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1950 Third Street La Verne, California 91750
Best Delivery AnalysisUniversity of La VerneBUS 410 & BUS 456
14Fall
ContentsINTRODUCTION..................................................................................................................................................... 3
THE VALUE CHAIN..................................................................................................................................................................... 3SERVICE ACTIVITIES...................................................................................................................................................................6HOW CAN IT HELP TO DIFFERENTIATE?...............................................................................................................................7
IT FOR SALES AND MARKETING...................................................................................................................... 7SYSTEMS....................................................................................................................................................................................... 7WEBSITE...................................................................................................................................................................................... 8SOCIAL MEDIA............................................................................................................................................................................. 9YELP........................................................................................................................................................................................... 10LINKEDIN.................................................................................................................................................................................. 11FACEBOOK................................................................................................................................................................................. 13GOOGLE ANALYTICS................................................................................................................................................................ 15GOOGLE ADWORDS.................................................................................................................................................................15
IT FOR OPERATIONS: VEHICLE MAINTENANCE.......................................................................................17VEHICLE MAINTENANCE.........................................................................................................................................................17SOFTWARE RESEARCHED....................................................................................................................................................... 18RECOMMENDATION................................................................................................................................................................. 22
HUMAN RESOURCES.......................................................................................................................................... 23CRAIGSLIST................................................................................................................................................................................ 23MONSTER.COM......................................................................................................................................................................... 23EMPLOYMENT DEVELOPMENT DEPARTMENT....................................................................................................................24CURRENT PROCESS.................................................................................................................................................................. 24TURNOVER REDUCTION..........................................................................................................................................................25CONCLUSION............................................................................................................................................................................. 26
WORKS CITED..................................................................................................................................................... 28
2
Introduction
Over the past few months, the students at the University of La Verne have worked to
analyze and make recommendations to Best Delivery management. The following analysis and
recommendations are based off observations during a site visit and an e-mail stating the areas
Best Delivery preferred the students’ look into. There were three main components mentioned in
the email; how to improve and monitor marketing efforts, how to better manage and regulate the
vehicles in the Best Delivery fleet, and how to decrease the level of employee turnover. The
University of La Verne presents its analysis and what they believe to be the most beneficial
recommendations; this comes after months of research and discussion. The following analysis is
done following Porter’s value chain, as will be described in the next section.
The Value Chain
Michael Porter developed the value chain concept in his 1980 book 'Competitive
Advantage'. A value chain is the whole series of activities that create and build value at every
step of an organization’s structure. The total value delivered by the company is the sum total of
the value built up all throughout the company. The value chain is defined by Collier and Evans
as “a network of facilities and processes that describe the flow of material, finished goods and
services, information and financial transactions from suppliers through the facilities and
processes that create goods and services and that those deliver them to customers.” The value
chain model highlights specific activities in the business where competitive strategies can best be
applied (Porter, 1985) and where information systems are most likely to have an impact (Laudon,
101). This model looks at firms and takes their process and views them as steps that add
marginal value to the end product or service. There are two value chains used by businesses: one
for those who provide a service and another for those that provide a good. Since Best Delivery is
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Attract Provide Maintain
a service providing company, focusing on delivery, packaging and warehousing, they primarily
follow a service value chain approach. Below is an image that illustrates how the service value
chain works.
The first aspect of the service value chain is to attract customers through the use of
competitive advantages a company has to offer their customer base. When attracting new
customers, marketing is any company’s most powerful tool when entering a market segment or
expanding into new product domain. Currently, Best Delivery has a marketing plan focused on
attracting new customers through a few facets. They rely primarily on word-of-mouth from loyal
customers to build their client base and their one hundred and numerous webpages. With a
proper marketing plan, Best Delivery has the potential to attract a huge amount of new customers
and increase revenue substantially.
The next aspect of the service value chain is to provide the services; in the case of Best
Delivery the services are primarily shipping, courier services and warehousing. They provide
these services in a way that differentiates them from other companies. They specialize in same
day delivery. This is a highly useful service for companies dealing with products that cannot sit
in open air for too long of a period. One example that came up in class discussion was human
body parts and tissues such as a human heart or liver. One way that Best Delivery can improve
the way they provide their service is by making tracking more available to the customer. The
only way to do this is through the use of an updated technology system. Best Delivery can
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implement this through something as simple as a phone application. As part of their marketing
plan they can inform their customer that, if they use Best Delivery to ship their products, not
only can they take advantage of same day delivery but also they will be able to watch the
progress of the shipment in real time.
Maintaining the customer is the third and final step of the service value chain. Best
Delivery does keep in touch with some customers they have dealt with. John mentioned that he
somehow keeps track of the amount regulars’ use their service. He does this so that if they begin
ordering less and less he will be able to communicate with them and make sure they still are
satisfied with the service they are being provided and if there is a problem they can work to
resolve it. In addition, Anastasia mentioned that she offers better rates to people that she believes
will be returning customers and people that she believes will not be returning customers she
charges as much as she can. John also says that he believes that his company provides excellent
customer service and that is why customers continue to return. Because John and Anastasia
believe that the customer service they provide separates them from competitors, Best Delivery
should consider hiring an additional person with customer service experience to answer the
phone and help make the customers first impression of the company be more pleasant.
Using the value chain model perspective for Best Delivery will allow them to identify
where they can use information technology to enhance the competitiveness of the firm. When
looking to improve an organization it is important to understand that any improvements to be
made must add value to the service the company offers. In this case, Best Delivery made it
known that they already realized three possible areas of improvement: marketing, vehicle
maintenance, and human resources. Marketing is the main part of the attract stage of the value
chain. Vehicle maintenance is needed for the company to provide its service. Human resources
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are involved in all three stages of the value chain because it is the employees who attract
customers, provide the service, and maintain the customers. The customer’s interaction with the
people of Best Delivery is where the excellent customer service they are proud to be known for
comes from, and it is that service that keeps the customers coming back.
Service Activities
The success of a company can be measured by its profitability. In order to capture all
costs and revenue possible, it is imperative for a company to perform all activities as efficiently
as possible. Porter’s value chain activities include two main categories: primary activities,
product and market-related activities, and support activities, infrastructure, technology,
procurement, and human resource management.
Best Delivery is most interested in market-related actions for their primary activities.
Firstly, they must focus on outbound logistics, which includes: order fulfillment, transportation
management and distribution management. Additionally, Best Delivery is concerned with their
marketing, which includes activities like: advertising, promotions and pricing. Some of the main
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activities that Best Delivery utilizes for support activities include: procurement, the purchasing
activity of the inputs to transform these into services, technology management, using technology
to reduce costs, develop new products and increase customer service facility, human resource
management, the attainment of the strategic business plan and objectives, and infrastructure, the
planning management, legal framework and financing included with general management.
How can IT Help to Differentiate?
In order to effectively implement information technology (IT) into a delivery service,
Best Delivery has to evaluate what their customer’s needs are. Once the customer’s needs have
been evaluated, the company can implement IT to fulfill the expectation for their customer,
resulting in attracting a larger customer base. For example, a company can set up an online live
chat on the company’s website, used to provide real-time assistance for customers with an
inquiry. Online live chat can also record the conversation for the company to generate the most
frequently asked questions from the customer in order to avoid the same question in the future or
resolve the issue.
Information technology can also be used to generate data and information for the
costumer’s needs and expectations. For example, instead of only using SurveyMonkey to
generate customer’s feedback, which the company is currently utilizing, Best Delivery can also
use social networking such as Facebook, Yelp and Google+ to generate opinions, reviews and
feedback from the public. Having feedback pages on the company’s website is another way to
generate the data for the existing customers.
IT for Sales and Marketing Systems
The Internet is an ever-growing system that links people all over the world. Some
business owners wonder if having a website is essential for their business or just a waste of
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capital, because certain businesses do not sell their product or service online. When Tim W.
Knox was asked this question he said, “Yes, if you have a business, you should have a website.
Period. No question. Without a doubt”(www.entrepreneur.com). Having a presence on the
Internet is very essential for any business, especially Best Delivery. Although the company may
not sell any delivery services directly through their website, customers do use their website to
find their number and pertinent information about the company. Having a professional presence
on the Internet will give Best Delivery a better reputation among its customers.
Website
Three important characteristics of a website are reach, richness, and navigation. Reach is
important in a way where having reviews on the website allows customers to state their
experience, which is beneficial in two ways. First, a positive reading gives the company a good
reputation. A poor reading allows the company to be aware of a problem and can fix it. Richness
describes how and why particular media are selected to deliver a message. For example, a phone
call cannot reproduce visual cues like gestures, so it is less rich communication medium than
video chatting, which allows users to communicate gestures to some extent. Navigation
considers easiness to understand what a customer is looking for.
A website is not just a medium for representation of a company; it is a form of media
from which everybody can acquire information. It is a location connected to the Internet that
maintains one or more pages on the World Wide Web. While Best Delivery is occupied with
servicing their current customers, new customers are able find pertinent company information,
view services provided, directly contact management, and place quotes through a webpage form.
Best Delivery does a great job with global navigation. Global navigation is links to a
site's top-level categories that occur on every page of the site. It is important because it makes it
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easier for a potential customer to search for what they need. 97% of sites include global links to
the site's top-level categories. However, Best Delivery lacks in maintaining the website
organized. Navigating through the webpage, multiple links direct a customer to the same site,
which causes confusion.
Updating website information is vital to remaining relevant to the customer, whom
expects accurate, adaptable and calculated data in order to attract and maintain a strong customer
base. Alphabetizing the sites, and combining similar sites can better organize best Delivery’s
core navigation. This will reduce confusion and avoid too much clutter on the webpage.
Social Media
Social media refers to the communication among people on platforms of which they can
create, share and exchange information, ideas, and various other media forms. This form of
communication and social exchange relies heavily on web-based technology as well as m-
commerce. Many advantages can be obtained through the use of social media including the
reach, frequency and immediacy associated with public media postings. Additionally, social
media has proved a cost effective tool in building reputation and growing sustainability.
According to Pew Research, a study in 2011 concluded that about 80% of American adults are
online and 60% of American adults use social networking sites such as Facebook, Twitter,
LinkedIn and Instagram. Based on research of current market segments and Best Delivery’s
current structures, an updated webpage and Facebook, as well as a Google Analytics and
improved Yelp account can help move the company toward stronger and more beneficial social
media tactics.
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Yelp
When it comes to communicating with customers, one of the easiest ways is by utilizing
review websites. In the Nielsen survey, it was found that 78% of consumers find local
businesses through review sites. Yelp is a website and application that publishes reviews about
local businesses written by the customers who actually use them. The Nielsen study found Yelp
to be the most influential, trustworthy, and highest-quality review site, ranking above other sites
like Trip Advisor, Angie’s List, and City search. 98% of users have made a purchase at a
business they found on Yelp.
Best Delivery can upload information that a customer who is in the market for delivery,
warehousing or courier services in the area is searching for. The business can put a link to their
website, add photos of interesting elements of the business and add any additional information
they may want to share. The page is managed by the business and has many features that are
useful in determining who is looking at their page. The free service provides analytics that show
how many people are viewing the page and how many actually click the link to the business
website.
The customer reviews feature can be both a benefit and a hindrance. Customers who
have used the business have the opportunity to leave a review. If they have had a great
experience the customer can share it with others who go and look at the Yelp page. On the other
hand, if a customer is very dissatisfied they could write a negative review for all to see. At that
point, the business can respond to the comments publicly or send the customer a private message
to say thank you or to make amends with a dissatisfied customer.
Yelp has a feature called Yelp ads that a business can pay for, it runs as a pay per click
service. When paying for this service, Yelp will push the business’ page to the top of the search
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list a customer is looking at. If a customer Yelp clicks the page on charges the business a small
fee.
An important factor of Yelp ads is that the business decides a budget to set for the each
month. Once customers clicking the business ad have reached the budget, Yelp will remove the
ad at the top of the search pages but the company will continue to have their business page
available. Using Yelp’s analytics, you will be able to see the significant increase of traffic to the
business Yelp page and in turn traffic to Best Delivery’s website.
Best Delivery is currently using Yelp, however it is not accessing the full potential of the
site. The business page has information about the history of Best Delivery, services provided,
and hours of operation. There are several photos posted but could benefit from adding more
information to the Yelp page. As of now the page has one review but would bring more attention
to the page by having customers write reviews on the company.
We recommend that Best Delivery updates their already existing Yelp page, add
additional information about the business and ask customers to write reviews if they had a good
experience with the company. If Best Delivery is interested in using Yelp ads then it is suggested
to decide on a reasonable budget to set for the month to start out. If the company decides the ad
is not worth the money spent it is simple to remove the ad and continue with the free Yelp page.
LinkedIn was started in 2003 as a social media site used for professional networking. By
2006, it reported having 20 million visitors and as of mid 2013 reports having 259 million
acquired users. LinkedIn allows professionals and businesses to create accounts and interact
directly with one another. It is also a site that can be used by individuals or businesses to be able
to follow important businesses or industry figureheads for news and new ideas. In one aspect,
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LinkedIn can be used by a business to reach business-to-business opportunities as well as being
able to reach potential industry recruits or applicants for their business. The businesses looking
for skilled professionals can better attract them by using LinkedIn’s ability to group those
applicants and businesses together through industries. For an attempting entry-level applicant or
seasoned business professional on LinkedIn, it allows the user to be able to find the pinnacles of
their selected industries and creates that link that other social media sites cannot. LinkedIn offers
its members a platform for conveying their purpose, mission, and vision as a business or a person
to the subscribed market. The characteristic that differentiates LinkedIn from other social media
sites is that while every social media site focuses on the connections that their platforms allow,
LinkedIn is only focused on the professional forms of connections that create an opportunity to
constantly network with professional peers, employers, potential employers, figureheads,
applicants, employees, and companies along with anyone else that can offer a member a
professional benefit.
Best Delivery has an account on LinkedIn but it is outdated and is not being used to its
full potential. Their site is currently only followed by seven individuals which is not nearly
enough to gain benefit from having an account on any social media site. Just having an account
is not enough for Best Delivery to be able to fully utilize the benefits LinkedIn has to offer by
being able to attract anyone as a customer, professional peer, or an employee. Best Delivery
needs to update their account by verifying that all the information displayed on their account is
accurate and continue to maintain their page to a high standard in accordance to it being a live,
always available, interactive advertisement.
According to Forbes, there are three steps to improving a business’s LinkedIn account:
accepting requests, adding connections, and nurturing one's network. By accepting requests, Best
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Delivery can become most visible as their connections grow with companies they are in business
with as well as the individuals in the industry. In order to attract connections, Best Delivery can
try to add any employees or businesses they currently work with or have worked with in the past.
Also they can add links to their e-mails, website, Facebook, Yelp, and any other online accounts
they currently maintain to grow their network. Nurturing their network includes adding content
to their LinkedIn profile and updating their information to always stay current on business
updates and industry trends while interacting with their established members on LinkedIn
In a trucking or courier industry like Best Delivery, LinkedIn has opportunities that have
potential to encourage growth of their customer base and opportunities. When Best Delivery is
looking to hire, LinkedIn will be an easy source to find skilled workers. Quality employees have
an opportunity to be reached and attracted by Best Delivery by posting job listings and
application information. Whether it be a truck driver or an office employee, LinkedIn allows a
platform for Best Delivery to not only be able to reach those qualified applicants but also to be
able to illustrate their business’ goals and visions as well. An even more important reason for
them to use LinkedIn is for business-to-business connections that LinkedIn promotes which are
the core customers that Best Delivery focuses on. It allows a customer to have another form of
connection with the company they are paying for a service, which is always a positive addition to
a customer. It is just another form, a free form, of advertising that will help them get exposure
for individuals looking for a company to work for and companies who may need a delivery
service, courier, or warehousing.
According to thenextweb.com, Facebook currently has over 1.2 billion total active users.
This number alone is very impressive but what is even more impressive is Facebook’s growth
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rate. “Daily active users (DAUs) were 757 million on average for December 2013, an increase
of 22% year-over-year.” Also, monthly active users were 1.23 billion as of December 31, 2013,
an increase of 16% year-over-year” (Thenextweb.com).
Currently Best Delivery is not keeping information current and not staying active on the
profile. In addition, Best Delivery is using a personal profile, converted to a business profile.
Best Delivery is also not posting anything to draw attention to their profile. Small businesses
such as Recruit military, Coconut Bliss, and Hostel World have been able to use Facebook
effectively to promote their companies.
There are several ways Best Delivery can improve their Facebook profile. The first and
most important way is to create a fan page. A fan page is the best way for a business to represent
them on Facebook. One reason for this is because a fan page can be viewed by anyone on the
Internet, not just people who are active on Facebook. Another option that you can utilize on
Facebook is the ad create tool. The ad create tool is a great way to “target your ads to reach the
friends of the people who already like you. It’s a way to naturally grow your customer base
through word-of-mouth.” Also with the ad create tool, you can be specific with the audience you
want to reach. When this is done people are more likely to respond to the ad because it can be
customized to their liking and to that market.
The next way is to stay current and active on the profile. The more you post statuses and
update things about your profile, the more you will pop up on people’s newsfeeds. One specific
thing that we have seen other delivery companies do to attract attention to their page is posting
interesting facts about their company or just delivery in general such as “what is the heaviest
thing we have shipped?” Then users can click on your profiles status to find out the answer.
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Google Analytics
Google Analytics is a website analysis web service provided by Google. This service
allows the owner of a website to gather information about how their website is being viewed and
used. With many other forms of advertising there is a concern of “for the amount I spent, how
many people are actually seeing my ad?” This service allows the user to see exactly how many
clicks their advertisement has gotten, the number of impressions (people that have seen the
advertisement through their search of keywords), the cost per click, and more. One of the most
beneficial services is the ability to track users as they use a site. Google uses cookie technology
to follow the users amount of time on a site, the most viewed pages, and even the page the user
leaves the site from (Barton).
Google AdWords
Google AdWords is Google’s paid advertising or pay per click (PPC) advertising service.
While most casual consumers have probably never heard of Google AdWords, about 91% of
their over 50 billion dollars in revenue comes from the Google related Ads (Peterson). Although
it is a powerful tool, it is very simple to use. It can be described in 3 easy steps:
1. “People use keywords (or search terms) to search for specific products and services. [In
Best Delivery’s case, it may be ‘delivery service in Rancho Cucamonga.’]
2. If the keywords you’ve chosen [whatever is purchased from Google] match what people
search for, your paid ad appears next to or above organic Google search results.
3. When people click on your ad [you will be charged.]”
There are varieties of reasons Google AdWords is one of the most beneficial marketing
techniques that currently exist. Unlike many other forms of advertising it is measurable. Google
Adwords is also very cost effective; you set the exact budget that you would like to pay per day.
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Next the service maximizes marketing dollars based on relevance; having a huge budget will not
grantee better placement on Google. Lastly, unlike print ads that might reach a variety of
uninterested consumers, Google AdWords allows firms to reach a highly targeted market
segment.
Looking at the cost of advertising on Google, it is important to realize it is a pay-per-click
service, meaning a charged is only incurred each time a person clicks on your sites links. The
pay-per-click method allows users to determine how much they would like to allocate for the
day, meaning the charge is for clicks, and the link will not appear as an ad after the money is
exhausted, saving firms from high unwanted cost (Canlas).
Next, we look at one of the biggest benefits and one reason we believe Google AdWords
is perfect for a small business, maximizing relevant webpages. What this means is that
companies that advertise on Google are not ranked by the amount of money they spend on the
advertising but by how relevant their content is to the keywords that were searched. Moreover,
Google will take into account the content provided, selected landing page that the link will take
the consumer to, and various other things. It is important to note that Google has never said what
is most important in their rankings (Sterling).
The last important thing to consider is that Google allows firms to create a highly
targeted campaign. One of the most relevant would be the location targeting; this allows users to
select specific geographical locations, including cites, territories, and a radius around a location.
This makes sure that the target market that will actually consider using a service only sees the ad.
The last piece of information that we should end with is that Google Analytics is free, if
the site gets under 1 million views per month; while Google AdWords is only pay for clicks.
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IT for Operations: Vehicle Maintenance
Vehicle Maintenance
For Best Delivery, vehicles are used in providing the services to their customer. Best
Delivery needs their trucks to be in perfect running order each and every day to reduce the
probability of having any mechanical issues out on the road when there are customers waiting on
their deliveries. Best Delivery has expressed that they have not been tracking their vehicle
maintenance the way they feel they should be.
There are three ways to keep track of vehicle history and maintenance and every option
has its positives and negatives. The first option is to utilize software that can help store the
information Best Delivery wants to keep track of. The second option is to outsource and hire
somebody else to keep track of that information and let it be their responsibility to make sure that
the maintenance is getting performed and repairs are being made. The third option is what Best
Delivery is currently doing, not using software and having drivers fill out their checkout forms
but the company says nothing is being done with the information coming from the drivers.
Best delivery has made it understood that what they are doing is no longer acceptable and
changes need to be made. Now there are two options, and there are hundreds of companies
devoted to fleet maintenance, however John asked for software to help him keep track of this
information. After looking into many different software packages, four stood out as being what
Best Delivery was asking for.
Best Delivery management highlighted the major features they are looking for in vehicle
maintenance software. These features include tracking the mileage, sending alerts when regular
maintenance (e.g., oil change, brake, tire, and belt replacements) is needed, tracking repair
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history and damages by uploading photos, and alerting dispatcher if something is wrong with a
vehicle. Making the daily vehicle inspection report digital and mobile was another concern
mentioned. Tracking damages to the driver who caused them has been an issue for Best
Delivery; they stated that they would like a better system for doing so. Best Delivery also made it
clear that they want a mobile app as opposed to website app.
Software Researched
Fleetio
Fleetio is a software/mobile application that allows users to be connected with
information about their vehicle fleet. The biggest advantage that Fleetio has is that the software
is completely web-based meaning there is no need to install anything onto a computer.
According to Best Delivery management, there is a push for software that is an application and
Fleetio
Completely webAccess from any internet enabled deviceUnlimited usersEasy to import/export dataLimited access depending on needs from the softwareEmail alerts$69 per month
eMaint
Vendor portal with secure loginCustomizable dashboards and reportsCost tracking and repair historiesInventory control toolsMobile solutions with barcoding technologyStarting at $40/user/month
MyRig
Daily inspectionUpload photosReports of maintenance issuesTrip reportingDamaged goods reportingProvides information regarding the condition of the vehicle$15 per driver per month
Fleetmatics
Web BasedAlerts when service is neededDriver IDKeep historical records of all servicingEliminate paperworkTracks driver behaviorStarting at $35 per month
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can be used by multiple users via their Android device. This also means that the information can
be accessed from anywhere on any device connected to the Internet, including mobile devices,
which get their own interface as well.
This web software allows users to be given just the amount of access that the administers
would allow them to have; therefore, giving Best Delivery management the opportunity to have
their workers only see and be able to modify information that is relevant to them and their trucks.
This software has many customizable elements depending on the needs and wants of Best
Delivery.
The best part is that is cost $69 for a “Medium Fleet,” which Best Delivery falls into.
Should their amount of trucks stay under 50 they will not go into the next bracket. Lastly, it
gives them the opportunity to import large amounts of data they already have and export reports
for what they want to know. Fleetio gives Best Delivery access to the information they want
without bogging down their current system.
eMaint
eMaint is a computerized maintenance management systems (CMMS) software that can
help with truck maintenance. eMaint is well known for its flexibility, customization capabilities,
and ease-of-use and solid reporting features. The company provides the standard version with
$40/user/month to premium with $120/user/month.
The challenges organizations face today with fleet maintenance management is long and
labored. Fluctuating fuel costs, unexpected repairs and scheduling issues can decrease the total
cost of operation for each vehicle. Since 1986, eMaint has been addressing these challenges by
providing easy-to-use, customizable software as a service, which enables organizations to
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quickly resolve fleet maintenance issues and anticipate future maintenance requirements through
preventive programs.
eMaint provides a complete set of fleet maintenance software tools for helping fleet
managers deal with the service, preventative maintenance and repair activities critical to
maintaining vehicles and other fleet assets. Fleet maintenance management solutions deliver the
ability to capture, track and analyze fleet's total cost of ownership (TCO) metrics including:
Vehicle Data, Vehicle Usage, Fuel Consumption, Inspection Requirements and Costs associated
with your fleet operations.
MyRig
MyRig is an android base application that has many features. Some of these features
addresses the issues that Best Delivery wanted addressed. One major feature Best Delivery asked
for is a system that allows them to know who damaged which vehicle. “MyRig is a user-friendly
trucking software application that allows drivers to record inspection information with greater
speed and efficiency while also providing dispatchers with real-time access to important
information regarding the condition of the vehicle” (myrigapps.com). Best Delivery will have to
enforce their truckers to use this feature; the app will allow them to take pictures of the trucks
before entering the truck and when their shift has ended. This way Best Delivery can pinpoint
who damaged which vehicle and know the exact day it happened. A feature that Best Delivery
has not stated was an issue they needed resolved was customers complaining of damaged goods.
MyRig has a feature that helps with people making false claims about damaged goods,
“The most popular features of MyRig are its interactive processing of assigned loads, signature capture, and processes for the Daily Trip Sheet. When drivers combine the signature capture feature with MyRig's digital imaging capabilities, they can protect themselves against false damage claims” (myrigapps.com).
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Other features of MyRig are driver daily scheduling, load processing, load inspection,
signature capture, trip reporting, home page, paperless functionality, rig performance, and GPS
tracking option. The GPS does not only allow the dispatchers to track all the trucks, but it will
also give them the best and fastest route the trucks could take. The app works on any android
smartphone or tablet so that may be limiting Best Delivery’s hardware option, and a second issue
is that it costs 15 dollars a month per driver. It is a little costly, but if Best Delivery tried it out
for a month they could test it out and see if the app saves them more money than it costs.
Using the mobile tablet on MyRig allows the reports of maintenance issues, tracking
information, load information, and route information to be instantly accessed by any staff
member at the office or dispatch location. That saves more time for the company at multiple
levels which in turn leads to less costs and more effective work time. Having this data so easily
accessible creates the opportunity for the office staff to use this recorded accessible data to create
a new reference for the company when it comes to projecting future costs, creating routes that
are more economical, and for a multitude of other business efficiency aspects. In the technology
realm, the trucking industry has taken notice that an effective digital recording system with
accessible data is a major improvement for any size transporting company.
Fleetmatics
Fleetmatics is a web-based software package with mobile application that can be used to
manage all vehicle maintenance in one place. The Fleetmatics application is available on apple
and android devices. Each driver has their own ID within the system so the company can always
know who is in what truck which makes it easier to track damages to the person who caused
them. This package also makes it easy to set reminders to be proactive in getting vehicles
serviced, keep historical records of all servicing, and eliminate paperwork. Fleetmatics also
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offers insights into driver behavior. Driving behavior can make a big difference in how long a
vehicle’s mechanical systems will last. Best Delivery cannot be out on the road all day with their
drivers but with Fleetmatics they can procure driving style reports that show information like
hard braking, hard accelerating, and harsh cornering and provide an overall safety score for each
driver.
The most apparent benefit of a package like this, of course, is the money saved in the
long run. Avoiding larger breakdowns and repairs is one way of saving money. Using this
software, Best Delivery will be capable of decreasing the risk of vehicle breakdowns by keeping
an eye on vehicle maintenance and repair needs. Vehicle breakdowns can lead to lost time on the
road and large repair bills. By staying on top of vehicle maintenance, Best Delivery can avoid
these losses and costs. This system allows the user set alerts to send notifications every time a
vehicle is driven a certain distance or a certain amount of hours, or when a predetermined date
arrives. It also sends automatic alerts letting you know when the vehicle is due for service,
protecting you from unexpected operating expenses.
Recommendation
MyRig was found to be the best application for Best Delivery to use because it covers all
the issues that Best Delivery needs and more. It is built for companies that do exactly what Best
Delivery does. It also is made for android devices, which is perfect for Best Delivery since all the
truckers are equipped with an android device currently. Features of MyRig are daily inspection,
damaged goods reporting, driver daily scheduling, load processing, load inspection, signature
capture, trip reporting, home page, paperless functionality, rig performance, and GPS tracking
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option. All these features are available to Best Delivery at the low price of $15 per trucker per
month.
Human Resources
Truck driver turnover has been a major issue for human resource in the trucking industry
for long time. The turnover rate for truck drivers is currently 103% for large carriers and 94%
annually for smaller truckload carriers, according to the American Trucking Associations. The
cost of each driver turnover can cost as high as $5,000 dollars. Therefore, it is imperative to
reduce truck driver turnover for Best Delivery.
Craigslist
Many small-business owners, like Best Delivery are using sites like Craigslist to post
opportunities and reach potential candidates. Craigslist is affordable ranging job ad price from
free to $25. Also, Craigslist will allow Best Delivery to include as many specifics the company
wants to customize each ad’s appearance. However, it is known that Craigslist provides many
unqualified applicants. Because Best Delivery already has set requirements, it will be easier for
the company to reach those potential employees.
Monster.com
The biggest job site online is Monster.com and Best Delivery also utilizes it. Monster
offers advice about resumes, interviewing and salary negotiation, and the Privacy Plus feature
allows you to block specified companies from viewing your resume, keeping it confidential from
a current employer. Monster.com is beneficial because it has multiple search options, it can
block resume from being viewed by current employer, and it has the most job postings and
resumes of any job site. On the other hand, it does provide numerous junk postings which there
is no way to filter.
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Employment Development Department
In addition, Best Delivery uses Employment Development Department to seek for
potential employees. The EDD provide lots of opportunities to learn from experienced staff and
ability to rotate jobs to get a more diverse experience. Then again, growth opportunities can get
very slow.
The American Trucking Associations have been the leading advocate for the trucking
industry. It would be beneficial for Best Delivery to look into the trucking associations because
they can learn from the ATA’S professional staff that works toward educating policymakers
about the essential role trucking plays in the economy.
Current Process
During the first phase of the application process, the applicant fills out the appropriate
forms and submits them for review by management. If the applicant meets the initial
requirements the manager will request a current DMV print out, medical card, and a valid drivers
license. The interview phase begins with giving the applicant a short aptitude test consisting of
questions about efficient routes and example scenarios. If the manager approves of the applicant,
they will give them the job offer and job description to be read and signed by the new employee.
Before an applicant is even considered to be a driver for Best Delivery, they must have a
commercial truck driver’s license and a minimum of two years experience driving for a
company. The applicant must not have a DUI or any criminal record and will be subject to a
controlled substance test before being officially hired.
The last phase of the Best Delivery’s hiring process is reached when the applicant passes
the prescreening process. The human resources department will give the applicant the
employment package that includes the employee handbook and all of the other important
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information they need about the job and company. When the driver is officially hired they will
be required to do ride along with a senior driver as a form of training and the senior driver will
teach the new hire how to fill out the equipment checklist.
Turnover Reduction
As Best Delivery improves its hiring process and company’s first impression it’s
important they improve their turnover rate as well. Two things Best Delivery should focus on to
decrease turnover is creating company culture, and implementing an incentive program.
According to INC.com there are five major steps to creating a company culture. The first
step is to create a compelling vision. To do this, Best Delivery should make all employees aware
of what they are doing so they feel more connected to the company. The next step Brest delivery
needs to take to form a company culture is to determine a purpose. To create a purpose Best
Delivery should decide why they are doing what they are doing. This reason should be more than
just “to make money” this should be something that employees can be proud to stand behind.
The third step is to align your business model with the wants, needs and demands of the
customers. In order to do this Best Delivery should always conduct business in a way that will
benefit the customer. The fourth step is to create a “wow factor”. To create a wow factor Best
Delivery should consider why employees should want to work for their delivery company
instead of another delivery company. What sets you apart and makes you more attractive to
employees? The fifth and final step to creating a company culture is to clarify your values. To do
this you should take everyone’s input as to what values they currently have. If there is no one
value that is constant throughout the company, create one that people can stand by and be proud
to represent.
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Implementing an incentive program can help with employee satisfaction which will
decrease Best Delivery’s turnover rate. With Best Delivery implementing an incentive program
based off company goals, this will help employees to be efficient, productive. When a specific
goal is set, whether it is for each department or company wide, it gives employees something
material to work for. If the goal is accomplished the employees are rewarded with the prize.
Conclusion
In the Best Delivery analysis, the emphasis on maintaining and expanding the customer
market was discussed as well as the company’s ability to diversify it approaches towards
marketing, incentive programs and current hiring protocols. By implementing some of the
recommendations examined, Best Delivery will reap major benefits from minor changes.
Best Delivery should better implement the social media facets that they currently use.
The company already has a Yelp, Facebook, LinkedIn and Google Analytics account but fails to
use the social media sites to their full capabilities. By simply updating their pages and posting to
them on a regular basis, the company can increase the amount of traffic and possible customers’.
The company’s website should also offer updated and pertinent information for both new
customers and new employees. By keeping the information accessible and up-to-date, Best
Delivery can remain relevant to their customer.
In order to ensure that merchandise is being transported safely and in a timely manner,
Best Delivery should also put more focus on maintaining and preventing vehicle issues. As
discussed with both John and Anastasia, a vehicle maintenance application is crucial to keeping
the driver’s on track and the dispatchers accountable. By implementing a vehicle maintenance
software, such as MyRig, Best Delivery can track preventative maintenances, see visual images
of the truck, receipts, and logs, as well as monitor gas consumption and mileage. By requiring
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and following up on repairs and routine changes, Best Delivery will be able to cut down on costs
from unforeseen repairs.
Attracting and maintaining quality employees is crucial to any successful company. By
evaluating Best Delivery’s current hiring processes and techniques, the company should
implement a deeper integration of their culture for new hires in addition to attracting better
employees with benefits and incentives. Firstly, the company should add positives features to
their employee handbook followed by prohibited actions. By doing so, Best Delivery can
encourage a positive onboarding and a more receptive employee. Secondly, the company should
consider forming flexible benefits to attract better, more experienced employees who are eager to
work for a company who cares for their employees. Lastly, Best Delivery should start an
incentive program for employees, encouraging them to maintain effectiveness and optimal
efficiency.
By making small changes to the way Best Delivery already runs and operates, the
company can ensure that they continue to grow and prosper in the future. The company as a
whole continues to differentiate themselves as the customer service leader in the small trucking
and courier industry.
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