How AI is changing warehouse operations

There’s no question about it, AI is having a big impact on warehouse operations. And with AI in-warehouse management leading to some serious efficiencies and savings for logistics companies and warehouse management companies, it looks like AI is here to stay.

Let’s break it down. For a start, according to Mckinsey, AI in warehouses can identify spare capacity every day, freeing up to 15% of additional capacity. A targeted and focused use of AI can also cut between 5 and 20% of logistics costs, as well as up to 15% of procurement spending.

Those are some serious savings. It’s no surprise, then, that Mckinsey also estimates 37% of logistics companies are using AI in warehouse management. And that’s being conservative. Some reports suggest that a figure closer to 70% of large-scale warehouses are harnessing AI in warehouses for specific tasks and management routines.

The fact is, AI in warehousing is a pretty nebulous concept. There’s no one core area where AI is used; more like a series of connected opportunities for AI in warehousing to improve and streamline various processes.

Where is AI technology used in the warehouse?

When we talk about AI in warehousing, it’s important to realise that the technology is not confined to one area or expertise. In fact, artificial intelligence warehouse solutions are as varied as:

• Automated vehicles that move loads between designated areas.
• Robots that pick stock and can even arrange it into space-efficient piles.
• Drones that can monitor dangerous areas.
• Inventory monitoring, keeping track of quantity and condition.
• Office operations, such as human resources management and automated billing.
• Enhanced safety measures, like pedestrian proximity detection for vehicles.

And that’s just scratching the surface.

What challenges is AI helping solve in warehouse management?

When it comes to artificial intelligence, warehouses are embracing the technology in a big way, creating a safer environment and more efficient operation. But at the heart of AI use in warehouses is a desire to solve problems and address long-standing challenges.

Here are just five of the most frequently used and effective uses for AI in warehouses.

Predictive maintenance

Your warehouse cannot operate without key machinery. By monitoring that machinery (along with equipment and vehicles), it becomes possible to preempt failures and avoid costly breakdowns.

Using IoT sensors, AI can monitor the condition of vital pieces of equipment, comparing readings against a baseline to detect anomalies and encourage action before a breakage can cause costly delays.

Automating order fulfilment

Automation is one of the best ways to improve efficiency and lower costs. Humans absolutely have their place alongside AI in warehousing, but the fact is that AI-powered robots outpace their human counterparts.

By entrusting certain repetitive and dangerous tasks to data-driven AI and robotics, such as picking and packing, warehouses can reduce errors and improve accuracy. There’s no need for breaks, no human error, just a constant and consistent level of efficiency.

Continuous improvement

AI is always learning from available data; that’s how it works. When it comes to AI in warehouses, that means that the AI systems can constantly improve by analysing key performance indicators (or KPIs). Once an area for improvement has been identified, the process will be adjusted accordingly.

It’s also possible to make manual improvements with the insights that AI generates. By examining the data, operations teams can identify where efficiency is lagging and make impactful changes. By relying on the information that AI brings to the table, it’s possible to create a culture where continuous improvement is a part of the daily running of the warehouse.

Real-time tracking

Drawing in data from IoT devices, Radio Frequency Identification (RFID tags) and more, AI can provide real-time visibility and insights that are invaluable for warehouse operators.

Incorporating AI in warehousing, it suddenly becomes easier to monitor inventory levels and the locations of assets such as vehicles. Using that wealth of data, it becomes easier to see where processing bottlenecks occur and make proactive decisions to avoid them from happening in future. Problems are resolved faster, or pre-emptively, and operational efficiency increases.

Safer workplaces

There’s more than one way AI improves safety in warehouses. For a start, drones and robotics can be used to lift heavy loads or enter hazardous areas. AI can also monitor incident rates and causes, feeding back insights that shape protocol and procedure and ensure incidents are less likely to happen in future.

Then there are vehicle-based safety measures, such as pedestrian proximity detection, speed management tools, and telematics to monitor how each vehicle is used. We’ll come back to these in more detail later, as they’re all part of artificial intelligence warehouse safety measures that Powerfleet provides to customers.

Which industries are benefiting from AI in their warehouse operations?

With AI warehouse management providing solutions to so many different challenges on a daily basis, it’s no surprise that a huge range of industries are getting on board.

E-commerce is one of the most obvious beneficiaries of AI in warehousing. Thanks to automation, it’s possible to optimize inventory management and order fulfillment. That means predicting fluctuations in demand for specific items, as well as lowering costs by creating a frictionless delivery process.

In the world of retail, AI is fed data that allows it to analyse sales trends and predict what customers will be buying. It’s then possible to ensure warehouses have the necessary stock, reducing waste and improving delivery efficiency.

Meanwhile, in manufacturing, AI can improve production flow and reduce lead times by optimising the logistics for both finished goods and raw materials. And by using AI to find the best transport routes, predicting and avoiding any accident blackspots that cause delays, the efficiency of logistics (and the supply chain on a whole) is vastly improved.

No matter which industry is implementing AI, many of the benefits of AI in warehousing remain the same: Better efficiency, smoother fulfilment, greater profitability, and a higher standard of safety.

That last point is particularly important to us at Powerfleet. It’s where we fit into your artificial intelligence warehouse management picture, with a series of products designed to make your vehicles safer and more effective for longer.

How does Powerfleet uses AI in warehouse solutions?

Powerfleet harnesses AI in warehouse management to make your operations safer. Even accidents where nobody is hurt can have a severe negative effect on your staff, your operations, and your reputation.

With Powerfleet, you can use the power of the Unity data intelligence platform (and its in-warehouse solutions) across your assets to create a safer workplace:

• Enable powerful, real-time monitoring. Automated reporting and predictive insights that help to reduce accidents and promote safety, while also enhancing productivity and increasing the efficiency and standard of your operation.
• Gain greater control over downtime. Speed management and analytics for preventative maintenance make accidents and unexpected vehicle breakdowns less likely. Fewer accidents, less equipment misuse, better efficiency. That’s what you get by using Powerfleet in-warehouse solutions.
• Use integrated IoT and third-party systems. Powered by Unity, Powerfleet’s AI warehouse management solutions bring in data from IoT-connected devices and more to give you a holistic, 360-degree view of your operations.

Powerfleet’s artificial intelligence warehouse management systems consist of a series of powerful devices and analytics, working together to make your operation safer and more efficient.

The Forklift Gateway

The Forklift Gateway is a vehicle asset communicator (VAC) that uses sensors mounted to the vehicle to enhance performance and condition monitoring. Alongside the additional sensors, enhanced safety protocols, and telematics keep operators accountable for their vehicles, while encouraging pre-maintenance.

Forklift Speed Manager

Reacting to events and external conditions, the Speed Manager uses externally mounted sensors to recognise threats and high-risk areas. By automatically slowing vehicles until these challenges are negotiated, forklift speed manager ensures that accidents are reduced, and that productivity doesn’t take a hit alongside your vehicle.

Pedestrian Proximity Detection

Another way we use object detection is to avoid pedestrian collisions. The Pedestrian Proximity Detection system works without wearable IoT tags, instead relying on a vision system that is able to identify people and other vehicles, alerting the forklift operator to any hazards.

Event-triggered Digital Video Recorder

Even with all the advanced safety features that Powerfleet puts at your fingertips, accidents can still happen. But with event-triggered digital video recording, you’ll be able to see exactly what happened and how, thanks to four cameras working alongside a central DVR that records continuously. Once you’ve studied the footage, you can put new safety protocols in place to stop similar incidents from happening in future.

Powerfleet AI in warehousing keeps staff safe and operations running

AI in warehouse management is making operations more efficient, as well as safer for the human workforce.

By bringing together sensors, IoT-connectivity, and the Unity platform, Powerfleet is putting AI in warehouses to good use, limiting accidents to keep employees safe and protecting logistics companies from lost time and damaged equipment.

To find out how Powerfleet’s artificial intelligence warehouse management systems can have an impact on your operation, request a demo today.