The GPS and onboard computer
system is a solution for reducing paperwork, measuring vehicle costs and
efficiency, communicating with drivers, tracking trucks, and verifying delay
times. Three options were evaluated: General Transport developing its own
custom in house solution, XATA, and Smart Logix. Each
requires the purchasing of hardware and software as well as integration with
the current information systems.
In order to develop a custom in house solution General
Transport would need to hire technical staff to create a solution using the
necessary hardware and software. General Transport would need to purchase GPS
units and on board or hand held computers. In addition a server would be
required at the central office to store data. A training plan would need to be
developed to train dispatchers, managers, and drivers on the new system
XATA offers either a lightweight customizable solution
where customers provide their own servers and support or a complete suite of
support and hosting from XATA. Customers can customize their package based upon
what data they want to gather. General Transport would need to evaluate which
package will offer the best combination of benefits vs. cost and purchase the
necessary technology from XATA. This feasibility analysis is based on the
lightweight customizable solution.
Smart Logix would require
replacing the current supply chain management software, Telapoint.
In addition it would require the purchase of GPS units and onboard computers.
Going with Smart Logix means a long term contract and
the inability to use custom solutions from other service providers. Smart Logix supplies all the support and training with its
contract, however, General Transport will still need to adjust its policies and
procedures and a significant amount of time will be spent getting the
dispatchers up to speed on the new system
The benefits of developing
a custom in house solution include only having necessary functionality, customization to fit
General Transport's needs, and lower cost. The cost of developing an in house
solution is significantly less than the other solutions however it will take
much longer to realize the same returns, it will be more expensive to support
as new features are added in the first five years, and there is the risk of the
cost increasing during development. A custom solution would allow General
Transport to choose hardware based upon its needs and hire support as needed.
This solution would allow General Transport to track trucks, instant message
drivers, send driver schedules, fulfill orders, wirelessly transmit completed
orders back to the main office, and track driver hours. In addition it could be
used to collect IFTA mileage information and vehicle maintenance. It will be
difficult for General Transport to develop functionality for logging truck
locations for a long period of time and to collect engine information such as
speed, RPM, and fuel consumption.
XATA provides different customized solutions that will
allow General Transport to select the functionality it needs. In addition it
makes recommendations for equipment and allows General Transport to purchase
the equipment that is most cost effective. This makes it easier for General
Transport to customize its solutions and reduce the costs of this system. XATA
provides all of the functionality of the custom solution but already has
packages for logging truck locations and ecu
information. XATA works on the Microsoft Mobile platform allowing General
Transport to combine this solution with Telapoint and
its upcoming onboard computer driver scheduling. XATA also tracks information
for performance utilization to quickly calculate the cost effectiveness of
vehicles by truck, route, and driver.
Smart Logix is an all in one
solution for managing tanks and trucks. Smart Logix
provides solutions for wireless tank monitoring and vehicle management. Smart Logix is an integrated solution for tracking DOT hours,
tracking vehicle locations, monitoring engine performance, and communicating
with drivers. Smart Logix requires a significant up
front investment and a long term commitment. Smart Logix
uses proprietary hardware that will lock General Transport in long term.
Upcoming features from Telapoint will not work with
the hardware solutions from Smart Logix.
|
Candidate Systems
Matrix for GPS / Onboard Computer Solutions |
|||
|
Characteristics |
Custom In House
Solution (Candidate 1) |
XATA Solution
(Candidate 2) |
Smart Logix Solution (Candidate 3) |
|
GPS
Tracking |
Minor development needed to track trucks
in real time. Major development needed to track and store long term data of
tracking. |
System provides real time tracking of
vehicles and stores long term location information |
System provides real time tracking of
vehicles and stores long term location information |
|
Benefits |
High degree of customizability, lower
cost, only need to implement necessary features |
Medium degree of customization, allows
possible integration with Telapoint |
No customization, large amount of
unneeded features, requires implementation of systems that replace current Telapoint system |
|
Personnel
Requirements |
Will require an IT department to develop
and manage long term |
Allows customization of using GT
personnel, outside consultants, and XATA personnel for short and long term |
Requires majority of implementation to
be done by Smart Logix consultants, no additional
GT personnel but high consultation expense |
|
Required
Systems |
GPS units, on-board computers, possibly
printers, server for data storage, wireless telecom |
GPS units, on-board computers, possibly
printers, Internet hosting or in house office hosting, wireless telecom |
GPS units, on-board computers, possibly
printers, internet hosting or in house office hosting, wireless telecom |
|
Technology
Needed |
Requires access to a facsimile on both
sides, or requires access to a computer terminal with an internet connection |
Requires access to a phone on both sides |
Tanks outfitted with remote sensors Modem Dial-in
application software |
|
Digitization
of Documents |
Ability to develop modules for
digitizing different paperwork such as IFTA reports, driver logs, and
invoices |
Ability to send information wirelessly
for IFTA reports, driver logs, maintenance, engine data logging, and invoices |
Same as candidate 2 |
|
On
Board Communication |
Customize to send text messages and
driver schedules as well as driver acknowledgements and accident alerts |
Send text messages and driver alerts,
send driver schedules with add on from Telapoint |
Send text messages, driver alerts, and
accident alerts |
|
Utilization
Reports |
Customize to optimize routes, analyze
fuel efficiency, and collect statistics on individual drivers |
Optimize routes, DOT hours, analyze fuel
efficiency and expenses by fleet, driver, vehicle, and route |
Same as candidate 2 |
|
Feasibility Analysis Matrix for GPS / Onboard Computer Solutions |
||||
|
Feasibility Criteria |
Weight |
Custom In House
Solution (Candidate 1) |
XATA Solution
(Candidate 2) |
Smart Logix Solution (Candidate 3) |
|
Operational Feasibility Functionality. A description as
to what degree the functionality would benefit the organization Political. A description of
how well received this solution would be from user management, user, and
organization perspective |
25% |
System
would be customizable to provide necessary functionality. Costs would be cut
from delay times and less paperwork. Efficiency would be increased and
equipment could be better maintained. It would be difficult to justify hiring
tech personnel for this solution. Score:
80 |
System
would be customizable to allow better options in the future to be used and
equipment upgraded when General Transport desires. Efficiency would be
increased and equipment could be better maintained. Expense and less
stringent contract will be better received by management. Score:
85 |
System would
provide more functionality than XATA but at a higher expense. Many different
options for gathering data and would provide all of the benefits of XATA but
not integrate with current dispatch system. Would require significant changes
in processes throughout organization. Score: 70 |
|
Technical Feasibility Technology. An assessment of
the maturity, availability, and desirability of the technology needed to
support this candidate Expertise. An assessment of
the technical expertise needed to develop, operate, and maintain the
candidate system |
25% |
GT
would need to hire multiple programmers and retain one to two full time IT
personnel to maintain and support the system. General Transport does not
currently have the technical experience or equipment to do this solution.
Custom hardware and software would need to be purchased. Score: 20 |
Solution would require technical
experience from General Transport to be the most cost effective. XATA would
provide majority of support and equipment. Score:
70 |
Smart Logix handles all of the implementation and technical
issues. Smart Logix provides and supports all
needed hardware, software, and equipment. Score: 90 |
|
Economic Feasibility Cost to develop: Yearly recurring cost: Payback Period: (discounted) Net present value: (5 year) |
45% |
Approx. $210,000 Approx. $80,000 Approx. 4 years Approx. -$35,400 Score: 50 |
Approx.
$300,000 Approx.
$75,000 Approx.
2 years Approx.
$311,178 Score:
70 |
Approx. $500,000 Approx. $75,000 Approx. 4 years Approx.
-$111,178 Score: 30 |
|
Schedule Feasibility An
assessment of how long the solution will take to design and implement. |
5% |
Development will
take one to two years Score: 10 |
Implementation and customization
will take 3 – 6 months Score:
90 |
Implementation
will take 3 – 6 months Score: 90 |
|
Ranking |
100% |
48 |
74.75 |
58 |
|
GPS / Onboard Computer Financial Analysis |
|
|
|
|
|
||||
|
Net Present Value, Payback, and Return on Investment
analysis |
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
Custom In House Solution |
|
|
|
|
|
|
|
||
|
|
Alternative 1 |
Rate: |
0.1 |
|
|
|
|
|
|
|
Monthly |
|
|
|
|
|
|
Cost / |
Cumulative |
Rate of |
|
Savings |
Year |
Inflow |
Outflow |
Netflow |
NPV |
Payback |
Benefit |
ROI |
Return |
|
$0 |
0 |
$0 |
$150,000 |
($150,000) |
($150,000) |
($150,000) |
#DIV/0! |
-100.00% |
-100.00% |
|
$7,400 |
1 |
$88,800 |
$120,000 |
($31,200) |
($178,364) |
($181,200) |
3.0405 |
-67.11% |
-67.11% |
|
$9,400 |
2 |
$112,800 |
$100,000 |
$12,800 |
($167,785) | ||||