Singapore fleets put AI in driver's seat

Operators improve productivity without adding more vehicles.

Singapore logistics companies are using artificial intelligence (AI)-powered fleet management systems that track vehicles, optimise routes, and monitor performance to get more work out of existing fleets instead of buying more vehicles, as high ownership costs squeeze returns.

“Vehicles are very expensive in Singapore... it places a huge amount of importance on making sure that your assets are being utilised efficiently and to their maximum capacity,” Roger Calisto, CEO at Cartrack Technologies Asia Pte. Ltd., told Singapore Business Review via Zoom.

Analysts said AI and real-time fleet data are helping companies reduce idle time, improve route planning, and keep vehicles carrying cargo instead of travelling empty.

“Connected vehicle technology doesn't really help logistics firms to grow, but basically helps them to do business better,” said Mark Goh, director for industry research at the Logistics Institute-Asia Pacific at the National University of Singapore Business School. “The last thing you want is the vehicle to be on the move looking for cargo.”

Sugoutam Ghosh, head of the Graduate Diploma in Logistics and Supply Chain Management programme at the Singapore University of Social Sciences, said AI-powered route planning and live traffic information offer one of the biggest opportunities to improve fleet performance.

Goh said companies could also use historical shipment data to forecast demand, improve load planning, and decide when vehicles should be dispatched. “Your supply chain planning becomes even more critical with the help of AI,” he pointed out.

Calisto said AI also improves driver safety through cameras that detect fatigue, distraction, and mobile phone use, whilst helping fleet managers identify underused vehicles and predict maintenance needs.

Ghosh said companies should measure success by vehicle use, on-time deliveries, fuel or energy cost per delivery, maintenance costs, downtime, and driver safety rather than fleet size.

High implementation costs remain a hurdle for some companies, particularly small and medium enterprises, whilst smaller operators often lack the scale to test these systems across multiple operations, Goh said.

Calisto, however, said the biggest barrier is often not cost but mindset.

“The reality is... it's more or less a mindset,” he said. “They do need to adopt new technologies that will make them more efficient.”