Komatsu and Qualcomm to Provide Unique Asset Management Solution

construction.com May 28, 2001

By Harry Goldstein

Construction equipment distributors, owners and renters will soon be able to take advantage of an asset management system that combines global positioning systems (GPS), a vast wireless network and the Web.

Komatsu America International Company, Vernon Hills, Ill., and Qualcomm Wireless Business Solutions, San Diego, are teaming up to develop a construction equipment tracking solution that will offer customers real-time vehicle service data and position reporting via Komatsu America's Komtrax.com Web site.

Designed for Komatsu customers who sell, lease, service and operate construction, utility and mining equipment and associated service fleets, the Komtrax Web site is expected to be available in the second quarter of 2001. It will provide customers with access to data management services such as geographic position, engine hour and usage reporting, as well as real-time service fleet data from construction equipment vehicles.

Komtrax has been testing in both the U.S. and Japan for the past six months, according to Keith Sanderson, director of e-business strategic planning for Komatsu America. The deal with Qualcomm allows Komatsu to leverage Qualcomm's existing wireless infrastructure, saving the company the additional time and expense of creating its own network. Sanderson characterizes the agreement with Qualcomm as giving Komatsu customers the best of both worlds, combining Komatsu's knowledge of the construction industry with Qualcomm's experience in providing network solutions. It also gives Komatsu a leg up on the competition, many of whom are considering implementing systems similar to Komtrax, but will have to find an answer to the same network problem that Komatsu faced before the Qualcomm deal was announced.

While the pricing structure is still being worked out, the Komtrax service will cost approximately 1% added to the price of a piece of equipment and somewhere around $25 per month per unit thereafter, says Sanderson.

Komatsu sees Komtrax not only as a stand-alone revenue generator, but also as a better way to service the equipment throughout its lifecycle. "It's deeper than just revenues off of the Komtrax unit," Sanderson says. "It's the ability to better serve the end-use customer, as far as parts, sales and service after the machine is sold." For instance, owners can keep track of how many hours a particular piece of equipment has been in service and time preventative maintenance accordingly. This allows owner and distributor to anticipate service needs according to real-time information, which will help coordinate the equipment, the mechanic and any needed parts.

"It adds value to the equipment you're selling, and rental fleets can get increased utilization out of their product," claims Sanderson.

Artwork courtesy of Timberline Software Corp.

© 2001 The McGraw-Hill Companies - All Rights Reserved