SOURCE: Aberdeen Group, a Harte-Hanks Company

April 04, 2007 06:52 ET

Fleet Management Solutions Reduce Operating Costs by 11%

Organizations Leverage a Variety of Technology Tools to Improve Visibility and Control of Fleet Related Costs

BOSTON, MA -- (MARKET WIRE) -- April 4, 2007 -- Eight in ten service organizations recently surveyed by the Aberdeen Group, a Harte-Hanks Company (NYSE: HHS), stated that management of their fleets is integral to their overall operational and financial performance. As such, senior executives are looking to get increased visibility into and develop strategies to improve fleet-related productivity and cost metrics.

The recently published study -- Service on the Move: Driving Profitability via Fleet Management -- reveals that service organizations who have successfully implemented fleet management solutions have realized a 28% improvement in operator compliance, 11% reduction in maintenance costs, and 13% improvement in vehicle utilization. As the result, they reported a 12% increase in overall service profitability.

"Annual savings from operating costs alone of $1,100 per vehicle justify adoption of fleet management solutions," said Amit Jain, Research Director at the Aberdeen Group and author of the report. "Financial impact from reduction in insurance costs, accident costs, depreciation costs and increase in worker productivity make investment in fleet solutions a no-brainer."

According to the report, other benefits of fleet management-related automation include:

--  26% improvement in regulatory compliance
    
--  23% increase in warranty recovery
    
--  15% decrease in vehicle downtime
    
--  15% reduction in average travel time "windshield time" per job
    
Jain recommends that service organizations consider the following best-in-class strategies to meet their profitability and productivity mandates:

--  Do not underestimate the financial impact of operator behavior on
    profitability.
    
--  Realize significant costs savings by exploring the issue of warranty
    recovery.
    
--  Align fleet management initiatives with company goals and needs
    before technology adoption.
    
--  Base fleet preventative maintenance programs on fleet utilization,
    not time elapsed.
    
--  Involve stakeholders early and often throughout the vehicle
    lifecycle.
    
317 companies participated in this quantitative study, including Pepsi Bottling, SYSCO FOODS, Gothic Landscape, Transwestern Pipeline, Georgia Pacific, Qwest Communications, Grand Home Furnishings, Yorkston Oil Company, Santee Cooper, Tucson Water, Nufarm Ltd, Kone, United Stationers, Tri-State G & T, Fluor Enterprises, City of San Diego, Virginia DOT, Miami-Dade county, Canada Cartage, Petro Canada.

Underwriters of the this report are: SageQuest, Automotive Resources International (ARI), XATA Corporation, @Road, Telogis, Navtrak, Inc.

To obtain a complimentary copy of the report, follow the link: http://www.aberdeen.com/link/sponsor.asp?cid=3960

About Aberdeen Group, a Harte-Hanks Company

Aberdeen is a leading provider of fact-based research and market intelligence that delivers demonstrable results. Having benchmarked more than 30,000 companies in the past two years, Aberdeen is uniquely positioned to educate users to action: driving market awareness, creating demand, enabling sales, and delivering meaningful return-on-investment analysis. As the trusted advisor to the global technology markets, corporations turn to Aberdeen™ for insights that drive decisions.

As a Harte-Hanks Company, Aberdeen plays a key role of putting content in context for the global direct and targeted marketing company. Aberdeen's analytical and independent view of the "customer optimization" process of Harte-Hanks (Information - Opportunity - Insight - Engagement - Interaction) extends the client value and accentuates the strategic role Harte-Hanks brings to the market. For additional information, visit Aberdeen http://www.aberdeen.com or call (617) 723-7890, or to learn more about Harte-Hanks, call (800) 456-9748 or go to http://www.harte-hanks.com.

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