Electronic screening produced operating cost savings per bypass of $8.68 for interstate motor carriers.

Results from a survey of 38 companies found that electronic screening was financially beneficial and improved driver satisfaction.

Date Posted

09/25/2009

Nationwide, United States

Nationwide,

United States

Identifier

2009-B00611

Final Report: Economic Analysis and Business Case for Motor Carrier Industry Support of CVISN

Summary Information

A survey of 38 interstate motor carriers and service bureaus that work with interstate carriers found that companies that participated in electronic credentialing and electronic screening realized significant financial benefits. Electronic credentialing expedited the credentialing process for new trucks and increased efficiency because the electronic exchange of information over the Internet is quicker and more accurate than paper-based credentialing systems, and it enables one-stop licensing and permitting (e.g., for the International Registration Plan (IRP), International Fuel Tax Agreement (IFTA), and permits for over-size/over-weight limits). The net effect is a reduction in both labor and time needed to obtain licences and permits, allowing trucks to be placed in service more quickly and thereby reducing the financial impact of withholding trucks from service. Electronic screening decreased delays and increased driver satisfaction.

A Business Case for Electronic Screening

A business case for electronic screening based on data from by 38 motor carriers and service bureaus found that the motor carriers that participated in electronic screening realized significant cost savings in time and labor. The companies provided the costs and benefits to the researchers during telephone interviews. The sample of companies varied in size, but they all conducted interstate commerce and were enrolled in electronic screening.

Carriers noted that the reductions in delay due to electronic screening also improved driver satisfaction and worker morale. Net benefits included:

Operating cost savings per bypass was $8.68 (the product of the average time savings per bypass and heavy truck operating costs per minute).
Total net benefits ranged from $3.2 to $219.4 million per company over the 10-year study time horizon.
A Return-on-Investment ratio (ROI) ranged from 6.1:1 to 15.9:1 for 17 of the 18 companies surveyed.
Payback periods were less than one year for all companies.
Annual net benefit per transponder-equipped truck was estimated at $1,169.

Notes:
These results are also found in the associated summary report, Final Summary Report: CVISN Business Case, October 2007.