This document outlines a strategy for Mercedes Benz Vans to enter the fleet management systems market with a product focused on advanced route and cargo space optimization tools. It identifies key challenges faced by fleet managers, notes gaps in competitors' products, and argues Mercedes Benz is well positioned to build these optimization capabilities due to its expertise in AI, data analytics, and automotive software/hardware. The proposed strategy involves developing operations research optimization models, building a software platform with these tools, and a GPS tracking device with cargo sensors, to target large fleet customers globally.

1. Mercedes Fleet
Management
System
Advanced Optimization
Solutions
Hisham Radwan
1. Product Challenge
2. Executive Summary
3. Key Industry Challenges
4. Competitive Analysis
5. Market Gap
6. Product Positioning
7. Product Definition
8. Core Competencies
9. Strategy Outline
10.Risks and Mitigation

2. NAME OR LOGO
○ I am tasked to evaluate the market and
competitive landscape of the Fleet
Management Systems (FMS) industry.
○ Based on my findings, I should
formulate a product/business strategy
for Mercedes Benz Vans to enter and
compete in the FMS market.
Product Challenge
2
Product Challenge . Executive Summary . Key Challenges . Competitive Analysis . Market Gap . Product Positioning . Product Definition . Core Competencies . Strategy Outline . Risks and Mitigation

3. NAME OR LOGO
○ Transportation and logistics networks are
becoming increasingly complex. Companies are
constantly challenged to serve customers, deliver
raw materials or distribute supplies in a cost and
time efficient manner.
○ At the core of this challenge lies route and cargo
space optimization. Large fleets face unique
problems in this regard. These fleets are usually
multilocal, heterogeneous and have non-uniform
capacity. The ability to identify the fastest
delivery routes and optimal cargo loading plan
for large fleets requires advanced computational
solutions. Currently, there is no fleet
management system that addresses this market
need.
○ Mercedes Benz’ expertise in AI and in vehicle
software & hardware position the company to
become a dominant player in this niche market.
Mercedes Benz should utilize its competencies to
build a fleet management system with advanced
route and cargo space optimization tools for
large fleets.
3
Executive Summary
Product Challenge . Executive Summary . Key Challenges . Competitive Analysis . Market Gap . Product Positioning . Product Definition . Core Competencies . Strategy Outline . Risks and Mitigation

4. NAME OR LOGO
Key Industry Challenges
Safety
Track driver behavior,
accidents and
weather conditions
Productivity &
Efficiency
Track engine
diagnostics, drive time,
fuel, maintenance needs
and location of vehicles
Route Optimization
Optimize routes for
individual vehicles
and dynamic
distribution networks
(large fleets)
Asset Management
Improve cargo space
utilization (large
fleets) and track
assets
4
Fleet managers across different industries face several key challenges
Problem Statement . Executive Summary . Key Challenges . Competitive Analysis . Market Gap . Product Positioning . Product Definition . Core Competencies . Strategy Outline . Risks and Mitigation

5. NAME OR LOGO
Competitive Analysis
Exceptional Safety & Productivity and Poor Route Optimization & AssetManagement
Verizon Connect Geotab Samsara
Comparative
Adv.
Driver & Vehicle Productivity Customizability & Flexibility Smooth UI & Safety
Key Safety Sol. • Unsafe driving habits and driving
hours
• Highway and weather alerts
• Driver scorecards
• In-vehicle driver feedback
• In-vehicle reverse collisions
• Braking and acceleration
• Accident alerts
• Dashcams record incidents
• In-vehicle driver feedback
• Turning, braking and
acceleration
Key Productivity
& Efficiency Sol.
• Real time location
• Maintenance
• Fuel Consumption
• Speed and Distance
• Real time location
• Maintenance
• Fuel Consumption
• Speed and Distance
• Real time location
• Maintenance
• Fuel Consumption
• Speed and Distance
• Instant messaging
Key Route
Optimization Sols
• Individual-vehicle route
optimization
• No transportation network
optimization
• Individual-vehicle route
optimization
• No transportation network
optimization
• Individual-vehicle route
optimization
• No transportation network
optimization
Key Asset
Management Sols
• Real time location asset location
• No cargo space optimization
• N/A
• No cargo space optimization
• Real time location asset location
• No cargo space optimization
5
Problem Statement . Executive Summary . Key Challenges . Competitive Analysis . Market Gap . Product Positioning . Product Definition . Core Competencies . Strategy Outline . Risks and Mitigation

6. NAME OR LOGO
Market Gap
Transportation Networks and Cargo Space
Optimization
Complex
Distribution
Networks
Fleets can be multi local,
have different fuel
consumption rates and
other operational
constraints. This makes
solving for cost & time
efficiency a complex
multivariable problem.
Current FMS optimization
do not take such
variables into account.
Demand
Responsive
Transport
Demands are not known
beforehand and the fleet
has to be deployed (re-
routed) in real-time.
Current FMS individual-
vehicle route optimization
solutions unrealistically
assume that tasks are
known in advance and
don’t take various cost
variables into account.
Cargo
Space
Utilization
Fleets are heterogeneous
with non-uniform capacity.
Likewise, cargo comes in
different sizes and
weights. Managers need
to optimize cargo space to
realize maximum capacity
and reduce shipping costs.
Current FMS solution do
not provide cargo space
optimization tools
6
Large-sized fleets face unique challenges that are not
addressed by the FMS companies:
Problem Statement . Executive Summary . Key Challenges . Competitive Analysis . Market Gap . Product Positioning . Product Definition . Core Competencies . Strategy Outline . Risks and Mitigation

7. NAME OR LOGO
Product Positioning
Cargo Space Optimization
No Cargo Space
Optimization
Basic Route Optimization Advanced Route
Optimization
7
Verizon
Connect
Geotab
Samsara
Other
Other
Mercedes Benz
Vans
Problem Statement . Executive Summary . Key Challenges . Competitive Analysis . Market Gap . Product Positioning . Product Definition . Core Competencies . Strategy Outline . Risks and Mitigation

8. NAME OR LOGO
Product Definition
Operations Research is the Answer!
8
• Centralized software platform w/ OR route & cargo optimization tools
• Provides cost & time efficient routes for large size fleets
• Smart cargo space sensor
• Provides optimal positioning of assets in cargo space
• GPS Vehicle Tracking Device
• Provides road network optimization in real time
• Includes industry standard Fleet Management System Features:
• Safety & Productivity solutions
Problem Statement . Executive Summary . Key Challenges . Competitive Analysis . Market Gap . Product Positioning . Product Definition . Core Competencies . Strategy Outline . Risks and Mitigation
Cost & time
optimized routes
for large fleets
Maximum cargo
space utilization
Demand-Responsive-
Transport route
optimization
Introduce Operations-Research model-based approach to
routing and cargo space optimization that provides:

9. NAME OR LOGO
MBV’s Core Competencies
9
Brand
Recognition
Marketing advantage
w/ premium customers
Local Manufacturing
Facilities
Economies of
scale/scope
Expertise in AI,
Data & UX
Advanced analytics
& UI
Global Distribution
Networks
Market expansion
Hardware and
Software Expertise
Technical advantage
Automotive
Expertise
Advanced
performance insights
Problem Statement . Executive Summary . Key Challenges . Competitive Analysis . Market Gap . Product Positioning . Product Definition . Core Competencies . Strategy Outline . Risks and Mitigation

10. NAME OR LOGO
Strategy Outline
• Goal: To become FMS industry leader in routing, scheduling and cargo optimization solutions for large fleets
• Target industries: Oil & Gas, Mining, Government & Public Safety, Distribution, Food & Beverages and
Transportation & Logistics
1. Develop inhouse expertise in applications of OR
in the FMS industry
• Train navigation software engineers to apply OR
mathematical and computational techniques to
routing and optimization problems
• Utilize expertise in AI to understand variables
that impact distribution networks’ cost & time
efficiency (number of depots, terminals and
vehicle capacity, fuel consumption rates,)
• Establish partnerships with universities leading
research in Industrial Engineering to achieve
competitive advantage in optimization
2. Build software platform to provide dashboard
of fleet
• Utilize in-vehicle software design and UX to
build an easy-to-navigate UI
• Implement core FMS use cases (Productivity &
Safety Sols)
• Integrate industry specific road network,
schedule and cargo space optimization
algorithms
• Adopt Cloud Computing for streamlining fleet
data to outsource IT operations and focus on
the product
10
Problem Statement . Executive Summary . Key Challenges . Competitive Analysis . Market Gap . Product Positioning . Product Definition . Core Competencies . Strategy Outline . Risks and Mitigation

11. NAME OR LOGO
Strategy Outline
• Design an active GPS tracking system to
automatically send information to central
software portal in real-time
• Utilize in-vehicle hardware design expertise for
optimal PDLCM
• Utilize company owned local manufacturing
facilities to achieve economies of scale/scope
3. Build GPS tracking device and cargo space sensor
• Utilize MB’s competitive global distribution network
• Heavily target China, India and Japan
• Utilize MB’s recent shift towards these markets to share
operational and business resources
• MB has stronger distribution channels in these regions
than all competitors
• Increased regional economic activity in these countries
results in a growing demand for FMS
• MB is positioned to be a FMS market leader in emerging
markets
• Targeted marketing to aforementioned key industries
with highest value to derive from MB’s FMS
11
3. Market and distribute product worldwide
Problem Statement . Executive Summary . Key Challenges . Competitive Analysis . Market Gap . Product Positioning . Product Definition . Core Competencies . Strategy Outline . Risks and Mitigation

12. NAME OR LOGO
Risks & Mitigation
Cost Sensitivity, Cyber Threats and Autonomous Cars
○ Mitigation of cost sensitivity of fleet owners
• Sophisticated optimization tools are specific to large fleet market segment increase willingness to buy
• Effective sales and marketing efforts to target high potential customers
○ Mitigation of cyber threats due to data volumes
• Use authentication & Encryption
• Unique ID & Digitally-signed firmware
○ Mitigation of autonomous cars undermining FMS safety and productivity solutions
• The USP is routing and cargo space optimization which is applicable to autonomous vehicles market
• Build specialized product to target autonomous vehicles market segment by solely focusing on optimization
12
Problem Statement . Executive Summary . Key Challenges . Competitive Analysis . Market Gap . Product Positioning . Product Definition . Core Competencies . Strategy Outline . Risks and Mitigation