[April 09, 2018] |
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Zebra Study: 40 Percent of Parcels Delivered Within 2 Hours By 2028
Zebra
Technologies Corporation (NASDAQ: ZBRA), the market leader in rugged
mobile computers, barcode scanners and barcode printers enhanced with
software and services to enable real-time enterprise visibility, today
announced the results of its Future
of Fulfillment Vision Study, a global body of research analyzing how manufacturers,
transportation
and logistics (T&L) firms, and retailers
are preparing to meet the growing needs of the on-demand economy. In
response to today's online-buying, smartphone-wielding consumer that
expects a seamless, faster purchasing journey, the study revealed that
78 percent of logistics companies expect to provide same-day delivery by
2023 and 40 percent anticipate delivery within a two-hour window by
2028. In addition, 87 percent of survey respondents expect to use
crowdsourced delivery or a network of drivers that choose to complete a
specific order by 2028.
This press release features multimedia. View the full release here:
https://www.businesswire.com/news/home/20180409005080/en/
The Future of Fulfillment Vision Study confronts logistics challenges in an omnichannel shopping landscape. (Graphic: Business Wire)
KEY SURVEY FINDINGS
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Only 39 percent of supply chain respondents reported operating at
an omnichannel level. The survey found reducing backorders was the
biggest challenge to reaching omnichannel
fulfillment for one-third of respondents followed by inventory
allocation and fright costs.
-
76 percent of surveyed retailers use store inventory to fill online
orders, and 86 percent of retail respondents plan to implement buy
online/pick up in store in the next year. Retailers are investing
in retrofitting stores to double as online fulfillment centers and
shrinking selling space to accommodate e-commerce pickups and returns.
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Globally, 87 percent of respondents agreed that accepting and
managing product returns is a challenge. The increase in free and
fast product delivery corresponds with an increase in product returns,
a costly concern that retailers struggle to manage efficiently across
many different purchasing models. Seven in 10 surveyed
executives agree that more retailers will turn stores into fulfillment
centers that accommodate product returns. More than 60 percent of
retailers that currently do not offer free shipping, free returns or
same-day delivery plan to do so while 44 percent expect to outsource
returns management to a third party.
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Although 72 percent of organizations utilize barcodes today, 55
percent of organizations are still using inefficient, manual
pen-and-paper based processes to enable omnichannel logistics. By
2021, handheld mobile
computers with barcode scanners will be used by 94 percent of
respondents for omnichannel logistics. The upgrade from manual
pen-and-paper spreadsheets to handheld computers with barcode scanners
or tablets will improve omnichannel logistics by providing more
real-time access to warehouse management systems.
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Radio-frequency identification (RFID) technology and inventory
management platforms are expected to grow by 49 percent in the next
few years. RFID-enabled software, hardware and tagging solutions,
offer up-to-the-minute, item-level inventory lookup, heightening
inventory accuracy and shopper satisfaction while reducing out of
stocks, overstocks and replenishment errors.
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Future-oriented decision makers revealed that next generation
supply chains will reflect connected, business-intelligence and
automated solutions that will add newfound speed, precision and
cost effectiveness to transportation and labor. Surveyed executives
expect the most disruptive technologies to be drones (39 percent),
driverless/autonomous vehicles (38 percent), wearable and mobile
technology (37 percent) and robotics (37 percent).
REGIONAL FINDINGS
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The need for inventory accuracy will continue to rise in North
America. Manufacturers, logistics companies and merchants ranked
current inventory accuracy at 74 percent and reported needing to be at
83 percent to handle the rise of omnichannel logistics.
-
Retailers in Europe and the Middle East are filling digital orders
directly from their physical stores. Retailers and operations
leaders are calculating that a network of stores can get digital
orders faster and more efficiently than a handful of centralized
warehouses. More than 80 percent use store inventory to fulfill
orders and 29 percent expect this to increase by greater than 10
percent over the next five years.
-
95 percent of respondents in Asia Pacific rate e-commerce as the
driving need for faster delivery. The region expects to implement
same-day delivery faster than any other region, and 42 percent of
those surveyed ranked drones as one of the most important disruptive
technologies.
-
Shipping fees and returns are undergoing a makeover in Latin America.
Approximately 40 percent of respondents plan to discontinue free
shipping, 55 percent expect to end free return shipping and 61 percent
forecast the elimination of separate returns facilities that are
managed by third-party companies.
SURVEY BACKGROUND AND METHODOLOGY
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Zebra's Future of Fulfillment Vision Study surveyed more than 2,700
professionals in transportation and logistics, retail and
manufacturing firms on their plans, implementation levels, experiences
and attitudes toward omnichannel logistics.
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Surveys were conducted in conjunction with research partner Qualtrics
in 2017 across the United States, Canada, Brazil, Mexico, Colombia,
Chile, France, Germany, United Kingdom, Italy, Russia, Spain, China,
India, Australia and New Zealand.
SUPPORTING QUOTE
Jim Hilton, Manufacturing and Transportation and Logistics Global
Principal, Zebra Technologies (News - Alert)
"Driven by the always-connected, tech-savvy shopper, retailers,
manufacturers and logistics companies are collaborating and swapping
roles in uncharted ways to meet shoppers' omnichannel product
fulfillment and delivery expectations. Zebra's Future of Fulfillment
Vision Study found that 89 percent of survey respondents agreed that
e-commerce is driving the need for faster delivery. In response,
companies are turning to digital technology and analytics to bring
heightened automation, merchandise visibility and business intelligence
to the supply chain to compete in the on-demand consumer economy."
ABOUT ZEBRA
With the unparalleled operational visibility Zebra (NASDAQ: ZBRA)
provides, enterprises become as smart and connected as the world we live
in. Real-time information - gleaned from visionary solutions including
hardware, software and services - give organizations the competitive
edge they need to simplify operations, know more about their businesses
and customers and empower their mobile workers to succeed in today's
data-centric world. For more information, visit www.zebra.com
or sign up for our news
alerts. Follow us on LinkedIn,
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and Facebook.
ZEBRA and the stylized Zebra head are trademarks of ZIH Corp.,
registered in many jurisdictions worldwide. All other trademarks are the
property of their respective owners. ©2018 ZIH Corp. and/or its
affiliates. All rights reserved.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180409005080/en/
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