Smart Fleet - Cloud-Based Fleet Management Tool

[pic 2][pic 3]

[pic 4]

Contents

Case Facts:        

Present Scenario and Issues Faced:        

CVP Analysis        

1.        Maui’s suggestion:        

2.        Mannix’s Suggestion:        

3.        Board’s Decision:        

4.        Suggestion-1:        

5.        Suggestion-2:        

Current Profitability        

Target Costing and Strategies        

Recommendations        

Case Facts:

• Smart fleet is a cloud-based fleet management tool that provides enterprise resource planning capability to fleet operators.
• Smart Fleet was the first product of Pahrsek Inc. which was the brainchild of Maui Millan. Maui is the CEO and head of product development, and Mannix Chong is the COO and head of business development of Pahrsek Inc. which is Philippines-based firm.
• There are two tools offered by the SmartFleet.

1. Automating the operations
2. Monitoring the fleet.

• Automating the operations helps the firms manage the costs and revenues related to the day to day operations of the fleet while monitoring the fleet helps in keeping a track of each and individual vehicles in the fleet.

• Smart Fleet is mainly targeting the Logistic industry and Taxi industry where managing the fleet is a vital part in those industries. Its first client is UNO taxi which has a fleet of 55 taxis. The potential clients which Smart Fleet is targeting are 24/7 Taxi and Ryo Aki and NN-ATS Logistics.
• Smart Fleet is the first of its kind in Philippine logistics market and there is no other competition. But, there is a threat of competition from other parts of the world soon due to the ASEAN integration in 2015, which are offering the services at a lower cost. Its major competition in terms of Operations Automation Module is Fleetio and in Monitoring the fleet is Automotive Resources International and Tele Trac which are U.S. based firms.

Present Scenario and Issues Faced:

Maui and Mannix, the founders of the startup Pharsek Inc. had come to the phase where they needed to take major business decisions to sustain their company and defeat the international competitions that were knocking the door. The ASEAN treaty would allow fairly easy chances for the technology giants for US to come and take over the market in Philippines. While their product was fairly efficient and a technology masterpiece, yet they were scared of the other competitors who already had managed to find ways to decrease their costs and offer the same services at much lower prices.