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Radar is a technology that truckers can use to help find their trailers. How it works is that a box is installed onto a trailer and it records data like the location of a trailer, its temperature, and its movement. It then takes this data and sends it wherever it needs to go, like a trucker or to headquarters. This technology should help trucking fleets reduce its cost while increasing their efficiency.
Now Radar does come with a cost. Each box cost $400 and each trailer needs its own box. After that initial investment, there is a subscription fee, which cost around $10-$20 per trailer every month.
What does this look like on the balance sheet? Well Titanium Transportation, a Canadian trucking company, will attach Radar to its 1,300 trailer. Therefore, the company will invest $520,000 to equip its trailers with Radar. After that, it will spend at least $13,000 every month.
Why would a company spend $520,000 to buy Radar and then continue to pay $13,000 every month to keep it? Could the company spend that money more effectively somewhere else? Titanium Transportation could do that but there is a reason why it decided to get Radar.
Truckers must get their trailers from a yard. Titanium Transportation has 1,300 trailers in its fleet, which means that it has big yards to keep them. When the trucker needs a trailer, he or she can go get it from the yard. If the trucker needs to get a specific trailer, he or she will have to look for it. This is not a problem in a small yard, but it can be problematic in larger ones. The trucker could spend unnecessary time trying to find the trailers, which wastes time and money. With Radar, a trucker can go directly to a trailer instead of trying to look for it. This means that trailers get on the road sooner, saving time and money. In other words, Radar pays for itself.
If Radar is successful, BlackBerry will have completely reinvented itself and it will stay relevant in an ever-changing economy.
For more information about the trucking industry, please contact us.
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