US shipping giant Federal Express (FedEx) (NYSE: FDX) has ordered 40,000 advanced hand-held terminals from Motorola (NYSE: MOT), and will begin using them next year. The deal is worth $150 million. FedEx director of wireless systems development Ken Pasley said the terminals would save his company $20 million annually.
Motorola Israel developed the terminals, which will be manufactured at Motorola’s plant in the Negev town of Arad. Motorola has now strengthened its grip on the terminals market for shipping companies, and is now the exclusive supplier of such terminals to FedEx, UPS, Deutsche Post (XETRA: DPWG), and Airborne Express.
The advanced hand-held terminal, called the PowerPad, is based on Microsoft’s (Nasdaq: MSFT) Pocket PC operating system. The terminal is the industrial version of a consumer hand-held computer. The innovative terminal will improve service to FedEx customers and expedite delivery, by saving 10 seconds on every collection and distribution operation. The terminal will also provide company delivery personnel with greater flexibility in correcting wrong addresses, and will even check the weather conditions at the shipping destination, in order to predict possible delays.
The terminal utilizes Bluetooth technology, and transmits through GPRS cellular data communications at 20-40 Kbps, connecting the delivery person with the company center. Every terminal is equipped with a Bluetooth system, connected to a laser printer for printing labels, located in the delivery vehicle. FedEx is also asking Motorola to include an local area network (LAN) transmitter in the terminal for scanning shipments.
Published by Globes [online] - www.globes.co.il - on December 1, 2002