Proving the Business Case for the Internet of Things

Walmart extends asset-tracking contract with ID Systems

Iain Morris
November 19, 2014

Remote-tracking specialist ID Systems says that retailer Walmart has extended its asset management contract for a period of three years.
The company says the extension has a “potential” value of up to $14 million.

ID Systems has been providing its VeriWise-branded trailer tracking and management services to Walmart (Bentonville, AR, USA) for use with the retailer’s fleet of cargo trailers.

The contract extension will run until October 2017 and has a maximum aggregate value of around $14 million, according to a statement published on the website of ID Systems (Woodcliff Lake, NJ, USA).

“Walmart has been a longtime customer of ID Systems, for both our transportation asset management and vehicle management systems [VMS],” said Kenneth Ehrman, the chairman and chief executive of ID Systems. “We are delighted to continue our strong relationship with the world's largest retailer.”

The VeriWise system combines sensor, wireless and web technologies to provide real-time information about trailers and their cargo.

The technology is able to automatically identify, analyze and respond to critical transportation issues, says ID Systems, to improve the efficiency and security of logistics operations.

ID Systems has reported a number of successes in recent weeks and earlier this month flagged a 5% year-on-year increase in third-quarter revenues, to $11.7 million, due to increased sales of its industrial vehicle management systems.

Although ID Systems said that transportation asset management system contracts had been renewing at lower service rates – reflecting current market pricing for cellular communications – it also noted a 167% year-on-year increase in new unit sales of transportation asset management systems.

Despite the sales improvement, ID Systems’ net loss widened to $2.4 million in the quarter, from $76,000 in the third quarter last year, due to investments in new technologies and sales operations.

"We have targeted short-term investments to aggressively reduce our product development backlog, improve quality and efficiency, and accelerate product delivery to meet growing market demands,” said Ehrman when reporting third-quarter figures.

“Our initial investments are meeting expectations and we believe this is reflected in the double-digit increase in third-quarter VMS segment revenue, as well as our best quarter of transportation asset management unit sales in almost two years.”
 
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