E-Commerce Trends Driving Distribution Centers' Need For New Mobile Technology, Voice Applications To Provide Accurate, On-Time Delivery, Honeywell Survey Reveals

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- Nearly 9 in 10 Distribution Centers to Add Voice Direction Technology in Next Five Years

- Demand Driving Need to Improve Accuracy, Workflow Process

- Distribution Centers on Average Lose $400,000 Annually on Picking Errors

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Oct 13, 2015, 08:04 ET

FORT MILL, S.C., Oct. 13, 2015 /PRNewswire/ -- The growth of e-commerce increases consumer choice and flexibility, but it also challenges distribution centers to keep pace with consumers' higher expectations for faster and more accurate delivery. Nearly nine in 10 distribution center operators expect to adopt new mobile devices and voice-direction technology in the next five years to meet that need, according to a survey by Honeywell (NYSE: HON) and YouGov.

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 Distribution Centers Competitive

Honeywell's survey revealed that 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 on-line.

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).

QUOTE

Bruce Stubbs, ‎director of industry marketing, Honeywell Sensing and Productivity Solutions: "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. Connected workers using mobile solutions with data capture technology such as those delivered by Honeywell offer higher accuracy and productivity and have a positive impact on the bottom line."

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About Honeywell Sensing and Productivity Solutions

Honeywell Sensing and Productivity Solutions (S&PS) is a global leader providing custom-engineered sensors, switches and controls, and productivity solutions built around our high performance data collection hardware including rugged mobile computers, voice-enabled software, bar code scanners, radio frequency identification (RFID) and workflow printing solutions. Our solutions serve customers in aerospace, automotive, field service, healthcare, industrial, manufacturing, medical, retail, supply chain, test and measurement, and transportation and logistics markets. We provide unparalleled precision and durability that improves efficiency, increases operational productivity and enhances customer service capabilities. For more information on Honeywell sensing products, visit http://sensing.honeywell.com and on Honeywell productivity solutions visit http://www.honeywellaidc.com.

About the Survey

Honeywell commissioned the survey from YouGov. YouGov conducted 263 online surveys with professionals in an operations or IT role in the United States, United Kingdom, France and Germany from July 2–18, 2015. Participant qualifications included working at an organization with more than 500 employees worldwide, in specified industries (i.e., grocery, automotive, industrial distribution, consumer goods, med/pharma, high tech, electronics, third-party logistics, manufacturing, retail or wholesale), in a manufacturing or distribution operations, supply chain/logistics, safety/training, or IT role.

Eric Krantz	Virginia Stratford
Honeywell Sensing and Productivity Solutions	WE Communications
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