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Dimensioning Solutions in the Spotlight as Warehouses Strive to Modernize, According to VDC Research
Leading Drivers Include Space Optimization, Dimensional-Based Pricing, and Quality Checking
NATICK, MA | February 21, 2017 - Dimensioning solutions (also known as cubing solutions) are data capture devices that utilize multiple technologies to enable data capture and cubing of objects and items. According to VDC’s latest report, dimensioning solutions have been used for products and parcels for efficient storage, package sizing, and quality checks, mainly in the transportation and logistics industries (click here for more info). Since 2015, major third-party logistics service providers (3PLs) such as FedEx, UPS, and DHL have been shifting away from traditional models in favor of newer dimensional weight-based pricing models. Competitive differentiation, optimizing storage, compliance with dimension-based (DIM) pricing, optimizing available assets, and order fulfillment were cited as the key drivers behind investments into dimensioning solutions.
“The niche dimensioning market today consists of only a small number of participants and presents plenty of opportunity to automatic identification and data capture (AIDC) new entrants to expand their footprint in the warehouse,” said Shahroze Husain, Research Associate, AutoID and Data Capture at VDC. Leading dimensioning solution vendors include CubiScan, Datalogic, Mettler Toledo, Postea, and SICK.
VDC’s research explains that dimensioning solutions are valuable to the operations of many wholesalers and distributors in order to optimize the limited space available to organizations today. “The e-commerce sales boom has made effective space management a top priority as companies grapple with cramped warehouses due to increased throughput,” said Husain. The shift towards e-commerce has also placed operational pressure on organizations to improve upon inbound and outbound processes via automated solutions.
General interest in dimensioning solutions is restricted by the challenges of integration and high costs associated with owning, maintaining, and managing dimensional systems. VDC’s study shows that the inability of current investments to accurately measure irregular shapes, slow dimensioning speeds, scanning errors due to color/shape, and hardware integration challenges are all additional hurdles that serve as barriers to adoption. Vendors are likely to continue to research and develop new solutions with the goal of improving speed, convenience, and efficiency, while also growing affordability.
Solution providers believe dimensioning will become an integral part of the organization’s operations as automation solutions and dimensioning can work very effectively together to increase storage density, accurately capture valuable data, and improve overall operational efficienci es. “Going forward, competitive differentiation, storage/asset optimization, compliance with dimension-based (DIM) pricing, and improving service will be the major driving forces in adoption of dimensioning solutions for organizations. For vendors to stand apart and succeed in this space, the ability to offer local support, uninterrupted integration with existing systems, and regular software updates for systems are vital to ensuring success,” said Husain.
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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 consultation, 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.