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Home » Blogs » Jeff Schmitz on Empowering Your Performance Edge » Addressing What’s Next in the On-Demand Economy with Intelligence at the Edge

Jeff Schmitz on Empowering Your Performance Edge
Jeff Schmitz on Empowering Your Performance Edge RSS FeedRSS

As the Chief Human Resources and Marketing Officer of a Fortune 1000 technology company, I’m responsible for ensuring we have the right people in the right place at the right time to keep this very complex global operation running flawlessly. If we can’t get orders out the door, then your workers won’t have the technology tools they need to get your customers’ orders out the door. I don’t want people to resign because they feel tired, stressed or not supported – whether they work in an office, from home, or in one of our warehouses or distribution centers.

I believe we – as employers – can do a better job of listening to our employees and acting on their suggestions. If employees are happy and feel supported, they’re going to stick around for a long time, and we could all use stability right now. Plus, happy employees are like magnets for other skilled, talented, passionate professionals.

That’s why I wanted to share some interesting feedback we received recently from hundreds of warehouse associates around the world through Zebra’s Global Warehousing Vision Study. The double-blinded study was conducted by a third party that fully vetted study participants to ensure we would get non-bias responses from people who actually work in warehouses. In fact, you may have been a study respondent or it’s possible that some of the respondents work for you, as we spoke with both associates and decision-makers.

Some of the survey findings provide insights into what you need to know right now from a worker recruitment/retention perspective and overall business planning/budgeting perspective.

  1. Money doesn’t seem to make or break employment decisions among warehouse associates, at least not in the way you think. Eighty-two percent of surveyed associates say they have been positively impacted the past two years – despite what headlines may suggest. And it’s not because they’re being compensated with more money to make up for the heavier lift amid labor shortages. Only 45% of those associates say their employers have increased wages or offered bonuses amid labor constraints. What’s keeping their spirits high and contributing to their positive future outlook despite the pressures being placed on them amid labor and supply shortages, growing customer demands and uncompromising fulfillment timelines? Their employers have improved working conditions and increased spend on technology tools that make their jobs easier and their lives more balanced.

Are you surprised by that? We were too. Then again, we have seen multiple reports during the pandemic indicating that work-life balance, mental and physical health and other non-monetary factors were behind The Great Resignation and The Great Reshuffling. Perhaps this is the latest evidence those other benefits – the non-monetary factors – matter as much to front-line warehouse workers as they do to office workers. Perhaps they mean more. Unlike office-based workers who could have the option to negotiate a remote/work-from-home position, warehouse and distribution center associates must come in every day, rain or shine, including holidays. If they don’t have flexibility in where they work, they at least want flexibility with regards to when and how they work, as well as reduced stress on their bodies which is more than fair.

  1. Robots aren’t so scary anymore. In fact, they’re appreciated by warehouse associates. Well, at least autonomous mobile robots (AMRs) are appreciated. Many who responded to our study strongly believe AMRs could make warehouse jobs less stressful, which aligns with the overall sentiment shared by nearly eight in 10 warehouse associates: “walking fewer miles per day would make my job more enjoyable, even if I had to pick or handle more items.”

 

Plus, the majority of those who work alongside AMRs today had glowing reviews. Over eight in 10 associates (83%) claim AMRs have helped increase their productivity and reduce walking/travel time, three-quarters say AMRs have helped reduce errors, and nearly two-thirds (65%) credit AMRs with career advancement opportunities. Additionally, among all associates surveyed, over three-quarters report they would feel safe working alongside AMRs, even though some have not yet worked directly with them.

 

  1. Many of your industry partners, peers and competitors are planning to make big changes in the coming months and years to shore up their technology systems and overall operations. In fact, more than six in 10 warehouse decision-makers say they will invest in technologies that increase inventory and asset visibility within their warehouses and overall visibility throughout supply chains over the next five years. Additionally, nine in 10 warehouse operators expect to use sensor-based technologies such as radio frequency identification (RFID), computer vision, fixed industrial scanning, and machine vision systems at a growing rate over the next five years. And 90% of warehouse operators expect to deploy AMRs in the same time period. Warehouse operators say they are also going to increase their investments in software that helps automate analytics and decision-making.

 

That means your competitors will be able to better sense, analyze and act on what’s happening in real time, which could give them an advantage when it comes to winning and retaining customers. The increased technology utilization also means they may have a competitive edge when it comes to hiring and employee retention. As we learned in the study, 83% of warehouse associates are now more likely to work for an employer that gives them modern devices to use for tasks versus an employer that provides older or no devices. Even more associates (92%) believe technology advancements will make the warehouse environment more attractive to workers on some level – and I agree.

No matter how much you automate, people will always play a central role in warehouse, distribution and logistics operations, whether from a creative problem solving, customer service or action-oriented fulfillment perspective. If you want to keep workers happy, on your payroll and even increase headcount in the next year – like 61% of the warehouse operators we surveyed – then talk to your employees. Share the full Warehousing Vision Study report with them. You can download it here for no charge. Or at least pass along the stats highlighted in the press release and ask them for their honest reaction.

Use this study as a conversation starter. Find out what you could do as a warehouse operator or decision-maker to better support them. Confirm which technology tools they’d like to see you prioritize as budget allows. Also ask about changes that could be made to the scheduling process, current workflows or even communications structure with supervisors and decision-makers. Do they simply need more flexibility in their schedules to stick it out with you through thick and thin? You won’t know if you don’t ask.

As I’ve learned through this Warehousing Vision Study and with the Zebra employee climate assessments we’ve recently conducted, our employees are willing to answer questions about how they feel, especially if they have the opportunity to provide anonymous feedback. Don’t be afraid of what you might learn. If anything, the truth might be exactly what you need to make the right decisions for your business, your customers and certainly your employees in these tumultuous times.  

Jeff schmitz

Jeff Schmitz is senior vice president and chief marketing officer at Zebra. Mr. Schmitz most recently served as executive vice president for multiple business units and sales at Spirent Communications where he had previously also held several senior leadership roles including chief marketing officer and vice president of networks & applications. Prior to joining Spirent, Mr. Schmitz held senior marketing positions at Rivulet Communications, Visual Networks and Tellabs Inc. Mr. Schmitz holds a B.S. degree in electrical engineering from Marquette University and a Master of Science degree in computer science from the Illinois Institute of Technology.

Addressing What’s Next in the On-Demand Economy with Intelligence at the Edge

August 28, 2018
Jeff Schmitz

We live in a world where the line is blurring between the digital and the physical, and instantaneous service delivery is becoming ubiquitous. In an age of hyper personalization, convenience and information, customers expect what they want exactly when, where, and how they want it. Immediate gratification is the new norm. This on-demand economy continues to push what it means for enterprises to be “customer-driven,” and they must digitize operations to remain relevant and compete. Early attempts to address these needs sparked innovation at the core of the enterprise, but today innovation is exploding at “the edge” of business.

The edge is where we create seamless and frictionless customer experiences. From sales associates who delight shoppers with the items they want without leaving their side, warehouse workers who pick inventory so that the right things get to the right customers at the right time, and truck drivers who take the most direct and efficient route to get packages to recipients sooner.

Where we used to centralize operations, forward-thinking companies are now pushing resources and intelligence to the edge. For example, instead of sending all information to the cloud, now some of it can be transmitted nearby where it’s created. Think about how traditionally, inventory has been stored in warehouses, but as retailers gain better visibility into stock, ecommerce inventory can now be pulled from the local retail stores. Rather than waiting for a package to arrive, shoppers now have the option to pick up a purchase at a local brick-and-mortar location when and where it’s convenient.

In these demonstrations of smart environments at the edge, the employees making real-time decisions and interacting with the products and people they serve become even more critical to enhancing the customer experience. In today’s customer-centric business environment, front-line workers must be armed with the tools and data-driven insights to drive successful outcomes.

Within the supply chain, empowering employees with the latest technology and real-time insights helps companies gain a critical performance edge. Nearly all supply chain professionals we recently surveyed said that by 2020, they will use handheld mobile computers with barcode scanners to attain omnichannel logistics capabilities to meet customer expectations for speed, quality and performance.

In an era in which 78 percent of logistics companies expect to provide same-day delivery, finding ways to digitally transform operations and empower employees with intelligence at the edge has never been more important.

Innovation is happening in front of our eyes, but forward-thinking companies are looking ahead to what’s next in the on-demand economy and creating flawless customer experiences at the edge. Those who don’t will be left behind.

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