UPS Steps Up Global Wireless Networking
As a wireless technology pioneer and one of the largest wireless users in the
world, it's no surprise that UPS has assumed a leadership role in global
wireless networking. On a normal business day, the company transmits approximately
three million packets of package tracking data alone via its global wireless network.
Today, the company is embarking on the most ambitious, leading-edge connectivity
project ever undertaken in the shipping industry. When completed, UPS expects
to speed up package processing, dramatically reduce repair costs in its hubs
and reduce wireless wide area communications costs, particularly in the United
States.
Understanding the past is critical to anticipating the future. Here's
how it all got started.
Wireless Communications: The Backbone of Full-Visibility Package Tracking
In 1985, UPS deployed its first scanning application as part of its
package tracking efforts. At that time, packages were only scanned at the origination
and destination ends of the shipping process; consequently, only a handheld
scanner was needed.
 In
1991, UPS revolutionized the industry with the Delivery Information Acquisition Device
(DIAD I). The DIAD I was a tablet-PC-like device that automated a number of
business processes. For example, it contained programmed route and timecard
information for the driver. It could scan bar codes on packages and also capture
digital signatures from package recipients. When the driver returned to the
UPS center at the end of a work day, the captured information was uploaded to
a database located on the company's mainframe(s). This information was
used to track packages for customers.
The second generation DIAD was introduced in 1993. It transmitted delivery
information in real-time through an in-vehicle cellular service. Smaller and
lighter, it served as a conduit for two-way communication between the driver
and UPS. DIAD II also contained 100 percent more memory (1.5Mb) than the original
DIAD and featured a back-lit display.
The DIAD II communicated via a wireless network of 100 cellular
carriers brought together by UPS to provide nationwide communication service
to the company, making UPS the world's largest cellular user in 1993.
The package information uploads performed over the cellular network became accessible
via the Worldwide Web in May 1995 when UPS enabled customers to track their
packages directly on the Internet.
But the company's wireless efforts didn't stop in 1993. By 1996, UPS had adopted
the first wearable scanner in its hub facilities in order to facilitate full-visibility
tracking to its customers. With full-visibility tracking, customers
were able to log on to the Internet, contact UPS via phone or e-mail and know
exactly where their package was in the global UPS network. Today, UPS receives
10 million tracking requests per business day via its award-winning website,
ups.com.
 Scanning
a customer's package at multiple points during the shipping process was
necessary in order to provide full-visibility tracking. Ring scanners worn by
loaders in UPS hub facilities ensured that packages could be tracked end-to-end
in the UPS package network. These ring scanners were attached via a short cable
to a wireless terminal attached to a loader's forearm. The terminals communicated
via radio frequency technology with computer servers co-located in UPS hubs.
By 1999, UPS was on the third generation of the DIAD. DIAD III, still in use
today by UPS drivers throughout the world, enables two-way communication away
from the vehicle. It was the first device in the industry to both capture and
transmit real-time delivery information. DIAD III gives a driver three ways
to transmit information in real-time:
-
Internal packet data radio. 
- In-vehicle cellular service.
- Built-in acoustic modem for traditional telephone transmission.
The global keyboard on the DIAD III glows in the dark and its modular architecture
enables easy upgrading of individual components. It features a faster processor
than its older siblings, with memory capacity more than four times (6.5Mb) that
of the DIAD II.
Part of what makes the DIAD such a powerful tool is the system - ODS (On-Demand
Services) - that enables communication with the driver. Here's how
it works.
Every driver automatically logs into the ODS system first thing in the morning.
This allows dispatchers and center management to access the driver via his/her
DIAD throughout the day by sending generalized text messages. Virtually all
drivers start their day with a list of predefined customer pickup locations
for that day. Thanks to ODS, the addition of a one-time pickup stop can be added
to a driver's work list, enabling UPS to take advantage of the geographic
location of its entire fleet for servicing pickup requests.
The Road to Technology Migration
In 2000, UPS knew that 20 percent of its wireless devices would need
to be replaced every year due to wear and tear. UPS saw an opportunity for technological
innovation. The proper technology strategy could accomplish the following objectives:
- Migrate technology
- Leverage standards
- Incorporate less expensive technology
- Ensure hardware availability
- Eliminate multiple systems
- Improve data integrity
As a result, UPS began an ambitious project involving the migration of all
of the wireless terminals used in the company's package pick-up, sorting,
transportation, and delivery to a standard platform.
The STeP Project
The UPS Standard Terminal Platform (STeP) project will replace up
to 200,000 terminals now in use with devices that improve operational efficiencies.
To realize the full operational efficiency gains and cost reductions of the
plan, UPS is testing and deploying a global wireless connectivity solution consisting
of the following:
The standard terminal and scanner platform includes a common operating system
(embedded Microsoft WindowsCE), development environment (Visual Studio), local
area network (Ethernet), wireless local area network (802.11b), wireless personal
area network (Bluetooth), and wireless wide area network communications (GPRS
or CDMA).
Global Scanning System
Global deployment of the wireless portable terminal is underway for
a new in-building scanning application, known as the Global Scanning System
(GSS), which consolidates and enhances UPS in-transit package tracking systems
worldwide.
A cordless ring scanner worn on a loader's hand captures data from a package
bar code and communicates it via Bluetooth to a terminal worn on the loader's
waist. The terminal transmits the scanned package tracking data to a local server
using 802.11b.
GSS features one of the first devices to incorporate both Bluetooth and 802.11b
wireless protocols. UPS's application of Bluetooth (802.15) and 802.11b is leading-edge
since both standards operate in the 2.4 GHz spectrum. UPS has accomplished this
co-existence by implementing a time-division multiple access scheme, exploiting
802.11b's clear-to-send feature to silence (periodically) 802.11b radios and
by synchronizing the terminal's Bluetooth master to the terminal's 802.11b radio.
Security concerns were overcome during the testing phase through the use of
wireless encryption. The terminal includes flash memory so that the encryption
technology can be upgraded as required. The flash memory is also used to secure
capture and storage of scanned data.
 Elimination
of the cables that connect scanners, workstations, and handhelds has provided
faster processing rates for each of the more than 80,000 daily scanner users.
The elimination of cable repairs, etc. has reduced equipment downtime costs
by 55 percent. Overall equipment costs have been reduced by eight percent. Given
that there are approximately 55,000 wearable scanning devices in use at 1,700
facilities world wide - the cost savings will be significant.
The new Bluetooth scanner features a battery with twice the life span of the
old ring scanner. The Bluetooth battery lasts for six hours - more than
enough time to get a loader through a standard five-hour shift. Productivity
is increased since the loader doesn't have to replace the battery in the
middle of his/her shift. In addition, eliminating the cable and shifting the
wireless terminal from the loader's forearm to his/her waist have increased
the loader's mobility. As a result, the scans-per-minute goal with the
wireless equipment is 60 scans - an increase in productivity. Even a slight
productivity gain becomes meaningful across multiple shifts and thousands of
employees.
GSS will reside in 1,700 hubs with more than 12,000 access points, making it
one of the world's largest wireless LANs. The project continues the company's
commitment to centralizing and standardizing technology. To reduce costs and
encourage system interoperability, UPS is avoiding customization as much as
possible, using "off-the-shelf" technology components whenever possible.
Wireless Worldwide
UPS has long been one of the largest cellular network users in the
world. In 1993, the company intergrated the services of 100 disparate analog
carriers to form a nationwide wireless network for its DIAD-equipped drivers.
This network is still in place today.
Since 1993, UPS has continued its pioneering efforts, utilizing wireless data
WANs in North America, Europe and Asia. Today, the company has begun implementing
the next phase of its global wireless WAN strategy which encompasses Global
Packet Radio Service (GPRS) and Code Division Multiple Access (CDMA).
GPRS is the global standard used by UPS in most countries. Since nationwide
coverage is the company's primary concern in the United States, UPS is deploying
both GPRS and CDMA-enabled DIADs to ensure comprehensive coverage.
In November 2002, UPS launched its SMS (Short Message Service) Tracking Service
in eight Asian countries, enabling customers to track their package delivery
status anytime, anywhere with their mobile phones. The service features a local
dial-in number for each country for speedier access and to help customers save
on dial-up charges.
UPS also provides a free WAP (Wireless Application Protocol) service that enables
customers in the United States, Canada and Asia to track their packages on the
UPS wireless Web site using a Web-enabled mobile phone. Or, if customers prefer,
they can track their packages via their PDAs or pagers. For more information
on UPS Wirelesss Solutions, visit UPS.com.
 To
ensure maximum flexibility in field transmission capabilities, the fourth generation
of the DIAD began deployment in 2004. By 2007, more than 100,000 DIAD IVs were
deployed worldwide. Each DIAD IV features a built-in GPRS or CDMA radio (depending
upon the area of the world in which it is operating), an acoustical modem to
facilitate dial-up access if necessary, and an infrared (IrDA) port to enable
transmission in a UPS center. The DIAD IV also features Bluetooth and 802.11b
connectivity.
The monochrome screen on previous DIADS will be replaced with a color screen
that accommodates more information which can be displayed in an easier-to-read,
more attractive manner to customers. The color screen also enables UPS to color-code
messages transmitted to a driver's DIAD. Urgent customer pick-up messages,
for example, can be color-coded to alert the driver.
The DIAD IV will contain 128 megabytes of memory - 20 times the memory
of the previous DIAD. UPS will use this expanded capacity to provide new and/or
improved customer services. For example, drivers can add notes on customer preferences,
enabling even more personalized customer service.
Now and in the Future
As customer needs are evolving to encompass the three flows of commerce
- goods, funds, and information - UPS is expanding its wireless technology
strategy to meet those needs.
The company continuously monitors existing and emerging wireless technology
to determine how and if it can be effectively integrated into business processes
to improve operating efficiencies, reduce costs or provide new and/or enhanced
services to customers.
To assist in this effort, the UPS Strategic Enterprise Fund monitors and evaluates
technologies such as biometrics, radio frequency ID tags and other emerging
technologies that may enable UPS to provide new or enhanced services to its
customers. When a viable technology that meets certain criteria is identified,
the Strategic Enterprise Fund may invest in the technology.
 Like
any successful company, UPS knows that it must keep close tabs on technology
as it constantly changes. While technology is ever-changing, the primary reason
to implement it at UPS hasn't altered since the company's inception in 1907.
At UPS, business drives technology.
|
