1、REINVENTING THE SUPPLY CHAIN:THE FUTURE OF FULFILLMENT VISION STUDY CONFRONTING LOGISTICS CHALLENGES IN AN OMNICHANNEL SHOPPING LANDSCAPE2 zebra technologies ZEBRAS FUTURE OF FULFILLMENT VISION STUDYZebra Technologies commissioned a global research study to gain a richer understanding of how manufac

2、turers,retailers and logistics firms are preparing to meet the growing needs of the on-demand economy.Surveys were designed to reveal plans,implementation levels,experiences and attitudes toward omnichannel logistics.INNOVATION61%say automation is disrupting the industryDIGITIZATION OF THE SUPPLY CH

3、AIN55%of organizations currently use pen and paper to manage omnichannel logistics INVENTORY ACCURACYRespondents estimate their current inventories are 66%accurate E-COMMERCE89%agree e-commerce is driving the need for faster delivery,spiking concern and investmentTOP TRENDSOPERATING AT OMNICHANNEL L

4、EVELIn turn,a digital transformation is rippling through the retail supply chain,dictated by the moment-to-moment wants and whims of consumers forever changed by the Internets endless and instant buying possibilities.The result is a retail ecosystem in flux and it is shaking the supply chain at its

5、very core.To succeed in the new normal,retailers,manufacturers and logistics companies are collaborating and swapping roles in uncharted ways to meet shoppers omnichannel product fulfillment and delivery expectations in a plot that is still unfolding.Companies are turning to digital technology and a

6、nalytics to bring heightened automation,merchandise visibility and business intelligence to the supply chain to compete in the on-demand consumer economy.Although an estimated 73%of consumers are omnichannel shoppers today(and they spend more than single-channel consumers),2 only 39%of supply chain

7、respondents believe theyre operating at an omnichannel level,the Zebra Technologies study revealed.DIGITAL TRANSFORMATION OF THE SUPPLY CHAIN Meeting shoppers omnichannel product delivery and fulfillment expectations calls for a digital transformation of the supply chain that addresses key pain poin

8、ts.Inventory allocation,reducing backorders and replenishment efficiency top the hurdles facing logistics companies with omnichannel fulfillment,the study found.That comes as little surprise as merchants,manufacturers and logistics firms navigate an ecosystem built for a single channel brick-and-mor

9、tar shopping landscape,ones that are now taxed by a rapidly growing e-commerce market.To adapt,new business models are taking hold as the lines between retailers,manufacturers and logistics firms start to blur.These longtime,largely siloed,solo acts are increasingly acting in concert to rise to the

10、demands of a dynamic,24/7 bricks-and-clicks shopping world.NEW FULFILLMENT AND DELIVERY OPTIONS Dramatic changes are beginning to materialize as industry players race to offer consumers fast,flexible and even free product fulfillment and delivery.Consumers want a hassle-free shopping trip whether th

11、eyre buying in-store,from their mobile phone,desktop computer or some combination of the three.Stores are increasingly doubling as distribution centers that fulfill online orders.Logistics companies are starting to provide product fulfillment.Manufacturers are drop-shipping merchandise to expedite r

12、etail deliveries.Retailers are also partnering with third-party technology upstarts to handle last-mile delivery.zebra technologies 3A$2.3 trillion global e-commerce market reflects how profoundly shopper expectations have recalibrated worldwide.1 Todays consumers have been rewired by digital disrup

13、tion.That always-connected,tech-savvy shopper expects a seamless,faster purchasing journey,whether shes buying online and picking up in store or wants her merchandise delivered in two hours to her door.STATE OF THE INDUSTRYRESPONDENTS CHARACTERIZE THEIR ORGANIZATIONS OMNICHANNEL STRATEGYNO PLANSOMNI

14、CHANNEL PLAN IN PROCESS45%FASHION,APPAREL38%COMPUTER,ELECTRONICS29%CONSUMER PACKAGED GOODS,FOOD&BEVERAGE45%POSTAL,COURIER,FREIGHT42%THIRD-PARTY LOGISTICS,WAREHOUSE,STORAGE58%3%NO PLANS39%RETAIL28%NON-STORE FRONT38%STORE FRONT1 EMarketer,Worldwide Retail and Ecommerce Sales:eMarketers Estimates for 2

15、0162021;2 Harvard Business Review,A Study of 46,000 Shoppers Shows That Omnichannel Retailing Works58%PHARMACYMANUFACTURINGLOGISTICSBUY ONLINE/MOBILE,RETURN TO STOREBUY ONLINE/MOBILE,PICK UP AT THIRD-PARTY LOCATIONSBUY ONLINE/MOBILE,PICK UP IN STOREBUY ONLINE/MOBILE,SHIP TO HOMEBUY IN STORE,RETURN B

16、Y MAIL WITH RETURN LABEL FROM VENDOR WEBSITE4 zebra technologies Today,41%of consumers worldwide use two or more channels during the purchase process.4 According to Zebras 10th annual shopper study,51%of online shoppers ship to home,35%pickup in store and 29%ship to an alternate location.Accurately

17、fulfilling these orders 100%of the time requires inventory visibility across the entire supply chain.Unfortunately,inventory systems havent yet caught up and are unable to provide the level of inventory granularity necessary to facilitate strong customer satisfaction.Survey respondents estimate that

18、 their inventories are about 66%accurate today.Clearly this level of preciseness is woefully inadequate in a buyers market where shopper tolerance of out of stocks,for one,is diminishing as countless alternatives are just a click away.Supply chain and operations leaders must swiftly adjust to the ch

19、anging world.The race is on to implement omnichannel-primed logistics systems and processes to ensure merchandise fulfillment is scalable as online sales volumes continue to escalate.But thats a formidable task.Indeed,86%of respondents cited the capital investment and operating costs of implementing

20、 an omnichannel operation as a challenge.Yet,companies must address this issue as more and more consumers physical and digital worlds are converging and they are buying“phygitally.”THE OMNICHANNEL CHALLENGEE-commerce is growing at a staggering pace,projected to generate$4.479 trillion in retail sale

21、s by 2021,soaring over 140%from$1.859 trillion in 2016.3 And its forcing decision makers to shift to a robust omnichannel fulfillment strategy that meets the modern consumers needs.RETAILERS AND MANUFACTURERS REPORT COMPLEX PURCHASING MODELSBUY IN STORE,SHIP FROM STORE TO HOMEHOW ACCURATE ARE YOUR I

22、NVENTORIES TODAY?HOW ACCURATE DO THEY NEED TO BE TO HANDLE THE RISE OF OMNICHANNEL LOGISTICS?MANUFACTURING76%TRANSPORTATION&LOGISTICS69%79%RETAIL65%73%86%of respondents agree that the amount of capital investment and operating expense required for omnichannel is a challenge 2023TODAY3 EMarketer,Worl

23、dwide Retail and Ecommerce Sales:eMarketers Estimates for 20162021;4 ForeSee,Foresee Experience Index:Retail CX RankingsINVENTORY ACCURACY66%65%95%RETAILERS45%93%55%96%52%98%55%93%55%88%37%87%38%87%42%89%49%91%36%88%45%90%MANUFACTURERS45%93%Stores enabled to fulfill web ordersStores enabled to ship

24、to warehouse or direct to consumers Stores enabled to transfer product between store locationsDirect ship from manufacturer or other retailerDedicated fulfillment centers for online Shared fulfillment centers for online and offlineRegional/near shoring of fulfillment centersA new phenomenon is occur

25、ring in the retail sector as it shifts to serve its omnichannel consumer base.In a quest to boost online fulfillment performance and get their digital-physical profit model right,retailers are leveraging one of their greatest assets:their fleet of stores.At the same time,manufacturers are updating t

26、heir systems to accommodate both bulk and SKU-level shipping so that they too can serve consumers directly.CHANGING ROLES AND INCREASING COLLABORATIONMerchants are diving into“ship from store,”retrofitting locations to double as online fulfillment centers and shrinking selling space to accommodate e

27、-commerce pickups and returns.The study revealed that 76%of retailers use store inventory to fill online orders,and six out of 10 expect that to grow.In fact,some of the biggest retailers now fill digital orders from every one of their brick-and-mortar locations.The strategy taps stores to fulfill d

28、igital purchases to defray the high transportation costs of online orders,which have been eating into retail profit margins.By offering click and collect(buy online pickup in store)retailers skirt the cost of delivering to shoppers homes,while encouraging add-on sales.Thats because consumers that co

29、me in to pick up their digital order often end up making impulse purchases.Industry leaders are also calculating that a network of stores can get digital orders faster and more efficiently to the consumer than a handful of centralized warehouses.This is particularly critical amid the growing consume

30、r expectation for same day and even two-hour delivery.Optimizing the distribution network is key to omnichannel success.Meeting the unfolding demands of the omnichannel retail landscape is also fostering newfound collaborations between manufacturers and retailers.Suppliers are increasingly drop-ship

31、ping merchandise directly to consumers for their retail partners online operations.The study revealed that worldwide 32%of retailers request drop ship from manufacturers and 73%of manufacturers expect this to increase up to 10%over the next five years.zebra technologies 5TURNING STORES INTO FULFILLM

32、ENT CENTERSEXPECT STORE USE OF INVENTORY TO FULFILL ORDERS TO GROW IN THE NEXT FIVE YEARS 68%AGREE MORE AND MORE RETAILERS WILL CONTINUE TO TURN STORES INTO FULFILLMENT CENTERS 91%OF RETAILERS SURVEYED USE STORE INVENTORY TO FULFILL ORDERS 76%AGREE CLICK AND COLLECT(BUY ONLINE/PICK UP IN STORE)WILL

33、BECOME THE DEFAULT DELIVERY METHOD 86%SHIPPING CAPABILITIES FOR IN-STORE AND ONLINE FULFILLMENT63%96%2028TODAY41%95%50%96%52%95%44%96%40%93%EMERGING SHIPPING OPTIONSDecision makers are testing a vast array of delivery strategies to trim time,distance and cost from shipping orders.Retailers are offer

34、ing curbside pickup,warehouse pickup and merchandise pickup at third-party locations such as parcel shops and lockers.And tech startups like Instacart,Qourier and UberRush have entered the fray to speed fulfillment.Solving the delivery challenge has given rise to a crowdsourcing model whereby retail

35、ers,manufacturers,logistics companies and technology newbies are working collaboratively to get products in the hands of shoppers faster.That comes as little wonder,as some of the worlds biggest retailers are increasing their same-day delivery capabilities to compete with online retailing giants.Wit

36、hin five years,78%of logistics companies surveyed expect to provide same-day delivery and in 10 years 39%anticipate delivery within a two-hour window.For brands,speed stokes loyalty among time-starved shoppers.Todays buyers have come to value companies that offer delivery perks such as the ability t

37、o track a purchase and text notifications alerting them that their order“is just four minutes away!”Importantly,more decision makers view merchandise delivery as an extension of the retailers brand in the customer experience.THE DELIVERY RESURGENCE:THE NEED FOR SPEEDE-commerce and an“I-want-it-now”i

38、nstant-gratification mindset are feeding the consumer craving for faster and faster delivery.Industry players are feverishly working to fulfill that demand and still turn a profit a challenge given the high cost of transporting goods.EXPECTED DELIVERY WINDOW FOR FUTURE SAME-DAY ORDERS32%2 hours or l

39、ess44%3 to 4 hours24%5+hours90%of respondents agree that delivery is an extension of a retailers brandDedicated Delivery PersonDelivery service picks up parcels at a consolidation point66%96%Store Fleet or Store StaffCar,bike,footBicycle CouriersA small number of parcels delivered by bicycleCrowdsou

40、rcingDriver network selects a specific delivery orderSemiautonomous Ground VehiclesDelivery person completes administrative tasks while vehicle does the drivingAutonomous Ground VehiclesParcels are delivered to a third-party location without human intervention DronesAutonomous aircrafts carry parcel

41、s along the most direct route at a relatively high speedDroidsSmall autonomous vehicles deliver parcels via sidewalks rather than streets90%49%91%37%80%30%87%27%86%25%85%19%81%18%78%2028TODAY6 zebra technologies TRENDS IN PRODUCT RETURNS OFFER FREE RETURN SHIPPING 70%Handling product returns is not

42、a new challenge for retailers and brands,but its become an infinitely bigger concern in an omnichannel marketplace.It is also extraordinarily costly and is eating into already pressured profit margins:Worldwide,shoppers return an estimated$642.6 billion in goods each year.5 Managing returns efficien

43、tly and cost effectively is a challenge that retailers must take on.Shoppers increasingly expect free returns,and a hassle-heavy return process turns off 80%of shoppers,according to a ComScore Study.6 Still,reverse logistics capabilities remain underdeveloped and significant opportunities for improv

44、ement remain,the Zebra study revealed.Many retailers seem uncertain as to how to improve their processes.In fact,68%of surveyed retailers agree that returns for online orders are a challenge with two out of 10 viewing it as a significant challenge.Merchants are increasingly exploring new models to o

45、ffset the costs of returns.The study uncovered that 52%of retail respondents add a surcharge for returns today and 54%have no plans to change this in the future.Of the 48%of merchants that do not currently add a surcharge for returns,more than half plan to do so in the future.Decision makers are tes

46、ting solutions such as leveraging the store as a product returns hub.A resounding 70%of surveyed executives agree that more retailers will turn stores into fulfillment centers that accommodate product returns.According to the study,the majority of retailers that currently do not offer free shipping,

47、free returns or same-day delivery plan to do so and expect to engage third-party firms to manage the returns process in the future.GRAPPLING WITH RETURNSThe rising consumer demand for free and fast product delivery correlates with a surge in product returns.Fulfillment and returns go hand in hand;th

48、ey represent the two halves of the supply chain.While fulfillment means bringing products to market,returns flow the product in reverse back through the supply chain.87%of respondents agree accepting and managing returns is a challenge 55%of retailers plan to employ third-party facilities to manage

49、returns5 MarketWatch,Consumers Return$642.6 Billion in Goods Each Year;6 RetailNext,The Real Cost of Returns for Retailers ADD A SURCHARGE FOR RETURNS 52%HAVE A RETURNS FACILITY MANAGED BY A THIRD PARTY50%45%PLAN TO DISCONTINUE 46%PLAN TO DISCONTINUE 30%PLAN TO DISCONTINUE 83%LATIN AMERICABY REGION6

50、8%of retailers globally ranked returns of online orders as a challenge74%ASIA PACIFIC66%EUROPE51%NORTH AMERICAzebra technologies 7ENABLING INTELLIGENT FULFILLMENTSupply chain decision makers worldwide are investing in an array of tools to streamline omnichannel merchandise fulfillment.Solutions rang

51、e from edge technologies which automate worker tasks such as picking and sorting merchandise at a distribution center to demand forecasting and planning applications that boost the accuracy of revenue forecasts and better align inventory levels via data analytics.In two to three years,tablets and ha

52、ndheld mobile computers with barcode scanners will top the devices used for omnichannel logistics.The shift marks an upgrade from manual systems,such as pen and paper spreadsheets for inventory validation,to handheld mobile devices that offer real-time access to warehouse management systems.Not surp

53、risingly,supply chain executives are outfitting workers with mobile computers that enable quick,automated inventory and cycle counting.They also grant them on-demand inventory lookup and product information to fulfill orders no matter where a shopper purchase originates a physical store or a smart-p

54、hone from wherever the inventory resides in the retail stock room,fulfillment center at the manufacturer or on a delivery truck.This in-the-moment inventory visibility enables nimble omnichannel order fulfillment from any link in the supply chain.Meanwhile,radio-frequency identification(RFID)technol

55、ogy and inventory management platforms are expected to grow the most in the next few years.RFID-enabled software,hardware and tagging solutions offer up-to-the-minute,item-level inventory lookup,heightening inventory accuracy while reducing out of stocks,overstocks and replenishment errors.Additiona

56、lly,demand forecasting and planning as well as workforce management tools are being implemented today by 50%of logistics companies surveyed.Whats more,workforce management technologies will also see a rise in investments in the next year by 32%of the same firms.change to 2028 TODAY 2028Demand foreca

57、st planning 55%97%Labor workforce management 48%98%Freight document handling and archiving 48%98%Transportation management system 45%97%Warehouse management system 44%97%Tracking and event management 41%96%Inventory planning and management 40%97%Route optimization and scheduling 39%97%Sensors and mo

58、nitoring 37%96%Network optimization system 37%97%Electronic interfaces with carriers 36%98%Electronic interfaces with shippers 35%98%Yard management system 34%94%WORKFORCE MANAGEMENT TOOLS ON THE RISEMOVING FROM MANUAL TO DIGITAL2028TODAY64%97%+33%HANDHELD COMPUTERS WITH BUILT-IN BARCODE SCANNERS59%

59、97%+38%HANDHELD BARCODE SCANNERS55%95%+40%TABLETS49%95%+46%BARCODE LABEL,THERMAL PRINTERS44%93%+49%WEARABLE MOBILE COMPUTERS36%91%+55%VEHICLE-MOUNTED MOBILE COMPUTER33%91%+58%RFID-BASED INVENTORY MANAGEMENT SYSTEM8 zebra technologies E-commerce has given way to a dramatic rise in distribution center

60、s and warehousing operations placing enormous pressure on the already scarce supply of skilled labor resources.To counteract the labor concerns,supply chain decision makers are forecasting that automation will offset the shortages.Survey executives identified the most highly disruptive technologies

61、as drones,driverless/autonomous vehicles and augmented reality.Next-generation supply chains will utilize robotics and automation to perform traditionally manual tasks such as picking,sorting,inspecting,storing,handling and classifying products to improve overall efficiency,worker productivity and s

62、peed to market.Some warehouses are turning to autonomous vehicles to bring merchandise to sortation and packing areas.Others are using drones and RFID for inventory management.The opportunities are seemingly limitless and include wearable technology,which enables truly hands-free,multi-modal workflo

63、ws that result in greater worker efficiency and increased productivity.The market for enterprise wearable devices is expected to skyrocket with projected growth of 75%by 2021.7 Interestingly,while supply chain executives have highlighted key disruptors,they seem to be taking a wait-and-see approach

64、when it comes to actually investing.Indeed,these technologies are being implemented more as tests to determine their return on investment rather than a full-scale rollout.Industry players also face the challenge of managing these next-generation technologies across the many moving parts of the suppl

65、y chain for an effective omnichannel strategy,while implementing them to work seamlessly with existing legacy systems which is no easy feat.NEXT-GENERATION SUPPLY CHAIN TECHNOLOGIES In the digital economy,manual processes left over from the pre-Internet era continue to vanish from warehouse and fulf

66、illment operations.Decision makers looking to the future said next-generation supply chains will reflect connected,business-intelligence and automated solutions suited to the on-demand,omnichannel landscape.TRANSFORMATIVE TECHNOLOGY DISRUPTORSEARLY-STAGE DISRUPTORSAUTONOMOUS VEHICLESDRONES/ROBOTSAUG

67、MENTED REALITYNEW TECHNOLOGY IMPLEMENTATION CHALLENGES DETERMINING ROI OF NEW TECHNOLOGYEXPECTED REWARDS FROM TECHNOLOGY INVESTMENTSINTERNAL COORDINATION STRATEGYSAFETY AND TRAININGDIFFICULTY IN DEPLOYING,INTEGRATING AND MANAGING NEW TECHNOLOGY REGULATORY REQUIREMENTSADVANCING DISRUPTORSWEARABLE MOB

68、ILE TECHNOLOGYMACHINE LEARNINGDIGITAL SECURITYMAINSTREAM DISRUPTORSPREDICTIVE ANALYTICS3D PRINTINGINTERNET OF THINGS1Lower supply chain management risks2Improved transport routing,transport mode selection3Reduced labor costs through automation4Shorter delivery times without increasing inventories7 F

69、ung Global Retail&Techzebra technologies 9PENETRATION LEVEL10 zebra technologies REGIONAL FINDINGSIndustry decision makers worldwide view the growing omnichannel landscape as driving the need for merchandise delivery and fulfillment processes upgraded by digitally-enabled automation,merchandise visi

70、bility and business intelligence.But their areas of need and focus vary by region.ASIA PACIFICIn Asia Pacific,95%of respondents rated e-commerce as the driving need for faster delivery.The region expects to implement same day delivery faster than any other continent and nearly 30%consider returns fo

71、r online orders as a significant challenge.Drones were ranked by 85%of those surveyed as one of the most important disruptive technologies.85%rank drones as one of the most disruptive technologiesEUROPEEuropean retailers are increasingly turning to separate facilities to handle online orders and ret

72、urns.Currently,52%of merchants surveyed employ third-party logistics firms to handle the complex task of returns.By 2028,dedicated fulfillment centers are expected to grow by over 110%with 93%of retailers planning to employ them for online orders.A clear majority of respondents(68%)view digital secu

73、rity as a disruptive technology.52%of retailers employ third-party logistics firms to handle returnsLATIN AMERICAIn Latin America,93%of executives agreed that they are facing increasing pressure to reduce the environmental impact of e-commerce caused by reliance on paper-based systems and the surge

74、in the number of delivery vehicles.The region is embracing RFID solutions to enable omnichannel logistics more dramatically than most regions with respondents expecting penetration rates to skyrocket by 2028 for active RFID(95%),Infrared+RFID(91%)and passive RFID(86%).93%agree pressure to reduce env

75、ironmental impact is growingNORTH AMERICA In the United States and Canada,manufacturers,logistics companies and merchants ranked current inventory accuracy at 74%and reported needing to be at 83%to handle the rise of omnichannel logistics.Only 44%of companies provide same-day service today trailing

76、all other regions.A resounding 83%classified driverless/autonomous vehicles as disruptive to the industry.83%classified autonomous vehicles as highly disruptiveABOUT THE STUDYzebra technologies 11RESPONDENTS BY GEOGRAPHYNORTH AMERICA(Canada,United States)26%LATIN AMERICA(Brazil,Chile,Colombia,Mexico

77、)22%ASIA PACIFIC(Australia,China,India,New Zealand)26%EUROPE(France,Germany,Italy,Russia,Spain,United Kingdom)27%BY INDUSTRYTRANSPORTATIONMANUFACTURINGWHOLESALE,WAREHOUSING,STORAGEE-COMMERCE AND ONLINE SELLINGRETAIL22%19%15%BY NUMBER OF EMPLOYEES$1 MILLION TO$100 MILLION$100 MILLION TO$250 MILLION$2

78、50 MILLION TO$500 MILLION$500 MILLION TO$1 BILLION$1 BILLION TO$5 BILLION$5 BILLION TO 50 BILLION$50 BILLION+BY REVENUE18%25%15%POST AND PARCEL DELIVERY 4%101 TO 500501 TO 1,0001,001 TO 5,0005,001 TO 10,00010,001 TO 50,00050,001 TO 100,000100,000+9%13%17%13%18%12%13%19%33%15%7%8%4%For more informati

79、on,please visit us on the web.Transportation and Logistics: ZIH Corp and/or its affiliates.All rights reserved.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.NA and Corporate Hea

80、dquarters+1 800 423 Asia-Pacific Headquarters+65 6858 EMEA H America Headquarters+1 847 955 Surviving and thriving amid the global,digital shopping revolution,in which consumers fluidly browse and buy from their smartphones,computers and in store,calls for a supply-chain makeover.Pressed to offer co

81、nsumers fast,flexible and even free product fulfillment and delivery in an omnichannel retail landscape,a crowdsourced,collaborative model is taking shape.Traditional roles are blurring as logistics companies,manufacturers and retailers work to meet the growing on-demand economy via the adoption of

82、business-intelligence supply chain technologies.In turn,stores are increasingly doubling as distribution centers that fulfill online orders;logistic companies are starting to provide fulfillment and distribution services;and manufacturers are drop-shipping merchandise to expedite retail deliveries.M

83、erchants are also partnering with third-party technology upstarts to speed last-mile delivery.These next-generation supply chain systems and practices are designed to ensure that merchandise fulfillment is scalable in an omnichannel marketplace.GEARING UP FOR NEXT-GENERATION SUPPLY CHAINSABOUT ZEBRA TECHNOLOGIESZebra provides unparalleled operational visibility to give enterprises the digital edge they require to thrive in an omnichannel landscape.