| All shipping companies start out equal. The | | | | manual, the drivers were allowed to keep track |
| difference is in how they perform. Whether or | | | | of their own time and their own fuel consumption. |
| not they succeed is dependent on whether they | | | | In time, though, Jacob began to notice some |
| can keep up with changing technologies and | | | | inaccuracies in the reports that seemed to repeat |
| advancements. X-Tra Delivers is a company that | | | | themselves regularly. These inaccuracies were |
| utilized the changing technological advances to | | | | creating unnecessary expenses for the business. |
| propel themselves to the top position amongst | | | | He began to see that his customer service |
| shipping companies. The Example of X-Tra | | | | department was suffering and the number of |
| Delivers | | | | efficiency complaints regarding his drivers was |
| All companies, just starting out, are equal in | | | | increasing. |
| status. This applies to shipping companies as well. | | | | Jacob’s business was failing and this was |
| Whether or not they succeed is dependent on | | | | not the way that he had foreseen it. He quickly |
| whether they can keep up with changing | | | | began to realize the reasons for his father going |
| technologies and advancements. X-Tra Delivers is | | | | out of business. |
| a company that utilized the changing technological | | | | Finally, Some Solutions |
| advances to propel themselves to the top position | | | | During the first six years, the company struggled |
| amongst shipping companies. | | | | to barely make a profit. They hired and fired |
| What is X-Tra Delivers | | | | drivers and fought the steadily increasing price of |
| In 1967 Extra Deliveries opened for business. | | | | fuel. It was blatently obvious that the company |
| They originally worked only in the medium of | | | | needed to make some changes and do it quickly |
| shipping packages for the USPS and shipping large | | | | if they hoped to recover and stay in business. |
| luggage for local airports. Within just a few | | | | Jacob felt that the addition of GPS vehicle tracker |
| decades, they were forced to close because of | | | | systems in each of their trucks would allow them |
| larger companies like UPS. Today, however, they | | | | to increase their productivity and efficiency. The |
| are considered to be one of the most prestigious | | | | GPS units would facilitate the automated collection |
| of the delivery and shipping companies in New | | | | of data such as a driver or vehicle’s idle |
| Mexico and Arizona. | | | | time, fuel consumption, stops and starts, and |
| Too Many Problems | | | | speed traveled. |
| As demand increased, a small fleet of only eight | | | | Jacob had vehicle trackers installed in |
| trucks like Extra had was not able to compete. | | | | X-Tra’s trucks. These vehicle trackers did |
| This had never been a problem prior to the arrival | | | | not require any type of driver involvement. They |
| of the larger, more efficient delivery services. | | | | automatically sent all of the required information |
| When they arrived, their shipping times were | | | | back to a computer in the office. The information |
| faster and their costs were much lower. These | | | | that could be obtained included both historical |
| were services that Extra could not provide if they | | | | information and real-time information. Route |
| wished to make a profit. Even without | | | | delivery times were cut down when dispatchers |
| today’s advanced technologies, the larger | | | | were able to see a drivers location on the |
| fleets were much more successful than the | | | | computer and efficiently map a route to their |
| smaller ones. | | | | next destination. This also cut back on fuel costs |
| Large fleets became the thing of the day in 1983, | | | | by eliminating unnecessary miles. Productivity |
| about the same time that Extra Deliveries went | | | | increased by almost ten times what it was prior |
| out of business. | | | | to the installation of the GPS units. |
| | | | | The Benefits and Cost Savings Realized by X-Tra |
| X-Tra Delivers came into being in 1992 when | | | | Delivers |
| Jacob, the son of founder Thomas Dillon, decided | | | | X-Tra Delivers began to see cost saving and |
| to reopen his fathers business. He began with a | | | | benefits in many forms. Labor costs went down |
| small fleet of 16 trucks. Each of these trucks was | | | | as the company was able to tell the difference |
| given a dedicated route that included only one | | | | between personal and company time and to track |
| stretch of highway. None of the drivers traveled | | | | each accurately through the use of electronic time |
| the same stretch of highway as another. His idea | | | | sheets. Fuel costs went down as consumption |
| was that he would eliminate unnecessary fueling | | | | decreased due to more accurate mapping and |
| stops and hours on the road. Eliminating | | | | dispatching. Customer were happier as they could |
| overlapping routes would also stop the drivers | | | | now receive an accurate ETA on their packages. |
| from traveling extra miles. Unfortunately, he did | | | | Security increased due to the installation of the |
| not fully realize the scope of the problem. | | | | GPS vehicle trackers. |
| Because the paperwork process was still mainly | | | | |