Intelligent transport systems in commercial fleet management: A study of short term economic benefits

Interest in the effects on businesses that have implemented Intelligent Transportation System (ITS) technologies has been growing but systematically collected evidence of the advantages inherent in these technologies at a micro-level is sparse. This study measures the effects of an ITS technology shortly after being developed and implemented by a courier company. The focus is on its labor augmenting potential. It details the effectiveness of the technology and the software development process. The case study concerns NOVA Group, a diversified transportation company and developer of dispatching software called Dispatch Tools. The effectiveness of the software is considered in terms of productivity of drivers as measured by the number of deliveries per driver-hour. Data were collected for the same three-month periods in 1996 before implementation and in 1997 after implementation. A panel of drivers and dispatchers participated. The change in productivity of these drivers after implementation of the dispatching software averaged 24%. An ancillary effect that was not anticipated was a decrease in stress on the dispatchers and improved communications between dispatchers and office personnel.