Heavy Tech also Suitable for Light VehiclesFri, 09/01/2017 - 16:08
Q: How has Sitrack used opportunities in the market to develop new technology and benefit its clients?
A: Sitrack México has focused on security issues for the past six years. As technology became more prevalent in transportation, we saw a need to improve our value proposition to remain competitive. Tracking technology has evolved around the world but in Mexico it has yet to find a market. As margins for transport companies shrink due to elevated operational costs, we offer the advantage of a multi-brand solution, making us more cost-competitive and attractive to potential clients. Together with our headquarters in Argentina and our Chilean branch, we have developed new technology to help our clients and insurance partners face ongoing challenges related to unit theft.
Criminals will eventually understand how tracking technology works and how best to avoid it. Our new platform nullifies that possibility with secure new locks interacting directly with vehicles’ onboard computers. The system detects if a unit is being stolen and sends an alert to the authorities.
Q: What challenges did Sitrack face and how did the company overcome them?
A: The main deficiency was the dependence on hardware, which can be ineffective because criminals always know where a truck’s GPS unit is located and can disable it. Sitrack’s technology merges the hardware with a software solution that cannot be overridden. The possibility of criminals removing the tracking unit led most insurance companies to lose interest in transportation companies. The situation was further aggravated by the peso’s depreciation from the end of 2016 because the resulting rise in the cost of auto parts boosted demand on the black market even more. Cargo only adds another attraction for thieves. Although insurance companies are projecting a rise in vehicle theft in 2017, we expect our technology to restore their confidence in the market by ensuring their potential return on investment. Besides the benefits offered to insurance companies, transportation businesses must consider the value this technology represents in keeping their logistics network operational.
Q: How has the market received Sitrack’s new solution to protect against gasoline theft?
A: We launched our gasoline solution in December after testing its full capabilities and we are already negotiating with our first clients for this product. But even this solution is not as groundbreaking as our new technology, which will be unveiled during 2017. We are still finalizing our testing process and the next step will be to launch it with Qualitas. Once this first field is fully operational, we will approach new clients.
Q: How likely is it that this technology will be implemented in light vehicle fleets?
A: Even though a heavy vehicle engine is different to a car’s engine, we know our expertise will be applicable to light vehicles as well. Although our main client is Qualitas, we have already participated in the insurer AXA’s latest tender and hope to offer it a solution for light vehicles. This new technology is part of a long-term regional strategy and even though 2017 seems to be a challenging year, we also see enormous opportunity to incorporate developments that we have yet to bring to Mexico.
Q: How will Sitrack’s collaboration with the State of Mexico’s government impact the company’s growth?
A: We are the only company that has dedicated people in the State of Mexico’s C-5, which is a new building that comprises all data regarding the state’s security measures. This allows us to have a direct connection when our system sounds an alarm. Our team in C-5 contacts the police immediately, initiating a recovery strategy for the stolen unit. Our six years of experience in the Mexican market has also generated statistics regarding criminal activity in the country, which the government has found useful. We signed our agreement in October 2016 and as our operations grow, we expect to create new alliances with intelligence units from other states.