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Home » To Meet E-commerce Demands, DC Operators See Vast Adoption of Mobile, Voice Technologies, Study Says

To Meet E-commerce Demands, DC Operators See Vast Adoption of Mobile, Voice Technologies, Study Says

October 16, 2015
Honeywell

The survey of hundreds of IT decision-makers across the United States, United Kingdom, France and Germany shows that mobile solutions are expected to increase in adoption over the next five years, driven by the need for increased order fulfillment accuracy and improved customer service requests.

With distribution centers losing on average more than $400,000 every year on picking errors, they are looking for a technology edge to improve accuracy and reduce costs. The technologies include mobile computers, printers and scanners featuring more reliable data capture technology, as well as equipping workers with wireless headsets that provide voice direction to improve accuracy and speed.

Technology Keeps DCs Competitive

Nearly two-thirds of distribution centers currently support omnichannel distribution, meaning they have the data capture and asset tracking systems required to fulfill orders both from retailers and from consumers purchasing online, according to the survey.

• Of the countries surveyed, France has the highest percentage of sales coming from e-commerce (54 percent).

• An average of 84 percent of IT decision-makers agree that data capture technology has made a positive impact on their omnichannel distribution strategy.

Voice Is Strong Differentiator

To complete mission-critical processes and stay ahead of competition, voice technology is an invaluable tool in delivering efficient workflow performance. According to the survey, voice direction – using wireless headsets to direct workers with voice commands – can add one hour of productive time per worker each month.

• The majority of respondents anticipate transitioning to voice solutions within the next five years, including 94 percent in Germany, 87 percent in the U.S., 82 percent in the U.K. and 78 percent in France.

• Eighty-two percent of IT managers in Germany revealed that if they were adding technology to their distribution center strategy, voice would have the biggest impact on workflows this year.

• Nearly 25 percent of distribution center workers around the world do not speak the local language, requiring a need for technology solutions that support multiple languages and facilitate rapid onboarding and training of new workers.

Mitigating the Cost of Mispicks

Survey findings report that the average global cost of one picking error is $59, resulting in distribution centers losing on average more than $400,000 annually on mispicks. IT decision-makers say the cost of a mispick in the U.S. ranks highest ($67), followed by France ($60), Germany ($52), and the U.K. ($50).

"Consumers want their purchases delivered as quickly as possible, which puts extreme pressure on distribution center operators to deliver the right products to the right place at the right time,” says Bruce Stubbs, ‎director of industry marketing, Honeywell Sensing and Productivity Solutions. “Connected workers using mobile solutions with data capture technology offer higher accuracy and productivity and have a positive impact on the bottom line."

Source: Honeywell

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    KEYWORDS All Warehouse Services distribution network High-Tech/Electronics Honeywell Inventory Planning/ Optimization Logistics Logistics Outsourcing omnichannel online fulfillment online retailing Retail Retail Supply Chain Management RFID & Barcode supply chain management: warehouse management systems Technology Transportation & Distribution Warehouse Automation Warehouse Logistics Warehouse Management Systems WMS
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