"Digitization promotes contactless processes"
Customers expect a seamless shopping experience in retail. That's why retail logistics should operate in a fully networked environment, because warehouse management, distribution centers and the individual stores no longer lead an insular existence.
The extended supply chain extends from the product source through distribution and logistics to the sales shelf. In order to permanently guarantee the customer journey, employees must have real-time access to all required data at every point of the value chain with barcode apps. We talked about this with Christian Floerkemeier, CTO and co-founder of Scandit.
Covid-19 is transforming global supply chains. More generally, how has Covid-19 already changed your own business, or what questions are you currently being asked most by your customers?
Christian Floerkemeier: When the Covid 19 pandemic started, we reacted immediately and developed two free mobile applications to support healthcare organizations, retailers and delivery people in these times. The healthcare app can be used to capture patient data at testing stations, and the other app enables contactless proof of delivery to protect delivery people and customers. Our customers are increasingly demanding contactless. We see the smartphone becoming part of our PPE kit, or personal protective equipment: This includes the mask, the hand sanitizer and the smartphone. No one is interested in sharing the devices with other people anymore in this time; that's why it is important for companies and also our customers how they can enable contactless working in a short time.
Many describe the Corona pandemic as the trigger for a huge digitalization push. To what extent can you confirm this thesis?
In the logistics and retail industry in particular, we are seeing numerous digitization projects being driven forward and accelerated. This is mainly because companies need to ensure the security of employees and customers. The keyword here is definitely "contactless". Contactless retail was a trend before the pandemic - now it's the new reality. We've seen retailers rapidly adopt contactless solutions in recent months - and the demand for scan-and-go mobile apps continues to grow. Our customer data shows that some have seen up to 100 percent more transactions using these contactless solutions. Delivery companies have had to respond quickly to increased demand during the Corona crisis and have expanded capacity with increased numbers of delivery staff and depots. Many of our customers are relying on mobile devices for their digitalisation, using either a BYOD (bring your own device) or COPE (corporate owned, personally enabled) strategy. The far more cost-effective smartphones replace dedicated handheld scanners and also offer a high level of user-friendliness. With BYOD, companies reduce costs even further, because employees use their private devices here.
So what does this mean for supply chains and the customer journey?
The focus is on optimizing processes in the warehouse, on the last mile and in service, and on increasing the efficiency of the supply chain through the use of technologies such as computer vision and augmented reality. The supply chain was one of the last key processes where there was still a need to catch up. With technologies like drones and robots, as well as blockchain, AI, machine learning and AR, that's changing. The goal is to digitize operations, increase employee productivity, reduce costs, and support compliance. Improving the customer experience is also an important aspect. For example, customers can use barcode scanning to view important information. Whether it's tracking orders, general information about products, or even retrieving stock levels. This means that they are always up to date.
Delivery capability and delivery speed (ordered today, delivered tomorrow) are key factors for online retail. What does this mean for intralogistics?
Importantly, logistics management needs to be adapted. For example, using our computer vision and augmented reality technology, any data collection process can be made faster and more accurate. Mobile barcode scanning with augmented reality overlays on traditional smart devices provides instant access to real-time data across multiple workflows, allowing workers to easily locate and track products and packages, for example. That's because innovation must drive improvements across the enterprise. That happens with digital systems that consolidate data - and, crucially, share it across end-to-end operations. Much is possible today, even without large investments. Technology is used when companies can demonstrate tangible benefits and value creation to build a strong business case.
That's where your scanners come into play: What demands must a conventional, yet contemporary scanning system meet today?
An up-to-date mobile scanning system relies on high scanning speed and accuracy, on any smartphone model and regardless of the barcode type. Information should be displayed immediately and not only after some time. Using augmented reality overlays, customers and employees can have different information highlighted. This way, workflows can be optimized and products can be located more easily. Scanners should be powerful enough to scan even in low light and at great distances, as well as to capture damaged barcodes. To speed up data capture processes, it is also advisable to use multi-scanning, i.e. to capture several barcodes simultaneously with a single scan. This saves time and reduces manual errors.
Now employees' mobile devices can also be converted into powerful scanners. What are the key elements of the software used? What interfaces, e.g. to ERP systems, are possible?
We combine mobile barcode scanning, text and image recognition with augmented reality to turn smart devices into powerful data collection and visualization tools. Augmented reality overlays add digital information to the image of a physical object on the display. This allows employees or customers to have specific info highlighted such as ingredients and inventory levels. With MatrixScan, our customers can scan multiple barcodes at once. All they have to do is move their smartphone over the barcodes. Visual feedback immediately indicates which barcodes have been captured. Tasks such as inventory, shipping and delivery or the capture of multicode labels thus become child's play. Text recognition (OCR) is another important aspect. When OCR is combined with barcode scanning to capture text and barcodes at once, advanced applications are possible, such as scanning and validating passports and IDs, specialized healthcare labels and bank records. In the case of damaged address labels, for example, the OCR software can read the text. Easy integration into any IT environment and synchronization of enterprise data with ERP and eCommerce solutions is enabled by a comprehensive and versatile integration layer with SDKs for native mobile applications and websites.
What about compliance? After all, this is where private (BYOD) meets business.
We recommend that our customers review their security and usage policies and deploy a mobile device management (MDM) solution if it is not already in place. An MDM ensures that the required levels of security, control and visibility are maintained. The company thus retains control of the devices and knows what tasks they are being used for, even if they are BYOD devices. These systems are compatible with both iOS and Android and also simplify software updates.
Where are the next developments heading, for example in augmented reality?
Using high-performance computer vision software, the commercially available smart device becomes a powerful component of any digital transformation, with the goal of merging the physical and digital worlds with shared real-time data. For the retail, transportation & logistics, manufacturing and healthcare industries, smartphone scanning provides a flexible and highly cost-effective mobile platform that will benefit them immediately and in the future.Covid-19 is a catalyst for digital transformation projects and has highlighted the critical need for scalability and adaptability to unforeseen circumstances. Contactless business was a concept that was unheard of before the Corona crisis. However, by creating a clean and contactless environment for employees and customers, it is here to stay.