Up to the minute tracking

Global Positioning System (GPS) technology is becoming indispensable. Expanding businesses in the region feel the need to invest to get ahead

With mobile phones having Global Positioning Software (GPS) installed in them, life is easier as one can find routes without panicking. But what about businesses with transport fleets? How do they track their trucks? How do rent-a-car companies know where their cars are? Are they being secretly shipped off to neighbouring countries and sold for a profit? What about taxis? How does the customer service representative taking orders for customer pick up at the call centre, know which is the closest taxi to be assigned?

The answer to all the questions above is GPS. Raheel Khan, Regional Manager – ME, Business Systems Group (BSG) says, “In the last four years BSG realised the need to get in to the supply chain industry as its massive growth couldn’t be ignored. We tied up with Exactus – a US-based company – which specialises in supply chain execution software solutions. GPS is one small component of transportation management which is an immense aid to a fleet. GPS gives complete visibility of the vehicle since it is tracked by satellite,” says Khan.

“The GPS unit is connected to various points within the vehicle such as the steering wheel, the brakes, the fuel tank, the engine. These points all contribute vital information to the company. It makes the system fault-proof. The fuel cannot be tampered with, neither can there be any lax as to how many trips can be made in a specified number of hours. Companies can track 15 parametres of the vehicle.”

One of BSG’s major clients, Nikai, recently started using the GPS technology in their fleet of 30 trucks. Vikas Bansal, Logistics Manager, Nikai, says, “With the rising cost of fuel, there was an urgent need to control costs. With GPS we have transparency, control, we can plan an optimum route. Since we know exactly where the vehicle is, I have even managed to do double the number of deliveries in the same amount of time. Prior to the installation of GPS, drivers would be ‘unable’ to finish one round of deliveries in the specified time. Now, since they can be tracked, it is the biggest deterrent.”

One of the unique aspects of the Nikai GPS installation has been an RFID reader installed at the gate of the warehouse. As a truck comes in, information of all parameters are downloaded onto the system and all one needs to do is log onto the portal and read the information of the truck’s trip.

Dubai Taxi Who hasn’t experienced waiting hours on end without getting one taxi to stop? But with the taxi call centre, one can get a taxi to come and pick you up no matter what your destination. This is, of course, at a premium. So, how does that happen? With the installation of GPS devices in each taxi.

Once a call is placed to the call centre, the customer service representative identifies the nearest taxi to the customer’s location. He or she then simply calls the taxi driver and asks him to go to the customer. This system works very well with taxis arriving five to 10 minutes before the required time at the customer’s pick-up point and contacting him to let him know of the taxi’s arrival.

Since its installation in 1995, this system has helped Dubai Taxi to better manage its fleet and use the data collected for planning future expansions. The fleet has grown considerably to meet the market demand and to keep up with the development and growth of the city and its surrounding areas.

Not everybody finds GPS useful, though. Abdul Hamid, Operations Manager, Diamond Lease Rent-a-Car, says, “Out of a total of 8,500 vehicles in our fleet, we tried the GPS equipment in only five of our vehicles. We put them in our Bentley buses to optimise route planning and fuel consumption.”

Raheel Khan, Regional Manager – ME, Business Systems Group (BSBSG)

Perhaps it would have been more useful had the GPS devices been installed in the entire fleet. “No,” says Hamid. “The technology we are looking for to install in our fleet is very expensive in the region at present.”

He elaborates, “There is a widespread system of default payments in the UAE. We want a technology through which we have total visibility and control of the rented car. In the sense, when we do not receive payment, we simply deactivate the engine. So the car is useless, until the payment is made. We have done our research and the cost of the GPS device is not the only cost, there will be a cost of monitoring the car and a monthly maintenance cost. It doesn’t look feasible at this point.”

According to unconfirmed reports, cases of rented cars being shipped to neighbouring countries and sold have been occuring, with local companies bearing the brunt of such a scenario. If this is true, GPS would be the technology of choice to counter the menace.

On par Getting back to Khan, he feels the logistics industry in the region is booming and GPS technology goes hand in hand with this growth. He says, “With all the free zones sprouting up and the increased facilities from the government, companies need to have their operations streamlined. Since Dubai is a hub, companies setting up here are investing in logistics, warehousing with technology playing an important role. People’s mindsets are changing.”

So although people now are more educated about technology and value the growth and profits such a system can put on the table, Khan says Dubai is still five years behind other international countries, technology-wise.

“This is because of infrastructure, education, adaptability and most importantly size of operations he says.

“In Europe, they have transportation companies managing 500 to 600 vehicles, whereas here, right now, there are companies with about 20 to 30 vehicles. So, prior to this no one really felt the need to install GPS in their fleets. But now companies are expanding their fleets and hence the need is just arising. The rate of expansion is forcing companies to think beyond UAE. In the GCC trans shipments regulations are improving, making everything more conducive to growth. Hence companies are thinking about 100 to 200 vehicles. This changes the scale and the return on investment,” he says.

The way the region is adapting to technology in logistics is phenomenal according to Khan. “What is exciting is, the activity has broken records in the last six months. Companies who were not prospects before have become prospects for us today. There has been a leap in this area and it’s only because so many warehouses have opened up here. JAFZA is expanding, DLC (Dubai Logistics City) is on the cards, the Technology Park, Investment Park, the Free Zone in Abu Dhabi … all of these are opening up opportunities. Today companies are a one-stop shop. One logistics company should be able to handle everything from freight, transportation, warehousing, customs clearance et al. And when this happens the companies need an integrated solution and that’s where we come in.”

“Today people realise that technology helps make informed decisions, it sets them apart from the competition, so people are investing, adapting and are also educating themselves,” he says.