A new high-tech, high-speed digital solution being launched by Verizon and Deloitte is promising to transform retail operations and re-stocking inefficiencies via a new 5G-powered platform that accelerates sales and improves the customer experience.
In a joint statement announcing the debut of their mobile edge computing (MEC) retail industry digital platform, the two companies said the ability to bring real-time monitoring, analytics and insights into stores, distribution centers and warehouses would not only enhance operations and improve inventory productivity, but would deliver a better, more personalized experience for consumers.
“The opportunity for 5G and MEC to enable frictionless retail experiences and improve asset productivity should have a seismic impact on the retail industry,” said Deloitte’s Anthony Stephan, who leads U.S. consumer industry consulting.
The new platform uses a combination of new, data-rich, advanced technologies such as video camera and sensor-based analytics, artificial intelligence (AI) and augmented reality (AR) to give retailers unprecedented real-time control of their merchandise and selling experience.
“We are entering a new era of technology-led disruption at the exact same moment every retailer is looking to accelerate digital transformation, increase productivity and improve customer experiences,” said Tami Erwin, CEO of Verizon Business.
It’s All About The Customer
As much as this new digital platform is being sold to retailers, Stephan said its objective is to reimagine everything from the employee experience and supply chain to end-customer use cases.
As an example, a routine out-of-stock inventory situation would be automated to send in-store associates a replenishment notification to refill shelves, while simultaneously alerting the stockroom and distribution center of the inventory demand.
Other challenges that the platform addresses include plan-o-gram (or display set-up) compliance, and frictionless checkout without cashiers. Taken together, the operational efficiencies, inventory management improvements and employee productivity gains enabled by the use of real-time data analytics are all aimed at improving customer engagement, and in turn business profitability.
“Enablement of these technologies can offer retailers sustainable business performance and profitability acceleration across key levers, such as revenue, cost of goods sold, and operating margin,” the statement said, while also giving associates more time to engage with customers.
Omni 5G Rollout
To be sure, this new retail-focused initiative is only a small slice of a much broader omnidirectional rollout of the next generation of high-speed mobile data connectivity. As such, many industries and most consumers in the U.S. have yet to use a true 5G experience or even contemplate the ways that having Wi-Fi-like data access can be used to innovate basic business operations.
That said, a recent report in trade publication 5G Radar listed a total of 22 different use case innovations where the newest high-speed connectivity rollout is reshaping business, including smart cities, autonomous vehicles, drones, public transportation, agriculture and healthcare.
To that point, Accenture’s global survey of over 2,600 businesses released last year showed that 79 percent of respondents said they thought 5G would have a significant impact on their organization, and 57 percent went so far as to say it would be “revolutionary.” This compares to just 24 percent who reacted that way when 4G was being rolled out.
“If there’s one thing most decision makers can agree on, it’s that 5G won’t just change the game — it will create a more seismic impact than any wireless technology evolution to come before it,” the Accenture study concluded.
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