Remote locations and aging hardware are creating impediments for Grocery Chains in implementing new technologies that require improved bandwidth. According to information from the best US news websites, inventory tracking systems that use the latest technologies such as AI could not be installed at several stores because of poor network connectivity. As a result, the technologies that moved from the pilot stage to matured systems could not be utilized to improve the shopping experience of customers.
Reduced Bandwidth limits, updating product prices on displays
CIO of Ahold Delhaize USA, Rom Kosla, said some of its franchises could not run their HR systems at their peak because of bandwidth limits. Mr. Kosla also said electronic shelf displays could not allow automatic updates of prices at retailers because of bandwidth limits.
The latest technologies require more bandwidth. If your store does not have improved network infrastructure, you could not do cool things using the latest tech assets. Vice President (enterprise, retail, and global business) at AT&T Business, Michael Colaneri said the grocery industry lies low on investments in bandwidth.
VP of Forrester Research Inc, Brendan Witcher, said the stores need to implement digital solutions to improve operational efficiency, save costs, and reduce manual labor. The grocery stores are also utilizing pickup for online orders or automated checkouts for improved customer experience. Such initiatives need improved bandwidth.
Ahold has been working to improve the bandwidth in its physical stores since 2021 to implement innovative systems for employees like SAP SuccessFactors. As of today, the company has upgraded bandwidth at 2,093 locations in the US out of 2,100. These 2,03 locations are experiencing speeds of up to 100 Mbps to meet the strategic goals. Kosla said further investments are required to improve bandwidth and tap cutting-edge technologies.
The stores at remote locations could experience limited bandwidth. In other cases, stores with a large footprint struggle with insufficient bandwidth to run cutting-edge technologies. Previously, grocery chains identified new locations because of the distance to various shopping options, demographics, and competition. In those days, they did not anticipate the bandwidth requirements for the latest technologies.
Kosla said the grocery chain worked with local telecom carriers to install new technologies by digging the trenches. In some cases, it struggled to get local property owners’ permission. In such situations, new wires are plugged into the existing shopping mall’s wiring.
The age of the stores and their wiring also limits the bandwidth. However, more investments are required to upgrade hardware and its infrastructure. Lower margins are unattractive for such huge investments in upgrading infrastructure.
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