Leveraging Technology Enables Operational Excellence

Q: How has Zebra Technologies performed in the Mexican market and how has the company positioned itself in the country?
A: Mexico is a fundamental market for Zebra Technologies. It is one of our revenue leaders in Latin America and one of the Top 10 contributors to the company's growth. Our strategy in the country focuses on providing visibility, streamlining operations, and empowering frontline workers. We adapt these strategies to take advantage of the particularities of the Mexican market, focusing on offering comprehensive solutions that go beyond the quality of our products.

Given the country’s manufacturing and maquiladora history, we have established significant operations for the production of finished goods through third parties, which allows us to adapt quickly and effectively to local needs. Our services are not limited to product delivery, but also include software implementation, services, device management, and tool monitoring.

Q: Which sectors in Mexico are adopting Zebra Technologies’ solutions and what factors have driven this adoption? 
A: The sectors adopting our solutions are mainly retail, transportation, logistics, manufacture and healthcare. These sectors are driven by the need to improve supply chain visibility, optimize operations, and ensure efficient management of assets and resources. Factors such as the complexity of supply chains, the lack of visibility into transactions and operations, and the need to make informed decisions, have been crucial in the adoption of Zebra Technologies’ solutions.

Q: What are the main challenges your customers are facing and how do your solutions address these challenges? 
A: The main challenges our customers face are constant operational changes and unpredictable market conditions. The speed at which technology advances and external situations change can significantly alter business strategies. We address these challenges by providing dynamic solutions that enable the necessary adaptability. Our tools not only ensure the robustness and durability expected in demanding enterprise environments, but are also designed to integrate an advanced technology ecosystem that includes operating systems such as Android, allowing us to develop agile solutions that respond quickly to our customers' changing needs.

Q: What differentiates Zebra Technologies from other players in the industry? 
A: We are distinguished by our deep commitment to developing end-to-end enterprise solutions. Unlike consumer devices, our products are designed not only to withstand harsh conditions, but also to integrate advanced technologies that optimize business operations. We collaborate closely with technology leaders such as Google to build innovative operating systems that offer flexibility and adaptability to our customers. This ability to develop and customize solutions within a robust enterprise ecosystem is critical to meeting today's evolving market challenges.

Q: How does the radio frequency identification (RFID) technology developed by Zebra Technologies make a difference in clients’ operations?
A: RFID is a key technology in our portfolio of automatic identification and data capture solutions. Unlike bar codes, which require direct line-of-sight, RFID uses electromagnetic waves to communicate between tags and readers. This enables the simultaneous reading of multiple tags in a given action space, without the need for direct visual contact.

Our RFID solutions facilitate operational management by providing real-time visibility of assets and products. Companies such as Liverpool and Walmart use RFID to manage everything from merchandise reception to the optimization of display space and inventory security, not only ensuring product availability at the point of sale, but also facilitating the verification of the integrity of components in manufacturing and assembly. We also implement RFID in sports infrastructure such as stadiums, offering advanced solutions for real-time event management. These solutions have been used in several stadiums during NFL games and in the Azteca Stadium in Mexico City during soccer games.

Q: How is Zebra Technologies integrating AI into its solutions to optimize its operations? 
A: AI is fundamental for us. The Zebra GPT chatbot (ZGPT), for example, uses AI to provide fast and accurate responses on company-specific aspects, such as tag reading frequency at sporting events like NFL games. ZGPT not only improves information accessibility, but also optimizes operational efficiency for our customers. In parallel, our Zebra Retail Solutions division developed prescriptive solutions that employ AI to analyze sales trends and consumption patterns, providing predictive recommendations that not only optimize efficiency, but also facilitate strategic decisions in real time.

We are collaborating with Quantum and Google to integrate language models into all our mobile devices. This will enable front-line operators to access immediate support tailored specifically to their operational and business needs. We are also developing sizing applications using ML techniques that enable us to calculate the exact dimensions of packages and bulky objects, allowing us to optimize logistics and improve transportation efficiency.

Q: What are the company's specific plans to strengthen its presence in Mexico and Latin America by the end of 2024 and early 2025?
A: We are committed to strengthening our presence in Mexico and Latin America through a strategic focus on three key areas during 2024 and early 2025. First, Zebra Technologies will continue to expand its portfolio of printers, barcode scanners, and mobile business computers. These mature technologies are targeting high single-digit growth between 7% and 9%, capitalizing on stable demand in markets such as Mexico and Brazil.

Second, Zebra will focus on “adjacencies,” which include recent products such as rugged tablets for enterprise use and genuine supplies for its printers. These adjacent businesses are set to grow at double-digit rates, between 10% and 99%, reflecting the success achieved in Mexico, where we positioned ourselves as a leader in enterprise tablets in just four years. Finally, Zebra Technologies will drive advanced technologies such as ML and machine vision. We will generate solutions such as industrial readers with machine vision capabilities that will be able to detect quality deviations in different industries. With a focus on triple-digit growth, Zebra is poised to significantly expand its presence and impact in the region, providing innovative solutions that address the emerging needs of the Latin American market.

Q: What role does investment in innovation play in Zebra Technologies' development strategy?
A: As a leader in our industry, we annually allocate 10% of our sales to R&D, which equates to about US$500 million. This commitment enables us to continue to drive leading-edge solutions that not only meet current market needs, but also anticipate and address future challenges with cutting-edge technology. Our dedication to innovation ensures that we continue to deliver advanced tools that transform operations and improve efficiency across a wide range of industries.
 

Zebra helps organizations monitor, anticipate, and accelerate their workflows by empowering their front line and ensuring that everything and everyone are visible, connected, and fully optimized. Their award-winning portfolio ranges from software to innovations in robotics, machine vision, automation, and digital decision-making, all backed by a legacy of over 50 years in scanning, tracking, and location solutions and mobile computing. With an ecosystem of 10,000 partners in more than 100 countries, Zebra counts among its clients more than 80% of Fortune 500 companies. Newsweek recently recognized Zebra as one of the most beloved workplaces in the United States, as well as one of the best companies for diversity, and we are on Fast Company’s list of the best workplaces for innovators.