Tesco.com is trialling a handheld device that combines satellite navigation, order processing and mobile phone capability.

The online arm of the supermarket giant says the integrated device ensures a more efficient delivery of online orders and will deliver cost savings by reducing the number of hardware devices.

Tesco.com is the world’s largest online grocery store with several million customers and more than 4,000 orders processed an hour.

IT director Jon Higgins says an integrated device was needed just to fulfil online orders when it opened an online-only branch in Croyden, South London.

‘Previously our drivers only delivered locally and it did not take long for them to become familiar with their delivery area,’ said Higgins.

‘But with the creation of a new store solely for dot com shopping, drivers are required to deliver across all of South London. It is impossible for a driver to know the whole area, so a navigation tool was needed.’

Drivers already had a device operating on Microsoft Windows technology that listed the order of deliveries, captured signatures electronically and authorised refunds.

Tesco.com integrated the ordering information with satellite navigation (satnav) capabilities from ALK Technologies. It is now trialling the addition of mobile phone functionality.

‘We looked at a number of different options, including standalone satnav devices, but they are costly and prone to being lost or stolen,’ said Higgins. ‘But it turned out to be easy to add navigation software on the device.

‘The benefit is that we are using existing assets rather than purchasing new hardware, which is cheaper. Most drivers already carry a mobile phone, so adding that capability would be more convenient.’

Higgins says the devices ensure drivers find the most efficient delivery route and deliver orders within the two hour customer service delivery target.

Butler Group analyst Mark Blowers says convergence, such as combining voice, data and navigation into one device, is a growing trend among businesses and some could also add Wi-Fi capability to improve communication.

‘For Tesco.com, the benefits include less cumbersome devices for its drivers and cost savings,’ he said. ‘Not only is it more cost effective to build multiple applications into one device, but the total management cost is reduced as it is operating fewer devices.’