2024 State of the Industry Brief on Warehouse Picking Supports a Strong Future Demand for Augmented Workforce

Rhea-AI Summary

Vuzix Corporation partners with Incisiv to release a 2024 industry brief on revolutionizing fulfillment operations with workforce augmentation. The report highlights the growing importance of AR technology in warehouse operations and the integration of human labor with innovative technologies for improved productivity.

Insights

Market Research Analyst

The integration of wearable augmented reality (AR) technology in warehouse operations represents a significant shift in the logistics and supply chain industry. It indicates a move towards a more interactive and data-driven environment, which could lead to enhanced operational efficiency and productivity. The adoption of AR wearables can reduce errors in picking operations, improve training and potentially lead to cost savings through optimized workflows.

From a market perspective, the decline of paper-based systems and the rise of AR solutions suggest a growing market for companies like Vuzix. The company's focus on integrating AR to complement human workers aligns with the broader industry trend of technological augmentation rather than replacement. This could position Vuzix favorably within the sector, especially if their solutions demonstrate a clear return on investment for businesses transitioning to these new systems.

Supply Chain Management Expert

The survey's findings underscore the importance of human capital in the logistics sector, despite the rise of automation and digital transformation. The commitment to human labor, alongside the deployment of smart technologies, reflects a hybrid approach to warehouse management. This approach may help companies navigate labor constraints by enhancing the productivity of existing workers and attracting new talent interested in working with advanced technologies.

As warehouses adopt AR and AI technologies, the industry is likely to see a shift in workforce skills requirements. Training programs will need to be updated to ensure that workers are equipped to operate alongside these sophisticated systems. The long-term implications for the labor market in logistics could include a shift towards more tech-savvy roles and a potential increase in job satisfaction due to reduced mundane tasks.

Technology Adoption Strategist

The reported decline in traditional paper-based picking methods and the embrace of digital and AR solutions point to a larger trend of digital transformation within warehousing. Successful implementation of AR solutions hinges on seamless integration with existing enterprise resource planning (ERP) systems and the ability to scale with business needs. Vuzix's partnership with Moviynt, a SAP Certified ERP SaaS logistics solution provider, suggests a strategic move to offer end-to-end solutions that are compatible with the digital infrastructure of potential clients.

Businesses considering the adoption of AR technologies must evaluate the total cost of ownership, including hardware, software and training expenses. They should also consider the potential disruption to existing workflows during the transition period. Companies like Vuzix will need to provide robust support and clear evidence of long-term benefits to encourage widespread adoption.

• 69% of those surveyed see wearable augmented reality (AR) solutions supporting artificial intelligence (AI) and workflow optimization as being central to future warehouse operations
• The potential of AR technology to support existing human capital investments is widely confirmed

ROCHESTER, N.Y., March 7, 2024 /PRNewswire/ -- Vuzix® Corporation (NASDAQ: VUZI), ("Vuzix" or, the "Company"), a leading supplier of smart glasses and Augmented Reality (AR) technology and products, today announced the release of a 2024 industry brief, "Revolutionizing Fulfillment Operations with Workforce Augmentation," created in partnership with Incisiv, one of the leading insights firms for digital transformation leaders.

This report compiles responses from executives across retail, manufacturing, third-party logistics (3PL), and distribution sectors within the U.S., offering industry perspective into the evolving logistics landscape. It examines the impact of digital transformation in warehouse operations, the challenges in digital adoption, the role of augmented reality within the complex ecosystem of current and evolving warehousing technologies, and the technological front-runners in the race to achieve improved productivity and optimal efficiency.

"We're at a pivotal moment in the evolution of warehouse operations, as revealed by the data," states Paul Travers, President and Chief Executive Officer of Vuzix. "As the foundation of customer satisfaction and competitive advantage in the current eCommerce landscape, logistics fulfillment centers demand rapid adaptation from businesses. They must meet escalating consumer expectations, overcome labor constraints, and leverage new technologies for smarter, more economical fulfillment strategies. Our ambition extends beyond deploying AR wearables, as we aim to integrate them in a way that amplifies the capabilities of our indispensable human workforce, marrying innovation with talent."

Warehouses Are Moving Beyond Mere Digitization into a Hybrid Future

The survey indicates that traditional paper-based picking is in rapid decline, with 77% of warehouses opting out of paper systems. This pivot to digital tools, especially in picking operations, is a clear indicator of technological advancement, and has set the stage for an era of more sophisticated processes. Even amidst technology prioritization, however, companies clearly continue to value the role of human workers in logistics.  94% of businesses report a commitment to the evolving role of human labor in areas like automated warehouses and last-mile delivery. In this context, there's a growing focus on technologies that enhance, rather than replace, human capabilities. Reflecting this sentiment, an astounding 69% of those surveyed agree that wearable AR solutions that broaden the capabilities of their workers with AI optimizations, improved accuracy, and data-rich inputs will be central to warehouse operations in the coming years.

Moviynt, Vuzix' wholly owned subsidiary and SAP Certified ERP SaaS logistics solution provider, will be showcasing AI and machine learning on Vuzix AR smart glasses in booth B7454 at Modex 2024, being held in the Georgia World Congress Center on March 11-14 in Atlanta, Georgia.

To learn more about the findings from the 2024 Revolutionizing Fulfillment Operations with Workforce Augmentation industry brief, including further analysis, please visit https://www.vuzix.com/pages/logistics-report-2024.

Report Methodology

Incisiv conducted a hybrid online + Computer Aided Telephonic Interview (CATI) survey of 128 executives from the Retail, Manufacturing, Third-party, Logistics (3PL), and Distribution industries. The study was conducted from October 16, 2023 - November 2, 2023.

About Vuzix Corporation

Vuzix is a leading designer, manufacturer and marketer of Smart Glasses and Augmented Reality (AR) technologies and products for the enterprise, medical, defense and consumer markets. The Company's products include head-mounted smart personal display and wearable computing devices that offer users a portable high-quality viewing experience, provide solutions for mobility, wearable displays and augmented reality, as well OEM waveguide optical components and display engines. Vuzix holds more than 350 patents and patents pending and numerous IP licenses in the fields of optics, head-mounted displays, and augmented reality Video Eyewear field. Moviynt, an SAP Certified ERP SaaS logistics solution provider, is a Vuzix wholly owned subsidiary. The Company has won Consumer Electronics Show (or CES) awards for innovation for the years 2005 to 2024 and several wireless technology innovation awards among others. Founded in 1997, Vuzix is a public company (NASDAQ: VUZI) with offices in: Rochester, NY; Munich, Germany; and Kyoto and Tokyo, Japan.  For more information, visit the Vuzix website, Twitter and Facebook pages.

Forward-Looking Statements Disclaimer

Certain statements contained in this news release are "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. Forward-looking statements contained in this release relate to Vuzix Smart Glasses and among other things the Company's leadership in the Smart Glasses and AR display industry. They are generally identified by words such as "believes," "may," "expects," "anticipates," "should" and similar expressions. Readers should not place undue reliance on such forward-looking statements, which are based upon the Company's beliefs and assumptions as of the date of this release. The Company's actual results could differ materially due to risk factors and other items described in more detail in the "Risk Factors" section of the Company's Annual Reports and MD&A filed with the United States Securities and Exchange Commission and applicable Canadian securities regulators (copies of which may be obtained at www.sedar.com or www.sec.gov). Subsequent events and developments may cause these forward-looking statements to change. The Company specifically disclaims any obligation or intention to update or revise these forward-looking statements as a result of changed events or circumstances that occur after the date of this release, except as required by applicable law.

Vuzix Media and Investor Relations Contact:

Ed McGregor, Director of Investor Relations,
Vuzix Corporation
ed_mcgregor@vuzix.com  
Tel: (585) 359-5985

Vuzix Corporation, 25 Hendrix Road, West Henrietta, NY 14586 USA,
Investor Information – IR@vuzix.com  www.vuzix.com

 

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SOURCE Vuzix Corporation

FAQ

What is the focus of the 2024 industry brief released by Vuzix Corporation?

The focus of the industry brief is on revolutionizing fulfillment operations with workforce augmentation through the use of AR technology.

What percentage of warehouses are moving away from traditional paper-based picking systems?

77% of warehouses are opting out of paper systems in favor of digital tools.

Which subsidiary of Vuzix will be showcasing AI and machine learning on Vuzix AR smart glasses at Modex 2024?

Moviynt, Vuzix' wholly owned subsidiary, will be showcasing AI and machine learning on Vuzix AR smart glasses at Modex 2024.

Where will Modex 2024 be held?

Modex 2024 will be held at the Georgia World Congress Center in Atlanta, Georgia.