Two-Way Is The Ticket

Effective communication is the key to every good relationship, right? Public relations specialists, human resources managers and marriage counselors all bank on this time-tested philosophy. Admittedly, they have the fact-based research to back it up.

Good employer-to-employee communication is also crucial, but what happens when an employee’s job title isn’t conducive to “face time?” How do employers deal with employees who are on the road throughout the day, travelling routes and delivering supplies to customers?

Distributors have long realized the communication efficiency that cellular phones provide their staffs; cellular is still the most popular method of communication between delivery truck drivers and the main office. But there is another communication medium that’s creeping in to more distributor businesses: two-way radio communication, and cell-phone/two-way radio combos.

Two-way communication is becoming a popular choice among managers for a number of reasons. First, employers can track drivers’ whereabouts. Secondly, managers and drivers can coordinate drop-offs, emergency deliveries, and reroute drivers based on highway conditions. Finally, two-way radios have advantages over cell phones, including safety and cost.

“A lot of [businesses] will initially start with cell-phone products, but as they grow and get more and more people, employees may begin to abuse cell phones, or [managers] are having a harder time keeping track of everyone,” says Brian Baxter, president and owner of Action Communications, a mobile communications provider based in Tucson, Ariz.

Two Good To Be True?
Two main types of services fall under the category of two-way communication: basic, two-way radios and radio/cellular phone combinations. While a large number of companies and service providers offer two-way radios, Nextel is the only service provider to currently offer the combination phone/radios (called Direct Connect).

Two-way radio communication is nothing new (they have been used in police cars, for instance, since the 1930s), but it has grown more popular for business use in the past two decades, even after cellular phones became mainstream.

In fact, two-way radios offer many benefits over cellular communication, says Wake Forest, N.C.-based Rik Rasmussen, owner of the website Twowayradiodirectory.com, and a 35-year veteran of the mobile communications industry.

“One of the biggest advantages that exists is that in cellular communication situations, you’re speaking one to one, but with a two-way radio system, the dispatcher speaks and everybody hears it; when somebody responds, you all hear it,” he says. “With service-oriented companies, this can be a tremendous benefit.”

Employees can use the network communication to help each other answer questions — finding a customer’s location, for example.

“It’s like an intercom rather than a private phone,” Rasmussen adds.

Another advantage is that many two-way radio providers have fewer “holes” in their service areas, meaning that drivers will experience more consistent coverage throughout the given delivery territory. Cellular phone and PCS companies often concentrate on covering metropolitan areas and highways, Rasmussen explains. In most cases, two-way radio providers have a single larger tower that provides a greater coverage area, while cellular and PCS providers rely on a network of smaller, multiple towers, often with areas that don’t have complete coverage.

Two-way radios are also a manager’s dream. Drivers are just a button’s push away, and in most cases there isn’t a voicemail option. Instead, the employer can activate a beeping signal if the radio isn’t answered, telling the driver to call back as soon as possible.

“You can track the progress of their run,” says Bill Nourse, president of Brookmeade Hardware and Supply Co., Nashville, Tenn. “We keep a run sheet for each stop they have. We know where the heavy part of the load comes off and we know where they are if they have four stops ahead. We’re able to figure in our mind when they should be done,” he says.

Rave reviews aside, potential buyers should keep in mind that individual companies require specific capabilities for their trucks and drivers. Each business owner must decide which option best matches his or her company’s needs. “Each user has to look at what [a system] can do, what they need it to do and where they can get the best match,” Rasmussen says.

Radio and Cell Combos
Nextel’s Direct Connect, with its two-way radio/cellular phone combos, was designed to enhance the industry’s current offerings. While the option is ideal for some businesses, there are drawbacks, says Rasmussen. Though the company offers the ability for “one-to-many” group communication, the cost for that service can be high. “They literally charge by the minute for every mobile participating,” he explains.

Nextel may be good choice for businesses who value the concept of two products rolled into one. With these units, users can make and receive regular cellular calls. They use the two-way capability by simply scrolling down to the person they wish to call, then dialing them with the push of a button — much like speed dialing, Rasmussen explains.

Nextel radio/phones are the product of choice for ABC Corp., an Waipahu, Oahu-based distributor. Trying to communicate with employees operating on every one of the Hawaiian islands posed many challenges until three years ago when the company scrapped its cellular plan and brought Nextel capabilities to its workforce, says Emily Kuraoka, the company’s executive vice president.

The two-way function is especially valuable in reaching drivers all over the islands, she says. “I can get an immediate response, rather than letting it ring. If a customer is waiting for a delivery or there is an accident, we can radio [the driver].”

Kuraoka also appreciates the managerial ease created by the immediacy of two-way radios. “It doesn’t allow our employees the option of taking the phone call later.”

Changing to Nextel is also saving ABC about $500 a month in the long-distance charges they paid their cellular provider, though Kuraoka admits that cost was not the biggest factor in the choice — it was the ability to get in touch with anyone, at any time.

And it is literally all the time for some ABC service technicians. They’re required to keep their phone/two-way radio on 24 hours a day in case of customer emergencies. In fact, certain customers are given the phone numbers, a customer-service perk that few companies can match. Still, Kuraoka says employees appreciate that the company pays for their cell phone — ABC allows each employee a certain number of personal minutes each month.

“They also like it because they can help each other out on the road,” says Kuraoka. “I think it enables good communication.”

Nourse couldn’t agree more. His company has used two-way radios for more than seven years. There was a hiccup at one point, however, when the company did away with the two-ways to curtail expenses.

“We decided it was just not working without them. We were missing out on too many communicatons,” he says. Brookmeade lasted a year without the two-way radios.

“Over the course of the year we monitored the problems that came up and how we could have solved them with better communication. We realized we shot ourselves in the foot,” Nourse admits.

For Brookmeade, the two-way radios also make driving safer for employees, and the company’s liabiility in accidents is lessened.

“We have a company policy that drivers can’t use cell phones. There’s a rising awareness that using a phone while driving can significantly contribute to the possibility of an accident,” he says. With the two-way function, dialing is eliminated, and drivers aren’t tempted to carry on a conversation — a brief two-way exchange is less distracting, says Nourse.

Coverage Is the Key
Coverage and air-time should be the biggest considerations when distributors research two-way systems to buy, Rasmussen says.

“If your trucks travel in a particular geographic area 90 percent of the time, determine what that work area is, then choose a provider of mobile communications that can cover that area,” he adds.

Unlike cellular conglomerates such as Nextel, Cingular or Sprint, two-way providers are often smaller, privately owned companies. Local vendors and their higher towers often provide better coverage than national cellular providers.

Distributors must also be sure that traffic is not so heavy on a particular provider’s two-way network that they’re not able to access it when needed.

You can ask potential providers, says Rasmussen, but they may not be entirely honest. “Get them to give you a list of other users of the system and check out some of their references,” he suggests.

When looking into purchasing a two-way radio system, Rasmussen also recommends requesting training, installation and ongoing service from local vendors. “You want to work with a two-way vendor who is familiar with the coverage needed in the area,” he adds.

While cost is an important factor in any purchase, Rasmussen says the two types of mobile communications are competitively priced. It’s easy to be deceived, however, by the way a plan is explained, he warns. Cellular plans often have very little up-front cost — revenue is derived from the monthly bill. In contrast, two-way radios, often require a larger initial investment, but cost less each month.

Two-way radios generally range in cost from $12 to $19 and up per month after the initial investment of $500 or so, Baxter says. “Our biggest hurdle is trying to get people to put more money out there for equipment first.”

The Power of Choice
Two-way radios provide another alternative to cellular phones for communicating with employees on the road.

“The main benefit is low cost and instant communication,” says Nourse. “You don’t have to dial and go through a switchboard or anything like that. All you have to do is hit a button and speak.”