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Dave Dillon, manager of transportation at US-based McLane, said the project, announced on 1 May, costs "over US$10m [£6.9m] but under US$20m," with a payback on investment expected in two years. Dillon said the mobile communications system, developed by US-based Symbol Technologies, provides "exponentially greater functionality" than wireless package-tracking systems used by delivery companies such as FedEx and UPS.
The McLane system, built around a rugged Symbol handheld computer running the Palm operating system and an onboard communications terminal, will provide the company with a paperless process that manages all invoicing and delivery transactions, including capturing electronic signatures for proof of delivery. The system will also manage dispatch operations, automate driver logs and provide McLane with the ability to perform remote diagnostics on vehicles via satellite.
Drivers will use the Symbol handheld to record delivery information with a bar-code scanner and capture electronic signatures using Track and Trace point-of-delivery software developed by IBM. Once the driver completes a delivery, he returns to the truck and shoes the handheld computer into a cradle on the onboard communications system.
When the driver returns to one of McLane's 17 terminals, which Symbol has equipped with a wireless local area network (LAN) infrastructure, the onboard communication system senses the 11Mbit per second wireless LAN and automatically starts dumping data that has been collected throughout the day. According to Dillon, McLane intends to use the wireless LAN as its primary means of capturing delivery data, using the satellite link, provided by Qualcomm, to send and receive short messages from the driver on the road.
The terminal wireless LAN will feed information collected from the trucks into the company's nationwide wide area network (WAN) and into back-end accenting and inventory systems. This will replace what Dillon called a "predominantly paper" way of conducting business.
Vin Luciano, vice-president of product management at Symbol, said McLane has created "an automated warehouse on wheels" that allows the company to manage information on a delivery vehicle the same way it manages a warehouse with an extensive IT infrastructure.
Bob Egan, an analyst at Gartner, said the use of satellite-based information systems is "well established" in the trucking industry. But, Egan added, "what's emerging is the use of multiple wireless techniques to address specific business requirements. ... We will continue to see wireless LAN adoption explode in many sectors of the trucking market because, unlike wide-area terrestrial wireless and satellites, wireless LANs can deliver higher speed and support greater capacity demands where needed."
McLane has already tested the system with a pilot project with 10 trucks operating out of its Texas terminal. Dillon said he expects McLane to complete the roll-out to all 17 terminals and 1,050 trucks in the grocery division by the end of 2002. McLane is considering installing a similar system in its division that handles deliveries to fast-food restaurants, he added.