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Transcript of Terminus Fleet Management System - White Paper
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What it is, what benefit it offers,
and how to successfully implement it
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1
Content
Introduction 2
Stakeholders 3
Situation before and after TERMINUS Fleet Management System 4
TERMINUS Fleet Management System - how it works 8
Implementation Steps 9
Results and Recommendations 10
Conclusion 14
About Freewill FX 15
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Introduction
TERMINUS Fleet Management System has been implemented with one of Thailands largest ready
mix concrete companies controlling over 300 trucks, in August 2011.
In June 2012, Freewill conducted an online survey addressed to all involved management and staffmembers of the Concrete Company and their third-party Transporters. In addition Freewill
conducted interviews using the approach described hereafter.
The aim of the Post implementation review was to:
Obtain feedback from Management and users
Evaluate the extent of improvements realized through the implementation of TERMINUS
Fleet Management System for both, the Concrete Company and Transporters
Identify areas for further improvement of the system and/or integration of additional work
processes
Based on the findings and inputs received, we have compiled this post implementation review
summary as a non-technical guideline for a successful implementation without omitting to illustrate
how the system works, what benefits it offers and what improvements have been achieved ten
months after implementation of the first two phases.
CONCRETE COMPANY
Discussion meeting withProject Sponsor to receive an
overall feedback from
Management level.
Discussion meeting with
Supervisors of the Dispatch
Operation
Discussion meeting with usersof the Dispatch Operation
Observe actual operation of
users of the system in Dispatch
Department
TRANSPORTERS
Select five transporters with
different size/usage parameters.
Discussion with Management
of each of the selectedtransporters.
Observe actual operation ofusers of the system
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Stakeholders
There are four stakeholders. Each of them has its specific core operation and administrative duties
(back office).
CONCRETE COMPANY Core Operation Back Office
Receive Orders
Plan deliveries
Dispatch trucks
Monitor truck movement
Order to Cash
Purchase to Pay
HR & Finance
Reporting
CONCRETE PLANT Core Operation Back Office
Receive Orders
Produce Concrete
Plant traffic logistics
Load trucks
Raw material procurement
Plant maintenance
CUSTOMER SITE Core Operation Back Office
Order concrete
Prepare site for delivery
Receive delivery
TRANSPORTER Core Operation Back Office
Provide trucks
Provide drivers
Payroll
Truck maintenance
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Situation before and after TERMINUS Fleet Management System
The concrete companys operation covers all of Thailand. The company sources its cement from its
parent company and uses its own network of approximately 33 batching plants to process the
cement to ready mixed concrete which it then delivers to its customers through a fleet of more than
300 trucks.
The concrete company does not own any ready mix concrete trucks. It obtains them from a number
of third party transporters under wet lease arrangements (hires vehicle and driver on a dedicated
basis).
The following table illustrates the business process and the supporting systems used:
Table 1: Business Process and Supporting Systems before Terminus Fleet Management System
Customer orders are received and registered centrally and then distributed to the appropriate
batching plant based on the customers location. The concrete company uses an ERP system to
register and manage the orders. An operator splits the orders into individual loads (tickets) and then
assigns them to a truck at the designated batching plant.
Based on the customers requested delivery time and an estimated transit time between plant and
customer site, the product is batched at the batching plant and the batching status is sent back to the
central ERP system using the concrete companys network.
Before TERMINUS Fleet Management System was implemented, the only way for the dispatcher
to track the status of a delivery was to call the truck driver on his mobile phone and ask for an
update on where he and the truck is, how far the discharge has progressed and when he expects to
be back at the plant for a next load. After the product was delivered, customers signed a delivery
ticket paper to confirm receipt of the product.
When the truck returned to the batching plant, one copy of the delivery ticket was returned to the
concrete company staff while one copy was retained by the driver and subsequently sent to the
transporters office who may have used it for different purposes such as to cross check the bi-weekly
summary delivery report received from the concrete company or for internal payroll purposes.
Close SalesOrder & BillTransac
tion
Proces
sing
System
DeliveryMonitoringBatchingSchedulingSplit LoadRegistering Sales Order
ERP System BatchingSystem ERP
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As the above table shows, all processes of the companys business operation were already
supported by a decent system, either ERP or the Batching System; all but one. The absolutely
crucial process of delivery monitoring was left to the old fashioned technology of telephony whose
capabilities are basically limited to a simple hello, where are you? which could never support
todays business requirements emphasizing speed, accuracy, and up to date information. Aside theaforementioned business requirements of the company, a truck fleet owner requires a whole set of
information to manage and control his fleet and his drivers. Information he will never get by a
phone call. The below table 2 shows the business process and the supporting systems after the
implementation of TERMINUS Fleet Management System.
Table 2: Business Process and Supporting Systems including Terminus Fleet Management System
As Freewills Post Implementation Review reveals, this minor change in the System landscape has
had a considerable improvement impact on the process of Delivery Monitoring including a positive
secondary effect on scheduling and bringing information to the Transporters that they never had
before. Table 3 hereafter lists the ten main differences between an operation without TERMINUS
versus an operation with TERMINUS.
Item Without Terminus With Terminus Benefit Beneficiary
Customer wants
to know where
the truck is
Dispatcher calls
truck driver on his
mobile phone to
ask location and
calls back the
customer
Dispatcher looks at
the TERMINUS map
screen, locates the
truck and answers
the customer
immediately by
giving the exact
position of the
truck
Dispatcher does not
depend on driver's
accuracy of
information.
Customer is impressed
with the speed and
accuracy he receives
the information.
No need to spend
telephone call charges.
Request can be
handled in one activity
loop: take the call,
answer the question,
end the call. Then go to
the next duty.
Customer: immediate
answer, no need to wait
for a call back
Company: Reduced
telephone bill, improved
time management of
dispatchers
Driver: no hassles with
answering mobile calls
while driving resulting in
increased safety
Close Sales
Order & BillTransaction
P
rocessing
System
Delivery
MonitoringBatchingSchedulingSplit LoadRegistering Sales Order
ERP System BatchingSystem ERP
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Item Without Terminus With Terminus Benefit Beneficiary
Truck availability The dispatcher
cant know
whether a truck
has reported to
work or not
without a
considerable
communication
effort.
The dispatcher
immediately sees
on the computer
screen when a
truck reports to
work or goes
offline for break
times or at the end
of the working
hours.
Instant visibility of
available or not
available trucks,
reduced
communication
effort/cost, improved
planning and
dispatching
opportunity
Company: Trucks can
immediately be used
when they become
available
Driver: No need for
phone calls, less waiting
time before being
called for a loading
Transporter: better
truck utilization
Truck is waiting at
customer's site
before it can
discharge
Unless the driver
calls, the
dispatcher has no
idea when the
truck arrives at the
site and whether it
is waiting there
before discharge
or not.
Dispatcher
immediately sees
when the truck
arrives at the
customer's site and
is alerted by the
system if the truck
is waiting longer
than the agreed
waiting time.
Dispatcher knows the
status of the truck at
all times.
Dispatcher can
intervene if any
irregularities occur as
he is immediately
made aware of it.
Dispatcher does not
have to manually
follow up by calling
every truck to find
out whether there is
a problem or not.
Company has
accurate information
in case it wishes to
claim additional
cartage fees from thecustomer due to
delays.
Company: Problems can
be handled before it is
too late (deterioration of
the product quality)
Driver: No need to call
the dispatcher
Transporter: Avoid risk
of ready mix concrete
ending up dry in the
truck
Truck discharges
slower than
expected
Unless the driver
calls, the
dispatcher does
not know and may
plan the next
delivery based on
assumed
dispatching and
backhaul times.
Dispatcher can see
the progress of the
discharge and is
alerted by the
system if the
discharge takes
more time than the
agreed standard
Dispatcher has full
visibility and can
immediately follow
up if delays occur.
Dispatcher sees
actual status and can
plan the next load for
this truck more
accurately.
Company: Action can be
taken to avoid delays
Driver: No need to call
the dispatcher
Transporter: can help
monitor the status of his
trucks and call the
company's dispatch
center if necessary
Truck is waiting at
customer's site
after discharge is
complete
Unless the driver
calls, the
dispatcher does
not know about
this unexpected
delay
The dispatcher is
immediately aware
if a truck doesn't
leave the
customer's site
within a reasonable
time
Dispatcher can follow
up to speed up the
process.
Customer: free up the
site of trucks standing
idle
Company: get the truck
back quicker for the next
load (shorten the cycle
time)
Transporter: the shorter
the cycle time the more
cycles per day ->
increased income
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Item Without Terminus With Terminus Benefit Beneficiary
Truck gets caught
in traffic jam
Dispatcher does
not know and
plans the next
loading time based
on wrong
assumptions
Dispatcher can see
the position of the
truck and that it is
not moving
Dispatcher can adjust
the planning and
loading time for the
next cycle
Customer: increased
accuracy in planning
leads to an increased
number of on-time
deliveries
Company: a higher on-
time delivery rate results
in increased customer
satisfaction
Unauthorized
Product Discharge
Nobody knows
about it
The dispatcher is
immediately
alerted by the
system if a truck
discharges product
outside of the
specified customer
site
Drivers know that the
system is watching,
resulting in an
extinction of cheating
habits
Company: Reduced
losses, no waste of cycle
time due to 'extra-stops'
Driver: no feel of guilt,
no hassles of being
suspected to cheat
Transporter: no need for
investigations in alleged
fraud
Theft of gasoline
out of the tank
Nobody knows
until it's too late.
Difficult to prove
A graphic report
undoubtedly shows
sudden drops of
the gasoline
quantity in the tank
indicating date and
time and location
Wrongdoers can be
identified
Transporter: can put an
end to gasoline theft,
most likely saving a
considerable amount of
cash
Driver Behavior Unless somebody
calls to complain,
nobody knows
how politely and
safely the driver is
driving
A report shows the
drivers behavior in
regards of speed,
acceleration and
breaking habits.
Other options are
available.
Drivers awareness of
the system results in
better driver behavior
Company: improved
perception of the
company in public
(company logo is not
getting linked to badly
driven trucks)
Driver: increased road
safety, lower accident
risk
Transporter: lower
accident risk, less
damage on trucks,
reduced maintenance
and repair cost
Cycle Time Difficult to
influence the cycle
time positively as
delays in each step
of the delivery
process are not
visible
Process steps are
visible at all time
and corrective
interventions can
be initiated
immediately
Reduced average
cycle time and better
ability to plan
accurately which
again improves cycle
time by reducing
waiting time
Company: increased
efficiency, more tickets
with same or less trucks
Transporter: Increased
truck utilization more
tickets per truck per day
equals more income
Driver: depending on the
remuneration model,
usually increased salary
Table 3: Business operation without TERMINUS versus an operation with TERMINUS
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TERMINUS Fleet Management System how it works
TERMINUS Fleet Management System comprises three hard- and software components as
described below and shown in table 4:
Vehicle-mounted equipment consists of a black box, drum rotation sensor, GPS antenna, fuellevel sensor and other optional sensors. These sensors collect data from various vehicle activities
and send it to the vehicle mounted TERMINUS black box. The TERMINUS black box receives the
data, performs some initial calculations and transmits it to the TERMINUS server according to a set
time interval.
Batching plant RFID readers and queuing software installed at each batching plant enable
drivers to clock in and clock out of the system thus enabling TERMINUS to recognize when
they are available to work.
Back-end servers and software receive data from the vehicles and from the batching plants andperforms relevant analysis. This data is then presented to users in the concrete company
(dispatchers and customer service representatives) as well as outside of the company (transporters
and customers) in easy to read status dashboards, and real-time tracking maps.
Table 4: Terminus Fleet Management System Overview
Vehicle mounted
Blackbox & Sensors
Data network
TERMINUS in Freewill
Data Center (Bangkok)
Dispatch Operation
Transporter/
Customer Portal
Batching plant with RFID
tag-in and queuing system Concrete CompanysSAP
Interface
to SAP
Mobile data
network
GPS
Satellites
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Implementation Steps
The implementation of TERMINUS Fleet Management System can be divided into four steps as
shown in table 5 and described shortly hereafter.
Hard- and Software Installation
Back Office Integration
Reporting & Dashboard
Smart Planning
Table 5: The four steps to implement TERMINUS Fleet Management System
Step 1 Hard- and Software InstallationBy installing the hard- and software, we gain visibility. TERMINUS tells the Concrete Company
and the Transporters in real-time where the trucks are located and at what speed they are moving, as
well as arrival and departure time at customers site. Truck sensors monitor drum speed, discharge
progress and gasoline usage. RFID tags register the drivers availability (check-in and check-out
from work), arrival and departure at the Concrete Plant and eventually its movement across the
Concrete Plant.
It is crucial to carefully analyze the different stakeholders expectations and needs in regards of
process integration across all four steps at the very beginning in order to clearly identify the suitable
hard- and software to be installed.
Step 2 Back Office Integration
The back office integrations focus is usually on the integration of the concrete companys Order to
Cash process. There must be a link between customer orders received and registered into the
concrete companys own IT system (such as ERP) and TERMINUS Fleet Management System.
However, it is strongly recommended to carefully analyze all stakeholders expectations and needs
in regards of back office integration since the very beginning, to make sure that the system willbenefit and add value to all stakeholders.
- Truck Sensors
- GPS
- RFID
- Terminus
Smart Planning
Reporting / Dashboard
- Establish a link between
Terminus and Back Office
Systems
2. Cost Saving
4. Efficiency
1. Visibility
Hard- and Software Installation
- Add an interactive Planning
tool to further enhance the
dispatchers pla nning ability- Obtain Management level
visibility for analysis and
decision making
3. Analysis & Control
Back Office Integration
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Example: it might not be of interest for the Concrete Company to know which driver drives the
truck. For the Concrete Company knowing which truck delivers which order is just fine. The
Transporter however could save a lot of time (and therefore money) in payroll calculation if the
system report did not only mention which truck delivered which order, but also which driver drove
the truck that delivered the order. While this linking of truck and driver may not be technicallychallenging, it requires a different batching plant equipment installation than TERMINUS standard
truck registering does, hence clarifying needs and expectations at the very beginning is important to
end up with a win-win implementation for all.
Step 3 TERMINUS Advanced Reporting & Dashboards
While order takers and dispatchers want to know what is going on now, today and tomorrow,
Management needs to know what went on yesterday, last week, last month, last quarter and last
year, based on different variables, such as country, region or plant, and how the data refers to the
companys KPI. Specific Management reports and a real-time dashboard will allow users to gather
the required data and to display it in an always up-to-date manner.
Step 4 TERMINUS Smart Planning
Smart Planning is an interactive tool that can be implemented on top of TERMINUS Fleet
Management System. By its interactivity, it is used both the day before delivery execution to
balance the delivery schedule among batching plants and trucks and also on the delivery day to
deal with unplanned changes (e.g., site delays, vehicle breakdowns, same-day orders). It will
reschedule concrete deliveries when the dispatcher squeezes a new delivery into the plan, or
delays or cancels an existing delivery. Smart Planning first shows what would happen to other
deliveries if the dispatchers intervention were to take place. The dispatcher then can confirm the
move or try a different scenario. Smart Planning helps to further increase efficiency by giving the
dispatcher an even clearer picture of the future plan based on actual events (delivery delays or early
deliveries) and a clear scenario visualization in case of manual interventions.
While Smart Planning is primarily a dispatcher tool, the increased efficiency also reflects on the
Transporters as it results in a better truck utilization with less waiting time and therefore an
increased number of concrete deliveries per truck per day.
Results and Recommendations
TERMINUS Fleet Management System has been well received and easily adopted by the users,
especially on the Concrete Companys dispatcher team side. As mentioned by the Concrete
Companys Management, the system implementation focused on the Concrete Companys benefits
and it is therefore not surprising, that some of the Transporters still appear reluctant in realizing
what benefits the system offers for them or even to use the system. We therefore would like to re-
emphasize the importance of including the Transporters since the planning phase and carefully
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analyze all stakeholders expectations and needs in regards of back office integration to make sure
that the system will benefit, add value and substantially reduce cost for all stakeholders.
While some cosmetics and functionalities continue to be improved to make TERMINUS Fleet
Management System even more user friendly, the most appreciated features as well on the Concrete
Companys as on the Transporters side are Visibility, Tracking, Planning and Report Printing.
Dispatchers also have emphasized that customers were highly impressed and satisfied when the
dispatcher was able to tell them immediately and exactly where the truck delivering their concrete
was located at the moment they called. That said, TERMINUS Fleet Management System is not
only benefitting the Concrete Company and the Transporters, it also provides tangible benefits for
the Customer.
Quantitative Data Analysis
The quantitative results from the user survey show that from the Concrete Companys participants
60% feel TERMINUS Fleet Management System makes their job easier, 75% think it makes their
job more efficient, 71% believe it reduces cost, 62% confirm an improved operational visibility and
76% would recommend TERMINUS Fleet Management System to a friend.
Quantitative analysis of data gathered by TERMINUS Fleet Management System and the
Customers own ERP system, show a significant improvement of efficiency.
Average Number of Tickets per Truck per Day
Since the time TERMINUS Fleet Management System has been installed gradually on the 300
trucks in the entire fleet, the number of tickets per truck per day has increased from 1.9 tickets to
3.3 tickets which represents an improvement of as much as 75%, hitting a peak in May 2012 with
3.5 tickets per truck or a 83% improvement (blue and red line in the table 6 below).
This of course could have been due to an increased demand for concrete in the customer market.
We therefore compared the numbers of the entire ticket quantity over the same time frame and
found out, that the market demand for concrete accounts for only 4% of the increase in tickets
issued (green line in the table 6 below).
Another scenario could have been, that for some reason, the average concrete quantity in m3
delivered per ticket has dropped, resulting in an increased number of tickets to deliver the same
overall quantity of concrete. This assumption has been proved invalid. Indeed the average quantity
of concrete in m3 over the same period of time has increased from 4.255 m3 per ticket to 4.412 m3
per ticket or by 3.69%, representing another increase in efficiency (table 7 below).
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Table 6: Average Number of Tickets per Truck per Day
Table 7: Average quantity in m3
per ticket
1.9
2.6 2.7
2.1
2.7
2.5
3.2
3.53.3
3.53.3
100%
137% 140%
111%
143%132%
165%181% 174%
183% 175%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12
Av
eragenumberofTicketsperTruc
k
Month of Operation
Average Number of Tickets per Truck per Day compared to Total Tickets in SAP
Average number of tickets/truck/day
Variance from initial value in %
100% 99%74%
60%77% 76%
91%106%
78%
103% 104%
Number of Tickets (from SAP) Variance in %
4.255 4.2434.271
4.3474.305 4.309
4.2714.330
4.3794.341
4.412
4.200
4.300
4.400
4.500
2011
Aug
2011
Sep
2011
Oct
2011
Nov
2011
Dec
2012
Jan
2012
Feb
2012
Mar
2012
Apr
2012
May
2012
Jun
Average m3/ticket (data from SAP)
Average m3/ticket
100.00% 99.72%100.37%
102.15%101.18% 101.27%
100.37%101.77%
102.92%102.01%
103.69%
96.00%
98.00%
100.00%
102.00%
104.00%
2011
Aug
2011
Sep
2011
Oct
2011
Nov
2011
Dec
2012
Jan
2012
Feb
2012
Mar
2012
Apr
2012
May
2012
Jun
Average m3/Ticket - Variance in % (data from SAP)
Average m3/ticket - Variance in % since initial value
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Other indicators analyzed
In addition to the above, we also analyzed
Average Loading Time per m3 (Table 8),
Average Waiting Time before Product Discharge, the time between the truck arrives at thecustomers site until it starts discharging the concrete (Table 9),
Average Discharge Time per m3 (Table 10),
Average Waiting Time after Product Discharge, the time between the end of discharging
the concrete until the truck leaves the customers site (Table 11).
Even though the graphics at first sight are not as impressive as those in above Table 6, it needs to
be said that a decrease in the Average Loading Time of 1 minute can be substantial for a fleet of
over 300 trucks. In essence it adds up to 16 hours of truck idle time that has been saved including
the fuel a truck consumes over 16 hours of idle time as well as its exhaust emissions. Or in other
words, 16 hours less in standing and loading can be turned into 6.6 more tickets delivered that day.
Table 8: Average Loading Time per m3
Table 9: Average Waiting Time before Product Discharge
00:05:34
00:04:00 00:04:0800:04:41
00:04:00 00:04:0100:03:41 00:03:33 00:03:42 00:03:33 00:03:31
00:00:00
00:01:26
00:02:53
00:04:19
00:05:46
00:07:12
2011 8 2011 9 2011 10 2011 11 2011 12 2012 1 2012 2 2012 3 2012 4 2012 5 2012 6
HH:mm:ss
Year/Month
Average Loading Time per m3 (Overall over time)
00:17:15
00:14:50 00:14:3400:13:08
00:12:00 00:12:14 00:12:15 00:11:5400:12:34 00:12:45 00:12:28
00:00:00
00:02:53
00:05:46
00:08:38
00:11:31
00:14:24
00:17:17
00:20:10
2011 8 2011 9 2011 10 2011 11 2011 12 2012 1 2012 2 2012 3 2012 4 2012 5 2012 6
HH:mm:ss
Year/Month
Average Waiting Time before Product Discharge (Overall over time)
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Table 10: Average Discharge Time
Table 11: Average Waiting Time after Product Discharge
Conclusion
Even though we expected to see an increase in efficiency after implementing TERMINUS Fleet
Management System, the improvements documented by the quantitative data is far beyond our
keenest expectations. While the actual benefits achieved by such a system may vary from company
to company depending on existing practices, dispatching organizational model and other factors,
the present assessment clearly demonstrates that TERMINUS Fleet Management System is not just
a nice to have tool; TERMINUS Fleet Management System is able to substantially increase the
efficiency of the business operation.
00:10:22
00:19:24
00:11:57
00:07:2400:08:00 00:07:35 00:07:22 00:06:50 00:06:20 00:06:27 00:06:38
00:00:00
00:02:53
00:05:46
00:08:38
00:11:3100:14:24
00:17:17
00:20:10
00:23:02
2011 8 2011 9 2011 10 2011 11 2011 12 2012 1 2012 2 2012 3 2012 4 2012 5 2012 6
HH:mm:s
s
Year/Month
Average Waiting Time after Product Discharge (Overall over time)
00:08:47
00:07:12 00:07:05
00:08:2900:07:27
00:07:4500:07:11 00:07:07 00:07:05 00:07:12
00:07:25
00:00:00
00:01:26
00:02:53
00:04:19
00:05:46
00:07:12
00:08:38
00:10:05
2011 8 2011 9 2011 10 2011 11 2011 12 2012 1 2012 2 2012 3 2012 4 2012 5 2012 6
HH:mm:ss
Year/Month
Average Discharge time per m3 (Over all over time)
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About Freewill FX
Freewill FX is an affiliate company of Freewill Solutions Co., Ltd. its mission is to help people
have better lives and to help businesses to become more effective by using mobile and wireless
technologies. With comprehensive know-how in wireless technologies, mobile enterprise solutions
and mobile network infrastructure, the company offers products to serve in four business aspects;
Mobile Network Testing Systems, Enterprise Mobile Solution, Advance Fleet Management
System, and App Studio.
Freewill Solutions Co. Ltd. is a leading software developer and professional services provider.
Established in 1991, the company has built an extensive portfolio of in-house developed software
systems, becoming a dominant market leader in the provision of solutions to the securities
brokerage industry both locally and regionally with, additionally, a distinctive position in the
provision of total solutions to the non-life insurance and business sectors. We offer our clients
technology and business solutions to improve our clients business and to help them to be morecompetitive in the market. Freewill implements the know-how to improve business performance of
companies operating in Thailand and the region by implementing world class and leading edge
technologies, concepts and practices. Freewill is uniquely positioned to address both, the technical
and people issues associated with implementing new technologies. This enables Freewill to offer its
clients integrated end-to-end business solutions.
The present white paper was written by Niklaus Stucki, a Managing Consultant of the Business
Consulting Unit of Freewill Solutions (email: [email protected] )
Website:http://www.freewillsolutions.com/introduction/advance-fleet-management-system-
145.html(you may need to copy the link and paste it into your web-browser in case you receive a
not-found error page)