global retail & supply chain perspectives
TRANSCRIPT
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Hozefa Saylawala
Director of Sales – Middle East
Global Retail & Supply Chain Perspectives
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A new reality has arrived!
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
2019 2020 2021 2022 2023 2024 2025
Global: Top level channel metrics, COVID-19 re-forecasts, year-on-year growth, 2019-2025 (%)
Hyper-Stores Supermarkets & Neighbourhood Stores Discount Convenience Consumer Electronics Fashion and Apparel Department Stores Ecommerce Pharma & Health
3Global COVID-19 Forecast Update, May 2020 Source: Edge by Ascential channel forecasts. Data sourced on 22 May 2020, variations may occur on data sourced after this time.
As consumers worry about leaving home and
physical stores are shut for months, we expect
ecommerce growth to accelerate by 8.2
percentage points in 2020, as we are revising
our growth outlook from +22.2% to +30.4%.
Grocery channels are benefitting
from stockpiling and increased
home eating in 2020. Meanwhile,
the pharma & health channel is
receiving a boost from rising
health and hygiene awareness.
Non-food channels will see sales take heavy
hits in 2020. Despite bouncing back in 2021,
most will not return to pre-COVID-19 sales
levels as part of revenue is permanently lost to
online.
Impact of Covid
The COVID-19 consumer
47%49%
"I am cutting back on my spending" "Given the economy and my personalfinances, I have to be very careful
how I spend my money"
% of consumers who strongly agree (Source: McKinsey, US only)
CAUTIOUS ABOUT SPENDING
Retailer/Supplier Action: Ensure product visibility across all
pricing brackets with an emphasis on value proposition, drive
price transparency
MOTIVATED BY GOOD HEALTH, HYGEINE & WELLNESS
Retailer/Supplier Action: Re-align product portfolio and
ingredients towards health-focused products, increase services
tailored towards healthcare and wellness.
COMMUNITY-CENTRIC
43% of people said they have felt closer to their neighbors and
local community since the lockdown began. (Source: Retail Week)
Retailer/Supplier Action: Implement more localized campaigns and
purpose-led initiatives e.g. charitable giving. Consider adapting
ranges and sourcing with a stronger emphasis on local.
VALUES TRANSPARENCY & TRUST
49% of consumers are willing to pay a premium for products of high-quality
assurances and safety standards (Source: WGSN, Nielsen)
Retailer/Supplier Action: Prioritize product quality
credentials, review sourcing practices, enhance supply
chain traceability
73% of consumers plan to eat and drink more healthily in response to
COVID-19 (Source: FMCG Guru)
ZEBRA TECHNOLOGIES 5
OmnichannelManaging a new Retail Mix
ZEBRA TECHNOLOGIES 6
Today’s Supply Chain is ComplexSatisfying customers is no simple matter
ZEBRA TECHNOLOGIES
Customer
StoreThird-PartyLogistics
ManufacturerPlant / Warehouse
Warehouse / Distribution Center / Fulfillment Center
Retail or Wholesale Customer Service and Corporate Operations
New shipping mandates
Suppliers
Raw Materials
Real timeInventory status
Ship direct to customer
Ship to store
Finished goods
Returns
Returns
Real timeitem status
Pallet shipping
Real timeInventory status
Real timeInventory status
Real timeInventory status
Returns
Real timeInventory status
Returns
Ship to store
Ground orders
Rush orders
Pick-up instore
Shipment fromclosest location
Zebra Warehouse Maturity ModelAn incremental and strategic modernization framework
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Barcode
Wearable
& Voice
Optimize use
of mobility
Wide-spread
use of real-time
visibility
Targeted use of
real-time visibility
Sensors
Locationing
Intelligent
Automation
Delivery Automation Expands
ZEBRA TECHNOLOGIES
2015
Last Mile Delivery Ecosystem
Traditional Delivery Click and Collect Crowd-Sourced Delivery Autonomous Delivery
Amazon is touching all leading package delivery avenues
How will consumers decide?
Whichever option is faster and/or cheaper
• ~80% of goods can fit into the
automated system
• Manual pick section is dedicated
for oversized items
• SKU consolidation lanes have
strong potential for robotic arm
applications
Is Micro-Fulfilment
The Answer?
ZEBRA TECHNOLOGIES
Solution Provider Company Sites Solution Type Site Location
Alert Innovation Walmart 1 MFC US
Attabotics Canadian Tire 2 MFC Canada
Gordon Foods 1 MFC Canada
Nordstrom 2 CFC US
Autostore/Swisslog ASDA 1 CFC UK
Best Buy 3 CFC US
Best Buy 3 MFC US
Competec 1 CFC Switzerland
HEB 1 MFC US
Puma 1 CFC US
Dematic Amazon 1 CFC US
Big W 1 CFC Australia
Meijer 1 MFC US
Tesco 2 CFC UK
Ocado Casino 1 CFC France
Coles 2 CFC Australia
Kroger 20 CFC US
Sobeys 2 CFC Canada
Takeoff/Knapp Ahold/Stop&Shop 50 MFC US
Albertsons/Safeway 2 MFC US
Carrefour 1 MFC Middle East
Loblaw 1 MFC Canada
Sedano’s 1 MFC US
Wakefern/ ShopRite 1 MFC US
Woolworths 2 MFC Australia
Wincanton Waitrose 1 CFC UK
DEMATIC
Retail Customer Adoption of MFCs (as of Sept 2020)
Smarter Warehouses
Robots & Co-bots
• Increased automation to
support omnichannel picking
– Amazon
– Alibaba
– Fetch
– Ocado
– Walmart AlphaBot
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Warehouse Automation Competitive Segments
Manual Carts Follow Bots Co-BotsShelf-to-Person Bots
• Rapid deployment
• Increased operational efficiency
for workforce
• Typically quickest ROI
• Shelf-movement bots
• Requires reconfiguration of warehouse
• Brings goods to the picker
• Improves efficiency, but requires high
degree of direct human interaction with
the robot (fixed worker-to-robot ratio)
• Current solution, which leverages
Zebra devices on every picker
ZEBRA TECHNOLOGIES
ZEBRA TECHNOLOGIES
Convenience Store of the Future
ReturnsPick Up Shop Simple
Hot Food Local SourcingSelf-Service
ZEBRA TECHNOLOGIES
The Big Retail Tech Plays
▪Customer Analytics
▪Customer Apps & Interaction
▪Augmented reality
▪Voice
▪AI & Automation
▪Smart Stores
▪Mobility - Digitally Connected Staff
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Thank You
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