THE HIDDEN COSTS OF UN-ADAPTABLE MOBILE TECHNOLOGY

Transcription

1 THE HIDDEN COSTS OF UN-ADAPTABLE MOBILE TECHNOLOGY

2 HIDDEN COSTS OF UN-ADAPTABLE MOBILE TECHNOLOGY UN-ADAPTABLE MOBILE TECHNOLOGY Thanks to an increasing focus on efficient operation, greater accuracy and more nimble service, mobile computing technology is becoming a must-have for many cold-chain operations. While there are many solutions to choose from, the majority of devices on the market are un-adaptable. In other words, they cannot evolve as business needs change or new technology/capabilities become available. Add to that the extreme demands of cold-chain environments, and it can become challenging to find the right mobile computing solution.

3 This report will explore some of the unanticipated costs of implementing un-adaptable technology in refrigerated warehouses, freezers and outdoor yards in winter climates. These include: Rapid device obsolescence The need to purchase unnecessary capabilities Potential downtime Temperature-related performance issues And more We will also examine the advantages of rugged mobile technology that can adapt through customizability, modular design and field repair. Competition and demands for faster service and delivery are driving businesses to strive for more dynamic, real-time, event-driven customer response. The use of handheld computing devices has become an invaluable tool toward increasing productivity, efficiency and accuracy. In a 2011 study, the Aberdeen Group found that mobile technology was increasingly viewed as very important for improving productivity, reducing errors and boosting service profitability. While this particular study focused on businesses in the field service segment, the findings clearly echo the needs and priorities of many cold-chain operations. Propelled by the need for accurate product tracing and reduced delivery times, coldchain operations, logistics and warehousing industries are also turning to handheld mobile technology. According to research by the Aberdeen group, more than 80 percent of companies already have RF and barcodes deployed. Many have systems that can operate interactively with mobile devices 4. CHOOSING THE RIGHT TOOLS It is not simply the implementation of mobile tools that ensures peak performance. Selecting the right devices for your operation s requirements also has a significant impact not only on ensuring customer service needs are met, but on the subsequent costs associated with implementing and maintaining the technology. When a mobile technology solution is chosen, a significant investment is required in the devices themselves and the training required to use them. Any business integration needs, such as new software tools, should also be a consideration. These issues are particularly important for cold-chain operations where extreme environments necessitate more advanced and rugged devices. From frost-resistant scan windows and displays to IP67-rated seals that lock out humidity, mobile devices for cold-chain use are often more costly. Plus, cold-chain operations must also plan for investments in deploying local area wireless networks to support device communication. But the considerations don t end there. Cold-chain operations must also consider future needs. If the wrong mobile solution is chosen today, there can be unforeseen consequences later on. In addition to being stuck with devices that do not meet their needs, organizations may encounter higherthan-necessary ownership costs, potential service lapses and lost revenue due to those lapses. These problems can be exacerbated by evolving business needs that demand new and/or different tools. For instance, today, a company s devices may be required to read a barcode from a distance of 20 feet. However, future requirements may necessitate the ability to read more complex 2-D symbologies such as QR codes. Finally, the speed at which technology changes make most devices obsolete within 18 months, on average 5. Few companies can afford to replace their mobile devices at this rate. With almost 500 million mobile devices expected to be used by enterprise mobile workers by 2015, demands for robust enterprise mobile management solutions are increasing 1. Organizations that have deployed handheld computing technology enjoy: ADVANTAGES OF GOING MOBILE Increased throughput Decreased errors during the exchange of business-critical information Immediate access to real-time data On-the-go productivity and improved response times Enhanced situational awareness Increased efficiency and accountability

4 Another downside to most mobile computing solutions is that the devices are designed based on a one-size-fits-all philosophy. The prepackaged functionality and features allow few customization options if any. With devices designed for replacement over repair, many mobile technology providers make repair a complicated, lengthy process. Even more troubling: Short device lifespan means that upgrades are extremely limited or nonexistent. The result is that businesses are beholden to technology that is un-adaptable. In other words, the devices and technology don t grow and adapt as the needs of the business evolve and the technology changes. This un-adaptable technology has many hidden expenses including the costs of unnecessary capabilities, rapid obsolescence and potential downtime. COST CENTERS EXPOSED SELECTABLE DEVICE CAPABILITIES As most devices are designed on a one-sizefits-all mentality, businesses may be forced to adopt features that are not necessary for their operation. Consider a device with both radio communication technology, barcode reading and RFID. Even if your organization only requires one of these capabilities, the costs associated with building all of them into the device remain and they are passed on to you. On the other hand, the rapid evolution of technology also creates challenges. Imagine the release of a new operating platform that could deliver game-changing capabilities. With a fleet of un-adaptable devices, your business is still stuck this time, unable to add on features that could improve their productivity, efficiency and accuracy. By opting for adaptable technology, companies can exercise greater control over the features they want. That s because adaptable devices are typically engineered with customizability in mind. For example, manufacturers may encourage the open and collaborative development of software or hardware. This yields a robust selection of apps and programs, which can help companies tailor device functionality to meet their needs. ACCESS TO THE NEWEST TECHNOLOGIES Most devices are not designed for add-ons or upgrades as the technology evolves. IMAGINE TWO FREEZER OPERATIONS, IDENTICAL IN VIRTUALLY EVERY WAY, EXCEPT THAT OPERATION A HAS ARMED ITS STAFF WITH ADAPTABLE, RUGGED HANDHELD COMPUTING DEVICES, AND OPERATION B HAS EQUIPPED THEIR WORKERS WITH UN-ADAPTABLE MOBILE COMPUTERS FROM COMPANY X. This week in each operation, a careless worker ran over one of their handhelds with a forklift. Both Device A and Device B get a huge crack in their screen, making the devices unusable. Both warehouses begin the repair process to get their device up and running: Operation A: Adaptable tech A Operation B: No Adaptable Tech B B Gives the device back to the worker Tests the new screen ~2 min <3 total down time hours Worker alerts the operations staff responsible for equipment that a device has broken 1-2 hrs Operations gets a new screen from their spare parts pool ~5 min Operations receives the repaired device, and gives device back to worker Depot ships device back to the operation overnight 4-6 total down time days Worker alerts the operations staff responsible for equipment that a device has broken 1-2 hrs Operations gets a return materials authorization through their equipment service contract ~10 min Replaces the six screws ~1 min Removes the six screws and replaces the cracked screen with the new spare one. ~20 min Device is received by depot and repaired 3 days Device ships to depot for repair overnight Packages and ships the broken device. ~20 min

5 Essentially, a company is stuck with its current devices until they wear out due to the substantial financial and time investments involved. As a result, companies may have to completely scrap their old systems and start from scratch when the old technology becomes obsolete or devices become unusable after years of normal wear and tear. Also added to the bottom line are the costs of worker training to ensure new tools are used properly. With adaptable technology, modularity is often a key design criteria. When a device is modular, components can easily be swapped in and out, allowing new features to be integrated into the device you already own. At the same time, operator training is minimized because employees are simply getting an upgrade to a device they already know how to use. REDUCING DOWNTIME Broken or worn out devices are a fact of life. No matter how carefully one handles a device in the field, it is very likely that it will need to be serviced at some point, especially in harsh environments like refrigerated warehouses, freezers and outdoor yards in cold climates. And if that means shipping the unit back to the manufacturer, there are significant costs and potential headaches like employees being left without a critical business tool. To circumvent the potential downtime, some companies choose to stock extra devices. Unfortunately, those extra devices require a fairly substantial cost investment, as well. A better solution: Adaptable technology based on a modular design. Often, with just a few extra parts, a broken unit can be fixed on site in matter of hours. Take a frozen, damaged keypad, for example. A modular device allows this part to simply be removed and replaced with a spare. This results in significant cost savings by eliminating a return to the manufacturer, decreasing worker downtime and avoiding an investment in spare devices. In fact, commonly used spare parts can be stocked for just a fraction of the cost of backup devices. EVOLVE WITH ADAPTABLE TECHNOLOGY So how do businesses avoid these hidden costs? By choosing adaptable technology from the start. Psion understands this. As a leading manufacturer of rugged, temperature-tested, handheld computing solutions, we design our products to be highly modular, customizable and field reparable. Our solutions incorporate modular chassis with mix-and-match peripheral components, open-source hardware development, extreme ruggedness to extend wear life and highly flexible service packages. That lets businesses design their own perfect-fit solutions, while controlling costs. Choosing un-adaptable mobile technology can waste resources, hinder productivity and lessen a firm s competitive advantage. The marketplace is continually evolving and so should your technology. Psion s dynamic solutions grow with business needs to help empower workers and avoid hidden costs associated with static technology. 1 Mobile Device TCO Models for Line of Business Solutions, VDC Research, February Field Service Mobility Survey, Aberdeen Group, May Field Service 2011: Mobility and the Extension of the Service Enterprise, Aberdeen Group. 4 Fulfillment Excellence and Dynamic Event Warehousing Come of Age, Aberdeen Group, Source: ZDnet, What is the Ultimate Ruggedized Mobile Device? April SEE YOUR SAVINGS POTENTIAL USE OUR ROI CALCULATOR TO ESTIMATE HOW IMPLEMENTING A WAREHOUSE MOBILITY STRATEGY CAN MAXIMIZE YOUR SAVINGS AND PROFITS.

6 CONTACT PSION AT or call to take the first step toward greater flexibility, productivity and profitability.