Credit Card Warehouse

By LTC O.P. Snyder, Jr.June 26, 2025

[This article was first published in Army Sustainment Professional Bulletin, which was then called Army Logistician, volume 3, number 1 (January–February 1971), pages 30–34. The text, including any biographical note, is reproduced as faithfully as possible to enable searchability. To view any images and charts in the article, refer to the issue itself, available on DVIDS and the bulletin’s archives at asu.army.mil/alog/.]

AS HAS BEEN THE CASE since the dawn of history, the only reliable way to find what items are in stock in a warehouse or open storage area is to make a physical count. And up to this time, location and inventory of stock have been done by humans. But, what if we could push a button and electronically count, package by package, location by location, every item in stock at a rate of 100,000 items per second. The result would be instant, 100 percent stock visibility, and never again any loss of stock through erroneous warehousing. When you wanted an item, you would simply dial the Federal stock number (FSN) into an electronic control and it would search every package until it found the label that matched, and then would display the package location. This total visibility would be available not only at the warehouse but also at the logistics headquarters hundreds or thousands of miles away. In just seconds, using telephone transceivers, storage sites can be checked for wanted and needed parts.

This is not a far-fetched dream, but a reality of today. It has come about in the past five years through the development of microelectronic circuits, more precisely, metal oxide semiconductors (MOS) and large-scale integration (LSI). A few years ago the large manufacturers of semiconductors saw that there was an important need in computers for read-only memories (ROM’s). There are many short, standard routines in computers that never change, and small ROM’s provide these redundant routines faster and more efficiently than a computer that has to fetch the routines from core memory. The chips for even 1,000 bit units are typically 0.1 inch square, so a great deal of data can be stored in a very small area.

Credit Card as System Base

How are these applied to The Electronic Label Logistics System (TELLS)? This memory unit is embedded in a plastic package label the size of a credit card as shown in figure 1. By using a credit card shape the system can exploit all the hardware developments of the credit card industry. ROM’s vary in capacity from 16 bits to more than 4,056 bits. If these are arranged as word bytes of 8 bits, the memory will store 16 alpha characters, or if arranged as words of 4 bits, then it would store 32 numbers. This range is more than sufficient to store all the part data required for identification and resupply.

The electrical contact to the embedded memory would be made through the metalized stripes shown on each side of the card. With materials available today, the card can be easily made environmentally foolproof and function under all storage extremes, including outside open storage in a hot-wet or cold-wet environment. Besides the electrical package identification the credit card top as shown in figure 1 is embossed in typical credit card fashion with the identification data in both letters and numbers and as machine-sensible bar code.

Blister Pack Technology Used

The way this label can be applied to small parts packaging is shown in figure 2. This is a direct application of commercial blister pack technology. The package would normally hold sufficient quantity for a single repair operation. It would be clear plastic or would have at least one see-through side, which could be the credit card top. This see-through characteristic will allow for quality control inspection of the contents of the package in long term storage and reduce the frequency with which packages are opened by users just to see if an item “might fit.” The top of the package would be a standard credit card size, 3 3/8 inches wide by 2 1/4 inches long. The package can be any height, but 7 inches is probably a practical maximum. As shown in figure 2, the bottom of the container can take many shapes as might be dictated by the contents. Of course the package could contain many items other than repair parts, such as oils, greases, medicines, batteries, and class II and class VII items. If it is required, this electronic label concept allows the package top to be twice as long, giving final top dimensions of 3 3/4 inches by 4 1/2 inches.

The standard width dimension makes small parts storage vastly simpler. Where today there is a conglomeration of metal bins, drawers, and wooden shelves to hold small parts, all would be replaced by a standard slotted rack similar to the one in figure 3. The slots would have package contact fingers built in. Wires lead from each slot through matching terminals to an electronic control box. ln this way each slot becomes an address and whatever card is contained in the slot is the content of the address. This rack module would be used for unit storage of repair parts for electronic equipment, weapons, automotive equipment, and so forth. If the unit had too few parts to justify electronic parts location, the storage cabinet would be furnished without electrical hardware.

Storage Units Portable

The same extruded slots would be used in the construction of electronic slotted storage cabinets at higher echelon repair parts direct support units (DSU’s). A concept of a pod unit having 27,000 storage addresses and holding 9,000 average size packages is shown in figure 4. Pods can be truck-mounted or grouped together for larger volume fixed-emplacement storage. Although the slots will handle the vast majority of items that would be stocked in an inventory-in-motion supply world, there will be some large items such as tires. These will be handled with the small metal clip as shown in figure 5.

Let's take a closer look at the actual electronic supply transaction control terminals that would be used with the electronic label at the various echelons of supply. At the unit level supply, transactions are accomplished using an electronic supply transaction terminal similar to the one shown in figure 6. It consists of a control terminal and a slave typewriter.

To record a transaction such as an issue with an electronic label, the label is placed in a slot in the terminal and an issue key is depressed. The typewriter, under control of the terminal, then reads the label and prepares a replacement requisition on a DD Form 1348. When the typewriter comes to areas in the requisition where it needs additional data, such as unit identification codes, organization, date, and so forth, this would be programed and typed in by the terminal. For variable data, the typewriter stops and waits for the clerk to enter data such as the quantity and then proceeds. The Federal stock number, unit identification code, and quantity would also be recorded on the requisition in bar code which will permit simplified automatic reading of the data by the supporting DSU when the requisition is forwarded for resupply. If the unit happens to do a high volume of business, the terminal would have a plug-in tape cartridge module so that the resupply requisitions could be recorded on magnetic tape. Then, rather than forward the 1348’s the unit would send the cartridge to their supporting supply unit for resupply.

Resupply Actions Automated

If the unit was equipped with electronic storage cabinets, then when an inventory was required, it would only be necessary to press an inventory button on the terminal control and all labels in the cabinets would be read, and a full inventory of parts on hand would be printed on the typewriter and recorded on magnetic tape if desired. Of course, the typewriter would have a dual capability and could be used for normal supply document preparation when it wasn’t under terminal control. The equipment envisioned are all adaptions of standard, well-developed, commercial components, and there is no design problem in achieving high reliability even under adverse field conditions.

The terminal could also prepare requisitions at a reduced rate without the typewriter or electric power. In this case the embossed data on the electronic label is used. In typical credit card fashion all requisitioning data can be transferred to the requisition form by use of a pressure roller and a carboned requisition form. These provisions are also shown on the terminal in figure 6.

The DSU would have an electronic supply transaction control terminal as shown in figure 7 similar to the unit, but capable of more transactions at one time. All parts packages are attached to the terminal either through contacts in the slots of the storage cabinets or by clip connection to labels. To find a part in storage, simply “input” the FSN into the terminal. This can be done either through a “mark-sense” reader that reads the bar codes on the unit’s requisition, through a magnetic tape cartridge from the unit, or manually through a keyboard. Then push a search button. Instantly, all storage locations are surveyed, and when there is an FSN match, sufficient locations are displayed on a video panel to supply the quantity required by the unit. The stock is picked and packed right then. As it is removed from the slot, an issue to the unit is recorded on a magnetic tape cartridge that is recording all transactions. If the item is not in stock, a requisition for that unit identification code (UIC) is recorded on the magnetic tape cartridge. That evening a complete inventory is added to the tape by the push of a button and then the tape is passed either electronically or by mail to the supply depot. The depot will ship passed requisitions direct to the unit and then resupply the DSU.

Stockage of new items is fast and simple. As items are received for stock, the packages are placed in the first available slot in a rack or attached to the first available clip if the item is too large to fit in a slot. Storage is completely random so a line item might be stored in a number of locations. The dispersal actually reduces the vulnerability of the resupply organization to suffer the complete loss of a line item due to enemy action or theft. There is only one type of supply man needed to staff this DSU, a man to put items in storage and to issue items.

Depot Uses Computer

The depot is the first place we run into computers and here is where demand history and stockage levels are compiled for the units and organizations supplied from the depot. Handling 30,000 or 40,000 unit identification codes in a modern, third generation computer operating in a multiprograming and processing mode is not complex. Because the magnetic tape with the supply transaction record has retained unit issue history up to this point, the stockage level for the unit can be calculated monthly and printouts forwarded to the unit for them to adjust their levels. The DSU doesn’t need a stockage list because the depot has complete visibility of stock on hand and issues and can automatically apply economic optimization theory in achieving the best balance of stock at the forward receipt, storage, and issue facility. The automation of supply action will be complemented by configuration of shipments into unitized or containerized units. These units can be identified and controlled in transit by The Electronic Label Logistics System. Shipments in this configuration can be quickly moved by fast surface or air transport. With this fast response, stock levels beyond the depot can be held to an absolute minimum and we can truly achieve a vast step toward a complete inventory-in-motion concept.

At the depot the standard size package and electronic label would again have tremendous impact. Bin storage is shown in figure 8, and open storage in figure 9. A typical automated receipt, storage, and issue depot facility is shown in figure 10. Through a central communications network, there would be instant, total visibility for item managers of exactly what is on hand, minute by minute, and where it is. Logisticians planning operations can tie into the communications line and have instant data on supply levels of ammunition and many items other than repair parts because this electronic label can be applied across the board to all items in the supply system. The Electronic Label Logistics System would not be limited just to supply locations. If CONEX (container express)-style shipping containers were rigged with electronic slot storage shelves, complete item inventories of CONEX’s could be taken in seconds while they are being shipped or when they arrived at trans-shipping points such as forward air terminals.

As to cost and reliability of The Electronic Label Logistics System, the ROM is the heart of the system and the more that are bought, the less expensive they become. Today they cost about 10 cents a bit in lots of 100. By 1972 the cost of volume procurement of bits has been estimated at 0.1 cent per bit, or 12.8 cents for a 128-bit memory. The cost of the plastic card and fabrication of the total label will about double the cost, so a complete label will cost about 25 cents. The deluxe electronic terminal at the unit would cost an estimated $15,000 and the terminal at the DSU, $25,000. Special storage shelves at the DSU would add an additional $25,000 per pod of storage. Since there are so few depots, their cost is proportionately very small to the DSU’s and the units.

What is the trade-off for the cost? The elimination of the requirement for 8 to 12 NCR 500 operators at every direct support organization would be one advantage. Vastly simplified supply procedures is a second. Absolute, instant visibility of all repair parts, and for that matter, all materiel in storage anywhere in the world is a third. This last one will significantly reduce the amount of materiel required to be on hand and permit the inventory-in-motion concept to show its potentially great value in the economy of supply operations.

The system is inherently reliable because electromechanical devices are kept to an absolute minimum. There is the electric typewriter at the unit; a magnetic tape cartridge drive at the unit and at the DSU; and a small, desk-size, slow speed, optical, mark-sense card reader at the DSU to automatically read the DD Forms 1348 received from the unit. All other electronics would be solid state, and with reasonable design care there should be no requirement for air conditioning with any of the equipment.

The Electronic Label Logistics System concept offers the military a unique, modern approach to logistics management. Its value does not actually stop in the supply system either, as it has an ability to store a great deal more data. The card with a larger ROM could be used as an equipment ID card or personnel ID card and contain upwards of 1,000 or more characters of data for immediate read out of data when a card is inserted in a slot. The commercial counterparts of the system components exist today so the effort to build the system is strictly developmental. With the complexities of the supply system at present, The Electronic Label Logistics System concept offers a fresh new approach to dramatic simplification of the immense job of supply and maintenance worldwide.

---------------------------------------------------------------------------------------------------------------

Lieutenant Colonel O.P. Snyder, Jr., was assigned to the School of Automated Logistics Systems, USALMC, Fort Lee, Virginia. A Vietnam veteran and a graduate of Command and General Staff College, Colonel Snyder held a doctorate degree from the University of Massachusetts, a master’s degree from the Massachusetts Institute of Technology, and a bachelor’s degree from the University of Denver.