MPC
Research Projects (1999-00)

Identifying Number

MPC-188

Project Title

An Evaluation of the Impacts of ITS/CVO Technologies throughout the Supply Chain

University

North Dakota State University

Project Investigator

Brenda Lantz
Upper Great Plains Transportation Institute, NDSU
(303)969-5140 Ext. 329
brenda.lantz@ndsu.edu

External Project Contact

Project Objective

The specific objective of this study is to develop a methodology that individual companies could use to assess the impacts that an ITS/CVO technology will have on them and their customers uniquely. These impacts will be considered at both the operational and managerial level. In terms of the operational level, examples of potential impacts of a technology could include changes in transit time, reliability, productivity, accidents, and driver turnover. With regards to the managerial level, the introduction of a new technology will require an appropriate management orientation to facilitate the change it will bring to the company. The analysis here will concentrate on examining the current management style and determining appropriate modifications or enhancements which could be made in order to successfully implement the technology, as well as to ensure it is used to its full potential.

Project Abstract

The truckload sector of the trucking industry is extremely competitive; companies must vie for business through both lower rates, and more importantly, superior service. One potential strategy for a motor carrier company to better their service offering is through investment in technology. However, as indicated in a recent Transport Topics article, "Trucking companies risk being drowned by the flood of technologies and logistics services coming onto the market . . . a quandary for trucking's IT professionals: how to know which technologies will improve the way they do business and which may saddle them with extraneous information . . . to compete, trucking companies will have to provide better, faster service and at less cost." As this quote illustrates, commercial vehicle companies are in a precarious position, they realize that they need to invest in technology to remain competitive, but are unsure which innovations will give them the desired results. Although there appears to be little disagreement about the potential benefits of ITS/CVO, the information available regarding specific benefits or impacts of these technologies is lacking. The methodology developed in this project will add greatly to the knowledge in this area.

Task Descriptions

The literature review and identification of potential companies has already been completed. The remaining tasks are:

• Task 1 – Conduct a case study analysis of a few select companies in order to establish benefits as well as problems they have experienced (or anticipate) from ITS/CVO technologies throughout their supply chain.
• Task 2 – Using the information from the case study analyses, develop a survey which can be administered to a number of other companies regarding their experience with ITS/CVO technologies.
• Task 3 – Conduct an analysis of the survey results.
• Task 4 – Synthesize the analysis and information into a final report detailing a methodology that companies can use when considering to implement an ITS/CVO technology or to evaluate an existing technology.

Milestones, Dates

• Starting Date: September 1999
• Project Milestones:
  • Task (1): January 2000
  • Task (2): April 2000
  • Task (3): July 2000
  • Task (4): August 2000
• Ending Date: September 2000

Yearly and Total Budget

$30,000

Student Involvement (e.g. Thesis, Assistantships, Paid Employment)

Relationship to Other Research Projects

Technology Transfer Activities

Final report and subsequent methodology to companies, presentations of results.

Potential Benefits of the Project

Assessing the extent of the impacts discussed above and the resulting effect on costs, both to the company and its customers, will give a company an idea of how much they would be willing to spend to acquire and implement the technology. For companies who have already implemented a technology, the methodology could be useful to help them to assess the impact it has had, as well as possible areas for improvement. This methodology should help to accelerate the acceptance of ITS/CVO applications by motor carrier companies.

TRB Keywords

ITS/CVO benefits, technology, supply chain