RSM Resources

Ed Krupka was attending an information technology(IT) trade show nearly a decade ago when he got his first look at a prototype for a handheld, voice-activated data collection tool. He immediately started making plans for the day when it would be possible to integrate such a device into a larger wireless database system.

"I just knew that there would be a future point where we could justify an investment in this kind of technology," says Krupka, president of IT for Burris Logistics, a third-party cold-storage warehouse and logistics provider based in Milford, Del. "Even back then,you could see the really exciting part of this kind of technology is how it uses the natural aspects of voice in listening and recognition."

Burris Logistics is on the leading edge of a small-computing trend sweeping across a surprisingly diverse group of industries. Many midsized companies in these industries are discovering the merits of handheld computers for data collection and record-keeping. Consider the following:

• In health care, where the small-computing concept has gained a strong foothold, 57 percent of physicians say they use some sort of handheld computer in their daily rounds, according to a recent Forrester Research survey. Doctors report they mainly use personal digital assistants (PDAs) to track appointments. They also say they use the units to order medications, check lab results and access patient records. A sign of things to come, 73 percent of medical residents say they use PDAs or other handheld computers regularly.
• In construction, handheld computers are improving job-site efficiency by providing instant wireless Web access to construction drawings and reports. The units also can run key applications to verify standard specifications, quality standards, construction techniques, inspection checklists, and various types of training and educational materials. A handheld FieldPad unit, developed by the American Association of State Highway and Transportation Officials, enables construction managers and inspectors to complete daily site reports electronically and download them to a central database. That capability, which the Michigan and Wisconsin departments of transportation are piloting, saves field personnel an average of 31.5 hours in data recording and document preparation every two weeks.
• While manufacturers were relatively quick to outfit their sales forces with handheld computing tools, they have been slower to implement advanced wireless networks on the production floor. According to a 2004 study of more than 900 U.S. and Canadian manufacturers by IDC, a global technology research firm, just more than half of high-volume, quick-turnaround process manufacturers had implemented some form of wireless mobile technology. Those numbers put manufacturing behind the health care, insurance and transportation sectors when it comes to mobile technology use, but ahead of professional services and retail.

John Sullivan, director of the Center for Advanced Manufacturing at Purdue University in West Lafayette, Ind., says that large manufacturers are making increased use of portable technologies such as"heads-up" displays as a guide to engine building and PDAs with built-in bar-code readers that provide real-time parts inventories. Those innovations,he says, are slowly working their way toward midsized production operations.

"The difficulty for those manufacturers is that the fast rate of change makes it hard to stay abreast of these technologies," Sullivan says. "While many leaders are concerned about investing too much in what may not be the right solution, they will put their company at a competitive disadvantage if they simply do nothing."

To be sure, establishing a mobile computing environment can be costly. The Wireless LAN Alliance (WLANA), a not-for-profit trade organization, estimates that building a wireless network from scratch in a midsized manufacturing or distribution environment can cost between $1 million and $2 million. The alliance notes that about half of the investment can be attributed to computer hardware and end-user products such as handheld PDAs and tablet PC units.

To address the cost issue, WLANA conducted a"cost of ownership" study across several industries. According to the study, the average payback time for a wireless installation in the manufacturing and distribution environment, in terms of increased worker productivity, efficiency and overall revenue gains, is 7.2 months. Among the findings: Wireless networks spearheaded by handheld data collection tools greatly improve real-time tracking of orders, production runs and inventory management.

At Burris Logistics, Krupka says he began building capacity for wireless data tools in the company’s IT systems about seven years ago. While the company still uses paper "pick tickets" for order management in many of its warehouse operations, it has augmented that system in the past few years with an increasing number of technological aids. For example,at some Burris locations, forklifts equipped with radio-frequency-capable(RF-capable) on board computers coordinate pick systems. A forklift driver can receive order updates or instructions via an on board computer screen that provides direction for picking a specific product from a given location.

Nearly two years ago, Burris purchased avoice-operated data system produced by Vocollect to use in a132,000-square-foot refrigerated warehouse in Maryland. This system enables workers to strap on a fist-size "Talkman" computer, move about the warehouse on foot, and verbally provide picking and recording information to the company’s central inventory database. Because of the early direction Krupka had given on Burris’ IT architecture, the system was fully operational within two months of launch.

Burris attained 99.6 percent accuracy on customer orders with traditional paper and RF-capable systems, Krupka says. However, he says, the addition of a voice-activated tool has helped close the gap to nearly 99.9 percent. That small change, he notes, helped eliminate shipping errors on more than 9,000 cases each year — no small feat when the products are perishable and expensive.

"We ship 80,000 to 100,000 cases a week, so when you’re talking about that kind of volume, it doesn’t take that many cases saved from an inaccurate pick to translate into some real money," he says.

In addition to improved order accuracy, worker productivity also has edged up. Using the voice technology system has increased the number of cases picked per hour by nearly 12 percent — a change the company expects will shave about $70,000 from annual warehouse labor costs.

While early planning for mobile wireless technology has paid off for Burris Logistics, Krupka says he understands the hesitation other midsized distributors may have in making the investment. However, he says, executives need to consider how technology can amplify the value of what already happens in a production or warehouse setting.

"Any new technology needs to fit as a natural part of the workflow, because an employee may come to work, jump on the forklift and use an onboard computer in the morning, then strap on a Talkman after lunch to go do some picking in a warehouse," Krupka says. "The key issue is operating in real time. If your technology is not helping you operate in a real-time environment in today’s world, you are just not going to effectively compete."