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Tech Update 
Find savings through tracking technologies
Obstacles and results
By Debra Young
TechRepublic
January 10, 2003


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While WhereNet has exceeded expectations, getting the technology up and running proved more challenging than anticipated. According to Van de Merwe, AFS learned some hard lessons along the way.

The first obstacle was mapping out the topology of the distribution center yard to create an accurate CAD drawing of the facility to determine where to set up the array of antennas. It was important to have enough lines of sight to cover the entire area. Armed with a little measuring wheel, AFS employees measured every inch of the yard by hand.

"We spent weeks and weeks and weeks trying to configure the X-Y coordinates for every square inch of the yard," said Van de Merwe, "only to discover that even a minor margin of error was going to cause major problems." Nowadays, WhereNet just flies over a site with a small plane, shoots the map, and it's done.

The second obstacle was the hardwiring. AFS set up 19 antennas every 400 to 500 feet. Trenching the 12-inch thick concrete tarmac to lay over five miles of cable from one of the facilities was a massive undertaking.

"We were able to piggyback some of the antenna cabling with the conduit used for electricity," explained Van de Merwe, "but we had to be creative in figuring out how to get the cabling in without exceeding the original budget." Installing the hardwire and setting up the antennas cost around $25,000. But today's WhereNet antennas are wireless.

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The third obstacle was the interface. Getting the hardware and software systems to sync was crucial. But WhereNet was spread out between Santa Clara and Tennessee, and OMI was stuck in the middle. Everyone tried to work out the problems long distance, without success.

"There's a lot that can be done in an implementation by remote," noted Van de Merwe, "but interface is not one of the them." After a lengthy struggle, AFS got developers from WhereNet and OMI to collaborate and write the necessary code.

"I would describe the process and the results we were looking for and this whiz kid from OMI would write the code as I would dictate," recalled Van de Merwe. "We spent a week together writing the interface that way before we were able to realize the full benefit of the technology."

Typically, WhereNet's technology is easily deployed. An average installation is up and running within 90 days. Due to the extraordinary challenges of interfacing the technology with OMI's yard system, the process at AFS took nearly a year.

Locating a growth opportunity
Despite the lengthy implementation process, Van de Merwe cites significant cost savings in three key areas: asset usage, yard throughput, and spoilage and shrinkage. Now the distribution benefits are piling up, and the new technology has also boosted the company's overall business strategies.

"The efficiencies we've realized at our new distribution center have actually exceeded our expectations," said Paul Jones, general manager of Associated Foods' Farr West Facility. "This stems in part from 100-percent accurate data capture generated by the WhereNet system. By improving processes, reallocating labor, and better utilizing our fleet, we've opened the door to take on greater volume while improving customer service for our growing customer base."

This greater efficiency is particularly timely since AFS recently picked up another $110 million in new business, and by April 2003 will experience another significant bump in business in Idaho through consolidation of the division.

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1. Find savings through tracking technologies
2. What OMI could do
3. Obstacles and results


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