equipped to bring their organisations into the future, with many expecting positive change and return on investment as soon as the next 12-18 months.”

The State of Connected Operations report reveals four key priorities for leaders in the UK and Ireland this year, and their predictions for the future.

Reworking Supply Chains and Technology Budgets to Build Resiliency

The importance of operational visibility is growing and driving investments. Supply chain delays and shortages, volatile fuel prices, and the risk of recession are the top three concerns of leaders in the UK and Ireland. To increase supply chain predictability and efficiency, 57% plan to move operations back to their country of origin, known as onshoring, this year. Real-time operations data is a competitive advantage and critical for decision-making for 97% of leaders in the UK and Ireland (compared to 90% globally). As such, 72% are increasing their technology budgets this year (compared to 67% globally).

Out with the Old—in with AI, Automation, and Digital Workflows

With boosting efficiency top of mind, leaders are leaning into generative artificial intelligence (AI) and automation. By 2024, 83% of leaders in the UK and Ireland plan to use generative AI and 92% automation to modernise their operations. Further, 56% are already using or plan to use autonomous vehicles and/or equipment this year. Leaders are also scrapping pen-and-paper processes for digital workflows, and by 2025 they predict 58% of their employees in the field will rely on digital workflows to perform day-to-day tasks.

Investing in Workforce Development isn’t a Perk, it’s a Priority

The future of work is rapidly changing as technology transforms legacy ways of getting work done. Consider in just two years, leaders predict 1 in 6 employees will be doing jobs that don’t exist today. This helps illustrate why more than half (56%) report teaching employees how to use new technologies is a top priority this year.

Using Sustainability as Fuel for New Revenue Streams

Investments in sustainability are leading to the invention of new operating models. Leaders in the UK and Ireland are planning to monetise EVs through pay-per-use or subscription charging stations (58%) and sell energy back to the grid (59%) by 2025. At this time, leaders predict 55% of their organisations’ fleet vehicles will be electric or hybrid.

Hausman added, “The bottom-line benefits of digitisation are clear, but it’s the positive impact on lives and the environment that will be the most incredible to see. These leaders are shaping what we’ll remember as a transformative decade in physical operations.”

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