November 2000

Parcels carriers are becoming increasingly sophisticated in their use of handheld terminals for POD and track and trace systems. Marcia MacLeod reports

Customers of third-party logistics companies may not take advantage of track and trace systems very often, but for the third-party logistics providers ­ particularly parcels carriers ­ they are rapidly becoming essential. If anything goes wrong, if there is even the slightest delay in delivery, the customer will click on that "track and trace" button faster than you can say the words.

For suppliers to be able to offer an effortless track and trace system, accurate up-to-date information must be available at all times ­ and that includes the period when the goods are on the road. There can be no "black holes" into which packages may disappear. Drivers must, therefore, have the means of sending and receiving data; and the best way to transmit messages is to give every driver a handheld terminal.

Not surprisingly, the major integrators ­ DHL, FedEx, UPS and TNT ­ pioneered the use of handheld devices. DHL introduced Microwands, from Hand Held Products, as long ago as 1986, upgrading to Symbol's PDT 3100 in 1994. "The Symbol terminals gave us more memory and could scan bar codes at a distance," explains Will Edwards, business process manager, operations. "To scan with a Microwand, users had to rub the reader across the bar code ­ and it didn't always work."

DHL drivers, like those of its competitors, scan the bar code of a package every time something happens to it. For example, parcels can be scanned when loaded into a vehicle, again when the consignment is delivered (or when delivery is not possible), or during collections, at the moment when the driver picks up a consignment. Collection customers can be given an airwaybill with pre-printed bar code label attached.

In addition to scanning bar codes, the devices have either a real keypad or a "virtual" on-screen touch-oriented keypad to allow data to be keyed in. Most typically, keyed-in data consists of details such as the name of the person accepting the shipment and time delivered. DHL is one of many companies that still take paper signatures, but this will change to electronic signature capture with the next upgrade.

Data can then be sent back to base by dropping the device in a cab-mounted cradle and uploading the information to the system; or in some cases, drivers transmit through a mobile phone with integral modem, which eliminates the need to go back to the vehicle. DHL also transmits bookings back to the driver via the in-cab system and handheld devices.

The next generation of DHL's handhelds is already being rolled out in Asia, where 1,200 Fujitsu devices are in place. The company has not yet decided whether Fujitsu will replace Symbol throughout the world, but DHL likes the fact that they have an internal modem, and that, because of their increased communication capability, they allow more and better information to be supplied to the driver.

FedEx also plans to upgrade its handhelds to take advantage of new technology, and provide "significantly more functionality". Chris Demos, managing director corporate services in Atlanta, won't reveal any details of the new device, but says the goal is "to give instantaneous information about any package". Today's device needs to be placed into a DAD (Digitally Assisted Despatch) unit in the vehicle or a depot station rack to upload data captured en route.

FedEx designed its own device, the Supertracker, in 1985 because it couldn't find anything on the market that met its requirements. "We cared about the ergonomics close to the courier. We wanted it to be the size of a chocolate bar; other devices were too big."

The enhanced version of the Supertracker came out at the end of 1997, adding a laser bar code scanner and increasing memory from 356k to 6MB of data. When the driver collects a parcel, he keys its destination postcode into the unit, which calculates the route for the package. A printer attached to the device prints a label with a routing code and associated bar codes, indicating type of service bought (for instance next-day) and other information. This label is in addition to the customer's bar code label, which is used for track and trace.

Packages are scanned "at least six times" during the life of its movement, but signatures are made on paper and scanned into the system back at base.

UPS is on the third version of its DIAD (Delivery Information Acquisition Device), although DIAD I, introduced in 1991, was only used in the US. It was the first to include digital signatures ­ a capability extended to Europe with DIAD II in 1996. "Digital signatures brought the greatest benefits," says Graham Nugent, information services manager North Europe. "With the ability to capture digital signatures we completely outdid our competitors; only recently have other companies started following suit.

"It takes twenty minutes to send a signature to our mainframe in New Jersey, but we can tell customers who signed for a parcel, and when, almost immediately. Then we can make the signature available the next day anywhere in the world.

"DIAD I already captured signatures, but the unit was bigger than an A4 piece of paper," Nugent adds. "DIAD II, which is smaller than A4, uses a plastic stylus with a pressure pad on one end for signatures and a scanner on the bottom. All UPS packages have at least one bar code label, stuck on like an airwaybill by the driver or printed out by the customer. We give customers the specifications for presenting labels ­ the size of the bar, how much white space to leave and so on. In order to get a good scan with fixed depot scanners, the bar code cannot be too close to the edge."

DIADs have other uses, too. When a COD delivery is made, for example, the driver enters relevant information into the unit ­ how much is paid, whether it is cash or cheque, and so on. When the DIAD is put into its base station, it totals the amount of money collected and matches it to cash and cheques brought back to base.

DIADs, like FedEx's devices, were made specially for UPS, using a Motorola unit in conjunction with software developed by IImorrow, an R&D company purchased by UPS some years ago. DIAD III, now used in the Camden, London depot as well as North America, and soon to be rolled out in Europe, also comprises a Motorola terminal with software written in-house. It is the same size as DIAD II, but offers much more functionality, including a mobile phone for sending data (but not voice) messages. Although it still needs to be recharged at night, placing the communications technology in the device itself has eliminated some maintenance problems.

TNT first entered this field with a radio system based on the RAM wireless data network, but has now moved to Symbol 3100 or 7500 terminals. Again, free text messages can be passed between driver and base at any time, offering an advantage over the radio system, which restricted controllers to talking to one driver at a time, and only when the driver was in the vehicle.

 

The Symbol handhelds are also used as scanners. Package recipients sign the delivery run sheet manually, but drivers input the person's name and a code indicating where the package was delivered. Date and time are recorded automatically.

"The main impetus for moving to these devices was the need for an improved speed of response," explains Nigel Barton, operations director UK and Ireland. "It was becoming practically unmanageable to control fleets over 30 by voice and without employing multiple radio operators. Now we control much bigger fleets with one operator.

"Instant two-way communication also saves us about four per cent in variable costs such as fuel, as we can tell a driver to collect a package near one of his deliveries. With the radio system, no collection information was given until deliveries were finished, meaning drivers were often going back to areas they had already served.

"We are now considering expanding the Symbol 7500s, which have the ability to capture electronic signatures. However, the size of the image is so big it will need to be downloaded at night at the depot, whereas now POD information ­ who signed where and when ­ is available in three or four minutes. It may also be hard to match the signatures with the consignment note number.

"Digital imaging is so new, we haven't looked at it closely yet. We have to ask how much data does it take up? How does it affect data integrity?"

Whether a company uses digital signatures or not, the benefits of handhelds are being recognised more and more widely. Securicor Omega Express and Parceline, for instance, both use Symbol devices ­ the PDT 3100 and 4600 respectively. Like the integrators, these parcels companies appreciate obtaining accurate POD information quickly, gaining a wealth of data on customers and drivers, and being able to communicate with drivers at all times.

"Handhelds are much more flexible than a manual system ­ and eliminate the need for a lot of process training," points out Phil Whitlock, IT director for Securicor Omega. "A menu of codes makes it easy for drivers to input any activity ­ for instance, delivery failure due to wrong address or no one available to receive the parcel."

Parceline, which introduced electronic signatures three years ago, reckons it saved £1 million in back-end image scanning alone. The availability of timely information and integrity of data ­ eliminating lots of bits of paper ­ also improves the company's performance.

Parceline is now looking at installing new units that combine scanning, a computer screen, image capture and GSM in one device, so that handhelds do not have to be docked into the vehicle for communications with base. Securicor, too, is looking at making the device "independent of the vehicle" for communications any place, any time.

Inevitably, handhelds do pose problems from time to time. There is a need to monitor batteries and wear and tear of the screen, and to cope with different data networks in places where GSM doesn't exist. Simply sorting out "the logistics of repair" can be challenging, Whitlock says. But such problems are few, and are more than compensated for by the improved control of the entire delivery process, as well as the provision of more and better information, constant communication between driver and base, and the all-important POD. How ever did the industry manage without them?

One of the biggest implementations of handheld terminals in a parcels delivery fleet so far has been by Parcelforce Worldwide, which this year has been equipping its delivery drivers with a total of 5,000 terminals.

The £10million programme also has involved IBM. The company has chosen the PEN*KEY 6110 handheld terminal by Intermec, which was billed as the world's first integrated GSM handheld computer running the Windows 95 operating system. The touch screen-based system offers both voice and SMS (short message) communications, providing an immediate real-time data flow between vehicle and base.

Parcelforce has created its own branding for the system, which it is calling Signet, and is telling customers this "is totally changing the way we capture information about deliveries." The Intermec terminal combines a scanning facility with the option for the driver to obtain a customer signature where one is required, and wraps the package in a rugged case suitable for field application.

According to Steve Newson, who has been in charge of the project: "We are confident that Parcelforce Worldwide now offers a level of service that no other parcel carrier can match." He adds: "This new computer effectively provides us and our customers with a window through which we can gain the full picture of all deliveries." Whilst Parcelforce's Post Office parent might love to install such a system in its Royal Mail fleet, its much larger scale appears to have ruled this out for the time being.