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Motorola: Warehouses look to expand IT by 2018

Schaumburg, Ill. – Sixty-six percent of warehouses plan to expand their IT investments by 2018, a 71% increase in the number of warehouses currently planning an IT expansion. A recent survey of 328 warehouse IT and operational professionals in the logistics, manufacturing, retail and wholesale market segments also indicates that 26% of respondents reported that company management views warehouses and distribution centers as an asset that can drive growth for the business.

Other results of the Motorola Solutions Future of Warehousing Survey include:

  • Leading reasons for expanding warehouse IT investments include lower transportation costs (36%), shorter delivery times (35%), new suppliers and trading partner locations (31%) and heightened omni-channel pressures (11%).
  • Warehouse professionals expect a significant shift away from pen and paper-based processes (71% decrease) to handheld mobile computers and tablets (100% increase) for cycle counting and inventory validation by 2018.
  • The pace of supply chain re-evaluation and optimization is quickening as nearly two-thirds (67%) of respondents claimed that they are either constantly or annually re-evaluating their supply chain networks.
  • While only 67% of items received at a warehouse are bar coded today, respondents expect supplier management initiatives and trading partner compliance requirements to drive higher utilization in the coming years – reaching an estimated 84% by 2018.

“Warehousing and distribution have not traditionally been the most celebrated functions within leading businesses across manufacturing, retail and wholesale industries,” said Mark Wheeler, director of warehouse solutions, Motorola Solutions. “But Motorola Solutions’ Future of Warehousing Survey revealed that these functions are playing a more important role as businesses in these industries face new pressures to cut costs to enhance profitability and free up capital as well as drive competitive differentiation and business growth.”

© 2014