This presentation highlights why there is a need of GPS for transport sector. WebXpress is an IT and Solutions company that offers services in the domain of Logistics. Founded in 2004 the company has a presence in India, Saudi Arabia, East Africa, and South Asia. Our idea is to connect all stakeholders in supply chain and provide visibility.

1. Importance of GPS
For the Transportation Section

2. Agenda
 Introduction
 Understanding GPS and its application in Transport
 Is it worth to Invest?

3. Introduction

4. • GPS systems are used in transport industry around the world for
decades. In India too, they have been available for many years
but number of vehicle with such devices is still negligible.
• Should a transport invest in a GPS system? Is it really required? Is
it profitable or just customer hype? This TWO-part articles deals
with above issues.
• The FIRST part provides an introduction to GPS systems and
explains how they work. In SECOND part, we will discuss many
practical aspects to GPS investment and also try to understand
Return on Investment.

5. Understanding GPS

6. Understanding GPS systems
GPS - Background
• GPS stands for Global Positioning System, a satellite based system to
determine position of any object on earth.
• GPS was set up by United States Government for military purposes. Later,
the system was made available for commercial and scientific uses. US Air
Force operates 24 satellites circling the entire earth.
• The best part is that use of these satellites is absolutely free.

7. How does GPS work?
• A GPS receiver on earth receives signals from satellites mentioned above.
• A GPS receiver calculates in position by determining how far away it is
from these four satellites.
• It is similar to finding your position in a square if you know how far the
four corners are from where you stand. Only, this calculation is done on a
sphere called earth.
• Suffices to say that a GPS receiver knows exactly where it is on earth.

8. Inside a GPS box
A GPS box is much more than just a GPS receiver. Following diagram
provides an idea of various components of a GPS box.
RF Antenna
GPS Satellites
Global
Positioning
System
Microcomputer
Based System Logic
Memory
GSM/GPRS
Modem
Vehicle
Data
Logger
RF Modem
USB Key
Data Processing
& Control
Data
Transfer
Storage
Data Collection
Cellular
Network
RF Antenna
GPS Satellites
Global
Positioning
System
Microcomputer
Based System Logic
Memory
GSM/GPRS
Modem
Vehicle
Data
Logger
RF Modem
USB Key
Data Processing
& Control
Data
Transfer
Storage
Data Collection
Cellular
Network

9. What does this box do? Let’s find out.
• Step 1: GPS receiver receives signals from satellite to determine its exact position
• Step 2: This information is stored in a memory chip
• Step 3: The data stored needs to be communicated. This job is done by a GSM or a
GPRS device connected to the memory
• Step 4: GSM/ GPRS look for a mobile telephone signal. When they find the same,
they send this information via SMS or GPRS. If a network is not available, the data
remains stored in memory.
• Some GPS boxes also use an RF modem. This is used to send data when the GPS
box reaches a petrol pump or office.
• An on board computer system controls all these activities.

10. Application in Transportation

11. GPS in Transport
• How does all this help a transporter? Most transporters use GPS to locate their
vehicle. Let us understand how that works.
Cellular
Network
GPS Satellites
WebXpress
Users
INTERNET
Mobile Receiver
GPS Tracker
Box
GPS Tracker
Command
Center
Application
WebXpress
ERP
Application
GPS Module

12. How does this process work?
• Step 1: A GPS tracker Box is mounted on a truck
• Step 2: This box determines position of the truck and stores this information every
minute in memory
• Step 3: Whenever a mobile network is in sight, this box acts like a mobile phone
and send data from memory through mobile network to a GPS Tracker Command
Center
• Step 4: The GPS receiver send data that are not understandable by humans. So the
command center runs software to impose GPS data onto Maps
• Step 5: Also, the command center software talks to ERP used by transporter to link
this GPS data to vehicle number and ultimately tie it to a docket.

13. GPS and GIS
• Maps are of two types- the common ones that we see in atlas and diaries. These can be city
or state or country maps. These maps provide information at most to the level of a suburb.
• There are very detailed maps available for cities such as Mumbai and Delhi. But most
locations are just a dot in the map.
• A Geographical Information System (GIS) goes much beyond a simple map. It actually details
every street and every building in a given area. It also records information about nature of a
building- name, plot no, hotel or office or bank etc.
• A GPS system combined with GIS can actually tell a bank manager whether a money
collection van has reached a branch or not and on which side of street the van is parked.
• Obviously, GIS maps have to be built and it is an expensive proposition to do it for a huge
country like India.
• Thus, most GPS system show you position of a vehicle on a simple map.

14. Is it worth to Invest?

15. Is investing in GPS worth it?
Practical Issues Facing GPS
• While GPS is a great technology and very common across the world, there are issues specific
to India (As always!!). Let us discuss some them.
A. Availability of GIS Maps
• GIS is both expensive and rare in India. While metros have been mapped quite in details,
same is not the case with all cities, let alone remote areas. There are also legal and security
issues related to use of GIS as a common tool.
• But a transporter moving goods across the country should not worry much. His first task is to
locate WHERE in India is his vehicle and then worry about nearest city and then only a street
in that city. Current GPS solutions offer quite an accurate information about nearest town 2-3
Km even in most remote areas of India.

16. Practical Issues Facing GPS
B. Availability of mobile networks
• This one thankfully is taken care of. All national highways are now covered with adequate
mobile signals from multiple providers. Thus, a GPS device should be able to communicate
with command center on a regular basis. A typical time interval of 30-60 minute should be
good for a journey lasting 24-48 hours.
• GPS on board memory ensures that data is stored and sent at the same time whenever a
mobile signal is available.
C. GPS in market vehicles
• Probably the most thorny issue is configuring a GPS device in a vehicle hired from open
market.
• GPS device requires a constant power supply and thus has to be connected to battery of the
vehicle. This requires an electrical job and expertise.

17. Practical Issues Facing GPS
• Also, after a journey is completed, the market vehicle will no longer be
with transporter. The job of removing GPS device has to be done at end
location and this again requires expertise.
• Availability of manpower at every location to carry out fixing and removing
is currently a big barrier. Also, market vehicle drivers are not very keen to
allow someone to touch electrical if their vehicle.

18. Practical Issues Facing GPS
D. After Sales Services and Support
• Most GPS providers in India are rather small and do not have nation wide
networks to support and malfunction or breakage of GPS devices.
• GPS is a capital intensive business and most providers can not afford to
store GPS devices across the country just to take care of any emergency.

19. Return on Investment
• How much will it cost to install GPS? Will I recover my money? Is GPS
useful apart from tracking a vehicle? These questions are topmost in mind
of every transporter.
• A GPS device typically costs Rs. 9000 to Rs. 18000 as capital cost. Thus,
installation in even 30-50 vehicles is a capital outlay of Rs. 2.7 to Rs.9
lakhs. Recurring costs of sending data and maintaining software etc. are
typically Rs. 400 to Rs. 1200 per device per month, thus a recurring
expense of Rs. 3-6 lakhs a year.

20. Is it worth it? Let us find out reason why you should invest.
A. Customer Requirement
• If your top customer insists that you must have GPS, else he will move business,
you do not have much of a choice. This is already the case in high value cargo and
petroleum and likely to be the trend in future.
B. Accidents & thefts
• GPS can not prevent accidents or thefts, but it can alert you about the same
almost immediately. GPS solutions are designed to report and sudden stoppage
(say 50 Km/hr to 5 Km/hr. in 1 second) or deviation from pre-decided path.
• You can then alert your local manager/ police about the event and take corrective
action. A timely action can save goods worth crores for your customers and
insurance claims for you.

21. ROI contd..
D. Route Optimization
• One of the biggest tasks for transportation industry is to ensure that connections are made
economically and all vehicles are loaded fully. Unfortunately, this is easier said than done.
• Most transporters work in darkness about potential arrival of vehicles and future loads.
Arrival of mobile communication has helped matters but requires great coordination and
effects are at best local.
• GPS system along with optimization software and ERP can predict demand and supply for
each hub of a transporter. This information can then be utilized to book vehicles or loads in
advance. This can save a premium paid for last minute booking of vehicles from market and
also help to arrange for labour, material handling equipment and space in time.

22. ROI contd..
C. Efficiency and productivity
• Transporters want to ensure that vehicles reach in time and at best fuel
efficiency. GPS solution can offer rich data about fuel usage, speed and
time taken. It can also be programmed to offer stoppage information.
• Transporter can thus track an entire journey to find out bottlenecks,
unnecessary stoppages, over speeding and overloading. This data can then
be used to take corrective actions.

23. ROI contd..
• GPS has many uses but the challenges are also many. As more modern customers
and transporters start dominating Indian scene, GPS will become more common
• Transporters have a choice to be a pioneer or follow the herd

24. Thank You
KEEP IN TOUCH
Headquarters Regional Sales Office
114, Sundervilla, S. V. Road,
Santacruz (West), Mumbai – 400052
+91 93 232 428 02
+91 22 325 735 60
ECFY Consulting Pvt. Ltd.
107, First Floor, Suncity Trade Tower,
Sector–21, Gurgaon – 122001
+91 93 117 363 59
info@webxpress.in www.webxpress.in