Q: Given that 56 percent of the country’s logistics operations hinge on road freight services, how has Traffilog been received in Mexico?
A: The response has been exceptional. The market is extensive and the volumes of product and passenger transport that travel across the country continue to grow due to Mexico’s proximity to the US market. Traffilog’s business model is based on reducing our clients’ overhead, which helps us run a profitable and successful operation. We do not simply provide customers with a GPS tracking system, as some companies assume at first. Traffilog is capable of gathering a wide range of data from its customers’ vehicles, to analyze it and turn it into valuable information regarding maintenance, fuel consumption and driving habits, among other aspects that can reduce costs. Given its technological innovations, Traffilog separates itself from its competitors, which is evident in the quality and level of information we can collect.
Q: What is Traffilog’s business model and what steps is it taking to improve its market share in Mexico?
A: Mexico’s transportation market benefits from healthy competition. Everyone is looking for ways to improve their profit margin. Either companies increase prices or they reduce costs. Traffilog helps them achieve the latter. The bigger the fleet volumes, the larger the urge to implement a system like ours. Traffilog can produce preventative event forecasts, reducing technical impact and maintenance needs. This shifts the attention from a corrective stance to a preventative approach, reducing the unproductive time of a vehicle waiting at a service shop and minimizing the risk of failure in the middle of a delivery. Our system also can improve maintenance scheduling by working with the appropriate information in a timely manner, knowing the vehicle’s technical status beforehand. Traffilog can even evaluate the efficiency of a driver’s habits, including shift changes, clutch and braking and acceleration.
In terms of fuel efficiency, our DMAS product offers drivers an evaluation of their performance through notifications in the style of traffic lights. The device notifies them of good or bad driving practices in terms of safety or fuel efficiency with red, yellow or green lights. Solutions can be implemented instantaneously, making improvement much more attainable for the driver. Whether it is presented as a report, an alert or an event, the driver can receive this information live and on the go. To wrap all of our solutions into one, Traffilog also offers logistic models that are used on the road. These include dispatch services and route planning for distribution operations.
There are thousands of parameters that we can measure to provide a deeper level of understanding about vehicle efficiency. Through Traffilog’s active center we can process this information and channel it to our customers in a timely manner. Our department of automotive engineers analyzes data and offers fitting alternatives to our clients. These may be immediate applications that need to be implemented on the go or periodic adjustments to vehicle components. Our reports include failures, solutions and the monetary costs if solutions are not put into action.
Q: Traffilog’s advantages are evident but how does the company communicate the benefits to small companies, owner operators and private car-owners?
A: To cover every opportunity in the market, the company also offers a solution designed for light vehicles. Traffilog has a solution called B on Track, a cheaper product that only covers specific functions, allowing customers to monitor DTC codes and fuel-consumption efficiency through their mobile phone application. We created this tool for vehicle owners and inner city transportation, which makes it less robust than our original solution. Another area that goes hand-in-hand with vehicle protection is insurance. We have developed a collision detection system that allows us to record the details of any accident. These include the what, where, and when of the hazard and the approximate damage that was absorbed by the vehicle, even when it is parked. Traffilog wants to revolutionize the insurance business in Mexico with its solutions. As part of this approach, we are working with insurance companies to create profiles that will determine the insurance policy of each individual, which opens a new commercial area for insurance players.