IoT helps freight companies fight inflation
Players in critical sectors such as transportation, wholesale and retail, construction, field services, utilities, and agriculture are using data-driven platforms to stay competitive in a challenging macroeconomic environment.
“Our customers provide critical services that keep our planet running and represent over 40% of global GDP,” said Samsara’s co-founder and CEO. Sanjit Biswas said during the call. “Now more than ever, they are investing in digital technology to streamline their operations and increase their efficiency – and we’re here to help.”
Mitigation of costs and inefficiencies
Samsara provides these companies with Internet of Things (IoT) connectivity, artificial intelligence (AI), and cloud computing. For the quarter, it saw 59% year-over-year growth in annual recurring revenue (ARR), 73% year-over-year growth in customers with an ARR greater than 100,000 $ and a 70% growth in the number of customers with two or more products. subscriptions.
During today’s inflation, rising interest rates, tight supply chains, tight labor markets and geopolitical uncertainty, Samsara partners with clients to use data to mitigate labor inefficiencies, asset and fuel inefficiencies, insurance costs, compliance, safety and emissions.
For example, Biswas reported on the call that a trucking logistics company used the data to improve fuel efficiency and reduce vehicle idling. With fuel savings, the company funded driver pay raises and bonus programs that gave it a competitive edge.
Similarly, a liquid bulk transportation company used video-based security to train its drivers and terminal employees and reduce insurance claims expenses.
In a third example, Biswas said a manufacturer and distributor streamlined worker productivity between operations, drivers and customer service.
“It’s these kinds of cost savings that help our customers fight inflation and maintain a competitive position in their industries,” Biswas said.
Achieve ESG objectives
With the insights provided by IoT data, companies are also better able to achieve their environmental, social and governance (ESG) goals.
For example, a building materials company used vehicle telematics, video-based security and site visibility to gain data and visibility into its operations, Biswas said. The company reduced its carbon dioxide emissions by saving fuel and saw a decrease in preventable vehicle accidents.
“Small changes to their operations can significantly reduce their environmental impact and improve the lives of employees,” Biswas said. “With over 4 trillion data points captured last year alone, Samsara is uniquely positioned to impact our clients’ ESG goals, particularly around emissions reporting, worker safety and efficiency.”
Fuel is an operating expense for businesses in these industries and is very important.
“Our product has been critical in helping them quantify where that fuel spend is going and find the opportunity to reduce that fuel spend by 15%, 20%, 30% in some cases,” Biswas said.
Insurance costs are also rising as distracted driving remains a problem and accident rates are high.
“Our customers have been very cost conscious, so they’re looking to reduce accidents, lower their insurance premiums, exonerate their drivers, etc., so I think our driver safety products are also continuing to do very well. work for that reason,” says Biswas.
Another current challenge – the supply chain crisis – affects the availability of vehicles and other equipment such as trailers, generators and compressors. So customers want their existing equipment to work longer.
Biswas told of a customer who said they use Samsara products to understand which vehicles need maintenance and could break down and cause unplanned downtime. With this data, they can perform maintenance when needed.
“They’re very data-driven about how they manage these assets longer,” Biswas said. “So that’s how they fight the supply shortage.”