Electronic (web-based) credentialing expediated the registration and permitting process for trucks.
The benefits of electronic credentialing reported below are based on the data provided by 38 motor carriers and service bureaus contacted by telephone. The companies varied in size, conducted interstate commerce and were enrolled in electronic (web-based) credentialing. The companies provided data on their startup and recurring costs associated with using web-based credentialing (such as computers). Estimates of the financial benefits were based on the time and labor costs required to apply for and receive credentials, and the financial gain of placing trucks in service more quickly. Payback of costs was less than one month.
The return on investment ratio for electronic credentialing at 2,971:1. Savings per company were estimated at $3.6 million over a 10-year period (estimated), with an average annual net benefit of $360,500.
- The most significant benefit of electronic credentialing is the “time value of increased fleet utilization,” i.e., placing trucks into service with less delay.
- Using electronic credentialing allowed trucks to be placed into service an average of 3.5 days sooner obtaining credentialing with paper-based systems.
- The annual cost savings from the reduction in finance charges that accrue on vehicles as they await approval of licenses and permits per carrier (of those sampled in the survey) was $413,065.
- Labor savings per transaction were $4.13 (based on a reduction of 10-12 minutes per transaction).
- Savings from reduced materials and postage were $1 per transaction.
These results are also found in the associated summary report, Final Summary Report: CVISN Business Case, October 2007.