Dec 07/Jan/08

TNT Express is investing massively in modern mobile computing technology. m.logistics hears more about the thinking behind this move, and the benefits it is bringing the company

One of the biggest orders in the last couple of years for modern handheld computers in mobile logistics was placed by TNT Express, the global parcels and mail delivery company. Back in issue 24 we revealed its plans to buy up to 14,000 units. You've probably read our news updates about this. We wondered what was behind it, and have been finding out more from the company itself.

In a nutshell, as you might expect, the driving objective has been to improve business efficiency. To this end, TNT has been using barcode technology since the 1980s to ensure more accurate distribution and delivery of packages. It has barcode scanners, voice-enabled equipment and GSM-enabled mobile computers.

However, the company wanted take the benefits further. In particular, it was keen to free workers' hands as far as possible during scanning, and in any case needed to update the mobile computers used in its truck and van drivers' cabs and main depots.

 

Competitive edge was among issues here. As the company's David Higgins puts it: 'Customer churn can be high, as there are no contract terms in the express parcel delivery business.' He says track and trace is 'incredibly important' to customer relationships.

In choosing a supplier for the new equipment, he says the company sought 'a vendor who would help us formulate a winning strategy, rather than just selling us scanners'. In the event, it didn't need to look far. TNT Express had a long history of using devices from Symbol Technologies, and although Symbol has now been acquired by Motorola, the product lineage is unbroken, so this supplier was a logical choice.

TNT therefore trialled the Motorola MC9000 mobile computer in three depots, and obtained detailed feedback from drivers, who are said to have responded favourably to the large, easy-to-see screen and keypad.

In order to fit the model precisely to real-world use, Motorola visited the sites and examined the context in which the mobile computers would be used. For example, it was important that the devices should be easy to use while the drivers were wearing gloves. The MC9000 series matched these requirements, and TNT Express has now taken 2,750 devices for its UK van drivers. Over its EMEA area as a whole, the total comes to some 8,500 units.

Meanwhile, the UK company's Express Specialist Services delivery team opted for 900 of Motorola's smaller, lighter but broadly similar MC70 devices.

At the same time that this project was under way, TNT Express was also looking for a scanner that would leave workers hands-free, improving productivity and vehicle loading time. It therefore played an integral role in beta-testing Motorola's WT4000 wearable scanner.

This comprises a 320g arm-mounted computer with keyboard, a 2.8in display and a ring-mounted scanner. Among benefits, wearing the devices is found to reduce the likelihood of damage.

During the testing and development process, TNT advised against providing a touch-screen, suggesting that omitting them would help avoid false reads, and developed two different keyboard layouts in order to maximise ease of use in different situations. The company is now using 155 of the wearable mobile computers in the UK, and has plans to acquire a further 800.

Across its global operations, TNT Express is also using 300 Motorola advanced data capture scanners to scan barcodes.

All in all, TNT has now deployed Motorola devices across Germany, France, Italy and the Benelux region, and roll-outs are also planned for the Middle East, Romania, the Czech Republic, Russia, Switzerland, Austria, Bulgaria, the Nordic region, Israel and the Baltics. Underpinning this extensive installed base, TNT Express has also chosen to use Motorola's 'service from the start' maintenance and replacement service.

Benefits

And how are they performing? Very well, TNT says. The company can now give its customers improved visibility of the delivery process; has a better overall view of parcel flow through its network; and can plan for peak periods. It currently has an on-time delivery rate of 98 per cent.

Drivers can log on to the systems using the wireless network at their depot, automatically switching to the GPRS network when they are out on the road - using the MC9000's built-in wireless LAN and WAN capabilities. Using the free-text message facility on the device, they can check and correct any address problems whilst out on the road without causing loss of productivity or service degradation, and this reduces the return rate of undelivered parcels.

Enhanced visibility of delivery schedules has also improved capacity planning, and TNT Express can optimise driver breaks according to resources and parcel volume.

'We introduced one of the first track and trace systems in the early 1990s,' Higgins says, 'but data was only updated in the evenings. Customers wanting information on their parcels had to call the depot, which, in turn, would call the driver for his update. This wasn't the most effective form of communication.

'Now the order status is updated automatically and customers receive online information direct from the drivers in charge of their delivery. The track-and-trace feature on our Web site is also now the first port of call for customer enquiries, and has proved a very effective method of customer support. It also means that our call centre volumes have been cut, allowing us to provide an enhanced support service to those queries requiring it.'

The new wearable mobile computers and scanners are said to have increased worker productivity and load accuracy dramatically, while reducing vehicle loading time. Instead of checking a manifest on the vehicle itself, operatives can now see the status of an order simply by scanning the package and consulting the wearable computer. This has reduced the time taken to load vans and trucks by up to 30 per cent.

'The new devices and technology have also had a positive effect on TNT's workforce,' says Higgins. 'The drivers are now able to send and receive information on the move, so that if they finish their deliveries early, they can receive new instructions via the handsets, which allows them to increase their earnings. This effect has been so noticeable that drivers from other delivery companies have been coming to work for TNT Express.

'Using the new wearable computer means that our operatives can scan parcels and move them without having to pick up and put down a hand-held device. It's like having a mobile computer built into your arm.' Higgins says that although the net effect on efficiency per parcel may seem small, 'getting each van out of the warehouse ten minutes earlier, each shift on each day, has a huge effect on business efficiency.'

In the future TNT Express is planning to adopt further wearable mobile computers and MC9000s worldwide, and is currently investigating how the use of RFID technology can help its business too.