AIDC Channel Organizations Expands Support for Emerging Applications

12/22/2004 - New research by Venture Development Corporation, The 2004 Global AIDC Industry Business Planning Service, reports that AIDC system resellers continue to expand support coverage for emerging application solutions.

While most resellers support traditional application markets such as warehouse management, inventory control, point-of-sale (POS), and shipping/receiving, the majority of market growth is found in emerging applications such as self-checkout, mobile POS, route accounting, and more. The following exhibit illustrates the top six emerging applications generating support among AIDC resellers.

Indications show that adoption may in fact intensify over the next few years as:

  • Mobile Printing Opens New Doors - Much of the expansion into mobile applications such as POS, DSD, and shelf labeling are being driven by innovations in the field of mobile printing. Enabling wireless technologies such as Bluetooth and 802.11 a/b/g and their integration into small, portable printers can greatly increase system efficiency over traditional stationary printer applications.
  • Complexity of Self-checkout Systems - Self-checkout systems, while largely being installed by the suppliers of the technology can require significant amounts of post-sale service and support. Resellers educated on the proper maintenance and support services can generate a constant revenue stream from service contracts.
  • Recall and Tracking Efficiencies - Reverse logistics is becoming an increasingly important task as organizations associated with high-recall industries such as automotive, food & beverage, and pharmaceutical install AIDC systems to comply with growing industry/government mandates and to streamline the recall process.

According to VDC analyst Taylor Smith, "Traditional AIDC markets such as WMS, supply chain management, POS, and shipping/receiving are becoming increasingly standard solutions often found in off-the-shelf products. Future opportunities for channel organizations exist in emerging markets such as route account, mobile POS, and on-demand/distributed shelf labeling. Acquiring the knowledge and expertise to install these application-specific systems will position solution providers at a competitive advantage over traditional resellers not able to support such solutions."

About VDC
Founded in 1971, VDC is a technology market research and consulting firm that specializes in industrial and commercial electronics, computing, communications, software and power systems markets.

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