CSX wireless project delivers quick ROI

The use of BlackBerries boosts productivity, lowers turnover

By Matt Hamblen

July 11, 2005 12:00 PM ET

Recommended

Computerworld - One year after spending $400,000 on a wireless project designed to speed up communications with 450 independent truck drivers and cut costs, CSX Corp. reported last week that it may have hit a bonanza.
Jacksonville, Fla.-based CSX said the wireless notification application from Air2Web Inc. in Atlanta has cut the number of phone calls truckers make to the CSX Intermodal call center from 20,000 a week to 11,000, said John Dugan, technical director for intermodal applications at CSX Technology Inc.
And because drivers can now send short text messages and e-mail via Research In Motion Ltd. BlackBerry devices, they each save about an hour per day that they once spent waiting for a dispatcher, Dugan said. That alone improved driver productivity by 400 hours per day -- a major reason why driver turnover dropped from 80% to 50% in the past year, he said.
"Fifty percent turnover is still terrible but a big improvement," Dugan said.
Dugan said he believes these productivity gains have helped CSX cover its initial investment "and then some" in just one year. "This technology has exceeded our expectations in terms of payback, new revenue and productivity," he said. "It's definitely helping our business ... since drivers are not answering phone calls and can do more jobs."
CSX's achievement is noteworthy, given that a 15% to 20% return on investment is considered very good for such projects, said Jack Gold, an analyst at J. Gold Associates in Northboro, Mass. Deployments of wireless systems for use by field personnel can be highly effective because they usually replace paper processes or a middleman, such as a call center operator.
CSX call center operators who suddenly saw a reduction in the volume of calls they handled have been moved to other jobs, Dugan said.


John Dugan of CSX Technology Inc.

Intermodal truck drivers may make several trips a day of 40 to 80 miles each, carrying goods from a rail depot to a warehouse or store. With the wireless application, they can be notified instantly when leaving a location with no load and redirected to quickly find another load nearby.
Many of the drivers had cell phones, but they agreed to buy the BlackBerry hardware and pay for the monthly data service out of their own pockets, Dugan said. The drivers pay $49 per month for unlimited data service and $49 to $100 for the BlackBerry hardware.
CSX estimates that about 500,000 loads have been dispatched using the wireless system, which connects to an existing dispatch system called Pegasus. Earlynext year, CSX plans to add the ability to capture signatures digitally with a Bluetooth-enabled pen device so drivers can be paid faster. And it will add a Bluetooth-enabled bar code reader for scanning shipment documents easily.

Recommend Digg Twitter ShareThis

Email Print Send Feedback Reprints

Jump to comments

Mobile/Wireless

Additional Resources

WHITE PAPER

Do You Know the 7 Steps to Successful Data Migration?

Approximately 60 percent of data migration projects overrun time or budget, while some fail completely. Download this white paper, "Enhancing Your Chance for Successful Data Migration," to learn the critical steps you need to take to execute a data migration project with minimum cost and risk to your business.

WHITE PAPER

Total Cost of Ownership of Server Computing Vs. PCs

Read the Gartner research note to learn why the TCO of a server-based computing deployment used to deliver all applications to users is around 50% lower than that of an unmanaged desktop deployment.

WHITE PAPER

IDC White Paper: Linux in a Global Recession

Economic downturns have a tendency to accelerate emerging technologies, boost the adoption of effective solutions, and punish solutions that are not cost competitive or that are out of synch with industry trends. This IDC White Paper presents the results of an IDC survey of 330 companies in Western Europe, Asia/Pacific and the Americas that measures the receptiveness to Linux and takes into consideration changing views driven by the disruptive economic environment that businesses face today.

White Papers & Webcasts

Informatica 9 Launch: Transform your Business. Transform your world.

LIVE Nov 10, 2009 12:00 PM ET

Architecting Business Intelligence Applications for Change: The Open Solution

LIVE Nov 12, 2009 02:00 PM ET

Forrester Consulting - Optimizing Users and Applications in a Mobile World
Learn how to successfully deploy a WAN optimization solution that is specifically tuned for a mobile environment!

Managing Laptops Outside the Office
Learn how you can reduce costs by tracking mobile computers no matter where they are located.

WAN Application Delivery for Executives
Learn how to simplify server and application administration without creating performance problems for distributed users.

4G Ahead Video Program
Uncover the features and benefits of the two leading 4G technologies for enterprises considering future deployment.

Applying Remote Support Technology for Maximum Impact
Download Now!

Complimentary Webcast: Taking a Strategic Approach to Enterprise Mobility
Download This Webcast Today!

Measuring the Business Impact of Support
This ServiceXRG White Paper explores the importance of quantifying the impact of support on your business.

Lower the Cost and Complexity of a Mobile Workforce through Automation
Download This Resource Now!

Drive Down Enterprise Mobility Costs
Learn to empower your mobile workforce while simplifying mobility management and controlling costs.

Managing Mobility: Improve Data Security, Compliance and Manageability
Download This Resource Now!

All White Papers | All Webcasts