An industry survey finds that supply chain professionals foresee growing investment in mobile solutions and greater use of newer form factors such as tablets and mobile barcode printing, but retain a strong preference for reliability and ruggedness for the devices and systems they put in place.
In today’s supply chains and within the facilities responsible for moving goods and fulfilling customer orders, accuracy and uptime are everything. If a customer order is wrong, or falls behind on promised delivery dates because of a downtime issue with devices or systems, and customers will turn to other sellers and may never come back. That is why characteristics like reliability, accuracy, and ruggedness top the list of qualities that supply chain professionals want to see in the mobile devices they rely on for order fulfillment.
A 2015 study conducted among manufacturing, distribution, logistics and warehouse managers by Peerless Research Group, reveals that rugged devices are most suitable for use in warehouses and distribution centers (DCs), as well as in manufacturing facilities and for most logistics operations. As usage and investments in mobile and wireless technology increase, and the labor force becomes accustomed to using smart phones and other consumer-grade mobile devices in their personal lives, there may some desire to adapt consumer devices to tasks within warehouses and DCs. But the recent survey shows that when it comes to mobile computing in industry, users want and need ruggedness and reliability, as well as scanning speed and accuracy. Consumer-grade mobile devices may have their place in customer-facing applications such as field sales, but when it comes to the full range of mobile devices for industry, rugged solutions are the most popular option. In fact, 81 percent of respondents to the recent study ranked ruggedness as an ‘extremely important’ characteristic for a data collection device, matched only by scanning accuracy.
The study indicates a strong willingness among respondents to leverage the tablet form factor, but as a “rugged” variant. The research also indicates mobile solutions for the supply chain will evolve and expand into new applications such as labor management and quality management—tasks that tend to involve more interaction with a graphical user interface and less scanning, but still call for device durability and scan capability. Overall, a significant finding is that the need for mobile computing devices is expected to increase, with 64 percent of respondents saying they plan to increase investment in data collection technologies over the next two years. So expect growth and evolution in mobile solutions for the supply chain, but with a continued preference for reliability so that operational tasks aren’t slowed down or compromised.
Mobile adoption
Mobile data collection solutions are becoming more widespread to help manage distribution, production and logistics processes in warehouse and manufacturing environments. Nearly three out of four operations in our survey now use mobile/wireless solutions for warehousing applications. However, logistics and transportation have curiously failed to recognize the benefits. Those not using mobile devices for applications in these environments either believe that the hardware is too costly or that the TCO for these products is not equitable. Some further fail to see process and productivity advantages, or they perceive security risks, so much so that they are slow to embrace mobile technology. However, overall, mobile computing solutions are widely accepted in settings such as warehouse operations (71 percent), while use of mobile devices is expected increase significantly for applications such as labor management. Mobile devices are further considered highly acceptable and applicable for shipping, dock and yard procedures.
Scanning accuracy, ruggedness and durability, communication capabilities within warehouses and DCs, and operational uptime lasting for a full shift are the features and functionalities that are highly important when evaluating mobile data collection devices for possible purchase. In fact, 99 percent view ruggedness as the top criteria. In general, most users seem satisfied with their current data collection devices. However, methods can be improved as one out of three contends they are neither satisfied nor dissatisfied or, of greater consternation, are fully unhappy with their current solutions. Stationary barcoding printing is the most common data collection technology now in use. Scanning devices, 1D linear barcode and fixed mount scanners, and phones, PDAs and tablets are also commonly used tools for jobs in DCs and manufacturing facilities.
Durability
Over the next two years durability will become increasingly critical as devices such as industrial grade tablets will grow in popularity. Stationary barcode and mobile barcode printing devices will also be regularly adopted or upgraded. Greater expected use of industrial-grade tablet computers is consistent with interest in applications such as workforce management and asset management that involve managers or supervisors who interact with applications outside the normal office setting. Greater use of mobile barcode printing, meanwhile, is consistent with some of the flexibility requirements brought about by omni-channel, such as quickly setting up more pack lanes or pack/ship stations. Mobile barcode printing also has the advantages of powerful and fast improvements in productivity and accuracy. Interestingly, voice and light applications do not appear to be living up to their promise or have very narrow niche applications.
As validation that mobile/wireless data collection is becoming increasingly more significant, two out of every three organizations we surveyed claim they’ll be expanding their usage and boosting their investments in data collection methods over the next two years. Only 3% predict usage of these technologies will drop.
Wireless solutions are primarily being used for inventory management tasks such as tracking, barcoding, picking and put-away processes. In addition mobile solutions are handy for yard and dock applications such as shipping and receiving. The research also indicates strong uptake over the next two years for applications such as labor/workforce management, quality control, and asset management. This finding indicates a willingness to leverage rugged mobile devices for new applications which tend to be less scan intensive than tasks such as put-away in a warehouse, but require ruggedness and reliable scanning coupled with a form factor well suited to navigating through a more complex software application.
Automating logistics
While wireless devices are being utilized for many distribution center, logistics and manufacturing tasks, only a very few organizations have applications that are fully automated. Functions such as picking, receiving, shipping, and inventory management are the procedures that are most commonly automated, either in their entirety or partially.
Yet, many processes are being considered for upgrades. Asset and labor tracking, replenishment and traceability will receive the most attention in the upcoming months. While respondents were not asked to explain the drivers behind these new areas for automation, requirements such as ‘chain of custody’ tracking and becoming more agile in terms of adjusting to omni-channel pressures carry within them a mobility requirement in that the use of supporting management applications can’t be tethered to an office. It needs to be fully accessible out on the front lines where orders are being fulfilled and labor and production processes are being adjusted.
Devices in Use
Devices for mobile computing processes are growing in popularity for use in work environments presenting harsh work conditions such as warehouses and manufacturing facilities. About three-fourths of those we surveyed are now using devices equipped to withstand extreme situations, drops, vibrations, exposure to moisture or chemicals, etc. These units possess robust capabilities and features which include quick and accurate barcode scanning, advanced wireless connectivity and enhanced security performance. These rugged devices maintain a long battery life and in the event of a malfunction, can also be repaired. Nearly one half (48 percent) also use consumer grade systems. Of these, some operations rely heavily on these less durable devices or use them along with rugged mobile units.
Most consumer-grade devices are predominantly used for low frequency scanning applications while rugged devices are being employed for high frequency scanning barcodes. Rugged mobile devices are considered more suitable in warehousing and manufacturing operations. At these locations, this type of equipment is largely used for procedures such as shipping and receiving, and for inventory applications involving stock management, picking, put-away, and receiving. Consumer-type devices are mostly being used for field sales operations and labor tracking and other applications outside of harsh working conditions.
A failure to employ tenuous equipment can result in process downtime. Attributed failures can be uncompromising and lead to productivity setbacks, worker frustration, incurrences of unnecessary costs, supply chain disruption, trading partner penalties, damage to company good will, and customer dissatisfaction.
Greater investment
With a solid majority of respondents reporting greater investment in mobile solutions over the next two years, and new applications for mobile devices on managers’ agendas, there is little doubt we are seeing rapid growth and evolution in the use of mobile devices across many disciplines in supply chain operations. Companies indicate a willingness to apply mobility to new applications and areas of automation, and to expand their current use of form factors such as tablets. However, the need for reliability and ruggedness remains constant. Materials handling, logistics and supply chain managers care about the initial cost of mobile solutions and see the price point for devices as a key factor. However, they also rank uptime and durability highly as part of their TCO equations. When combined with the two characteristics ranked most important for mobile solutions—scanning capability/accuracy, and ruggedness/durability—it’s apparent that the evolution into new use cases for mobility in the supply chain will not compromise long-standing priorities for reliability and performance. The trend of ‘consumerization of IT’ may be changing the mix of device types and applications for mobile solutions in the supply chain, but there remains a strong preference for industrial grade solutions that won’t place productivity or customer satisfaction at risk.
by Peerless Research Group and Supply Chain Services