A new report from EMARKETER predicts there will be nearly 181 million connected car drivers in the US by 2028, making up 70% of licensed drivers in the US. That report goes alongside with a McKinsey projection that more than 90% of vehicles sold in 2030 will be connected.
Here, Alysia Johnson, President of the Car Connectivity Consortium (CCC), discusses how advancements in vehicle connectivity are providing procurement professionals with greater efficiencies, sustainability gains, and improved user experiences, ultimately strengthening supply chain resilience.
Of course, connectivity is already a component of some vehicles, with security features like digital keys, assistance functions such as maintenance updates, and comfort additions like autonomous driving.
These upgrades will have big impacts not only for consumer cars, but also for fleets and procurement managers, too. Here are three areas where smart connectivity is helping to strengthen supply chain resilience.
More accurate forecasting
Vehicle connectivity will play a large role in enabling better efficiency among fleets and the supply chain. For example, fleet managers can track truck data through vehicle identification numbers, allowing them to better predict when a certain part might fail or when service maintenance is due. With more accurate forecasting, the fleet managers can adjust driver schedules and operating times, avoiding lengthy delays should a ride break down at an inopportune moment or in a difficult-to-reach location.
Suppliers and original equipment manufacturers find value in that data, too. Connectivity data enhances lead time capabilities and last-mile planning, which allows for better planning and relationships between both sides. Knowing where a fleet vehicle is, its current load status, maintenance issues, and other insights put procurement teams in better positions to deliver for their partners and customers.
We might even see more companies taking the next step and introducing self-driving fleet trucks, particularly for shorter routes between transfer hubs. These can add to long-term savings, which can be passed around all participants.
An increase in sustainability
Global EV sales increased by more than 21% from 2023 to 2024, with one in every five cars sold being an electric one. The US is shifting its federal fleet towards EVs, working toward a 2035 goal of becoming fully electric.
This move toward sustainability is trickling down across companies, too, especially as ESG goals have become so essential to procurement strategies.
Fleets utilising smart EV chargers can take advantage of technology to strategise while maintaining green practices. For instance, charging during off hours, with apps alerting them of charger availability, which lowers costs while improving efficiencies.
Cities putting more focus on vehicle-to-infrastructure (V2I) initiatives is an encouraging trend, as well. This technology connects with infrastructure around the city, such as traffic lights, roads, and other vehicles, then shares information with drivers about traffic and weather conditions, potential delays, and speed limits, including sudden speed drops on highways. One benefit of V2I technology is helping drivers save on fuel and reducing CO2 emissions across fleets.
Better user experiences
An obvious result of more accurate forecasting and tracking within the supply chain is that customers can receive items they purchase in a timely fashion and know exactly when those products will arrive. Yet the benefits go deeper than that, as fleets and procurement departments extend their digital transformations.
Fleet managers and business owners can share and distribute digital keys with drivers, suppliers, and other involved parties, even if they’re not in the same location. These digital keys live on the recipients’ phone digital wallet with custom access management controlled by the central office. There’s no longer the need for the locking key cabinet behind the front desk, and companies can save on costs by not having to use – and potentially lose – physical key fobs.
Connectivity provides benefits that aid driving conditions. Night vision devices, fatigue warning indicators, and blind spot alert systems make for a safer user experience behind the wheel.
Another example is with rental fleets. Picture a situation where a family is traveling to another country for a vacation and plans to rent a car while there. After a flight, the last thing that family wants to do is wait in a lengthy line for the rental car. However, the car rental agency can take advantage of their vehicles’ built-in connectivity features and can share the car’s digital key directly with the family through their smartphones. They can walk off the plane and right to their car, beginning their vacation without any delays or stress.
As these connectivity trends continue to develop, it’s important for the industry to collaborate and build global technology standards, which benefit everyone involved. They make infrastructure and vehicles more interoperable while allowing companies to work within those standards to safely deliver the best possible experience for consumers. That’s an area we’re focusing on with the CCC Digital Key standardised ecosystem.
Staying agile helps supply chains remain more resilient. I’m excited to see these connectivity areas further develop and help procurement professionals across the globe.
