Recommendation
In order to meet the stated objectives of four stops per hour and 5,000 deliveries per day, our official recommendation is that an investment in management systems will be absolutely necessary to achieve those goals. They simply cannot continue to achieve their growth targets with the incomplete system they have in place presently.
CEO Claud Germain touts the company focus as one of logistical execution. An absolute requisite for excellence in logistics are analytics and support systems. Furthermore, Gateway as an e-tailer will need to enhance their purchasing systems and include mobile purchasing applications and software that further bolster the recommended technological improvements. Square is a good company to consider with iPad, iPhone, and android support built in with the hardware that attaches to those devices seamlessly.
Dominque’s first option of extending driver shifts comes with a massive increase in potential problems. Having drivers on the road for extended periods of time provides the propensity for increases in accidents, mistakes in delivery and overall compounds the likelihood of human error to appear. The bottom line is tired and overworked drivers equal unsafe and unhappy drivers. This move would also require significant investment in staff support to ensure service levels would remain adequate.
The second option was to bolster the RIMMS system to enhance the analytical capabilities to include profitability measures as well as improved route delivery logistics. The costs are estimated at $250,000. Given the stated objectives, we believe this approach falls most in line with what they are trying to accomplish.
The third option he was considering included increases prices. This move is unwarranted as there has not been a notable increase in demand to justify an increase in consumer pricing models. The perception that service levels will not be compromised is a presumption that may turn out to be a miscalculation as resources will need to be reallocated for such a move.
Expanding the RIMMS licensing arrangement is, in our opinion, the most prudent move at this juncture. The estimated recovery time for this investment at just a few months makes for a very attractive allocation of capital expenditures. The driver data that includes manual scheduling of routes would be enhanced to allow systems to analyze where the drivers should be, when and for how long.
Assumes lost time equals 30 minutes: No. of Drivers: 100.00 Rate per ½ hour: $ 17.50/2 $8.75 Lost time daily expense total: $875.00 RIMMS enhancement expense: $250,000.00 divided by Lost time daily expense total: $875.00 Days till cost recovered: 286 days Months till cost recovered: 9 to 10 months Assuming lost time equals 45 minutes: No. of Drivers 100.00 Rate per 3/4 hour: $17.50/.75 $13.13 Lost time daily expense total: $1,313.00

RIMMS enhancement expense: $250,000.00 divided by: Lost time daily expense total: $1,313.00 Days till cost recovered: 190 days Months till costs recovered: 6 to 7 months In the interim, slight interference will be run on stated cash flow objectives potentially delaying the targets. Having relocated to a larger facility further puts pressure on capital constraints. The investment in expanding the RIMMS system now should have a related smoothing effect when the associated expenses begin to recover and translate into increased revenues along with reduced expenses. Details on the efficiency of the RIMMS system could perhaps change our suggestion. However, we are operating on the assumption that the software and hardware improvements that are being recommended deliver on the purported results. This enhanced capability to access the data that relates to route profitability while also providing data on best delivery routing is beneficial in a number of ways. This improvement has the ability to develop the company’s expense management as well as helping to increase the number of deliveries. Action Plan Short term • RIMMS software competitive analysis to ensure this software package is the most applicable to the stated objectives.
• Determine acclimation time and estimated factor in to estimation of cost recovery.

Long term • Monitor results
Conclusion
The proposed systems enhancement provides an easy to manage dispatching structure to operate from. Adjusting routes and schedules while allowing for urgent order adaptations gives the company a growth based initiative that falls precisely in line with the stated objectives.
In the snowy Canadian climate, Gateway can prepare for the expected increases in deliveries and maintain service levels while doing so. The extensive knowledge Gateway has can be integrated into the new enhanced RIMMS system.
Armed with the data and knowledge of when customer’s ideal time for delivery matched with the most efficient routes to get there pushes them one step closer to the 5,000 daily deliveries potential. Measuring capacity within the trucks, coordinating reloading opportunities, and delivery times are a few of the data and control points ripe for analysis.
Given that these trucks are refrigerated, perishable cargo has an even more pressing need for excellence in logistics. Plans in this arena will most certainly need last minute adjustments that all contribute to the overall delivery goals. It is worth mentioning related mistakes will be massively mitigated going from a manual account to a digital one. This also lends liberty to addition of new customers in an expeditious manner. As an added benefit, discovering issues could become particularly useful while trying to manage service levels. We believe the mobility and precision of this enhancement is invaluable. The ability to adapt to inevitable disruptions can be the situation that has a customer feeling as their expectations were exceeded.
Engines will breakdown; product loads will experience delays, tires will go flat, and satellite navigations will falter. The proper management of these types of issues, supported by the new RIMMS enhancement will be paramount to the organizations success. Tracking and predicting these issues give Gateway the ability to stay on top of the flow of goods.
RiMMS factors in traffic patterns as they change throughout the day. This data can factor into real time assessments of delivery efficiency and provide an estimate for the remainder of a disrupted shift and work on a way to address it. If there is an accident getting in the way of a delivery, the system could be plotting alternate routes.
A word of caution we would advise is to be judicious in what is left on auto pilot. It could become easy to be increasingly complacent as the systems work their magic.