Synergistic Systems--Routing, Dispatch, Cross Dock, Yard Management, RFID, Mobile Data, 3PL

TRUKLINK

LTLs Adopt Mobile Communications

6/1/2001

by Carol Ludorf, Contributing Editor

With 74 terminals, 2,000 tractors and 5,000 trailers, Less-Than-Truckload carrier AAA Cooper Transportation Co., Inc. Services the shipping needs of businesses in the southeast quadrant of the U.S., and areas surrounding Chicago, Minneapolis, Louisville, and Philadelphia. Some 1,500-company drivers pick up and deliver general commodities during the day, while another 400 line-haul the dry freight between terminals at night.

In 1995 the Dothan, AL-based fleet recognized that, if it were to continue on its upward growth path, dispatch had to be automated and communications with drivers dramatically improved. In 1996 it began a pilot test at its Dallas facility of LTL-tailored Synergy Dispatch software from Synergistic Systems, Norand Pen*Key 6100 Mobile Data Terminals from Intermec Technologies Corporation , and wireless data transmission via Cingular (formerly BellSouth). In 1998, it gave a thumbs-up to the package, and began phasing it in.

Today, 21 of AAA Cooper’s larger terminals are running the dispatch software, and 1,200 drivers are outfitted with the mobile computers, thus bringing automation to some 70 percent of the shipments that the carrier moves in a given day.

Mark Smith, AAA Cooper’s director of Information Services, and Rex Quattlebaum, the company’s manager of Field Computer Systems, shared with us the fleet’s experiences in bringing the software and hardware on stream, how the IT package works, and the benefits the carrier is realizing.

T3: If you’d please start by recounting to us the difficulties you were having before implementing the dispatch software and the mobile computers?

Smith: First were communications inefficiencies between dispatchers and drivers. We had moved from drivers calling in from phone booths to two-way radios, but the communication was still one-on-one with a lot of wasted time. Drivers had to sit on-hold while dispatchers were talking to other drivers. Dispatchers, in turn, couldn’t reach drivers who were loading or unloading. This led to the second problem of routing inefficiencies.

It was not uncommon for drivers to back track because they didn’t receive new pickup orders in a timely manner, or for dispatchers to assign other drivers to pickups because they weren’t able to contact the regular route drivers.

Finally, by the mid-90s there was a noticeable increase in demand for faster reporting of shipping information that was coming from our customers and from various departments within our own organization. For example, customers were no longer satisfied with receiving faxed proofs of delivery two days after the drop off; they wanted faster notification.

T3: What were your requirements in finding a technological solution to your problems?

Smith: Proven technology for one. Back in the late 80s we experimented with a system that was not fully developed. It turned out to be very unreliable and limited. We also had to have interface capability with our mainframe as well as with programs that worked off the same server. A good return on our investment to justify the cost was a third criterion. And, we required a system with 100 percent real-time communication, not one that stored or batched information. Late afternoon pickups are a common occurrence for us and we must have immediate driver notification of the pickups.

Quattlebaum: Add to those requirements driver satisfaction with the mobile communications system. We wanted our drivers to be comfortable in using a handheld device. Forcing a system on the drivers would have been counter-productive, which is why we let drivers test out quite a few handheld’s before the final selection.

T3: Beyond driver acceptance, were there other drawbacks to mobile communications systems you looked at?

Quattlebaum: Yes, and the limitations fell into three general areas: poor interface with our mainframe system; lack of reprogramming capability; and stationary, in-truck hardware. We determined that outfitting all of our trucks with communications devices would be more expensive than equipping our drivers with handhelds. A removable box containing the vehicle dock, handheld, fuses and modem was developed with a partner and called a transportable. This saved money by not having to equip each truck.

T3: And the reasons for selecting Synergistic Systems and Norand products?

Smith: They met our criteria. We have one integrated package working off the same server: Synergy Freight Billing for LTL carriers, Synergy Dispatch, and the Norand Pen*Key mobile computers.

Quattlebaum: Drivers like the size of the Pen*Key handhelds and find them easy to use.

Smith: Plus, Synergistic Systems was interested in arriving at the best solution for us, not for them. The company was very willing to customize the interfaces and the data entries to fit our particular needs.

As to the handhelds, Synergistic is partnered with a number of mobile device suppliers, and the company pointed out which would best work with its software, but let us make the final decision.

T3: We understand that you pilot tested the software and hardware in your Dallas terminal before system-wide implementation, but that the testing lasted two years. That seems somewhat long for a pilot.

Smith: We ran into a few complications. In 1996, we chose the Dallas terminal for the pilot because, at that time, it was a typical terminal in terms of shipment volume and number of drivers. As it turned out, while the testing was going on, the terminal doubled in volume and drivers, which made the debugging and tweaking procedures much more challenging and time-consuming.

Quattlebaum: Another factor was the original design of the vehicle dock for the handheld, which was not as rugged as it needed to be for a truck environment. After a pickup or delivery, the driver places the handheld computer into the dock, thus activating data transmission, and then starts moving on to the next stop.

The original vehicle dock couldn’t take the in-cab vibrations, which negatively affected data transmission. We were insistent in achieving 100 percent real time communications, and wouldn’t sign off on the pilot until we had it. Norand went back to the drawing board, and reengineered the vehicle dock. This, of course, prolonged the testing, but ultimately led to a mobile communications system that we’re now very pleased with.

T3: When and how did you start roll out into the fleet?

Smith: We began in 1998 at our smaller Chicago terminal to work out the installation kinks. We then moved to our largest terminal in Atlanta where 175 drivers handle about 3,000 pickups and 1,000 deliveries a day, with subsequent installations at our most active terminals to maximize ROI. To date, we’ve converted 21 terminals to Synergistic’s software and equipped over 1,200 drivers with the Norand Pen*Key handhelds.

As to the remaining terminals, we have an annual budget allocation for system installations at four to seven terminals a year, the exact number depending on terminal volume and number of drivers.

Quattlebaum: From experience, we’ve developed a very smooth implementation plan. Synergistic’s Freight Billing Software is the first to go in. Next, we install the Synergy Dispatch software and equip drivers with the Norand Mobile Data Terminals. Then, we provide user training. We’ve got the procedures down so that a terminal conversion takes us only three weeks.

T3: Would you be willing to share with us your total software and hardware investment to date?

Smith: The initial investment in software was significant, but subsequent software costs have been incremental. The mobile hardware costs run about $3,000 per unit on a volume buy discount. All told, we’ve invested approximately $6 to $7 million to date, which includes the pilot test costs.

T3: Now we’d like to turn to the systems in operation. Would you take us through a pickup cycle?

Quattlebaum: Before I do, I’d like to point out that the Synergy Dispatch software has allowed us to store a significant amount of information on our customers, including their special requirements such as if a lift gate is needed for loading a shipment or that the customer’s pickup time is between 3 and 4pm. This has empowered our people to better service customers, and in the way they wish to be serviced.

On an incoming pickup call, a dispatcher only needs a customer’s phone number or the first three or four letters of his or her last name to bring that customer’s file onto the screen. The dispatcher will then either verify or enter the pickup time, the zip code of the pickup location, and the particulars about the freight to be picked up.

Using the pickup zip code, the dispatcher calls up the schedule of the driver working the route nearest that zip code. I have to add here that most of our routes are static, and are supplemented by what we call wild routes that vary from day to day.

Looking over the driver’s schedule, the dispatcher sees that he can handle another pickup, assigns it to him and presses “send,” which automatically transmits the pickup information to the driver’s Mobile Data Terminal. Data transmission is via Cingular’s wireless network.

T3: Can the Synergy Dispatch software receive EDI Bills of Lading?

Smith: No. Other EDI transactions do kick off when a driver sends in a proof of delivery. It will automatically enter our system and be forwarded to the customer via EDI. Future projects will involve automatically sending pickup requests or bills of lading to the handheld.

T3: And how’s the coverage from Cingular?

Quattlebaum: The network is terrestrial, and, I’d say, we have 90-95 percent coverage. We have a situation, though, at our Jackson, Mississippi terminal that’s on our list for installation in the next few months. The coverage is fine in the metro area, but not beyond that. In this case, transmission will be via satellite from truck to terminal, and then back to terrestrial from the terminal to central headquarters here in Dothan. But we won’t have to deal with additional providers since both Cingular and Norand have satellite transmission capability.

T3: Now back to what information a driver receives for a pickup.

Quattlebaum: Everything that the dispatcher has—name of customer, address, zip code, pickup time, closing time, number of pieces, weight, and any special customer requirements.

T3: And how does the driver access this information?

Quattlebaum: By touching the screen of the Mobile Data Terminals with a plastic stylus or with a finger. Many of the drivers have become very adept in their use of the terminals, accessing or entering information quite quickly.

T3: And what does the driver enter upon pickup of a shipment?

Quattlebaum: He enters the actual pickup time and pro number, and confirms the shipment weight, number of pieces, and destination by zip code.

T3: As part of the Synergy Dispatch software, do you have an outbound planning program?

Quattlebaum: Yes. As the day progresses, it keeps track of the pickups by the delivery zip codes. Late in the day, outbound planning personnel at the terminals pull reports on shipment destinations by cities. We also have a Synergy program that prepares a stripping manifest for each trailer inbound to the terminal. Outbound personnel use these reports to plan the cross-dock work.

T3: Now let’s go to the delivery side. How does a driver know what he has to deliver in a given day?

Quattlebaum: At the start of his day, a driver will turn on his Mobile Data Terminal, enter his name and number, and all deliveries will be listed, along with known pickups. By touching an entry, all the particulars about a delivery or pickup will come up on the screen.

T3: After a driver makes a delivery, what information does he enter into the mobile computer?

Quattlebaum: With the particular delivery order on the screen, a driver enters in a designated box the first initial and last name of the person who accepted the freight. The handheld automatically time and date stamps the information. By docking the handheld in the truck, the information is transmitted to the dispatch software at the terminal, which automatically sends the information to our central database. Our mainframe is interfaced with our Web site so that in a matter of minutes, our customers have access to proofs of delivery at the site.

T3: One of the benefits, then, has been providing customers with real-time information?

Quattlebaum: Yes, definitely star that. Quite honestly, we knew that our customers’ need for information was important, but we didn’t realize how important until we saw the number of visits our customers were making to our Web site to check proofs of delivery.

T3: Are there other benefits you’re realizing?

Smith: Our routing is more efficient. We’ve increased the number of pickups with 100 percent real-time communications. Our dispatchers and our drivers are smarter with more information. We have better visibility of inbound and outbound loads. Our productivity has increased. Adding everything together, we’re definitely realizing a return on our investment.