Walgreens Saves Millions of Dollars by Optimizing Store Operations with Zebra’s Workcloud Software

Rhea-AI Summary

Zebra Technologies (NASDAQ: ZBRA) announced that Walgreens Boots Alliance has optimized its operations using Zebra's Workcloud Actionable Intelligence software, saving millions of dollars. By implementing Zebra's Modern Store framework, Walgreens improved asset protection, employee technology, and operational visibility across 8,000 locations in the U.S. The integration of Zebra's software and hardware solutions has enhanced associate engagement, inventory accuracy, and the customer experience. Walgreens also uses Zebra's Workcloud Task Management and Demand Intelligence software to reduce retail loss and optimize inventory. The deployment has benefited 20,000 associates, tackling issues like phantom inventory and high shrink rates, resulting in a 27% reduction in waste.

Positive

• Walgreens saved millions of dollars by using Zebra's Workcloud software.
• Enhanced operational compliance and asset protection across 8,000 stores.
• Improved inventory accuracy and customer experience.
• Reduction in waste by 27% due to better fraud detection and managing shrink.
• 20,000 associates benefited from improved business processes.

Negative

• None.

Insights

Financial Analyst

Walgreens' implementation of Zebra’s Workcloud Actionable Intelligence software represents a strategic investment aimed at enhancing operational efficiency and reducing costs. From a financial perspective, the reported millions of dollars savings over five years is significant. This cost-saving initiative reflects positively on Walgreens' bottom line and showcases their commitment to adopting innovative technologies to streamline operations.

For retail investors, this move signals potentially enhanced profitability and improved operational margins. By reducing shrink rates by 27% and addressing issues like phantom inventory and fraud detection, Walgreens is likely to see improved inventory accuracy and reduced wastage. These improvements can have a direct positive impact on earnings and shareholder value over the long term.

However, it’s essential to consider that the initial costs of deploying such advanced technology solutions might be high and the full financial benefits will only unfold over time. Investors should monitor future earnings reports for actual cost savings and improvements in operating efficiency to gauge the long-term financial impact of this deployment.

Market Research Analyst

The partnership between Walgreens and Zebra Technologies highlights the increasing trend in the retail industry towards digital transformation and the use of actionable intelligence to optimize store operations. This strategic move is in line with industry norms of leveraging technology for better asset protection, inventory management and enhancing the overall customer experience.

For Walgreens, the adoption of Zebra's Modern Store framework and Workcloud suite positions them as a forward-thinking retailer, focused on modernizing their infrastructure. This can enhance their competitiveness in the retail pharmacy space, potentially attracting more customers due to improved service and operational efficiency.

For investors, it’s important to recognize that this technological adoption could serve as a differentiator for Walgreens. As the retail landscape becomes increasingly competitive, innovations like these could drive customer loyalty and boost sales. Nevertheless, the long-term benefits will hinge on effective implementation and continuous optimization of these technologies.

America’s second-largest pharmacy retailer leverages Zebra software and hardware solutions to modernize operations and elevate the customer experience

LINCOLNSHIRE, Ill.--(BUSINESS WIRE)-- Zebra Technologies Corporation (NASDAQ: ZBRA), a leading digital solution provider enabling businesses to intelligently connect data, assets, and people, today announced that the Walgreens Boots Alliance has optimized its operations with Zebra Workcloud Actionable Intelligence software to save millions of dollars by enhancing operational compliance and the company’s ability to identify and combat shrink.

Walgreens, a Chicago-based international pharmacy retailer, selected Zebra’s Modern Store framework to improve asset protection, better equip employees with technology, and optimize operational visibility in their network of 8,000 locations across 50 states. As an essential retailer carrying critical healthcare products and prescription medications, Walgreens needed an intuitive analytics solution to uncover issues and resolve areas of loss in real time.

“Recognizing the advantages of today's digital technologies, we implemented Zebra’s leading-edge software and hardware solutions to streamline our operations and better support our employees and customers,” said Tim Bailey, Senior Manager, Asset Protection Solutions, Walgreens Boots Alliance. “The integration of Zebra's solutions has yielded positive outcomes, empowering our business with tools to enhance associate engagement, improve inventory accuracy, and elevate the customer experience.”

In addition to Workcloud Actionable Intelligence, Walgreens is using Workcloud Task Management and Workcloud Demand Intelligence software to reduce total retail loss, enhance task management, and optimize inventory. Moreover, Walgreens is leveraging Zebra’s modular software compatibility with Zebra’s hardware. Most of the workforce and task management features are integrated with Zebra TC52 mobile computers and wearables, working in concert with Zebra’s DS3608/MP7000 scanners and ZT610/ZT620 printers.

“Walgreens is enhancing its business processes with Zebra's comprehensive Workcloud Software suite and hardware solutions,” said Suresh Menon, Senior Vice President and General Manager, Software Solutions, Zebra Technologies. “We are committed to helping retailers like Walgreens work in new ways with technology to modernize operations, increase accountability and visibility, and equip associates with actionable intelligence for better business outcomes and savings.”

The deployment of Zebra’s Workcloud Actionable Intelligence resulted in a net gain of millions of dollars over five years and has benefited 20,000 associates companywide, including asset protection, store operations, pharmacy managers and inventory specialists. Workcloud Actionable Intelligence further enabled Walgreens to tackle phantom inventory, shelf gaps, fraud detection, and high shrink rates from markdown non-compliance, reducing waste by 27%.

KEY TAKEAWAYS

• Zebra’s Workcloud software solution helps uncover and resolve areas of shrink, improving store execution and visibility across Walgreens’ network of 8,000 stores nationwide.
• Walgreens selected Zebra’s Workcloud Actionable Intelligence solution to improve accountability and visibility.
• With Zebra’s Modern Store framework implementation, Walgreens has saved millions of dollars and is well-positioned to achieve its modernization goals.
• To read the full case study, click here and our blog post here.

ABOUT ZEBRA TECHNOLOGIES

Zebra (NASDAQ: ZBRA) helps organizations monitor, anticipate, and accelerate workflows by empowering their frontline and ensuring that everyone and everything is visible, connected and fully optimized. Our award-winning portfolio spans software to innovations in robotics, machine vision, automation, and digital decisioning, all backed by a +50-year legacy in scanning, track-and-trace and mobile computing solutions. With an ecosystem of 10,000 partners across more than 100 countries, Zebra’s customers include over 80% of the Fortune 500. Newsweek recently recognized Zebra as one of America’s Most Loved Workplaces and Greatest Workplaces for Diversity, and we are on Fast Company’s list of the Best Workplaces for Innovators. Learn more at www.zebra.com or sign up for news alerts. Follow Zebra’s Your Edge blog, LinkedIn, Twitter, and Facebook, and check out our Story Hub: Zebra Perspectives.

ZEBRA and the stylized Zebra head are trademarks of Zebra Technologies Corp., registered in many jurisdictions worldwide. All other trademarks are the property of their respective owners. ©2024 Zebra Technologies Corp. and/or its affiliates.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240624133762/en/

Media Contact:

Denis Klimentov

Zebra Technologies

+1-905-812-6391

denis.klimentov@zebra.com

Industry Analyst Contact:

Kasia Fahmy

Zebra Technologies

+1-224-306-8654

k.fahmy@zebra.com

Source: Zebra Technologies Corporation

FAQ

How much money did Walgreens save using Zebra's Workcloud software?

Walgreens saved millions of dollars by optimizing store operations with Zebra's Workcloud software.

What improvements did Walgreens see with Zebra's Modern Store framework?

Walgreens saw enhanced asset protection, improved employee technology, and better operational visibility.

How many stores benefited from Zebra's technology at Walgreens?

Zebra's technology was implemented across 8,000 Walgreens stores.

What software does Walgreens use to reduce retail loss?

Walgreens uses Zebra's Workcloud Actionable Intelligence, Task Management, and Demand Intelligence software to reduce retail loss.

How has Zebra's software impacted Walgreens' waste reduction?

Zebra's software enabled Walgreens to reduce waste by 27% by tackling phantom inventory and shrink rates.

How many Walgreens associates benefited from the deployment of Zebra's solutions?

The deployment of Zebra's solutions benefited 20,000 Walgreens associates.