New report by Incisiv, Verizon and Ericsson finds
retail, manufacturing and logistics companies seek proven
innovations to empower employees to do more with less and stay
competitive
JACKSONVILLE, Fla., Aug. 13,
2024 /PRNewswire/ -- A newly published research
report jointly completed by Incisiv, Verizon and Ericsson found
supply chain disruptions and labor challenges are driving
distribution operations to manage throughput more efficiently to
remain competitive. The release of the 2024 State of Smart
Distribution Study: The Age of Efficiency and Resilience
reveals how retail, manufacturing and logistics companies plan to
improve operational efficiency and employee productivity by
leveraging innovative technologies.
To understand the current and future states of distribution in
the retail, manufacturing and logistics industries, Incisiv
surveyed 134 executives from manufacturers, logistics warehouses
and retail distribution centers.
Key findings include:
- Companies seek higher throughput at a lower incremental
cost: The majority (78%) of companies surveyed rate managing
operational costs as a top investment driver. Companies report
lower satisfaction with complex, labor-intensive operational
processes like order fulfillment (67%), and shipping and material
handling (both 66%), which represent potential areas for process
improvement and automation.
- Managing the workforce is a top priority: 86% of
companies cite labor shortages and workforce management as
significant challenges. Key issues include recruiting skilled
workers (85%), competitive compensation (75%) and employee turnover
(70%).
- Proven technologies earn strong demand: 81% of companies
have or plan to deploy mobile devices by 2026 to improve
productivity. Companies also plan to invest in RFID or Internet of
Things inventory tracking (49%), robotics for picking and packing
(45%) and camera vision for quality control, packing and returns
(37%). While 84% of companies say AI will be a necessity to compete
in the future, only 10% have a common understanding of AI across
the enterprise.
- Enabling new operating capabilities requires upgrading the
network infrastructure: 65% of companies say their current
network cannot support their needs for the next 24 months. Also,
61% of companies are dissatisfied with the reliability of their
in-facility network or connectivity.
"These results show how distribution operations have shifted
toward increasing productivity to satisfy online shoppers' evolving
needs," said Gaurav Pant, Chief Insights Officer, Incisiv.
"Companies that empower their people with proven technologies and
invest in infrastructure upgrades will gain a competitive
advantage."
"Recognizing the imperative to optimize operational efficiency,
distribution organizations are accelerating the transition to
next-generation distribution centers," said Michael Weller, Practice Leader, Manufacturing,
Energy and Utilities, Verizon Business. "The adoption of
bandwidth-intensive, innovative technologies requires a reliable
and secure connection that works across the entire enterprise
facility."
"This joint study reveals that operations and IT executives are
facing challenges like unforeseen demands, labor shortages, and
supply chain issues," said Sandra Cutrona, Vice President and
Head of Business Development for Customer Unit Verizon,
Ericsson North America. "At
Ericsson, we believe that connectivity is crucial. Our customers
benefit from our solutions. We offer seamless, speedy and secure
communication that high-performing neutral host 5G private networks
can provide."
To learn more, download the full results of the
report 2024 State of Smart Distribution Study: The Age
of Efficiency and Resilience.
About Incisiv
Incisiv is a next-generation
industry insights firm that helps retailers and brands navigate
digital disruption in their industry. Incisiv offers consumer
industry executives responsible for digital transformation a
trusted platform to share and learn in a non-competitive setting,
and the tools necessary to improve digital maturity, impact and
profitability. More information is available
at incisiv.com.
About Verizon
Verizon Communications Inc. (NYSE, Nasdaq: VZ) powers and empowers
how its millions of customers live, work and play, delivering on
their demand for mobility, reliable network connectivity and
security. Headquartered in New York
City, serving countries worldwide and nearly all of the
Fortune 500, Verizon generated revenues of $134.0 billion in 2023. Verizon's world-class
team never stops innovating to meet customers where they are today
and equip them for the needs of tomorrow. For more, visit
verizon.com or find a retail location at
verizon.com/stores
About Ericsson
Ericsson's high-performing, programmable networks provide
connectivity for billions of people every day. For nearly 150
years, we've been pioneers in creating technology for
communication. We offer mobile communication and connectivity
solutions for service providers and enterprises. Together with our
customers and partners, we make the digital world of tomorrow a
reality. www.ericsson.com
Media Contacts
Incisiv PR
Dan Dyer
513-478-7818
381769@email4pr.com
Verizon
Carlos Arcila
908-202-0479
381769@email4pr.com
Ericsson
Jannie Tong
214-415-0815
381769@email4pr.com
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SOURCE Incisiv