A warehouse is not a warehouse and a supply chain is not a supply chain. They come in various sizes, varieties and with different requirements. They vary by industry and product requirements. It is hard to generalize. They need to be designed and fit for purpose, but there is no question that they are growing more complex. As complexity increases, manufacturers and distributors are seeking new ways to optimize customer service requirements with rising labor costs. One of these options is voice-directed warehousing. Voice-directed warehousing—where a warehouse worker is directed to perform tasks based on voice automation using a headset—is now over twenty years old. It enables a worker to process orders “hands-free and eyes-free” improving safety, quality and productivity. The processes are maturing and the technologies are increasing in capability. We have moved from early adopter, or early experimentation with the technology, to main market adoption where mainstream manufacturers and distributors are trying to rationalize the value proposition. This report is designed to answer the question, “What is the value of voice?” for the supply chain leader. The top reason that supply chain leaders use the technology is to improve the quality of loads to the customer. Here we tell this story. Today’s warehouses are more complex than ten years ago. Products and channels have proliferated, late-stage customization requirements have increased, the number of temperature environments has multiplied (e.g., cold chain, frozen etc.), and warehouse employee turnover is greater than ever before. Customer service requirements have increased and as a result, a greater percentage of products are picked by either the “each,” the “case,” or the “layer” in the modern warehouse. Today, there are higher demands for customer service in the organization. The cadence of customer requests and new requirements increases each year. Accurate transmission of these requests into action is problematic. The environment has grown more dynamic. Order cycle time is shrinking. There is continuous pressure to reduce costs and improve customer service. Demand volatility reigns. Product variants and master data issues abound. Voice-directed warehousing offers promise, but how do companies rationalize the capital costs? Additionally, compliance regulations loom. How will the warehouse adapt to product serialization in pharmaceutical companies? What will field to fork legislation mean for food and beverage manufacturers? How will product tracking and customization for REACH impact flows? There are more questions than answers. The only thing that is known is the warehouse will be rife with change.

1. Power of Voice Study:
Value of Voice-Directed Warehousing
Summary Charts
Dec 2012 - Feb 2013

2. Agenda
Supply Chain Insights LLC Copyright © 2013, p. 2

3. Study Overview
Supply Chain Insights LLC Copyright © 2013, p. 3

4. Respondents Are Primarily in the US, Manager+, and
Work in Supply Chain and Warehouse Operations
Supply Chain Insights LLC Copyright © 2013, p. 4

5. Nearly Half of Respondents Are Wholesalers/
Distributors and/or in Process Industry
Supply Chain Insights LLC Copyright © 2013, p. 5

6. 43% of Respondents Had Fiscal Revenue of
$1B+ in 2012
Supply Chain Insights LLC Copyright © 2013, p. 6

7. 60% of Respondents Use
Voice-Directed Warehousing
Supply Chain Insights LLC Copyright © 2013, p. 7

8. Majority of Voice Users and Non-Users in Study
Are Familiar with Voice
Supply Chain Insights LLC Copyright © 2013, p. 8

9. Agenda
Supply Chain Insights LLC Copyright © 2013, p. 9

10. Voice-Directed Warehousing
Definition Shown to Respondents
Voice-directed warehousing
means a computer-based voice system provides
audible instructions and recognizes the worker’s
spoken responses to manage item handling within
the distribution center.
Supply Chain Insights LLC Copyright © 2013, p. 10

11. Voice Users Are More Likely Than Non-Users to Also
Use Advanced Automation or RFID
Supply Chain Insights LLC Copyright © 2013, p. 11

12. Barcode Users Are More Likely Than Paper
Users to Also Use Voice
Supply Chain Insights LLC Copyright © 2013, p. 12

13. Voice Users Are More Satisfied with Warehouse
Operations Than Non-Users
Supply Chain Insights LLC Copyright © 2013, p. 13

14. Voice Users Are More Satisfied with Operations
Than Barcode or Paper Users*
Supply Chain Insights LLC Copyright © 2013, p. 14

15. Voice Users Have Used It for 5 Years
and in 1.7 Ways on Average
Supply Chain Insights LLC Copyright © 2013, p. 15

16. 42% of Voice Non-Users Are Likely to Use Voice
in the Future
Supply Chain Insights LLC Copyright © 2013, p. 16

17. Agenda
Supply Chain Insights LLC Copyright © 2013, p. 17

18. Increased Labor Efficiency Is Top Benefit of Voice
Among Both Users & Non-Users
Supply Chain Insights LLC Copyright © 2013, p. 18

19. Increased Labor Efficiency and Increased Order
Accuracy Are Top Benefits
Supply Chain Insights LLC Copyright © 2013, p. 19

20. Labor & Warehouse Benefits of Voice Are Seen
More by Warehouse Management
Supply Chain Insights LLC Copyright © 2013, p. 20

21. Voice Users Are More Likely Than Non-Users to
Volunteer Accuracy & Hands Free As Voice Benefits
Supply Chain Insights LLC Copyright © 2013, p. 21

22. Hands/Eyes Free and Voice-Direction Valued More
by Warehouse Management
Supply Chain Insights LLC Copyright © 2013, p. 22

23. Top Barriers to Voice Usage Among Non-Users
Are Cost, Competing Priorities and Integration
Supply Chain Insights LLC Copyright © 2013, p. 23

24. 84% of Voice Users Are Satisfied With It
Supply Chain Insights LLC Copyright © 2013, p. 24

25. For Voice Users, Top Reasons for Satisfaction
Are Better Accuracy and Productivity
Supply Chain Insights LLC Copyright © 2013, p. 25

26. For Voice Users, Top Reasons for Dissatisfaction
Are Issues with Quality and Technical Problems
Supply Chain Insights LLC Copyright © 2013, p. 26

27. Pick and Shipment Accuracy Matter Most for
Warehouse Excellence
Supply Chain Insights LLC Copyright © 2013, p. 27

28. Voice Users See More Value in Voice for Pick
Accuracy Than Non-Users
Supply Chain Insights LLC Copyright © 2013, p. 28

29. Greatest Value of Voice for Users: Labor Costs and
Pick, Shipment & Inventory Accuracy
Supply Chain Insights LLC Copyright © 2013, p. 29

30. Opportunity to Win Over Non-Users:
Product Traceability & Employee Safety
Supply Chain Insights LLC Copyright © 2013, p. 30

31. Voice Seen As Providing Most Improvement for High
Pick Rate Products
Supply Chain Insights LLC Copyright © 2013, p. 31

32. Agenda
Supply Chain Insights LLC Copyright © 2013, p. 32

33. Voice Users Are More Likely Than Non-Users to Have
Products with High Pick Rates or Unit Level Tracking
Supply Chain Insights LLC Copyright © 2013, p. 33

34. Voice Non-Users Are More Likely Than Users to
Manage Their Own Warehouses
Supply Chain Insights LLC Copyright © 2013, p. 34

35. SAP and Homegrown Solutions Are Most Common
in Warehouse for Both Voice Users & Non-Users
Supply Chain Insights LLC Copyright © 2013, p. 35

36. Voice Users More Likely Than Non-Users to
Experience Turnover Due to Work-Life Balance
Supply Chain Insights LLC Copyright © 2013, p. 36

37. For Voice Users & Non-Users, Cost of Labor Is
Primarily Less Than Half of Cost of Goods Sold
Supply Chain Insights LLC Copyright © 2013, p. 37

38. Service Is More Important Than Cost for Both
Voice Users & Non-Users
Supply Chain Insights LLC Copyright © 2013, p. 38

39. Voice Users Focus More Than Non-Users on Complete
Shipments for Exemplary Customer Service
Supply Chain Insights LLC Copyright © 2013, p. 39

40. Agenda
Supply Chain Insights LLC Copyright © 2013, p. 40

41. Demand Volatility, Delivery Demands & Visibility Are
Top Pain Points in Supply Chain
Supply Chain Insights LLC Copyright © 2013, p. 41

42. Voice Non-Users Feel More Pain with Supply
Chain Visibility & Global Markets
Supply Chain Insights LLC Copyright © 2013, p. 42

43. About 2/3 of Voice Users & Non-Users Have a
Supply Chain Organization
Supply Chain Insights LLC Copyright © 2013, p. 43

44. Voice Users and Non-Users Differ Somewhat on
Functions Reporting Through Supply Chain
Supply Chain Insights LLC Copyright © 2013, p. 44

45. “Right Product, Right Place, Right Time at Right
Cost” Is Top SC Excellence Definition
Supply Chain Insights LLC Copyright © 2013, p. 45

46. Agenda
Supply Chain Insights LLC Copyright © 2013, p. 46

47. Voice Users’ Volunteered Benefits of Voice
Supply Chain Insights LLC Copyright © 2013, p. 47

48. Voice Users’ Volunteered Benefits of Voice,
Continued
Supply Chain Insights LLC Copyright © 2013, p. 48

49. Voice Users’ Volunteered Benefits of Voice,
Continued
Supply Chain Insights LLC Copyright © 2013, p. 49

50. Voice Non-Users’ Volunteered Benefits of Voice
Supply Chain Insights LLC Copyright © 2013, p. 50

51. Voice Non-Users’ Volunteered Benefits of Voice,
Continued
Supply Chain Insights LLC Copyright © 2013, p. 51

52. Voice Users’ Volunteered Reasons Why Satisfied
with Voice
Supply Chain Insights LLC Copyright © 2013, p. 52

53. Voice Users’ Volunteered Reasons Why Satisfied
with Voice, Continued
Supply Chain Insights LLC Copyright © 2013, p. 53

54. Voice Users’ Volunteered Reasons Why
Dissatisfied with Voice
Supply Chain Insights LLC Copyright © 2013, p. 54

55. Accuracy & Training Are Among Volunteered
Benefits of Voice
Supply Chain Insights LLC Copyright © 2013, p. 55

56. Concerns About Voice Center Around
Technical, Noise & Integration Issues
Supply Chain Insights LLC Copyright © 2013, p. 56