VDC Reports Windows Gap Spuring Tech Competition in Direct Store Delivery (DSD) Space

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The Windows Gap between legacy systems and the release of Windows 10 Mobile is providing DSD operators not only with a choice between popular operating systems like Android, iOS, and Windows 10, but also with an unprecedented opportunity to update hardware and software technologies.

Likelihood of Transitioning to Real Time/Wireless Processing Within the Next Two Years

Stiff competition between hardware and software vendors will provide the DSD ecosystem with advances in wireless connectivity, user interfaces, and critical real time capabilities.

In a new report, VDC Research finds that the migration from legacy Windows solutions, along with significant advances in mobile and wireless technologies, is providing an opportunity for DSD operators to address a number of existing limitations for current solutions- including the migration towards real time data processing capabilities. (click here for more info). Many DSD operators will look to leverage the Windows Gap for a major technological upgrade with 70% of survey respondents indicated they are likely to migrate from offline processing to a real-time processing format within the next 2 years. The vast majority of the DSD market is only now catching up to the significant advances seen in mobile and wireless technology. Through advances in mobile technology, DSD suppliers can now communicate with their drivers and with retail partners regarding inventory, payment, and customer support services in real-time. Additionally, WAN (cellular networks) connections or wireless DEX (Digital Exchange) support can significantly optimize the DSD structure.

While today’s DSD mobility solutions remain heavily reliant on legacy Windows-based handhelds, the delayed release of Windows 10 Mobile is providing DSD operators with an opportunity to explore alternative mobile solutions and OS platforms when update their systems. As such, this has allowed for operating systems like Android and iOS an entrance into the DSD market space. As a whole, the DSD community can take advantage of increasing competition between ruggedized and consumer-grade mobile vendors to leverage new technological advances in the hardware, software, and application facets of their DSD processes. Moving forward, operators will have choices between Windows 10, iOS, and Android powered devices which offer additional advances in Bluetooth, image capture, and GPS technologies. Furthermore, advances in many DSD applications- especially for memory hungry applications such as pricing engines- will require more powerful mobile solutions. New hardware upgrades will provide the additional processing power and speed required for these memory intensive software suites.

The possible effects of OS migration, addition of BYOD or consumer-grade devices, and the advancement in wireless connectivity (Cellular WAN, Bluetooth, etc.) could be extremely fruitful. By incorporating even some of these updates, DSD operators can significantly increase the efficiency of their solutions packages, impacting not only their bottom-line numbers, but those for customers as well. More specifically, VDC expects that the adoption of new wireless inventory updating systems products delivered through DSD channels should see over a 99% in-stock average, compared with 92% through traditional delivery processes, and up to a five times faster item replenishment rate. “The influence of the consumer grade and enterprise technologies continue to cross pollinate each other’s spaces, providing companies with an increasing amount of viable options to supply their mobile workforce,” says Cameron Roche, Analyst at VDC. “The DSD mobile workforce is undergoing a time of great metamorphosis, but will ultimately yield a much more efficient and connected process throughout every stage of DSD chains”.

About VDC Research
Founded in 1971, VDC Research provides in-depth insights to technology vendors, end users, and investors across the globe. As a market research and consulting firm, VDC’s coverage of AutoID, enterprise mobility, industrial automation, and IoT and embedded technologies is among the most advanced in the industry, helping our clients make critical decisions with confidence. Offering syndicated reports and custom consultations, our methodologies consistently provide accurate forecasts and unmatched thought leadership for deeply technical markets. Located in Natick, Massachusetts, VDC prides itself on its close personal relationships with clients, delivering an attention to detail and a unique perspective that is second to none.

For more information, contact us at info(at)vdcresearch(dot)com.

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Cameron Roche
VDC Research Group, Inc
+1 (508) 653-9000 Ext: 134
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