Large Auto Parts Distributor Finds a Smarter Way to Purchase and Manage Mobile Technology
Case Study
Mobile as a Service offers controllable monthly cost model for mobile technology
The Challenge
A leading auto parts distributor knew that replacing outdated mobile technology in its warehouses would improve productivity and accuracy, but the capital outlay for voice-controlled wearable technology was daunting. In addition, the rapid obsolescence of mobile technology required constant upgrades and ongoing capital investment, often before the existing devices were fully depreciated. As a result, capital appropriation and technology refresh cycles generated ongoing internal debate. In addition, mobile has been deployed across the organization sporadically, causing significant support costs even as picking errors in the warehouse continued unabated.
The Ask
The company asked Stratix to:
- Standardize the company’s approach to mobile, creating a simplified and unified way to digest new technology as it became available
- Find an affordable way to introduce wearable technology into the warehouses in hopes of improving picking accuracy
- Reduce mobile’s total cost of ownership (TCO) potentially without capital spend
- Recoup mobile investment as devices are retired
The Solution
Mobile Device as a Service (DaaS) from Stratix allowed the company to leverage a single, standardized, and centralized support structure for its network infrastructure, applications and mobile technology.
Through Mobile DaaS, Stratix allowed the company to:
- Adopt a monthly, per-device fee structure for mobile devices and managed services, which capped device acquisition and support costs, and eliminated the need for capital spending
- Turn over ownership of mobile to Stratix as a trusted a partner, which “future-proofed” the entire mobile infrastructure by guaranteeing technology refresh cycles
- Delegate strategic and tactical responsibility for mobile to Stratix which freed a lean corporate IT staff to focus on business-critical technology initiatives
The Result
With Mobile DaaS, this leading auto parts distributor could scale mobile on demand, while saving 10% over its previous capital expense approach. In addition, the company:
- Expects to achieve a 2% savings by using wearable technology to facilitate pick, pack and ship processes
- Generates cash back from retired devices to fund future mobile purchases
- Consolidated support with a single partner to improve quality and lower cost
- Gained visibility into mobile’s operating status via itrac360, an online portal that shows each mobile asset’s performance in real-time
