Looking at X-Tra Delivery

When shipping companies first start up, they are all pretty much equal. Their success, however, can be determined by whether they can keep up with current technologies and stay competitive in their industry. X-Tra Delivers is a shipping company that provides a good example of this issue.

Outlining the Company

Now considered to be one of the most prestigious shipping and delivery services in New Mexico and Arizona, X-Tra Delivers Ltd. began operations in 1967 under a different name. Extra Deliveries originally specialized in moving large passenger luggage from one airport to another and shipping large packages for the USPS. They were only open for business for about 20 years the first time because they were squeezed out by larger companies like UPS.

Problems Galore

The small fleet of only eight trucks made it difficult for the company to keep up with demand. Before the more efficient delivery services arrived, keeping up with demand wasn't a problem. The problem surfaced when the larger fleets arrived with their lower costs and faster shipping times. Extra could not compete with this. Although they did not have the technology that they have today, the larger fleets were naturally more adept at providing better service than Extra could ever hope to provide with such a small fleet.

In 1983, Extra Deliveries went out of business and an era of large fleets came into being.

In 1992, founder Thomas Dillons' son, Jacob, decided that he would bring his father's dream back to life. This was the beginning of X-Tra Delivers. He began with a small fleet of just 16 trucks and ran them each on their own dedicated stretch of highway. He felt that, by doing this, he could keep the trucks moving without needing to refuel. These dedicated routes would also eliminate extra miles for the other trucks and overlapping routes. However, the problem was much bigger than he originally realized.

In the beginning, Jacob found it easier to let the drivers keep track of their own time and their own fuel consumption. However, as the reports began to show many inaccuracies that kept reoccurring, he began to see that these inaccuracies were costing him money. Customer service began to suffer and he was receiving an increasing number of complaints regarding the efficiency of his drivers.

Jacob did not want to run a business that was failing; however, it was suddenly easy to see why his father's business had gone under.

Solving the Problems

The company struggled for six years. During that time, went through multiple drivers, the price of fuel continued to increase and the company felt lucky to make any profit at all. Jacob quickly realized that the company would never survive if he did not make some needed changes quickly. A GPS vehicle tracker placed in each of their trucks would allow them to start tracking fuel consumption, idling times, stops and starts, and speed traveled by the drivers. Having better control over their drivers and the vehicles would allow them to increase their efficiency and productivity.

X-Tra's delivery trucks had vehicle trackers installed in them that required no interaction from the driver. They were fully automated and relayed information directly back to a computer in the office. The precise location of a truck and driver could be pinpointed on a map at any time and that information used to create the fastest and safest route to the next stop. Communicating this information with the drivers created a new kind of efficiency. Fuel costs and delivery times went down, and customer satisfaction increased.

X-Tra Delivers ' Their Found Benefits and Cost Savings

1. 
   

   Mapping the best route to a customer allowed for reduced fuel consumption.

   
   


2. 
   

   Electronic time-sheets allowed for a reduction in labor costs due to the systems ability to verify the hours work and differentiate between personal time and company time.

   
   


3. 
   

   Mapping systems let a driver avoid traffic jams and getting lost.

   
   


4. 
   

   Viewing a drivers current location allows a dispatcher to give a customer an accurate ETA.

   
   


5. 
   

   Security improved and the company was able to help police locate stolen vehicles or packages if necessary.