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CXT Software Incorporates Melissa Data’s GeoCoder

Precise geographic information improves dispatch and ratings processes for courier software users.

CXT Software is a leading provider of courier software and mobile resource management technology for the same-day, time-critical courier and delivery industries. Founded by Dan Calderone and Lyndon Edmonson, two veterans of the same-day delivery arena, CXT Software aims to provide total solutions for the courier and delivery market by developing software that offers larger companies the features needed to manage and control all business lines, while, at the same time, giving smaller companies the ability to grow, compete, and thrive in a competitive sector. Today, CXT Software has applications encompassing most every business line of a delivery company: on-demand (X Dispatch), route and distribution management (X Route), mobile applications and GPS (X Mobile), as well as a complete Internet order and tracking capabilities (X Internet).

When Edmonson and Calderone established CXT Software in 1999, Microsoft technology, including Microsoft SQL Server, was emerging as a robust enough platform to support the functionality needed for the kind of enterprise solutions they envisioned. “At the time, everything else was Unix-based and character-based,” Edmonson said. “And they didn’t have the GUI interface that Windows had. We saw a real opportunity there.”

Using the Windows platform meant that the CXT Software suite could integrate easily with other Windows-based products like Excel. Calderone and Edmonson could also take advantage of third-party solutions with functionality the partners did not want to invest programming resources into themselves.

Improving Efficiencies

From the outset, Edmonson and Calderone had three goals. First, they wanted an automated, self-service Internet presence. The second objective was to increase dispatch efficiency by improving dispatchers’ access to information. The third goal was to improve the way companies could calculate their prices.

Most courier companies base the rate they charge to deliver according to distance. “In some fashion, the rate is based on where the package is coming from and where it is going to,” Edmonson said. “That is a crucial part in how they figure out the cost of the job. Knowing where a point of origin or a destination is on the globe is very important.”

At that time, customer service representatives taking orders typically would have to look up the addresses and either calculate the miles or determine the pricing according to the ZIP code. “There was a lot of work,” Edmonson said. If the origin and destination of a package could be more precisely and automatically located, they reasoned, ratings could be improved.

Better geographic information could also improve dispatch efficiency. “Our goal was to increase dispatch efficiencies by knowing exactly where your drivers are,” he said. “Having that information at your dispatchers’ fingertips, would greatly increase that very important component.”

Technology Choices

Edmonson and Calderone wanted to build a platform that was affordable for small clients but scalable enough to meet their needs as companies grew. And they wanted to get to market fast to take advantage of the window of opportunity they saw.

To that end, they made several key technology decisions, such as selecting SQL Server as the underlying database, for example, because it provided the required scalability. And they had to decide how to incorporate the geographic functionality needed to improve the rating system and dispatch efficiency. “We did some research and instead of building it ourselves, we decided to use technology from Melissa Data. They had APIs we could program to. Using Melissa Data allowed us to get to market as soon as possible,” Edmonson said.

CXT Software opted to incorporate Melissa Data’s Address Object and GeoCoder Object into into its package. Address Object validates addresses to the highest level of accuracy - the physical delivery point. Once the address is verified and standardized, the GeoCoder API returns the latitude and longitude coordinates to the sixth decimal place. This data can be used to pinpoint customer locations, pick up and destination points, and drivers’ locations.

“We program to their API and redistribute their application with our own,” Edmonson said. “We compile it into our application.” Over the years, CXT Software was gone through eight major upgrades and incorporating the Melissa Data objects has never presented a technical problem. Indeed, after initial development, CXT Software has never had a reason to call on Melissa Data’s technical support team.

The Impact

To demonstrate the impact its software can make on operations, not long ago CXT Software analyzed one of its major customers in the following areas - revenue, operating costs, online orders, customer service and overall work processes. The results were impressive - revenues increased seven percent, while costs dropped four percent. Online orders jumped 25 percent.

While the use of the Melissa Data objects are not responsible for all the improvements, there is no doubt that geocoding and address validation play an important role. In fact, Edmonson said, “We refuse to sell our product without the Melissa Data objects. Reputation in our business is everything. Our software would not be as effective without it and the benefit is well worth it. And it cuts down our development time.”

Download a free, fully functional trial of Address Object and GeoCoder Object here.