Businesses are achieving impressive returns on
Transcription
Businesses are achieving impressive returns on
MOBILE BUSINESS SPECIAL EDITION: PRODUCTIVITY DREAMS REALISED YOUR GUIDE TO IMPROVING PRODUCTIVITY AND CUSTOMER SERVICE FEATURES Please Can We Have Some More Productivity Thriving On Mobility From Clunky To Cool ROI Showcase CASE STUDIES Sponsored by: Foodstuffs, Ruapehu Alpine Lifts, C3, Round The Bays SPECIAL EDITION: Productivity Showcase MOBILE BUSINESS 1 MOBILE BUSINESS CONTENTS 18 12 10 04 14 16 20 MOBILE BUSINESS SPECIAL EDITION: Productivity Showcase 02 Kids mimic superheroes in their role plays. Certainly they like the costumes, but the role play is often about making a difference (and beating ‘the baddies’). FEATURES 04 From clunky to cool Mobico general manager Aldas Palubinskas talks to Mobile Business about the mobility revolution that's changing the way business is done. 10 ROI showcase 14 ‘Please sir, can I have some more productivity?’ The GM of leading NZ mobile solutions provider Mobico, Aldas Palubinskas, is passionate about productivity. He discusses how leading NZ businesses can achieve real world productivity gains and how they can get the dickens out of their day. 18 Thrive don't just survive Current rhetoric is still focused on surviving the recession, but fortunes have been built in bad times. Mobico’s Aldas Palubinskas talks to Johanna Bennett about how business can thrive by focusing on managing the job – with a little help from mobile technology. CASE STUDIES 02 Scan-as-you go means no more punishment for big spenders Airlines reward big users of their services, supermarkets ‘punish’ them. Foodstuffs’ answer is its ‘gold’ Shop ’n Go service, which is based on Mobico’s handheld scanner POS system. 12 Mt Ruapehu skiers slide through queues after technology overhaul Skiers at Mt Ruapehu are the first in New Zealand to take advantage of a new wireless RFID scanning solution that increases customer convenience, reduces overheads and minimises ski pass fraud. 16 C3 clears log jam, allowing customers to see the wood through the trees Tracking logs was a long-standing problem until a modern wireless network solution was implemented which gave C3 customers the ability to monitor their consignments at the Port of Tauranga. 20 Mobico turns finish line nightmare into dream run Processing finishing times for the Ports of Auckland Round the Bays used to be a marathon effort for event organisers. Now, thanks to Mobico, it’s a stroll in the park. But what about us big kids? How do we feel that we can make a difference? And just who are the baddies? This special edition of Mobile Business is a portfolio of case studies and ideas about how you can make a difference. It focuses on how the superheroes in leading NZ businesses have made a difference and beaten ‘the baddies’ of poor service, unnecessary cost and rework. While the real superheroes remain understated (and normally don’t wear a cape), their actions have made a positive and tangible difference to thousands of lives through improving service, profits and job satisfaction. This is your resource to learn from their successes and maybe think about how you can apply some of their ideas to the world that you fearlessly protect and serve. We have compiled a wide range of stories to help demonstrate how many and varied industries and organisations are benefiting. And they are various; they run the gamut from airlines, hospitals and ski-fields, to supermarkets, major ports and one of NZ’s largest community events. The common themes are that all the solutions have a compelling return on investment, they improve things for stakeholders and they all use handheld mobile computer technology. “As a country we need to improve productivity. Remember when people started to use computers instead of typewriters, accounting systems instead of ledgers and email instead of post. What ever the industry or government department, things in the office changed forever with the use of computers. The interest in mobile computing feels a bit the same. People are really starting to get to grips with how to transform manual paper processes that still exist at the ‘edges’ of their organisations.” So says Mobico’s GM, Aldas Palubinskas, about what is currently happening with regard to strong interest seen recently in ‘mobility solutions’. It’s similar to what happened with PCs in the 1990s, and it’s all about leveraging efficiency and making people more productive. But the world has moved on since PCs were hot. Nowadays, it’s all about computing on the move, and one of the major efficiency boosts here is the ability to do away with data re-entry. So, for example, instead of taking a note of work done or an order taken while out and about, people can use a handheld mobile device –a mini-computer, in effect – to record that information on the spot. This also saves time at the other end, as the people (or the systems) back at headquarters can be getting on with the job, without having to wait for the paperwork to come in or for you to return later that day – or tomorrow. The aim of this special edition of Mobile Business is to showcase the variety of mobility solutions presently in use. They demonstrate just how versatile mobile computers can be, and how the range of organisations – from companies to government bodies to not-for-profits – can boost productivity with what may just turn out to be the technology of the decade. Simon Hendery, Editor SPECIAL EDITION: Productivity Showcase MOBILE BUSINESS 1 > CASE STUDY MOBILITY 2 Scan-as-you go means no more punishment for big spenders Airlines reward big users of their services, supermarkets ‘punish’ them. Foodstuffs’ answer is its ‘gold’ Shop ’n Go service, which is based on Mobico’s handheld scanner POS system... T he supermarket industry had a problem. It was effectively punishing its best customers, those with the biggest trolleys, by making them wait in long queues. While this still happens in many supermarkets up and down the country, Pak ’n Save Wellington wanted to find a solution. It found one in Mobico’s self-scan system, which is based on customers using handheld scanners to check off items, as they move through the supermarket, rather than waiting until they are at the check-out. Although this might appear to be a money-saving idea at first, this was not what was behind the initiative, says Foodstuffs Wellington’s CIO, Egon Guttke, who oversees the system. What it is really about is providing the stores’ best customers – those with the biggest baskets – with the kind of “gold-class service” that big users of airlines, for example, customarily enjoy. Only people with long shopping lists tend to use the service, says Guttke. “We wanted to provide a better service to our best customers. If you have a gold pass when flying, you go through a gold check-in, but normally, in a supermarket, if you have a full trolley you are treated less well than if you have a small basket and so can go through an express check-out.” This didn’t make sense to Pak ’n Save Wellington, so, back in the late nineties, it installed the first iteration of what it calls its Shop ’n Go service. This entails customers picking up a handheld scanner at the supermarket’s door and then scanning their purchases as they proceed around the store. This greatly speeds the paying process at the till, as the items have already been stored in the point-of-sale (POS) system’s server, so the bill can be called up instantly at the till. This means no more waiting; no unpacking and repacking, and no squished bananas, says Guttke. The solution is really a virtual point of sale (POS) system able to store transactions ahead of the customer reaching the check-out, says Guttke. It uses the wireless network operating throughout each of the participating MOBILE BUSINESS stores. This means transactions can be called up instantly, he says. Nor is fraud a problem, as there is a built-in checking mechanism. “We check at random to start with. If the check proves that I have been accurate (that is, the customer’s self totted-up bill is correct) then the likelihood of my being checked again decreases.” Scanning mistakes register as beeps, as they do at the till. However, the human error rate is very low, with those items that can’t be read by the handheld simply being placed in a green plastic bag by the customer, to be scanned later at the check-out, says Guttke. The third-generation iteration of the Pak ’n Save self-check system features new handhelds, with a colour display and a more ergonomic design, adds Guttke. “You could even play video on them.” More spending Guttke says it’s difficult to gauge precisely the effect of its self-check service as other marketing initiatives, such as smart marketing, have to be taken into account, and this tends to muddy the overall picture. “But customers who use self-check grow their spending with us more than the average consumer,” he says. This is partly because the handhelds keep a running total for the user, so people aren’t afraid of overspending. They can also be used for price enquiries, to, for instance, check the price of items in the freezer, where the prices for different products aren’t always clear, says Guttke. The self-check system was originally piloted, in Wellington, in 1998. It has been so successful that Foodstuffs Wellington is presently on its third generation of the system, which now features much better handhelds. The current handhelds are Motorola MC17 Retail Mobile Computers, tailored to Pak ’n Save customers’ needs, says Mobico’s Allan Moyle, who is responsible for both the implementation and maintenance of the systems. He says the durable terminals now feature much improved colour screens that display both the SPECIAL EDITION: Productivity Showcase We wanted to provide a better service to our best customers. Egon Guttke, CIO > CASE STUDY CASE STUDY > Foodstuffs Wellington AT A GLANCE Industry > Retail Business Objective prices of items scanned in, and also come with the controls that allow users to add or remove items, should they change their minds. The price data is then transmitted over a standards-based wireless network, to be stored as a pending transaction on the supermarket’s POS, waiting to be called up when the customer gets to the check-out, says Moyle. Auckland-based Mobico provides mobile solutions aimed at solving every day business process problems. It uses a combination of mobile and wireless technologies to achieve this. Time-savings An unexpected extra benefit for Pak ’n Save customers has resulted from the time-saving tweaks they themselves have applied to their use of the system. Mobico’s general manager, Aldas Palubinskas, says customers who use the service have told him they have shaved about 30 minutes off each ‘large shop’, by bringing their own bags and boxes so they can pre-select products, separating them into heavy items, cleaning products and chilled goods, for example. And, because they’ve already been scanned into the trolley, they can then be quickly moved straight in to the car-boot, which saves yet more time at home, as everything is already organised for a quick stow into fridge, freezer or pantry. Being in control this way, and reducing the doublehandling, also has the benefit of keeping fragile fresh goods in better condition. “This is great for timepoor working parents and busy professionals,” says Palubinskas. “It’s also very green, as it cuts down on plastic bag use considerably.” Fourteen supermarkets The Shop ’n Go system is in all 14 Pak ’n Save supermarkets across Foodstuffs Wellington, which actually covers the lower North Island, from Hawkes Bay to Ohakune to New Plymouth and, of course, Wellington itself. Foodstuffs is a wholly Kiwi-owned group of cooperatives that dates back to 1922. One of the country’s biggest grocery distributors, it employs 30,000 staff. It is divided into three separate co-operatives that service the Wellington Region, Auckland and the South Island respectively. The company owns the Pak ’n Save, New World and Four Square grocery stores. SPECIAL EDITION: Productivity Showcase MOBILTITY > To “reward” rather than “punish” a supermarket chain’s best ‘big trolley’ customers, by offering them a gold class retail service. Solution > Shop ‘n Go – a fleet of MC17 Retail Mobile Computers, tailored to the chain’s needs, that run wirelessly on the POS system. System implemented and maintained by Mobico. Business Benefits > Helping high value customers save time and effort > Retain key customers > Above average spend through handing control to the users > Instant capacity during peak trading > Labour-saving benefit FOR MORE INFORMATION > Mobico, www.mobico.biz [email protected], 09 303 0686 MOBILE BUSINESS 3 FEATURE FROM CLUNKY TO COOL Image courtesy of Ruapehu Alpine Lifts. 4 MOBILE BUSINESS SPECIAL EDITION: Productivity Showcase MOBILITY INNOVATION They’ve always been rugged and manly, but mobile devices are evolving. They now score cool points too. They’re now as at home on the ski-field or in the cockpit as in the warehouse, and their ability to boost productivity and save $$$ is proven. Mobico general manager Aldas Palubinskas talks to Mobile Business about the mobility revolution that's changing the way business is done. BY JOHANNA BENNETT M obile devices aren’t what they once were. Rugged handheld computers in particular have evolved greatly. Indeed, they’ve become a whole family, and some of its members are quite delicate, although still strong. There is the tiny ‘ring-scanner’ that straps to your finger and acts as a miniature scanner. Then there are the small, stripped-down cellphone style devices used in hospitals. But whatever form they take, they’re all high-spec devices capable of a myriad of functions. Take the latest innovation – the über-cool RFID reader for use on the ski-field. It reads the skier’s season pass while it’s still inside his or her jacket. It checks its validity by pulling up a photo, so the lift-operator can quickly confirm that the pass-holder really is who they say they are. It speeds up the chilly process of waiting for the chair lift considerably. But the ‘family’ is bigger than this, and examples of its members provide for an interesting display in Mobico’s boardroom, the venue for our interview with Aldas Palubinskas. Some models are still of the rugged I-cantake-being-run-over-a-truck variety (and they are – repeatedly – says Palubinskas), while others are more akin to your everyday cellphone. The varied designs are no accident. They perfectly illustrate the diverse forms mobile technology is taking as it emerges from the back-room and the courier depot, and starts to appear in a lot of places you wouldn’t expect – such as on the ski-field or inside the cockpit of a jet liner – as well as in hospitals, universities and throughout retail networks. Just why they’re developing this way is a story Palubinskas is keen to tell. The general manager of Auckland-based Mobico provides mobile solutions to solve what are basically process problems we all have and that mobile technology can deal with very effectively. It can free us from paper mountains, and the drudgery of multiple data-entry, with all its tedium, inaccuracy and waste of time and money. SPECIAL EDITION: Productivity Showcase MOBILE BUSINESS 5 FEATURE And it can deliver the kind of efficiency and savings that have become pressing with the tough recession we’re facing, says Palubinskas. “Companies in retail and transport have used such technology for years, both to automate jobs, making them easier to do; and to monitor quality and cut down on waste,” he says. The problem is that, beyond these industries, people aren’t aware of how and where to use such technology despite how powerful it is, he says. However, Palubinskas thinks a recession is a good time to look at new ways of managing business. “When times are tight, people need the opportunity to do things differently. That’s a real cliché, but if you’re in business and you’re used to following certain processes it can be quite daunting to try and find another way of doing things, even if the return seems obvious. “Mobile technology can substantially improve the quality of your business processes and free up cash by giving you better visibility of your stock or assets, or other resources. It means you can make better business decisions.” Making the case for adopting a mobile model, he says; “Most business processes consist of somebody sighting something and recording it. The normal process, ever since people could write, has been to record this on a piece of paper and then manually enter A LOT OF ORGANISATIONS HAVE THEIR BUSINESS PROCESSES BUILT AROUND PAPERWORK… THIS TECHNOLOGY LETS YOU CAPTURE THAT DATA INSTANTLY, SO YOU’RE ABLE TO COMPLETE MANY OF THOSE PROCESSES ON THE FLY. Aldas Palubinskas, Mobico that data later on or reproduce it throughout a whole paper chain. Mobile technology allows you to do that data capture at the point of interaction, at the organisation’s edge, where you’re serving the customer or handling an item of inventory. “A lot of organisations have their business processes built around paperwork, but then you’re locked into how that invoice or service request gets handled. This technology lets you capture that data instantly, and accurately, so you’re able to complete many of those processes on the fly.” SMART DRIVE WASHES UP Palubinskas gives the example of a Fisher & Paykel maintenance technician who comes to your home because your Smart Drive washing machine isn’t working. Instead of relying on paperwork, as used to happen, the technician now has a handheld with drop-down menus, which allow him, for example, to see if the part he needs is in his van. If it isn’t, he doesn’t even need to go out and check, he just sends a request straight back to F&P so his bin will have that part placed in it. So, later on, when he goes back to the depot, he can just pick it and come straight back to you. “A whole bunch of processes have been blended together here and, once he has done the job, an invoice gets generated on-the-job and he’s pretty much clear of all the paperwork,” says Palubinskas. Although it might not be obvious at first glance, you can translate this way of doing things to other processes which are actually quite similar, such as insurance or tenancy inspections, meter reading or aircraft manifests, and more advanced developments, in hospitals and even on the ski-field, says Palubinskas. 20 YEARS 400 SOLUTIONS 700 BUILDINGS 4000 VEHICLES 20000 USERS 1 MOBILE SOLUTIONS COMPANY +64 9 30 30 686 | 79 St Georges Bay Rd | Parnell | Auckland | www.mobico.biz 6 MOBILE BUSINESS SPECIAL EDITION: Productivity Showcase MOBILITY INNOVATION Mobico is presently installing a ski-field application. It illustrates one of the more sophisticated uses of mobile technology, as it uses RFID (radio frequency ID) tags. RFID has taken a bit of battering lately in terms of take-up, as people come to terms with how best to use it. Despite this, Mobico is busily installing an RFID-based ski-pass system at Mount Ruapehu – the ski season arrived early this year, putting pressure on for a quick install. The system will see ski-lift operators check your pass while it’s still inside your jacket. The traditional lift pass has a bar-code, which means you have to fish it out of your jacket. This can be a cold, unpleasant business and also means delays as chair-lifts go past unoccupied, says Palubinskas. With RFID-checking, chair utilisation goes up, queue throughput increases and customers get more runs. Which is why Ruapehu Alpine Lifts is installing the technology. This leads us on to the need to ensure backend processes can support mobile solutions. Palubinskas gives an example of how this is being done in a fairly non-traditional area for mobile technology – health. HEALTHY OPTION Unusually for the normally paper-based health sector, Capital Coast District Health Board moved to a mobile-based inventory replenishment system in its hospital wards about five years ago. The system involves every ward having a location identifier and its medical stocks – syringes, bandages, medicines etc – being barcoded. A handheld scanner is used to identify and capture information about stocks. It keeps a count and then relays this information to the three hospitals’ Oracle database. This has a set ‘refresh level’ for when stocks fall below a certain level. The system will then ask the administrator if he or she wants to generate an order and if so will automatically transmit one to the supplier concerned. It’s effectively a real-time, ongoing stocktake, says Palubinskas. Mobico’s Ben Tompkins, the systems architect who helped install the system, says the solution has had a major effect. The hospitals used to overstock on saline solution and dialysis products, for example. These have a limited life, but it’s hard to predict how much is needed. The hospitals would over-stock ‘SAVING THE PLANET’ THE MOBILE WAY S ome people now have ‘saving the planet’ on their organisation’s list of KPIs. Even if you don’t, it’s almost certainly on your personal list of concerns. Palubinskas reckons mobilising your workforce can make a big ‘green’ contribution in a number of ways: • Reducing waste and transport costs • Encouraging the re-use of assets – think of those ‘lost’ Canterbury hospital beds • Recycling storage space – as you stock up and quickly sell what you now know your customers want • Industrial PDAs are also way more rugged than mobile phones – they’re designed to survive many tumbles and drops, and they typically last five years or more. Very recession-friendly QUEUE-BUSTING MADE SIMPLE Y ou should be so lucky to have people queuing up in these tight times… Well, The Warehouse and McDonald’s do, and when their queues get too long they have a mobile solution. For instance, a McDonald’s staff member will sometimes appear at your side and take your order on a PDA, relieving pressure on till staff and speeding up your order. Similarly, at The Warehouse, especially at Christmas when queues are long, extra staff will often come and scan your purchases, and give you a ticket, so when you get to the counter all you have to do is pay – no more waiting. Palubinskas says these “queue-busting applications” just record what people have in their basket, but from a business point of view are very powerful as they take on “20 percent of the [POS] task for 80 percent of the benefit”. “Many field service applications take a same approach. It makes implementation much faster and cheaper. Applications can be expanded over time, but just that 20 percent is enough to gain 80 percent of the ROI.” SPECIAL EDITION: Productivity Showcase MOBILE BUSINESS 7 FEATURE and a lot of it would go bad, says Tompkins. The scanner-based inventory solution has helped the DHB address this expiry-date issue, along with many other issues. The health sector is starting to look at mobile solutions too. Palubinskas says that a Canterbury hospital pilot is currently evaluating a quite different mobile solution – an RFID system to tag beds, so they can be tracked around the hospital. “You might say, ‘how can you lose a bed?’ But you’ve got assets flying around the place all the time and there’s no check on them, so there could easily be an extra gurney in the emergency department or parked up some back hallway.” Even though we’re talking about hospitals, says Palubinskas, “It’s pretty much the same technology solution that’s used to restock shelves in your local store, but using a different business model. And the payback is immediate for both, with savings being derived from reducing slowmoving items and ensuring fast-moving items are at hand.” SAVINGS STACK UP And what kind of savings are we taking about? Palubinskas gives a robust retail example to illustrate. With the move some time ago to ‘just-intime’ manufacturing and stocking, one result has MOBILE TECHNOLOGY CAN SUBSTANTIALLY IMPROVE THE QUALITY OF YOUR BUSINESS PROCESSES AND FREE UP CASH BY GIVING YOU BETTER VISIBILITY OF YOUR STOCK OR ASSETS, OR OTHER RESOURCES. IT MEANS YOU CAN MAKE MUCH BETTER BUSINESS DECISIONS. been gaps on shops’ shelves as popular items sell out, while stocks of less popular items languish unsold. A similar solution to the health board’s – but on a much more modest level – has been shown to increase the profits of a medium-sized shop by $50,000 to $250,000 a year, simply by reducing out-of-stock gaps and managing stock better, says Palubinskas. The solution consists of a handheld equipped with a scanner, which is hooked up to a wi-fi network. “Customer satisfaction also improves greatly. Did you know sales and margins lost due to out-of-stocks and discounts on old expired stock account for many more dollars than stock theft or loss? When a full stock-take takes hours instead of days, retailers can stay on top of their inventory, replace what they need and clear what they don’t far more efficiently. Even with a small gain, such a system can pay for itself almost straight away.” “It’s smart technology for tough times.” And to emphasise the low-volume point, Palubinskas says that vertical operations – he mentions Morgan Furniture – are starting to use mobile-based systems. You can automate routine jobs by using scanners, which makes for consistency and also allows you to monitor quality, he says. And, although initial staff buy-in can be difficult, once people realise it makes their jobs easier and gives them more control they’re usually enthusiastic, he adds. AIR NZ PILOTS PAPERLESS TAKE-OFF Moving up the company-size scale, Air New Zealand is using a mobile solution for a manifest makeover – that’s the folder of passenger information the pilot must have before take-off. mobilise your workforce with +64 9 30 30 686 | 79 St Georges Bay Rd | Parnell | Auckland | www.mobico.biz 8 MOBILE BUSINESS SPECIAL EDITION: Productivity Showcase MOBILITY INNOVATION SAVINGS & FINANCING B ecause it’s hard to imagine the kind of financial benefits that a handheld computing solution can result in, Palubinskas quotes an example of a medium-sized shop increasing profits by $50,000 to $250,000 a year, by reducing gaps and managing stock better. For bigger customers, the huge jump in reporting accuracy of field technicians’ reports for Mighty River Power – from as low as 25 percent to 99.9 percent – tells a powerful story. Palubinskas says the savings come from less capital being tied-up in slow-moving stock, less waste and simpler data-entry that is more accurate, resulting in fewer incorrect invoices. There are also soft benefits, such as better customer service and retention. And, because times are difficult, financing is now more flexible, he says. “Payment can be made on virtually a daily basis, out of profits. And a business case and proof-of-concept roughed out pretty quickly so people can see just what’s possible.” “If you want to test out a solution, equipment can be borrowed or rented, but the chances are your key business processes have already been mobilised by another industry, whose experience you can leverage.” Just because a company is big doesn’t mean it’s immune from cost pressures, and Air NZ has faced the same pressures as other airlines, as the industry has become intensely competitive in recent years. This has forced it to scrutinise costs closely. For example, airlines have to pay steep fees for every second their planes are on the tarmac. “So, why do they walk the paperwork (the manifest) to the cabin door and hand it to the pilot?” asks Palubinskas. Well, Air NZ won’t need to any more. It has been piloting a paperless solution for its national feeder plane airlines – the little planes of the Eagle and Mt Cook lines. This sees the pilot receive his or her manifest information wirelessly, over the public GPRS mobile network, to a handheld, a Motorola MC35 handheld computer in this case. No more delays because of slow paperwork – that’s the bonus from the passenger point of view. From Air NZ’s, it’s the large savings from not having planes tick up fees as they hang around on the tarmac waiting. ON ROUTE Mobile solutions have developed even beyond this, however. One of the latest enhancements is the geo-stamp. This has come about because many handhelds that are used on the road are now GPS-equipped. A recent iStart case study, of Mighty River Power, discussed how the company’s meter-installers now do their ‘paperwork’ using handheld computers. These feature drop-down menus and picklists which detail jobs and record completion. The handhelds also ‘geo-stamp’ jobs, using a GPS stamp. This involves a reading of the longitude and latitude of the place of installation, and acts as additional confirmation of a job done – very useful when third-party contractors are being used. Palubinskas says the system has saved on paperwork and delays, and hugely reduced costs. Job-sheet accuracy has gone up from as low as 25 percent, at busy times, to virtually 100 percent. “New Zealand’s power companies like it so much that we have ended up working with all of them to install similar systems. They would also work well for government, local councils and other utility companies, and service organisations like insurance,” he adds. Which brings our ring-scanner to mind again. Both the ‘ring’ and the geo-stamp are examples of novel uses of mobile technology. While the geo-stamp records that a job has been physically attended, the ring-scanner aids accuracy and makes its user more productive. The wearable scanner reads bar-codes, so freeing-up the user’s hands to move packages etc. Both technologies show how varied the uses of mobile technology can be. The key is to understand the underlying business process issue you are trying to solve. There is often a mobile solution to it, says Palubinskas. FROM CLUNKY TO COOL “Mobile computing is used all over New Zealand and has been for twenty years. It can solve tough business problems, which results in big efficiency gains and cuts costs. It has been used extensively in retail, transport and logistics, and could bring the same benefits to other industries and organisations, especially when it comes to reducing paper,” says Palubinskas. “There are perceptions about big clunky devices that are grubby, but the state of them is just a reflection of the environment they’ve been used in. The technology can be used in even the most hygienic environments, as the hospitals have shown.” iStart’s discussion with Palubinskas finished up with a chat about Apple’s hugely popular iPod and how, basically, it’s really an innovative use of the humble hard-drive. Palubinskas thinks it’s “technology as jewellery”. Which makes it doubly innovative and underscores the theme here: that the same technology can solve the business process problems of quite different industries. The iPod is a good example of innovative thinking. It solved a consumer ‘problem’ more neatly than its fore-runners – it made musicon-the-move easier, more varied and more fun. Palubinskas has similarly innovative aims in the business space. And some of Mobico’s solutions promise more fun too – more runs on the skifield, for example. Mobico is NZ's largest specialist handheld mobile-computer and wireless-network provider. It has installed – and supports – over 700 wireless networks across NZ, operating 20,000 handheld mobile-computers. Contact: [email protected] SPECIAL EDITION: Productivity Showcase MOBILE BUSINESS 9 FEATURE MOBILITY SOLUTIONS IN ACTION Businesses are achieving impressive returns on investment through the combined efficiency of today’s powerful mobile computing devices and fast, secure wireless networks... M obility solutions – in one form or another – have been delivering productivity enhancements and quality improvements to the smart businesses that have embraced them for more than 20 years. Here we highlight some common applications for today’s robust solutions, all based around a wireless network linking handheld mobile-computing devices to the corporate IT infrastructure. Another factor these showcased solutions also all have in common is their ability to generate a meaningful return on investment for the businesses deploying them. If it hasn’t already, it’s likely your business could benefit from deploying at least one of these solutions. Have you investigated the possibility of putting mobility solutions to work for your organisation recently? All of the solutions highlighted here also have the potential to improve a company’s cashflow and Eliminating errors to achieve the Perfect Order reduce its working capital requirements. Most mobility solutions cost a total of around $10 per user per day and when you combine the hard and soft benefits resulting from their deployment, the total returns typically add up to multiples of that investment. For an organisation embracing mobility solutions for the first time, the transition can be compared to the early days of computing when businesses migrated from typewriters to word processors and ledgers to computer-based accounting applications. To learn more about the key steps to successfully implementing a mobile project, see the productivity feature starting on page 14. SOLUTION Warehouse Picking and Inventory Management BENEFIT Improving order accuracy to 99.95% ROI 50% increase in cases per hour picked over a manual system Inventory reduction of 5 to 25% Material out of stock reduction Reduction in shrinkage SOLUTION In factory, building or field data collection BENEFIT Increased productivity ROI 10 to 25% increase in jobs per day over a manual system Paperless inspections, compliance and asset maintenance 10 MOBILE BUSINESS Enhanced safety and customer service Improved data accuracy and quality (including photos and GPS markers) Significant reduction in wasted time and double handling SPECIAL EDITION: Productivity Showcase ROI SHOWCASE SOLUTION High Frequency Customer Service Cycles Direct Store Delivery and Route Accounting BENEFIT 10% more customers per day with 5% increase in order fill rates, promotion participation and customer retention rates ROI One additional stop per day 5% revenue increase 15 to 30% better cashflow Handheld personal shopper SOLUTION Make it easy for customers to buy things BENEFIT Increased sales, decreased labour ROI 3 to 15% basket size increase per visit – significantly more during peak times 20% labour reduction Increased customer satisfaction and loyalty SOLUTION Field Service and Proof of Delivery BENEFIT Increased service profitability & first call resolution; More stops per worker ROI 27% improved service profitability 19% better collections Delivering Prompt Service and Proof of Receipt Travel time reduction of 53% SPECIAL EDITION: Productivity Showcase MOBILE BUSINESS 11 > CASE STUDY RFID/MOBILITY Mt Ruapehu skiers slide through queues after technology overhaul Skiers at Mt Ruapehu are the first in New Zealand to take advantage of a new wireless RFID scanning solution that increases customer convenience, reduces overheads and minimises ski pass fraud... I nspecting the passes for season and life pass holders at Mt Ruapehu’s two commercial ski areas is much easier and convenient for skiers, faster for the ticket checker and has significantly cut down on incidences of pass fraud, all thanks to a smart card / RFID (radio frequency identification) system supplied and supported by Mobico. “About half of the skiers on the mountain are holders of life or season passes,” says Dave Mazey, general manager of Ruapehu Alpine Lifts (RAL), the operators of both Whakapapa and Turoa ski fields. “We want to make their experience as comfortable as possible. With the combination of the RFID passes, rugged wireless scanners and our new POS (point of sale) system, pass holders don’t have to take off their gloves and rummage around their pockets to show their cards. In addition, once the pass is scanned, a large, clear image of the pass holder is displayed on the handheld scanner which allows the pass checker to ensure that the skier is actually the pass holder.” In the season so far, as a result of the new technology, more than 50 people have been caught trying to use a season/life pass fraudulently. RAL owns and operates the assets of New Zealand’s 12 MOBILE BUSINESS two leading North Island ski areas, Whakapapa and Turoa on Mt Ruapehu. During the winter ski season up to 750 staff are employed with snow-related activities. Total lift capacity for the two areas is 15,000 skiers per hour at Whakapapa and 11,300 skiers per hour at Turoa. The RFID solution is a quantum leap from RAL’s old barcode scanning system which, in turn, was another quantum leap from the traditional method of visually inspecting passes. “We should be able to reduce the number of ticket checkers we’ll need next year by around 25%,” says Mazey, “a significant saving. And now that we have the system in place, we can start using the smart cards in other aspects of the ski field operation such as equipment rental, food and beverage and customer relationship management.” World-Class Technology “As part of our constant effort to optimise the experience of our customers,” says Mazey, “the RAL senior management team makes it a point to visit other leading ski areas worldwide to see the latest in technology. Ski field operators in the Northern Hemisphere are beginning to use RFID smart card technology and we thought that it SPECIAL EDITION: Productivity Showcase We should be able to reduce the number of ticket checkers we’ll need next year by around 25%, a significant saving. And now that we have the system in place, we can start using the smart cards in other aspects of the ski field operation such as equipment rental, food and beverage and customer relationship management. Dave Mazey, general manager with RAL, Siriusware and Motorola to ensure that when the season opened the new pass checking system would operate as expected and continue to operate in the harsh environment. We even tested solution prototypes in commercial freezers to simulate the environment to assist with the early identification of any potential issues.” Personal Service CASE STUDY > Ruapehu Alpine Lifts AT A GLANCE Business Objective > Optimise the customer experience by streamlining the ski pass inspection process > Over time, reduce the number of ticket checkers required over time > Reduce the incidence of season/life ski pass fraud Solution > Motorola MC9090-G Wireless Handheld RFID Scanners > Motorola AP5131 Access Points to support mesh wireless network RFID/MOBILITY “We really appreciate the personal service we’ve received from Mobico,” notes Mazey. “When we had two scanners go down at the same time – the conditions here can wreak havoc on any type of machinery or electronic device – they immediately sent down a replacement unit, the only one in the country at the time, and sourced another from Australia. When we were running short of blank passes and the shipment from overseas was late, Matt personally picked up the cards from the airport and drove them down after hours. Plus they have been most helpful with the configuration of the Motorola scanners and have given us great advice as we’ve deployed the Siriusware solution elsewhere on the mountain.” RAL is just scratching the surface with their RFID initiative. “Once we have the new wireless mesh infrastructure in place,” concludes Mazey, “and have more experience with Siriusware, we’ll be replacing our barcode scanners with RFID throughout our operations in areas such as equipment rental and food and beverage. Of course, RFID is more expensive than barcodes, but it has so much more potential down the road. Our focus at Whakapapa and Turoa is to make the customer experience as fun, rewarding and convenient as possible and RFID, and the team from Mobico, will help us achieve that goal.” > CASE STUDY would enhance our appeal if we could implement a similar solution here. We had a barcode scanning solution in place that linked to our point of sale system via a wireless network, but all were in need of an upgrade. So the timing was perfect.” “Our POS system just didn’t have the functionality we required nor were we getting the support we wanted,” says James Fisher, IT Manager at RAL. “And the bar code readers at the lift line had surpassed their ‘use by’ date. Dave and the management team really liked the idea of an RFID-based system so we looked at the market to see what was available. As it turned out, Siriusware was one of the very few solutions that fulfilled our requirements. An added incentive was that Siriusware was compatible with Motorola RFID scanners. We had been using Motorola radios at the ski field for years and were impressed with their robust operations, not an insignificant fact considering our harsh environment.” Once the team at RAL had decided on Siriusware, they contacted Mobico for the provision of RFID scanners. “Matt Higgs, Corporate Account Manager at Mobico, had literally grown up on the ski field and had been in contact with us about Mobico’s products and services,” continues Fisher. “So we called him up to see if they could help us. His understanding of our operation and the unique environment we operate in has been a distinct advantage.” “We jumped at the opportunity to help out our friends at RAL,” says Higgs. “After a few conversations to clarify their requirements, we were able to provide them with a full solution including Motorola wireless handheld RFID readers and Gen2 UHF RFID seasons pass cards. Plus we are currently in the process of upgrading their legacy wireless network with a state-of-theart dual-band mesh network like that used at C3. This will improve both coverage and data transfer rates. From the outset, we were very mindful of public nature and the size of the project. We worked closely > Siriusware access control / sales point software > Professional services and support from Mobico Business Benefits > 25% forecast reduction in ticket checkers in ensuing ski seasons > Queues moving 30% faster > Significant reduction of fraudulent use of season / life passes > Provides powerful new platform for applications elsewhere within the operation Members of the project team (left to right): James Fisher (RAL), Annah Dowsett (RAL), Aldas Palubinskas (Mobico) and Matt Higgs (Mobico) FOR MORE INFORMATION > Mobico, www.mobico.biz [email protected], 09 303 0686 SPECIAL EDITION: Productivity Showcase MOBILE BUSINESS 13 FEATURE ‘Please sir, can I have some more productivity…?’ GM of leading NZ mobile solutions provider Mobico, Aldas Palubinskas, is passionate about productivity. He discusses how leading NZ businesses can achieve real world productivity gains and how they can get the dickens out of their day… D o you sometimes wish your people were more like machines, robots, worker bees or soldier ants? Why do people have to have feelings, good days, bad days, pride and goals? How come there are still so many jobs that require staff to do menial and highly repetitive tasks. For example, moving goods, or recording details about tasks. Every day, in New Zealand, millions of these repetitive tasks are performed. This is the backbone of modern life. But it is often dreary and boringly repetitive work. Could you do it, day after day, year after year? Thankfully, life is probably not a Dickens novel for you or I, but it is staggering how many Victorian era paper-based practices remain in the modern workplace. We can all talk about how government should improve productivity, but how many of us have really improved productivity within our own workplaces? 14 MOBILE BUSINESS Is it up to you to change this? Will jobs continue to be lost as larger and/or offshore companies swallow up NZ companies, because they fail to invest in technology to streamline necessary but error-prone menial repetitive tasks? What can you do? Changing business processes is certainly hard. It can feel like trying to get out of a moving car because there is so much momentum. But it need not be like this. Here are three simple steps to improving productivity. These are based on how the leading businesses we work with and the “agents of change” that work within them do it. It’s a simple, proven and potent approach. 1. Find it 2. Prove it 3. Do it 1. FIND IT If you’ve read previous features or case studies, you may recall Mobico specialises in handheld SPECIAL EDITION: Productivity Showcase mobile computers. The majority of the 20,000 or so units they look after throughout NZ are doing the most boring jobs in the country. You might say: “What they do isn’t innovative, it’s repetitive”. So, what are the most repetitive tasks in your organisation? •If you are a service company, it’s scheduling jobs, recording time and replacing parts •If you are a wholesaler or retailer, it is replacing stock •If you are in freight or warehousing, it is moving stock •If you are a hospital, it will be ordering/replacing supplies, recording details and cleaning •If you are a council, it will probably be maintenance and inspections •If you are a hotelier, cleaning rooms and restocking the mini-bar Large parts of your organisation’s people and capital are committed to similar tasks every day. They are repetitive, but always need to be done PRODUCTIVITY WHY THE DICKENS? Don’t continue to stand still and let others consume your business and potentially our country. Don’t keep using processes that have been around since the 1800 and 1900s. 1. Find the dreary tasks. Form your hypothesis about what can be changed and the expected benefits. 2. Keep the scope tight and prove it. Convince yourself and then the sceptics. 3. Know that productivity is improved through evolution – and get on with it. on time, with accuracy and care. Every day, year after year. FORM YOUR HYPOTHESIS: “We can reduce shipping errors by 90%” “We can reduce stocktake time from 24 hours to 4 hours” “We can make two additional customer visits per person, per day” “We can reduce stock losses by 50%” “We can reduce the time to complete the task by 20%” “We can reduce inventory by 15%” Once you have agreed on a theoretical target, work through what the business benefit is. Be specific. Productivity gains are typically evolutionary, not revolutionary in size and value. If your hypothesis is credible, you will be able to theorise repeatable benefits, but typically they may be “small”. Such benefits frequently range from $20 to $50 per task worker, per day. While costs to achieve them are around $10 per day. People can often lose heart at this stage, feeling that it will take a lot of work and cost to achieve what on the face of it looks to be quite a small gain. Using a handheld mobile computer improves the quality and consistency of these tasks. These reduce errors, eliminate double-handling (ie. the re-keying of data) and speed up service. But, perhaps most importantly, they take some of the drudgery away from the tasks. However, $20 to $50 is actually a very large gain. Did you know $30 per person, per day easily extrapolates to the equivalent of $200,000 per year in extra sales. Consider this: average net earnings are often less than 5% of revenue and, in most cases, the benefits proposed can be viewed as flowing directly to the bottom line, given they are normally a direct cost of sale or operating cost reductions. So, $30 divided by 5% = $600 per day x 365 days, or 250, depending on your company. So, do the maths. Also take into account the compounding effect. However, you look at it there will be a good return. So, keep believing in it. 2. PROVE IT With a clear hypothesis, like any scientist, you will need to prove it. Think about the processes around this task. But not too many of them. The secret to a successful mobility project is to keep the scope tight and the concept simple. This can also be said about many projects, but specifically with mobility the tasks being improved on are repetitive. Start with the most simple repetitive task. You can always add other tasks later. Also keep the error handling process simple and ideally not on the mobile computer. For example, when doing a stocktake, if the item you’ve just scanned isn’t recognised, just take it to the stocktake supervisor. Don’t design your stocktake application to add the item as this will complicate the process and potentially introduce data integrity issues. Once you have a tight scope and functional specification, it is then very easy and cheap to build a prototype/proof-of-concept mobile application and run it on borrowed or rented equipment. Once you have this, you can then work through your new improved process recording the results and findings. Then record the same process done the current way and estimate the savings. EXAMPLES: “We ran the proof of concept order picking system for 2 weeks. We found orders took on average 8 minutes less to pick and every order was 100% accurate. Without the order picking system 5 out of every 100 orders had issues. Based on 25 orders per day per person, we estimate the system will save 100 minutes per day in picking, plus at least 20 minutes per day sorting out incorrectly picked orders. This improves our performance by 2 hours x $20 per hour = $40 per day”. “Our stocktake used to take 6 people 4 hours for 4 nights. That’s 96 hours. What’s more the stock changed as we opened during the day. We put in the stocktake system, it now takes 4 people 4 hours. That’s a saving of 80 hours and we get it done all in one night, so the stock is accurate. The time saving alone is worth $1,200 each stock take”. “The technician saves on average 8 minutes per job. They do 7 jobs per day. Saving 4 minutes 7 times per day means we save 56 minutes per day, which allows us to squeeze in an extra job most days, which generates an average of $70 per day extra”. 3. DO IT Great. You’ve found out how to save some money, or make some more. Is this the moment of truth? Is $30 per day, per worker enough benefit to get the project approved? It adds up to a lot extra on the bottom line at the end of the year – or does it? What is your threshold? Some businesses will do it for $10 and some will easily get $100 or more. However, many businesses seem to feel that $30+ per day, per task worker is not enough of a benefit to pursue. Did you know most mobility projects have an ROI of less than 12 months, but they take on average 4 years to get the go ahead. There’s always plenty of excuses: EXCUSES EXCUSES: “We can’t reduce head count, so it isn’t a real saving” “We just need to try harder and reduce errors” “Everyone does it the way we do, so why should we change?” “It’s not in this year’s budget” “If we are going to do that, we also need to do this and this and this” These are the same reasons that government departments find it hard to change. Is your business the same? Have modern business management practices paralysed common sense decision making? Improved productivity is not a destination, it is a journey. Make some decisions, follow in the steps of others and enjoy the benefits of their learning. Start focused and expand the scope over time. Provide your workforce with tools that improve the menial, task-based jobs, that even make them fun. For more information: Mobico is NZ's largest specialist handheld mobile-computer and wireless-network provider. It has installed – and supports – over 700 wireless networks across NZ, operating 20,000 handheld mobile-computers. Contact: [email protected] SPECIAL EDITION: Productivity Showcase MOBILE BUSINESS 15 > CASE STUDY WIRELESS NETWORK 16 C3 clears log jam, allowing customers to see the wood through the trees Tracking logs was a long-standing problem until a modern wireless network solution was implemented which gave C3 customers the ability to monitor their consignments at the Port of Tauranga... F orestry is one of New Zealand’s largest export sectors. C3, New Zealand’s largest on-wharf logistics company, provides logistical services for 21 million logs and 6.3 million tonnes of forestry products annually. In order to provide their customers with real-time, web-based access to the status of their consignments, which is captured by an array of wireless handheld bar-code scanners, C3 needed to significantly expand the wireless coverage of its port facility. To help them identify the most appropriate network topology, optimise the placement of wireless access points to maximum coverage and offer value-added services for on-going support and further network development, they turned to Mobico. C3’s new wireless mesh network, powered by a configuration of indoor and outdoor access points provided by Mobico, now covers 13 hectares (32 acres), up from three hectares (7.5 acres). In addition, the coverage can be easily expanded as required and even ported off-site. C3’s flexible and scalable wireless solution underpins its current log management applications, provides the infrastructure to support customer portals and gives the company a competitive edge for winning new business.” MOBILE BUSINESS Outdated system C3 had been running a proprietary wireless network to support its log handling and warehousing solution. “We had been operating a legacy wireless network to support our handheld terminals,” says Jason Garrett, IT manager at C3. “At the time of installation, in 2002, our network was the most advanced wireless solution on the market, and it had supported our applications as well as we could reasonably expect. Our technology partner, Mobico, had been supporting the network and had provided our handheld terminals. But, especially in the wireless space, the technology moves right along so we started to think about upgrading.” The legacy network only covered about three hectares (7.5 acres) of the wharf area, just two (out of four) log berths. “We found ourselves limited with our current coverage,” explains Garrett. “We shift logs all over the facility and if we moved them out of the coverage range, away from the log berths, we lost the signal. At the same time we were thinking of extending our wireless RF and bar code scanning applications to include sawn timber and containers. Again, we didn’t want to be constrained by our coverage area.” SPECIAL EDITION: Productivity Showcase Allan and the team from Mobico are fantastic when it comes to keeping us up-to-date. They, and the Motorola people as well, tell us what’s new and how we can add even more value to our network. Jason Garrett, IT manager Finalist for the 2009 TUANZ Innovator of the Year Award “Jason is a hands-on manager and makes a major effort to stay current with the latest trends and technologies,” says Allan Moyle, account director at Mobico. “He was asking us for advice about extending his wireless coverage with a mesh topology, as well as upgrading his handhelds. He was spot on with his homework, though, because Motorola had just released the mesh-enabled indoor access points.” The key advantages of mesh technology are its scalability and flexibility. Mesh networking is based on a series of ‘nodes’, each of which is capable of providing wireless network access to local users. Mesh technology offers a cost-effective solution for extending wireless coverage for large outdoor facilities, by increasing the range and coverage of the network without increasing system cost. In addition, mesh networks only require cables for power. This makes mesh networks ideal for outdoor wireless networks and hard-to-cable buildings, such as historic or very large buildings that require long data cable runs. More Options The flexibility of the mesh network gives C3 even more options. “We placed a Motorola access point inside our ‘Portacom’ command centre, which is a shipping container that contains a mobile office,” says Garrett. “We simply move the Portacom next to a berth or work area, connect it to the power leads and we have a fully-functioning office with network access. We can even use the Portacom as a network extender if we need to temporarily expand the coverage. Or we can even move it off-site if need be.” While Garrett and his team have a firm grasp of the technology, he appreciates the professional services from Mobico. “Sometimes it’s hard to get the specialised advice we need to move ahead with our IT initiatives,” says Garrett. “Allan and the team from Mobico are fantastic when it comes to keeping us up-to-date. They, and the Motorola people as well, tell us what’s new and how we can add even more value to our network. We are always expanding our capabilities and the mesh network has given us a wireless backbone that will allow us to fully support our RF and related initiatives.” SPECIAL EDITION: Productivity Showcase CASE STUDY > C3 Limited AT A GLANCE Business Objective > Expand wireless coverage of wharf area to support vital port operations > Upgrade handheld scanners to be compatible with enhanced log tracking applications > Provide flexibility and scalability in wireless network for expanded coverage Solution > Motorola AP-5181 outdoor and Motorola AP-5131 indoor access points to support mesh wireless network Business Benefits > Expanded coverage from three hectares to 13 hectares WIRELESS NETWORK Mesh wireless networking After a few discussions, Garrett commissioned the Mobico team to do a formal wireless site survey and recommend appropriate wireless infrastructure. “We had been dealing with the Mobico team for years,” says Garrett, “and they have always given us excellent service and good advice. They are always quick to help and they maintain what they sell. In fact, they even honoured a warranty even though our own repairs had voided the exact terms and conditions. Now that is what we would expect from a trusted partner.” “We sent one of our technicians out to their facility,” says Moyle, “and prepared a comprehensive site survey that identified 17 locations for access points that would give the coverage they required. We specified a mix of wired and wireless access points, with some requiring power-over-ethernet capabilities, to avoid running power cables.” “The site survey was exactly what we needed,” says Garrett. “It showed us where to place the access points and outlined the additional coverage we could expect.” “The advantage of the mesh topology,” he says, “is that we can add nodes as we need them, without too much configuration. During the initial roll-out, Mobico helped us test the network and offered a few technical tips to make it work more efficiently. Because the initial installation went so well, we’re now in the process of adding more access points whenever we need to expand our network coverage.” Currently, C3’s mesh wireless network covers 13 hectares (32 acres), over 40% of the facility, and expands the reach of the wireless mesh network to include all four log berths and the majority of the log marshalling yard. > CASE STUDY One of the drawbacks of the legacy network was its ability to scale. “We were limited to three nodes on the network,” says Garrett, “so we really couldn’t just add a few more access points here and there. We trialled a couple of ‘off-the-shelf ’ consumer/office access points to see how they would work, but for any number of reasons they didn’t have the capabilities we wanted. We had been hearing about a new wireless topology, mesh networks, and started to ask around to see if that would be appropriate for our needs.” At the same time, Garrett and his team wanted to upgrade their handhelds. “While our older terminals had worked well, they were based on the Palm operating system which was no longer the most appropriate platform,” he explains. “Most of the newer crop of handhelds run Microsoft’s mobile OS, so we started to look around for some replacements.” > Flexibility of mesh network means C3 can move access points without reconfiguring network > Mesh networks are fully wireless, expanding flexibility and reach while reducing hardware requirements FOR MORE INFORMATION > Mobico, www.mobico.biz [email protected], 09 303 0686 MOBILE BUSINESS 17 FEATURE THRIVE, DON’T JUST SURVIVE Current rhetoric is still focused on surviving the recession, but fortunes have been built in bad times. Mobico’s Aldas Palubinskas talks to Johanna Bennett about how business can thrive by focusing on managing the job – with a little help from mobile technology… E ver wondered how the big get bigger and why you aren’t one of them? In the long term, it’s seldom about what you do or make. “It’s about cashflow, cashflow and more cashflow” says Mobico’s general manager Aldas Palubinskas. As demand dries up and margins get squeezed, the temptation is to focus on what you do – rather than better managing those tasks that improve cashflow. Then, when demand increases again, everyone gets busy doing what they do and, again, the tendency is for attention to move away from managing the tasks that improve cashflow. Nor is this just a corporate phenomenon, says Palubinskas. It applies across the board – from the smallest business to the largest organisation. However, improving cashflow is seldom just about chasing debtors. It’s about making sure your price, order, shipment and invoice are right first time. If anything isn’t right, the account doesn’t get signed off and you miss the opportunity to get paid on the spot and on time. Who is going to pay a bill if it isn’t correct? Nobody – it’s human 18 MOBILE BUSINESS SPECIAL EDITION: Productivity Showcase nature. And, sadly, if you miss the payment round, it usually it takes a month to sort everything out, and you get paid next time round. This is the fundamental reason why most non-corporate businesses need overdrafts, factoring or larger amounts of working capital, says Palubinskas. They collect too much in 60 and 90 days. Even worse, they often end up using their GST or provisional tax funds to bridge the gap, resulting in high, unbudgeted-for penalty costs. To thrive, you need to get the paperwork right first time, so you can collect in 30 days. The same applies to order-handling. The less time an order takes to process and fulfill accurately, the greater the opportunity for others. This means you shouldn’t just focus on processing orders. Think about how they are processed; how quickly they are processed; how accurately they are processed, and how many are processed. Also think about how they’re billed; how accurately they’re billed, and when the money is collected. Manage your business – not just the tasks. You can’t thrive just by doing the job well, says Palubinskas. MOBILITY CAPTURE THAT DATA Even those at the more modest end of the commerce food chain can benefit, says Palubinskas, as the solution is becoming increasingly affordable. He gives the example of the plumber who, stereotypically, puts his paperwork off to the last minute. “It leads to so much waste and it affects cashflow,” says Palubinskas. “Say, he’s out on a job and he uses four or five metres of piping – he can’t remember which or what type. He wrote it down on a piece of paper, but struggles to find it when he does his paperwork a week later. He’s not short of work, but he can’t collect his money if the bill is wrong, so he rounds it down, to help ensure that the customer will be happy to pay. If he repeats this scenario for too many jobs per month that’s a lot of money written off or not recovered. If he doesn’t, he probably collects slower. “This is why many small businesses find themselves having to use overdrafts, or worse ACCURATE use GST or provisional tax to fund cashflow. The owner often wouldn’t need to if he or she AND TIMELY YOU CAN MAKE THE captured and processed the data around the BIG AND SMALL GUY PROBLEM CAPTURE AND THE PROCESSING OF business better.” And to illustrate that this is both a big guy Palubinskas is in the business of selling or gal and a small guy or gal issue, Palubinskas THAT DATA, THE BETTER YOU CAN handheld-based business solutions, but he cites examples from different ends of the comBUILD, THE BETTER YOU CAN RUN makes a valid point that getting such data down merce food chain. YOUR BUSINESS, AND THE BETTER on a handheld computer straight away can take Demon Drinks is quite a newbie company. as little as 10-20 seconds. New Zealand-owned, it sells the “baddest and YOU CAN COLLECT CASH. “And a mobile handheld solution can cost most kick-ass energy drink” – or so it says on you as little as $5 a day. It pays for itself many its website. It’s got a sassy attitude to promotion Aldas Palubinskas, Mobico times a day,” he says. – rather like Hell’s Pizza actually, but with more “Anyone who is involved in distribution, a girls and toilet humour. route trade or field service, as well tradespeople, can benefit from better It also has a bold attitude to sales, and has gone ahead and equipped its organised data collection. The more accurate and timely the capture of sales staff with handhelds – aka mobile computers – to do away with the data, the better you can collect and the more you can sell or do” he says. need for a middle-man and the admin. It’s a productivity and recessionEven service technicians working for a number of companies, as is beating move that many larger, more mature companies have yet to make. often the case in regional New Zealand where jobs are more scarce, can Handhelds allow tradespeople, and service and sales staff in the field benefit from such solutions, as they also allow for better job allocation. to handle their paperwork on the spot – without having to write anything Palubinskas sees such capture of data on-the-go as still being quite down, says Palubinskas. innovative. There have been the early adopters, of whom Frucor and “With a mobile handheld you can manage stock, process payments, Goodman Fielder are two examples. feed information back to MYOB or the home office, all at once,” says “Frucor’s and Goodman Fielder’s margins are a lot less than, say, a Palubinskas. hose company or a bearing company that calls on a range of manufacturDemon Drinks is actually reasonably far up the SME food chain, but ers out in Penrose one day, goes out to West Auckland another day, maybe it’s still not a large corporation. The likes of Frucor (which also sells energy has a long lunch on another afternoon, and then does the paperwork on a drinks, as well as fruit juice) and local food giant Goodman Fielder have Friday. been automating route sales in this way for years. However, it’s still not that “Those guys don’t have these field sales automation systems, but they common, says Palubinskas. should have. They’d get much better productivity and control over their workforce.” MOBILE EQUALS SALES-TO-GO Palubinskas believes some New Zealanders are innovative, but many Mobile systems work by loading up the person’s handheld with all the are slow to change, choosing to focus on just doing a better job, rather than necessary customer details, products, pricing, order history, stock and managing the job better. sometimes even routes or sales targets, so they can self-manage. “New Zealand has a few innovators and they grow much faster than In this way, handhelds do away with the paperwork that reps, contraceveryone else, so they get a much bigger market share,” he says. tors and tradespeople typically hate, as information on a job, sale or order “Our innovators have done really, really well. They thrive. But, do we is entered straight into the handheld and can either be sent straight back to have more of them than other countries? I hope so.” the office or downloaded later, all without a piece of paper in sight. “Fundamentally, business involves people either doing or selling things. So, business needs to capture how much time was involved – and maybe what you were doing at the time – or else capture what items were required, and at what price,” says Palubinskas. “Now, the more accurate and timely you can make the capture and the process of that data, the better you can build, the better you can run your business, and the better you can collect cash. “But, what do people do? Instinctively, they’re practitioners in what they decide to do. And they do this whether they’re a small, medium or large company. They focus on the practice; they focus on doing the job, rather than managing the doing of the job. “You see it right across industry. If people just stepped back and said: ‘How can we do a better job of managing the doing of the job?’ NOW, THE MORE they would be a lot more successful.” SPECIAL EDITION: Productivity Showcase MOBILE BUSINESS 19 > CASE STUDY MOBILITY/WIRELESSS Mobico turns finish line nightmare into dream run Processing finishing times for the Ports of Auckland Round the Bays used to be a marathon effort for event organisers. Now, thanks to Mobico, it’s a stroll in the park... P orts of Auckland Round the Bays has been an annual event in Auckland since 1972. It has grown to be one of the world's largest fun runs with nearly 40,000 registered runners and an estimated 70,000 participants. Every registered participant in the 8.4km run receives a runner number to wear on the day and a personalised certificate recording the time they completed. When they arrive at the finish line, runners expect to have their time recorded quickly and accurately, with minimum demands on themselves in their exhausted state. As the popularity of the event continued to grow, the organisers, Pants Events, realised they needed an automated system capable of capturing the results quickly and accurately on the spot with minimum interference, record them centrally and make them available immediately. The Challenge In the past runners were channelled into ten chutes as they finished the run. Barcoded slips were torn from their bibs and spiked manually. Every 30 seconds, a time divider was added to the spike. For the runners, this system was slow and inconvenient. If it worked perfectly, runners received an approximate race time within a 30-second band. With the probability of human mistakes, the actual margin of error was even wider. Once all the data was collected, some 400 man hours had to be spent to manually scan, allocate, cross-check and enter results into a computer before it could be made available. It could be up to three weeks after the event before the results were out. With the event attracting more participants year-onyear, this system was becoming increasingly impractical, leading Pants Events to trial a mobile wireless technology solution from Mobico. The new solution was trialled in 2005 and, since 2006, Mobico has undertaken to shoulder the full responsibility for race results, delivering a system that achieves reliability, accuracy and timeliness which would have been impossible under the previous manual system. The Solution At the heart of Mobico’s solution are 24 Motorola 20 MOBILE BUSINESS MC9000-series ruggedised handheld mobile computers (with inbuilt barcode scanners) linked to a central database, through a secure wireless Local Area Network (LAN) operating over the race finish area. As runners reach the finish line, they are funnelled into one of 20 chutes, each staffed by a race official with one of the Motorola devices. The officials scan the barcode attached to each runner’s race number and the finish-time data is stored on the device’s memory and simultaneously transmitted over the LAN to the race control system. Up to 1000 runners an hour – or one approximately every 3 to 4 seconds are scanned in each of the 20 chutes, making the data processing intensity of the Ports of Auckland Round the Bays finish line up to ten times more intensive than the busiest distribution centres in New Zealand, which typically use similar scanning technology. The finish time information is required almost immediately because runners have the option of moving from the chutes to a “print tent” where they are given a sticker with their race time printed on it. After the event, the data is integrated with the event’s website and the day after the Ports of Auckland Round the Bays, runners are able to visit the site to download a certificate recording their name and completion time. The whole race timing process is one where there is no room for failure at any point across the system. “Obviously one of the biggest issues is that we only get one chance to collect the data and if we miss it, it’s gone,” says Ports of Auckland Round the Bays organiser Catherine Buchanan from Pants Events. “If we fail to capture a participant’s time, we can’t ask them to come back to the finish line or run the race again,” she says. “Mobico have done a great job of making sure the system is reliable.” Pants Events has investigated the option of using RFID tags rather than scanners to record runners’ times but Buchanan says the technology remains too expensive for an event where organisers are focused on keeping the entry fee as affordable as possible. “Barcode scanning is absolutely the best solution for Ports of Auckland Round the Bays,” she says. To ensure the chances of the race timing system failing is kept to an absolute minimum, Mobico have built SPECIAL EDITION: Productivity Showcase Every year the Mobico team volunteers their time, skills and equipment to provide timing systems for Ports of Auckland Round The Bays. On behalf of the Auckland community, the event entrants, sponsors and charities, a big thanks to Mobico and their team. The event is much better because of their efforts. Catherine Buchanan, Pants Events, Ports of Auckland Round The Bays. > CASE STUDY CASE STUDY > Auckland’s annual Ports of Auckland Round the Bays fun-run, organised by Pants Events. multiple risk mitigation factors into the timing solution. Results data remains stored on each handheld device even after it is transmitted over the secure wireless LAN. While weather-proof ruggedised devices are used to ensure environmental factors don’t hamper the scanning process, back-up handhelds are on hand in case one fails. The LAN is set up as a mesh network, meaning no single point of failure can lead to data transmission being blocked. An uninterruptable power supply is also used to ensure power outages do not affect the event. And whilst Mobico has significant experience building custom-made scanning solutions to meet clients’ specific needs, the company encountered some unusual conditions associated with Ports of Auckland Round the Bays which needed to be taken into account when designing a robust solution. A major consideration was that a large number of human bodies in close proximity – especially sweaty bodies – can interfere with wireless LAN transmissions. Because literally thousands of runners can be around the event’s finish chutes at any one time, Mobico needed to come up with a way to mitigate the potentially disruptive impact of all those bodies on the ability of the LAN to keep transmitting data effectively. This was achieved by routing transmission up to the top of the 6-7m high fin- ish line gantries, rather than simply across the park to the race system control centre and print tent. The density of access points in the area of the finish line was also increased and directional aerials used to ensure the signal strength was maximised in the areas where the handheld devices are scanning. The Results Mobico’s race timing system for the Ports of Auckland Round the Bays run means runners’ times can be captured to within a second and without any inconvenience to those taking part in the tiring event. The data is available immediately, enabling finishers to receive a sticker confirming their time within minutes of completing the race. Event organisers no longer have to spend hundreds of hours after the run collating results. They are now posted to the website the following day. The Mobico solution provides race organisers with a robust and reliable system, capable of withstanding everything from power and equipment failure to the unusually harsh operating environment caused by thousands of sweaty bodies simultaneously rushing towards the Ports of Auckland Round the Bays finish line. SPECIAL EDITION: Productivity Showcase AT A GLANCE Business Objective > A robust, low cost, automated race timing system capable of capturing and storing tens of thousands of the runners’ results quickly, accurately and with minimal interference as they crossed the finish line. MOBILITY/WIRELESS Solution > A customised real-time data scanning and race control system developed by Mobico. Business Benefits > Accurate finishing time data is now available for instant use race organisers, saving hundreds of hours of post-event manual processing. FOR MORE INFORMATION > Mobico, www.mobico.biz [email protected], 09 303 0686 MOBILE BUSINESS 21 FROM CLUNKY TO COOL Working closely with Ruapehu Alpine Lifts, Mobico designed and manufactured UHF RFID ski passes, supplied and integrated Motorola handheld computers with RFID readers, Zebra card printers and RFID encoders.