From smartphones to smart homes, the consumer electronics sector has experienced a surge of remarkable growth in the recent decade, placing some of the most futuristic devices in the hands of everyday people. With brands at the forefront constantly releasing dazzling new product lines, the consumer electronics industry is at a staggering $1.085T global market value, seeing a rise in consumer spending from $422B in 2020 and $491B in 2021, to a whopping $505B in 2022 – and it’s only climbing higher in our increasingly digital world.
However, With Tremendous Growth Come Growing Pains
With all the innovation we’re witnessing in the products brought to market, the industry itself experiences little change in comparison. Age-old logistical challenges in the sector have remained largely unsolved, and it makes one wonder: have we accepted that they’ll always be there, or will someone step in and solve them?
Let’s dive into the four most prominent logistical challenges the consumer electronics industry is facing and why they act as limiting factors for further growth.
Deliveries
Companies like Amazon have set the bar high. The eCommerce explosion has led to high expectations by customers, creating a significant competitive advantage for companies with strong logistical infrastructure, as well as a barrier to companies who don’t. In the wake of Amazon Prime, same-day deliveries have not only become the desire; they’ve become the standard. Accelerated by the pandemic, the volume of online orders has rapidly increased and in the name of convenience, it continues rising across all product categories. Coupled with the rise in demand for electronics and consumerism as a whole, this makes consumer electronics fulfillment a growing challenge and the need for logistical excellence has never been greater.
Headcount Cost
One of the oldest costs companies are faced with, especially in consumer electronics, is headcount cost. In addition to staffing employees in product sales and technical support, companies in the sector must employ staff across an entire supply chain to provide order fulfillment including warehouse, packaging and delivery associates. With many tasks done manually, current supply chain procedures not only create space for a higher margin of error, but also cost companies tens of thousands of dollars in order to maintain operations, making it increasingly costly to satisfy customers.
Shrinkage & Security
A recognized issue that has reached nearly $100B across the entire retail industry according to the National Retail Federation, shrinkage creates logistical setbacks for companies in all spaces – especially those who offer high-mark products. As companies in the consumer electronics sector employ large amounts of staff who handle expensive merchandise, item misplacement and theft occur regularly and create upsetting inventory gaps that must be managed and accounted for consistently. Moreover, the loss of unsold inventory is further propelled by additional factors including shoplifting, vendor fraud, and even point-of-sale errors, making consumer electronics fulfillment an expensive business.
ESG
Three words becoming increasingly popular in the modern era of consumerism are environmental, social and governance. It’s now imperative in the eyes of customers that their favorite brands uphold measurable social goals and make progress towards achieving them. As Millennials and Gen-Z make their imprint on the global economy, companies are under increased scrutiny for the impact they have on the world, and it’s only a matter of time until sustainability KPIs find their way into consumer electronics, as they have in many other sectors. This means many companies in the space will begin moving towards reducing and even eliminating their carbon footprint in order to preserve brand loyalty – a difficult logistical feature to achieve with rising online orders that require deliveries.
All Can Be Addressed With A Single Word: Automation
With the rise of online orders in the sector, the adoption of retail automation solutions that enable rapid delivery through enhanced operational efficiency is vital for companies looking to stay ahead of the curve. Manual must become autonomous; systemic must become practical, and local must become hyperlocal. Being close to customers is key for keeping operational costs low and providing fast deliveries. So, how can companies in consumer electronics implement automation?
Meet 1MRobotics
1MRobotics, an innovative startup that’s empowering companies with cutting-edge capabilities based on the latest advancements in robotics, artificial intelligence and machine learning, has made hyperlocal nano fulfillment automation accessible to consumer electronics companies. Creating a plug & play fully autonomous solution, 1MRobotics allows for companies to gain a level of proximity they’ve never before experienced, enabling them to apply state-of-the-art logistical methods and successfully achieve consumer electronics fulfillment. Let’s take a look at how it works.
End-to-End Automation
That’s right. Without requiring a single employee, and subsequently reducing employment costs, 1MRobotics brings the headcount down to zero while giving companies the ability to receive, prepare, package and deliver orders immediately and with astonishing accuracy.
Fast Delivery
The closer you are to your customers, the faster you can deliver, making proximity the ultimate strategic advantage. With a ready-made solution the size of a small, compact shipping container that operates as its own complete product, 1MRobotics’ system is a highly versatile mechanism that can be deployed as a standalone facility or integrated into retail spaces, providing endless growth opportunities due to higher order intake.
Fully Secure
With an advanced security system that uses an all-around safety-first approach, 1MRobotics’ solution ensures seamless operations while tracking all inventory and maintaining organization. With this methodology, the sorting of products as well as the unbox and rebox processes are handled completely automatically and are highly protected by sophisticated security measures.
ESG-Friendly
A hyperlocal solution with minimal environmental impact, the system allows for quick, last-mile bike deliveries for fulfillment in parallel to offering click & collect services, making it possible for companies to reduce their carbon footprint while delivering increased orders. Furthermore, as is being done more commonly, the installation of solar panels on the warehouse’s roof can minimize electricity consumption while efficiently producing self-generated energy.
A New Era For Consumer Electronics
With low total cost of ownership, 1MRobotics gives companies in the consumer electronics sector the ability to utilize the latest tech-driven methods to achieve logistical excellence while boosting customer loyalty and retention. With 1MRobotics, companies can provide their customers with satisfactory, innovative experiences and take another step towards a brighter future.
