Artificial Intelligence in Warehouse Management

Updated on:
27.10.2023
4.5
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8 min

Automation in enterprises is everything. It helps reduce expenses, speed up task completion, improve the quality of results, and, generally, remain competitive in overcrowded markets. At the same time, the work processes in modern companies are complex enough to be fully automated using solutions that were invented decades ago. That’s why more and more businesses resort to the integration of systems based on artificial intelligence and related technologies. 

In particular, these technologies are actively used in warehouse management. Below, we will consider special cases of introducing artificial intelligence in inventory management and also highlight the main advantages of AI-based systems.

Value of AI in Warehouse

Artificial intelligence in warehousing can be used in its various interpretations, from robotics to computer vision. No matter which of these sub-technologies is used, the main goals of their implementation are the same: to increase the efficiency of work processes, reduce their cost, ensure their accuracy, and achieve unprecedented safety for the human resources of the enterprise. 

Indeed, given the current unwritten standards of maintaining competitiveness, enterprises are forced to minimize the time to complete their everyday tasks without reducing the quality of the results obtained and increasing the risks for their employees. Also, the cost of implementing these tasks should be as low as possible, otherwise, scaling will simply be impossible. To cover all these aspects, AI can be used.

Logistics Market Is Already Using AI Tools

Currently, AI is actively used by such world-famous companies as Amazon, Lineage Logistics, and Alloy.ai. For example, Amazon was one of the first to introduce AI-based robotics to perform manual tasks for managing warehouse products and also introduced analytical AI solutions for forecasting inventory volumes and logistics processes.

As for Lineage Logistics, it is the global leader in the temperature-controlled logistics industry. To help its customers more effectively manage food supplies (that is, eliminate shortages or, conversely, oversupplies that cannot be realized with the current flow of customers), this company has implemented advanced artificial intelligence algorithms for predictive analytics. Thanks to this innovation, Lineage Logistics clients can now manage their inventories more efficiently by selling first the products that will expire the fastest.

Finally, Alloy.ai uses AI software solutions to eliminate downtime and speed up the supply chain, allowing for efficient scheduling of work tasks and centralized inventory management in real time.

As for our personal experience in using AI for warehouse automation, we specialize in custom warehouse management system development and integration of such systems with existing software products of enterprises that are going to use them.

Benefits of AI in Warehouse 

Now, we propose to consider the advantages and main use cases of AI in inventory management.

Better Communication 

AI inventory management software can provide effective communication for equipment used in warehouse management. In particular, through the joint use of artificial intelligence with Internet of Things technologies, they perform data exchange at a speed that is hundreds of times higher than the speed of work of living enterprise employees. 

Also, you can get colossal benefits through the introduction of deep learning methods, which provide real-time data analysis and, thereby, optimize processes depending on the current input parameters of the system. 

Improved Productivity 

Along with the fact that some processes in large enterprises are already automated AI takes warehouse automation to a whole new level, providing the immediate transfer of these processes from one autonomous system to another. 

In this way, enterprises are able to achieve fundamentally new indicators of productivity of their work and, thus, ensure further scaling without the need to purchase new expensive equipment or expand their staff. 

Better Data 

The main reason for the use of irrelevant data in warehouses is still the fragmentation of the systems that operate on them. In turn, algorithms based on artificial intelligence are able to provide seamless communication between these systems and configure their operation in the correct way without human intervention. This approach significantly improves the quality of the data used and, on top of that, detects non-obvious patterns that can be instantly used to optimize work tasks.

A special case of improving data quality is the introduction of AI-driven analytical systems and computer vision-based systems, which make it possible to identify defects in goods long before they go on retail sale.

Safer Workplace 

Another typical case of AI in warehouse management is ensuring the safety of work tasks for living employees and, in general, maintaining high safety standards at warehouses with toxic, explosive, and other goods that require special storage and transportation conditions.

In particular, in such situations, warehouse AI solutions can take over some of the tasks that were previously performed manually by enterprise employees and, thereby, exposed their health to certain risks.

Simpler Inventory Management 

Artificial intelligence can free up a certain part of your company’s resources that were previously spent on monitoring and managing warehouse stocks and, thereby, distribute them to more actual needs and the development of the company as a whole.

A special case of such optimization is the introduction of RFID solutions, which are a more modern alternative to barcode scanners and paper documentation and can achieve more convenient and efficient control over products.

Cost Savings 

By speeding up work processes and freeing up human labor through the implementation of AI systems, companies can reduce their payroll costs.

At the same time, today, solutions based on artificial intelligence are only able to partially optimize work that previously required a manual approach, which means that companies currently have no opportunity to significantly reduce their staff. Therefore, this advantage should be considered only from the point of view of its future prospects, which will open up as AI algorithms develop.

More Effective Contingency Planning

Finally, artificial intelligence can ensure business continuity while minimizing the risks associated with costly downtime. In particular, AI systems covering all work processes within warehouses can reduce the frequency of events related to human factors. In addition, using AI-driven analytics, enterprises can predict possible force majeure events long before they occur and, this way, prevent them without interrupting work tasks.

Conclusion

We hope that we have helped you understand the benefits of AI in warehouse so that you can now make an informed decision about introducing such systems into your warehouse processes. If you want to create a custom AI-based system to automate your work tasks, feel free to contact us. We will apply our best expertise so that every cent invested in the renovation of your enterprise pays off in full.

Efficient Warehouse Management Systems
Efficient Warehouse Management Systems
Want to know how manage supply chain fulfillment operations from the distribution center to the store shelf? We have extensive expertise in the development of efficient Warehouse Management Systems for Businesses!
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