{"id":12912,"date":"2024-07-07T18:21:45","date_gmt":"2024-07-07T18:21:45","guid":{"rendered":"https:\/\/dmsretail.com\/RetailNews\/speed-accuracy-and-traceability-retail-technology-review\/"},"modified":"2024-07-07T18:21:45","modified_gmt":"2024-07-07T18:21:45","slug":"speed-accuracy-and-traceability-retail-technology-review","status":"publish","type":"post","link":"https:\/\/dmsretail.com\/RetailNews\/speed-accuracy-and-traceability-retail-technology-review\/","title":{"rendered":"Speed, accuracy and traceability | Retail Technology Review"},"content":{"rendered":"

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Mobile Computing\/AIDC (Data capture) Technology Report<\/strong><\/h2>\n

This article is brought to you by Retail Technology Review: Speed, accuracy and traceability.<\/p>\n

Retail Technology Review<\/em> spoke with leading representatives from the analyst and vendor communities about many of the current key talking points and areas of innovation taking place within the world automatic identification and data capture (AIDC)\/mobile computing solutions.\u00a0<\/strong><\/p>\n

With omnichannel and multimodal challenges within the supply chain demanding ever more refined solutions to ensure speed, accuracy, traceability is achievable from end to end, what are some of the current talking points and areas if innovation within the AIDC and mobile computer space?\u00a0<\/p>\n

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Integration of advanced technologies<\/h2>\n

\"\"Bryan Ball, industry analyst and consultant, ex-Aberdeen Strategy and Research, considers that, in the rapidly evolving world of logistics, the integration of advanced technologies is paramount to maintaining efficiency and meeting the demands of a dynamic market. Ball maintains that two key innovations driving this transformation are Radio Frequency Identification (RFID) and mobile technology. He believes these tools are reshaping logistics operations by enhancing speed, accuracy, and overall productivity.\u00a0<\/p>\n

Within omnichannel, for example, Ball makes the point that companies have to be able to respond quickly, and they need access to all the relevant information and their fingertips, whether in terms of a customer commitment or accessing information on a delivery that’s in process and so on. From a data capture perspective, this could involve simple things such as having a chip on items so location-wise you know where they are in the supply chain at any given moment.\u00a0<\/p>\n

\u201cHowever, it’s one thing to have a chip that says I’m here, but you need to know where here is,\u201d says Ball. \u201cSo, it could be that items are located at a large port that is divided up into zones. You need to know what zone your items are in \u2013 zone Z, for example. Time is money in the supply chain, so if inventory or containers are sitting waiting on something, the process of ensuring they are offloaded, loaded onto a lorry and transported to your warehouse or to a customer quickly is paramount. In an ideal world you might want a chip on every item in the container, so it reports on itself as to its location as it changes. Well, from a visibility perspective, this isn’t new technology, but it still doesn’t mean everybody’s using it. There is of course a cost component that needs to be factored in.\u201d\u00a0<\/p>\n

Supply chain visibility\u00a0<\/h2>\n

In terms of fulfilment, Ball adds that, ideally, companies need to be able to look all the way back in your supply chain, to know accurately where an item is and make sure nothing gets sidelined \u2013 and if it does, companies need to be able to intervene quickly and take corrective action. So, in terms of mobile technology and where it fits, Ball stressed that RFID can play a very important role.\u00a0<\/p>\n

RFID technology, though not new, has seen a resurgence in its application across various industries, including in logistics. Essentially, RFID involves using electromagnetic fields to automatically identify and track tags attached to objects. These tags contain electronically stored information which can be read from several meters away and beyond the line of sight of the reader.<\/p>\n

RFID\u2019s ability to streamline inventory management is particularly significant. For instance, in a logistics scenario involving the delivery of beverages to a vendor location, RFID can transform the process. Vendors, who traditionally faced challenges in tracking deliveries and managing inventory, can now benefit from real-time updates facilitated by RFID. By placing RFID tags on door frames, inventory counts can become instant and accurate as goods are moved across thresholds. This innovation can not only speed up the delivery process but also can ensure accurate invoicing and can reduce manual errors.<\/p>\n

Ball makes the point that, in retail, the application of RFID can extend beyond logistics to inventory management and theft prevention. \u201cSome larger retailers have integrated RFID in their operations to enhance inventory accuracy,\u201d he says. \u201cFor example, RFID tags on items can provide precise location data, making it easier for staff to locate and manage inventory. This system has drastically improved inventory accuracy, ensuring that products are available for customers, thus preventing lost sales due to misplaced items. RFID can also help in reducing theft in retail environments. By tagging items and monitoring their movement within the store, retailers can track products from shelves to fitting rooms and back, minimising the chances of theft and ensuring better stock management.\u201d\u00a0<\/p>\n

Remaining challenges\u00a0<\/h2>\n

Despite the numerous advantages, integrating RFID and mobile technology in logistics is not without challenges. Ball explains that the initial set-up costs and the need for standardisation across different vendors can prove to be a barrier to adoption. However, he adds that as technology becomes more widespread and cost-effective, even smaller companies are beginning to adopt these innovations, driven by the potential for improved efficiency and cost savings. Ball believes that as these technologies continue to evolve, they will provide even more sophisticated tools for managing complex logistics operations. \u201cThe emphasis on speed, accuracy and efficiency will continue to drive innovation, ensuring that logistics companies can meet the growing demands of a global market,\u201d says Ball.\u00a0<\/p>\n

Data capture capabilities \u00a0<\/h2>\n

Alongside RFID, mobile technology plays a critical role in modern logistics. Ball explains that mobile devices equipped with advanced data capture capabilities can allow for real-time tracking and management of goods. For example, this is evident in warehouse operations, where mobile technology can enhance the speed and accuracy of inventory management.\u00a0<\/p>\n

\u201cIn a warehouse setting, mobile devices can enable workers to scan barcodes and RFID tags quickly, updating inventory systems in real-time,\u201d says Ball. \u201cThis can reduce the time taken to process shipments and ensures that inventory data is always up to date. The use of mobile technology in logistics extends to delivery services, where drivers can receive real-time updates and route adjustments, ensuring timely deliveries and efficient route management.\u201d\u00a0<\/p>\n

Internet of Things\u00a0<\/h2>\n

\"\"Steve Murphy, director \u2013 client services, Panorama Consulting Group, reflects that one of the key recent developments in mobile computing has been the area of the advanced connectivity landscape as it relates to the Internet of Things (IoT). \u201cAlthough IoT has been around for several years, the advances in wireless networks have allowed businesses to become more and more agile in the control\/management of preventative and corrective maintenance,\u201d he says, adding that these developments have also provided enhanced communication between customers and suppliers (automated invoice processing, automated accounts receivable reconciliation, etc.), just to name two of the numerous examples of innovations in AIDC.\u00a0<\/p>\n

Continuous improvement mindset<\/h2>\n

In Murphy\u2019s view, the key drivers for these developments in the AIDC world are the same drivers for companies aiming for the continuous improvement mindset, improving the customer experience \u2013 Process optimisation, streamlined operations, higher efficiency and reduced costs. In terms of the key benefits of this type of technology for end users, Murphy considers that probably the most important benefit is the overall improved customer experience. \u201cWhen a customer realises a noticeably improved experience, they are much more likely to return to that provider,\u201d he says. Additional benefits, according to Murphy, are increased productivity and efficiency, streamlined operations and process optimisation and more accurate records.\u00a0<\/p>\n

Beyond barcode scanning\u00a0<\/h2>\n

\"\"Richa Gupta, Michael Clarke and Elliot Mintz, contributing analysts, VDC Research, consider that the use of vision technology in data capture solutions will extend beyond barcode scanning, even in non-factory environments. For instance, VDC\u2019s primary research shows that the use of smart checkout technology is growing steadily, with several Tier 1 retailers implementing variations of the same that best fit their business models.\u00a0<\/p>\n

\u201cVision technology is being used to support sensor fusion and\/or multi-modal identification (MMID) applications,\u201d they explain. \u201cMultiple sensors work in conjunction with camera technology to enable product identification and loss prevention using various descriptors. VDC expects to see continued emergence of several software startups for the same \u2013 some of the current ISVs working extensively with AIDC and machine vision hardware vendors include Focal Systems, HECHT, Tiliter, Unikie and Zippin.\u201d\u00a0<\/p>\n

Mobile on device AI<\/h2>\n

\"\"In Gupta, Clarke and Mintz\u2019 view, 2024 will be a bounce back year for rugged handheld computers, following two years of contraction. \u201cA key theme for many OEMs is around on-device AI capabilities and how they can support enterprise workflows,\u201d they say. \u201cEarly use cases around AI-powered assistants for customer engagement, language tools for translation, forms management workflow automation among others. In addition, the combination of AI-enhanced image processor for fraud detection at the POS or AI supported ESL for dynamic pricing is changing the way organizations operate.\u201d\u00a0<\/p>\n

EU eco-design regulations<\/h2>\n

Gupta, Clarke and Mintz also point out that EU eco-design regulations for smartphones and tablets is enforcing OEMs to support more stringent requirements around over device resistance, durability of batteries and support for more OS upgrades. \u201cThis has the potential to alter the competitive dynamics with greater performance parity between \u2018consumer\u2019 devices and enterprise (rugged) devices,\u201d they point out.\u00a0<\/p>\n

Circular economy initiatives<\/h2>\n

\"\"Gupta, Clarke and Mintz add that the EU\u2019s CIRPASS \u2013 collaborative initiative to lay the foundation for the implementation of a standards-based digital product passport (DPP) \u2013 is also something to take note of. \u201cThe DPP is a regulatory framework that provides industries with an extensible and flexible system for unique product IDs supported by a decentralised IT architecture with access rights governance,\u201d they explain. \u201cFor efforts such as the DPP to gain traction and find success a priority for the early pilots will be to demonstrate economic benefits to operators and how DPP-based business models can make sustainable products less expensive than non-sustainable ones. DPP efforts are not specifying or mandating a specific ID technology with several \u2013 from digital watermarking to embedded RAIN RFID tags \u2013 likely to be adopted based on the specific use case.\u201d\u00a0<\/p>\n

Edge-vertical industry solutions<\/h2>\n

\"\"Thomas Bittman, distinguished VP analyst, Gartner, views vertical expansion as the next evolution of edge computing solutions. \u201cThere are examples of edge computing deployments in all vertical industry segments, but investment strides in industrial IoT in manufacturing and store transformation in retail have seen these verticals gain early adopter momentum with edge computing for industry-specific workloads,\u201d he says.\u00a0<\/p>\n

Edge in manufacturing<\/h2>\n

While any systems integrator can build edge computing solutions for any vertical, solutions with industry specialisation, like smart factory strategies in manufacturing, have created market differentiation among the vendor landscape. In the 2023 Gartner Smart Manufacturing Survey, 34% of manufacturing professionals indicated that they are using edge computing as part of their smart manufacturing strategy.\u00a0<\/p>\n

Edge computing is becoming more prevalent in enabling either hybrid and\/or on-premises integration to industrial assets for the purpose of security, data aggregation and close feedback loop purposes. \u201cToday\u2019s manufacturing automation is all about the cloud; tomorrow\u2019s manufacturing hyper-automation is about an edge-in and cloud-out architecture,\u201d says Bittman. \u201cBy coupling AI software, edge processors and IoT, edge AI is bringing intelligence to the machine level.\u201d<\/p>\n

To facilitate a cloud-out\/edge-in architecture, manufacturers require manufacturing-experienced systems integrators to understand the intricacies of the shop floor problems, like unplanned downtime, anomaly detection, asset health monitoring and predictive maintenance. According to Gartner, some notable edge use cases for manufacturing are:<\/p>\n