What's the hottest software technology trend in retail chains? Its speech-based software for warehousing and logistics operations.
In the latest of a series of recent moves by retailers to improve their service levels, U.K. grocer Somerfield plc is implementing speech recognition technology in its distribution operations starting next month.
"The operational benefits in improved productivity and accuracy will accrue financially to our bottom line," says Neil Rixon, logistics development director at Somerfield, one of the largest UK retail grocers, which operates more than 1,300 stores under the Somerfield and Kwik Save names. "Our addition of new technology, and the implementation of streamlined processes [that] take advantage of this technology" will improve growth and profitability.
In addition, he says, the combination of improved order accuracy and increased visibility into distribution operations, will "significantly improve service levels to our stores."
Somerfield will initially use the VoiceLogistics solution from Princeton, N.J.-based Voxware at a distribution center that has 26 employees. The technology will be used in picking operations in the dry, cooler and freezer areas, as well as put-to-store operations with catch weights. The system includes Voxware's VoxView Web-based management solution to provide oversight and reporting.
More talk about speech
Speech-based logistics systems, long considered a niche product, have been adopted by an increasing number of companies as speech technology has improved. Typically, these systems consist of a wireless, wearable device with a headset, through which workers direct the picking, packing or putaway process. They speak serial numbers, quantities and queries instead of scanning a bar code, usually in workplace operations that require both of their hands to be free.
Venture Development Corp., Natick, Mass., expects the market for such rugged wearable computers to have a 40% compound annual growth rate, reaching $258 million in 2005. Just under half of the installed systems have been in retail/distribution applications.
That expected market boom is already translating into increased sales for major companies in the market.
Voxware has seemingly had the busiest first quarter of the three major vendors in this market with at least three new contracts: convenience chain 7-Eleven, via its third-party logistics provider Cardinal Logistics Management, for a 100,000-square-foot facility; Swiss retailer Migros Zurich, for a 130,000-square-foot facility; and Haggar Clothing Co. for a 660,000-square-foot facility in Texas. And Broomfield, Colo.-based Corporate Express improved warehouse productivity by 40% with a Voxware system, and hopes to have the technology installed in half of its 54 North American distribution centers by the end of the year (see the April issue of Frontline Solutions, page 16).
Privately held Vocollect, Pittsburgh-a major competitor of Voxware-says that its sales increased in 2001 at a 33% rate, the fifth straight year of percentage increases of that magnitude or higher. It recently announced partnerships with integrators TAYLOR Systems Engineering Corp., Plymouth, Mich., and Quest Solutions, Eugene, Ore.
Vocollect says its Talkman system installation at Schenectady, N.Y.-based Price Chopper Supermarkets, done with Quest, resulted in a 10% to 15% increase in productivity, an 83% reduction in mis-picks in perishables, and a payback on Price Chopper's investment in less than 12 months. Other Vocollect customers include Kwik Trip, Giant Eagle, Wegmans and K-VA-T Food Stores.
The third prominent vendor in this market, SyVox Corp., Boulder, Colo., formed an alliance with warehouse management system vendor Ann Arbor Computer earlier this year. SyVox's customers include Nabisco, Nautica Enterprises, Atlas Cold Storage and others.
While most of these deployments are relatively small, they indicate that retailers are testing the waters more aggressively where speech technology is concerned. Somerfield, for instance, has 13 more distribution centers with another 825 users, which could benefit if the initial Voxware system works out. Migros Zurich is the largest employer in Switzerland and operates eight large distribution centers-all providing potential new licensees for Voxware once the Zurich facility is on line.
