Evaluating The Effectiveness Of GPS Vehicle Trackers - By: John Mahoney

X-Tra Delivers – A Case Study

Just starting out, all shipping companies are equal in status. However, not all of them are successful. One good example of this is X-Tra Delivers. They were just an average delivery service until they implemented an important technology. This technology made them number one in delivery services in the Southwestern United States.

A Look at the Company

X-Tra Delivers Ltd. Operates as one of the top shipping and delivery services in both Arizona and New Mexico. This was not always the case. When the company first started in 1967, they operated under the name of Extra Deliveries. Their fleet only had eight trucks in it and they only shipped in two mediums: package delivery for the USPS and moving oversized passenger luggage from one airport to another. The first time the business was open, they survived for about two decades but were eventually forced out of business by larger companies like UPS.

What Went Wrong?

The company was small enough to have trouble keeping up with the demand. Before the arrival of some of the more efficient delivery services, being small was not an issue. However, when some of the larger fleet arrived, they had much lower shipping times and costs and their large fleets only amplified this. Competing became almost impossible for Extra. Even without the technology that is available today, the larger fleets more much more successful in the services they provided and Extra simply could not keep up.

The era of large fleet delivery services began in 1983 when Extra Deliveries went out of business.

Jacob, founder Thomas Dillon’s son, decided, in 1992, to re-open the business. The new name was X-Tra Delivers. He decided to start out with just 16 trucks and dedicate each one to its own space of roadway. His reasoning behind this was an attempt to eliminate overlapping trucking routes and unnecessary stops for refueling. He also felt that this would reduce wasted driver hours. The problem was, he did realize that the problem was much bigger than he thought.

Jacob left the responsibility for time sheets and fuel consumptions with the drivers. The error in this quickly became an issue when Jacob began to realize that their were reoccurring errors in the reports and that they were beginning to cost him money. There were customer service problems and there were many complaints regarding the efficiency of the drivers.

Jacob was very unhappy with the way that business was going. He was beginning to see why he father failed to be successful.

Making Things Right

For six years, X-Tra struggled just to turn a profit. The company went through many drivers and the fuel prices kept increasing. It soon became apparent to Jacob that the company must make some changes to survive. If they could utilize GPS vehicle tracker systems in each of their trucks, they would have much better control over both their vehicle and their driver’s performance. Controlling factors such as the stops and starts made by the drivers, their idle time, their fuel consumption, and their speed traveled would allow them to make changes that would increase their efficiency, and in turn, their productivity.

Jacob chose vehicle trackers for X-Tra’s trucks that required absolutely no involvement on the part of the driver. All of the information from the tracker, including real-time and historical, was relayed to a computer through which the dispatcher could see the drivers exact location on a map and then give the driver the best route to their next destination. Drivers arrived at their next stop faster and used less fuel, resulting in an efficiency level that had improved by almost tenfold.

The Cost Savings and Overall Benefits for X-Tra Delivers

X-Tra Delivers began to see their fuel costs go down due to using the system to determine the drivers best routes. Their labor costs also went down because of the systems ability to create an electronic time sheet and differentiate between personal and company times. Looking at mapping programs, dispatchers could help drivers avoid down time in traffic jams and from getting lost. Customers were happier because they could get an accurate ETA. Security became much better as any unaccounted for trucks could be found with the use of the vehicle tracker.

About the Author

John Mahoney is an expert on reviewing GPS fleet management equipments and technology. Follow these links to find best gadgets and information on: Vehicle tracking and fleet tracking in Dublin

Article Directory Source: http://www.articlerich.com/profile/John-Mahoney/27964

Additional Articles From - Home | Technology & gadgets | Gps