Recently, fleet owners have faced a number of challenges, including oversupply and intense competition squeezing margins. Compounding this pressure is a dilemma; when owners invest in fleet performance optimization solutions, it is charterers who profit from the investment.
We believe that both fleet owners and charterers can and should benefit from fleet optimization solutions. What's more, we have a clear proposition that supports this scenario. In this article, we will outline this proposition by explaining:
- How a new generation of vessel performance solutions is offering unprecedented value.
- How a specific pricing model removes key barriers for fleet owners to invest in fleet performance.
- How fleet owners can use fleet performance solutions to build a sustainable competitive advantage.
Let’s take a look at these points one by one.
Optimize your fleet performance with the combination of logbook and sensor data
Today, when vendors and industry players talk about fleet optimization, the conversation often centers on topics such as fuel consumption, speed, hull and propeller fouling, and engine performance. This is all valuable data. However, it completely misses relevant performance data from your crew.
On the other hand, some alternative solutions calculate vessel performance based only on information provided by the crew through noon reports, in some cases complemented by basic AIS data. But despite the value hidden in these reports, as a single source of data it is prone to human error.
So this begs an obvious question; what if you could combine sensor data and performance data from your crew in a truly digital way? With richer data, the possibilities to enhance performance are far greater.
This is where Onboard steps in. Unlike other solutions, Onboard offers the ability to collect all relevant data from your vessel’s equipment and record electronic logbook data from the crew. The reason Onboard can provide this in a way that comparable solutions cannot is the Onboard Server. This is a powerful edge device that runs apps for your crew, collects sensor data, and combines both data sources in one central data store on board your vessel. This rich, real time and unique set of data opens up a world of new optimization possibilities - and potential for efficiency gains.
A pricing model that works for both owners and charterers
Onboard’s solution has the potential to be truly groundbreaking. However, even a compelling solution needs to be priced in a manner which makes practical sense and allows fleet owners to create return on investment - especially at a time when margins are tight and oversupply is rife.
And that is why Onboard offers a subscription model. This makes sense for fleet owners in a number of ways.
First, this business model enables you to eliminate expensive capital expenditures costs from your balance sheet, and transitions this to the much more manageable and predictable operational expense.
Second, there is no longer a large upfront investment with the uncertainty of it achieving ROI. This drastically lowers the risk of investment, and is potentially a smart way to tie investment in vessel performance directly to revenue created with it.
And finally, with Onboard you are able to see direct returns, which can be measured within weeks and range between 8-12 times the monthly subscription, depending on your vessel type.
Build a sustainable competitive advantage
A game changing technical solutions and a better pricing model already make for a compelling combination to build a sustainable business advantage. But these are not the only ways you can differentiate your offering and build stronger relationships with prospects and customers.
Win new business
In the commercial phase, the ability to share vessel performance data (read: hard proof) with your prospects can be the difference between winning and losing new business - particularly in an oversupplied, commoditized industry. Win new business on value, not price.
Increase customer happiness and retain more business
It is always more economic to keep customers rather than acquire new ones. Giving charterers access to the rich data offered by Onboard can further strengthen your relationships. Along with all the operational efficiencies charterers can achieve, on a relationship level, it removes any potential friction around vessel performance and the integrity of performance reports, as well as providing the opportunity to optimize collaboration.
Integrate data into your own and your clients’ dashboards
The power of combining sensor and human data offers enormous potential to improve fleet performance, but once this information is digital it can be used to do much more. With the unique Onboard API you can integrate all this data into your dashboards, use it for compliance, or for automating business processes (for example your planning, billing and maintenance tools), and more.
Get started with Onboard
And the best part of this story is that we are still in an age of discovery. In fact, businesses working with Onboard are only scratching the surface of the potential optimizations that can be made with the power of combined sensor and logbook data. What kind of competitive advantages could you unearth? To find out more, contact us.
