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Automated transportation robots move boxes in a warehouse, one of many edge computing use cases in retail
Retail organizations must constantly adapt to meet changing customer expectations, mitigate external economic forces, and stay ahead of the competition. Technologies like the Internet of Things (IoT), artificial intelligence (AI), and other forms of automation help companies improve the customer experience and deliver products at the pace demanded in the age of one-click shopping and two-day shipping. However, connecting individual retail locations to applications in the cloud or centralized data center increases network latency, security risks, and bandwidth utilization costs.

Edge computing mitigates many of these challenges by decentralizing cloud and data center resources and distributing them at the network’s “edges,” where most retail operations take place. Running applications and processing data at the edge enables real-time analysis and insights and ensures that systems remain operational even if Internet access is disrupted by an ISP outage or natural disaster. This blog describes five potential edge computing use cases in retail and provides more information about the benefits of edge computing for the retail industry.

5 Edge computing use cases in retail

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1. Security video analysis

Security cameras are crucial to loss prevention, but constantly monitoring video surveillance feeds is tedious and difficult for even the most experienced personnel. AI-powered video surveillance systems use machine learning to analyze video feeds and detect suspicious activity with greater vigilance and accuracy. Edge computing enhances AI surveillance by allowing solutions to analyze video feeds in real-time, potentially catching shoplifters in the act and preventing inventory shrinkage.

2. Localized, real-time insights

Retailers have a brief window to meet a customer’s needs before they get frustrated and look elsewhere, especially in a brick-and-mortar store. A retail store can use an edge computing application to learn about customer behavior and purchasing activity in real-time. For example, they can use this information to rotate the products featured on aisle endcaps to meet changing demand, or staff additional personnel in high-traffic departments at certain times of day. Stores can also place QR codes on shelves that customers scan if a product is out of stock, immediately alerting a nearby representative to provide assistance.

3. Enhanced inventory management

Effective inventory management is challenging even for the most experienced retail managers, but ordering too much or too little product can significantly affect sales. Edge computing applications can improve inventory efficiency by making ordering recommendations based on observed purchasing patterns combined with real-time stocking updates as products are purchased or returned. Retailers can use this information to reduce carrying costs for unsold merchandise while preventing out-of-stocks, improving overall profit margins.
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4. Building management

Using IoT devices to monitor and control building functions such as HVAC, lighting, doors, power, and security can help retail organizations reduce the need for on-site facilities personnel, and make more efficient use of their time. Data analysis software helps automatically optimize these systems for efficiency while ensuring a comfortable customer experience. Running this software at the edge allows automated processes to respond to changing conditions in real-time, for example, lowering the A/C temperature or routing more power to refrigerated cases during a heatwave.

5. Warehouse automation

The retail industry uses warehouse automation systems to improve the speed and efficiency at which goods are delivered to stores or directly to users. These systems include automated storage and retrieval systems, robotic pickers and transporters, and automated sortation systems. Companies can use edge computing applications to monitor, control, and maintain warehouse automation systems with minimal latency. These applications also remain operational even if the site loses internet access, improving resilience.

The benefits of edge computing for retail

The benefits of edge computing in a retail setting include:
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Edge computing benefits

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Reduced latency

Edge computing decreases the number of network hops between devices and the applications they rely on, reducing latency and improving the speed and reliability of retail technology at the edge.

Real-time insights

Edge computing can analyze data in real-time and provide actionable insights to improve the customer experience before a sale is lost or reduce waste before monthly targets are missed.

Improved resilience

Edge computing applications can continue functioning even if the site loses Internet or WAN access, enabling continuous operations and reducing the costs of network downtime.

Risk mitigation

Keeping sensitive internal data like personnel records, sales numbers, and customer loyalty information on the local network mitigates the risk of interception and distributes the attack surface.

Edge computing can also help retail companies lower their operational costs at each site by reducing bandwidth utilization on expensive MPLS links and decreasing expenses for cloud data storage and computing. Another way to lower costs is by using consolidated, vendor-neutral solutions to run, connect, and secure edge applications and workloads.

For example, the Nodegrid Gate SR integrated branch services router delivers an entire stack of edge networking, infrastructure management, and computing technologies in a single, streamlined device. The open, Linux-based Nodegrid OS supports VMs and Docker containers for third-party edge computing applications, security solutions, and more. The Gate SR is also available with an Nvidia Jetson Nano card that’s optimized for AI workloads to help retail organizations reduce the hardware overhead costs of deploying artificial intelligence at the edge.

Consolidated edge computing with Nodegrid

Nodegrid’s flexible, scalable platform adapts to all edge computing use cases in retail. Watch a demo to see Nodegrid’s retail network solutions in action.

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