An investigation into the economics of fuel management in the freight logistics industry
Date
2014Author
Hoffman, Alwyn J.
Van der Westhuizen, Marius
Naidoo, Jitesh
Metadata
Show full item recordAbstract
The transport and logistics industry has to
confront many challenges to achieve the objective of efficient
distributed operations, such as vehicle and cargo traceability
and security. Research has identified effective fuel management,
including fuel theft, as a major concern within the road freight
logistics industry, as fuel expenditure constitutes a significant
portion of the running costs of transport operators. In this
paper we propose a telematics architecture that not only
addresses the needs of the road freight logistics industry for
effective fuel management, but that can be integrated into a
common infrastructure to be used for other management
functions as well. We estimate the cost of the proposed fuel
management concept and develop an economic model to
investigate the financial viability of its deployment. Using this
model we determine the required level of fuel savings to achieve
a positive cost-benefit for the proposed system and demonstrate
that this should be practically achievable against the
background of actual fuel losses experienced in this indust
URI
http://hdl.handle.net/10394/15919https://ieeexplore.ieee.org/document/6958123
https://doi.org/10.1109/ITSC.2014.6958123