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February 2001
Moving From Paperless to Wireless
by Dan Bolita
Plenty of organizations do business outside the confines of the
office, so it is no surprise that wireless Web access is captivating.
Companies look forward to the day when they'll have practical, reliable
access to the Internet and corporate computing platforms from wherever
business might take them.
Unfortunately, they'll have to wait. Bandwidth constraints, gaps in
service and unreliable connections make it difficult to build truly
mission-critical solutions with wireless links to the Internet. Today,
mobile businesses are making difficult choices between investing in what
works now or waiting until future systems are complete. While the AT&Ts,
Sprints, Nortels and Qualcomms are scrambling to build next-generation
wireless networks, other businesses are devising interim solutions that
will pave the way toward future solutions.
Take McKessonHBOC, the San Francisco-based health care products
distributor and outsourced IT services giant. Seeking ways to improve
the pharmaceutical supply chain, McKessonHBOC has developed a paperless
proof-of-delivery system that uses mobile (thought not yet wireless)
devices today with the promise of wireless Web access tomorrow.
Meanwhile, World Wide Delivery Service, Elkridge, MD, is responding to
"Internet-speed" expectations by relying on wireless (though not yet
Web-enabled) communication to speed evidence of proof of delivery.
While the next generation of wireless networks promises seamless,
ubiquitous access to networks and applications, transportation companies
such as McKesson and World Wide Delivery aren't waiting. They're driving
the paper out of the process for more effective mobile business starting
today.
Who Signed for It?
Historically, delivery drivers have used paper manifests to deliver
products, yet this has limited the ability to track deliveries. If a
shipment was incorrectly loaded or listed on the manifest, the company
faced the potential of delivering the wrong goods or delivering to the
wrong address. When disputes arose, paper records were needed to provide
proof of delivery (POD), yet these records often went missing.
Both MckessonHBOC and World Wide Delivery are working to eliminate
these paper-based systems. It's a challenging process, as many customers
still require a hard copy POD.
"This is the biggest obstacle against going 100 percent paperless,"
says Ken Buck, president of World Wide Delivery, a Baltimore-Washington
area firm that offers same-day and overnight distribution of bulk
business supplies and consumables. "Customers have internal procedures
that require the original bill of lading to have a signature. Our
customers often have customers of their own who will not pay invoices
without this original document. Providing an electronic signature will
not always satisfy our customer. As backup, all drivers have a manifest
signed."
While there is always a paper backup, World Wide's drivers
communicate PODs via digital alphanumeric pagers from Nextel, Reston,
VA. Relying on these communications, dispatchers enter relevant data
manually on a "cyberticket" at the company's dispatch center.
According to Buck, the system doesn't suffer from the interference
problems or bandwidth restrictions of previous-generation dispatching
systems. "Most vendors of this type of service have built data networks
as opposed to trying to send data over voice networks of the past," he
says.
World Wide still uses two-way voice communication (radios and cell
phones) to support paging. But drivers are alerted to orders via
alphanumeric pager rather than radio dispatch.
"The entire process of receiving a job and getting information to the
driver can take less than a minute," Buck says.
While the redundant system is more labor intensive, Buck found
limitations with a paging-only system. "You can't rely on [paging
alone], because you don't know if the driver definitely received the
page," he explains. "There are systems available that send an
acknowledgment that the page made it to the paging device, but the
driver can't actually respond."
Buck adds that the company had also tested mobile data terminals,
which had a keyboard-type unit attached to a radio and sent two-way data
over a voice system; however, it was deemed too unreliable.
World Wide is reviewing in-vehicle signature capture systems as well
as an image-capture system to archive paper manifests and bills of
lading, but their primary focus remains on tracking drivers and
materials in transit. As long as customers demand signatures on actual
paperwork and as long as they're calling in orders to dispatchers, Buck
concludes the company must rely on a number of vendors and integrated
solutions.
"We manage a 100-driver fleet on this system," he says. "As our
dispatcher sees a number of jobs form in one [area], he will simply type
a few key strokes and tag the jobs with the intended driver's number. He
then presses another key to dial directly to the paging company and send
the information to the alphanumeric pager. Our ability to compete has
increased substantially with these improvements."
AvantGo Drives Pharmaceutical Deliveries
After evaluating a number of mobile computing solutions, McKessonHBOC
chose software from AvantGo, Hayward, CA, as the core for its "closed
loop distribution" system. The software has integrated Web-based
information with the company's existing back-end systems, and it has
given drivers and customers a way to access and capture information on
ruggedized Symbol SPT 1700 handheld personal digital assistants based on
the popular Palm operating system (OS).
The Symbol device, which incorporates a barcode scanner that can
audit products as they are ordered, delivered and received, is small
enough to fit into a pocket. The Palm OS was chosen because it provides
a widely supported development platform.
At the start of the day, McKesson drivers now receive route
information by synchronizing their handheld devices at one of 34
distribution centers. The most current data for each route is
synchronized directly from back-end databases and stored on the Symbol
device in a .pdb database format.
When a tote of pharmaceutical supplies is delivered, the driver scans
a barcode on the tote and captures the recipient's signature
electronically on the SPT 1700. The scanning validates that the correct
packages are delivered at each stop. Drivers interact with HTML pages
that are dynamically populated with the data from the central database,
and these pages can be updated as the status of each shipment changes.
At the end of each day, drivers return to their distribution centers
and synchronize these devices yet again, downloading delivery
information and signatures to a server via standard HTML forms
submission. The data is then integrated with the back-end database
within hours of delivery, speeding billing, and minimizing losses or
disputes about missed deliveries.
The data synchronization, barcode scanning and signature-capture
capabilities provide more efficient and accurate deliveries with the
added benefit of integrating delivery data into McKesson's other
corporate systems. There are no proprietary development codes, which
saves development time by supporting existing tools.
Unlike other mobile applications that are burned into memory on
proprietary devices, the AvantGo software can be upgraded and revised.
Since cradle-based solutions offer serial, Ethernet and modem options,
updates can be distributed when synchronizing from a cradle or through
wireless access. Using Secure Socket Layer protects the transactions.
The AvantGo application supports not only the Palm OS, but also Windows
CE, Pocket PC, WAP (Wireless Application Protocol), mobile phones and
other mobile platforms.
New Alternatives in an Evolving Market
Two-way communication systems are increasingly being delivered in
hybrid mobile devices. For example, one system being evaluated by World
Wide Delivery relies on a single handset that can be used for cellular,
one-way paging, two-way messaging and interactive mobile data. World
Wide is considering implementing this system, which was developed by
Nextel and software supplier Datatrac, of Atlanta.
World Wide president Ken Buck says he's familiar with the Palm/Symbol
device and other handheld units that can gather data and be synchronized
at the end of the day, but he adds that World Wide demanded real-time
updates. The company is betting on the collaborative offering from
Nextel and Datatrac, which integrates Datatrac's MIDAS (Mobile
Interactive Data Solution) with Nextel's Internet-capable cell phones.
The application provides a communication device that is both Web-enabled
and voice-compatible.
With the Nextel/Datatrac solution, drivers and dispatchers will send,
receive and update order status in real-time. Dispatchers can
additionally send pickup and delivery orders directly to any driver's
phone, and the driver can acknowledge and accept the job.
"Drivers can enter a typed version of the customer's signature at the
time of delivery that is applied directly to the job in our database,"
Buck says. "We eliminate the use of a separate pager and save data entry
time and manpower."
Preparing for the Wireless World
For McKessonHBOC, whose drivers are located all over the country,
continuous access to a wireless network was deemed impractical when the
closed loop distribution system was devised. However, the solution will
be able to take advantage of wireless connections when they're more
widely available and reliable. Stan Ratcliffe, general manager for
AvantGo Enterprise software, points out that the application can be
extended to any Web-enabled application.
"We created software that's network and device agnostic," Ratcliffe
says. "This is truly standards based, not some proprietary [approach].
This extends value out to mobile users, not just Internet users.
Mobility becomes more than Internet access."
The value of Web connectivity is clear, but it is not the only route
(and certainly not the most mature, reliable route) to a mobile
solution. This point was not lost on World Wide Delivery either.
"Customers can now initiate a delivery either over the Web or with
stand-alone software that direct dials our system," Buck explains.
"Every business is going to operate in a wireless and Internet
environment. As each of our customers change to this mentality, we are a
step ahead by having these features available."
Sharing the Benefits
While McKessonHBOC's solution initially focused on improving internal
information and operational practices, the company says the Web-capable
architecture will support two-way customer communications. By putting
the same scanning devices into the hands of the customer, they could
view an item's description, units of measure, order dates, frequency of
orders and other information necessary for placing orders. In addition,
customers will be able to download invoices, which could then be used to
scan and validate receipt of goods.
Deploying an automated distribution system coincides with a number of
complementary McKessonHBOC directives to create an Internet health care
marketplace. The company has announced an Internet-based supply chain
management venture that is intended to provide physicians, consumers and
other users Internet portal access to stored healthcare data.
"We provide easy access to the data in these systems along with
visual integration of data," said Graham King, president of
McKessonHBOC's Information Technology business. "We believe health care
providers will use the Internet as a change agent to improve their
financial and clinical performance, building on the information stored
in the systems."
Paperless Delivery Wins Praise
Honoring innovation and achievement, McKesson-HBOC, San Francisco, and AvantGo, Hayward, CA, were among the finalists in last year's RealWare awards competition. Recognizing outstanding implementations of technology, the RealWare Awards are conferred by CMP's Business Intelligence Group, which comprises Imaging & Document Solutions and Intelligent Enterprise.
The McKesson/AvantGO solution pioneered a paper-free proof-of-delivery system built on handheld computers (see story below). For more information on the RealWare Awards for 2001, visit www.realwareawards.com
Taking the Wireless Web on the Road
IDC forecasts that "mobile-commerce transactions" will reach $9.3 billion by 2003, yet a number of pieces must fall into place to reach this lofty goal. For one thing, there is a "wireless divide." According to the Cellular Telecommunications Industry Association, there are more than 90 million wireless users in the United States today - roughly 30 percent of the population.
Ford Motor Company, and Qualcomm, are among the corporations aiming to bring the wireless Web to a wider audience.
"Cars and trucks will soon become the fastest growing mobile platform for seamless communications and digital information services," stated Harel Kodesh, a Microsoft veteran who is leading the Ford/Qualcomm wireless venture.
Ford and Qualcomm have created Wingcast (www.wingcast .com) to develop and deliver wireless voice, entertainment, Internet access and safety services in cars and trucks. The company will work with a number of hardware, software and content providers to offer in-vehicle applications. Ford expects more than 1 million of its new cars and trucks to be equipped by the end of 2002 and virtually all of its cars and trucks to be so equipped by the end of 2004.
"We are not only transforming the automobile into the next mobile portal, but also are creating a new company that will develop and deliver a collection of leading-edge technologies and services," Jac Nasser, president and CEO of Ford, has stated.
Even before the latest venture with Ford, Qualcomm was pursuing the transportation industry with its wireless fleet management systems, OmniTracs and OmniExpress. Qualcomm began offering two-way data communications for the long-haul trucking industry in 1988.
"The wireless and telematics industries are at a pivotal point as we approach a new era of the wireless Internet," Irwin Jacobs, chairman and CEO of Qualcomm, has stated. "CDMA (Qualcomm's code division multiple access technology) cellular networks will enable high-speed, widely available, low-cost access."
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