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Artificial Intelligence Storage: AI Storage solutions that optimise workflows

06.09.2024

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Artificial Intelligence Storage: AI Storage solutions that optimise workflows

The challenge facing any warehouse manager is how to operate a storage facility more efficiently. Issues that need to be fixed, over and over, include:

  • Availability and reliability of labour
  • Inaccurate stock counts
  • Inefficient layout
  • Forecasting customer demand

Decades of research and experience have helped organisations develop designs and workflows to make warehousing more efficient, boosting productivity. The process of improving warehouse operations is now being supercharged by the introduction of artificial intelligence into the realm of materials handling and storage.

How artificial intelligence is applied to storage solutions

Artificial intelligence (AI) is a broad term that covers a wide range of digital technologies, including machine learning. Fundamentally, it’s about computers capable of thinking in a way similar to humans.

A human warehouse analyst or manager seeks to improve performance by considering all the information available and designing a solution that’s more efficient than the current operation. AI systems do the same thing, only much faster and with the capacity to assess massive volumes of data.

The output from apps that use AI is objective, not swayed by emotional factors. However, because they are designed by humans, AI systems will have some inherent bias towards certain outcomes. Human supervision and intervention are still required when AI is being used.

Where AI can optimise workflows

Forecasting

Forecasting demand is fundamental to productivity in storage solutions. It allows you to plan what space is needed, which locations are optimal and what resources will be required for receiving, transporting, stowing, picking and packing.

AI-enabled forecasting can assess huge amounts of information from multiple data streams, and do it quickly. The AI can spot patterns and trends, and learn from past experience. Reinforcement learning algorithms take real-time data and make decisions that deliver continuous improvement in productivity.

Planning

Warehouse planning begins with the layout of the physical location itself, and encompasses all the workflows and resources available to the organisation.

We use AI-enabled tools to design warehouses optimised for organisations across a variety of industries. They use the same approach as expert human warehouse planners, but produce designs much faster. Our AI system, DIDO, creates thousands of warehouse designs, each of which is assessed and scored by AI tools. The most promising designs are modelled in extended reality.

AI systems can also plan resource requirements, routes for human and autonomous stowers and pickers, and schedules for delivery and collection.

Optimising

Because AI systems have huge data access and processing capabilities, they can optimise based on a broad range of factors. Optimisation includes creating the most efficient journey plan around a warehouse, determining where specific inventory should be placed, and controlling environmental factors such as heating, lighting and ventilation.

Optimisation should be in line with the organisation’s strategic business objectives, meaning that efficiency and cost-saving are balanced against customer satisfaction and other key performance indicators.

Monitoring

Monitoring is an essential element of using AI to optimise workflows in storage. Sensors around the warehouse and on devices deliver real-time updates, allowing AI-enabled systems to learn and make decisions.

This monitoring includes knowing the location and number of stock items at all times, the position of warehouse staff and autonomous vehicles, and the environmental conditions.

The benefits of AI in warehouse storage

Accelerate process improvement

A warehouse should never be static. Just as inventory keeps moving, so do the processes that keep it efficient. Innovation, along with changes in demand, should spur a culture of continuous improvement.

Software enabled with AI helps make this process faster. Harnessing the processing speeds from modern computing with input from a wide range of systems and sensors enables faster, more efficient decision-making. Where the decisions are automated and can be applied autonomously, processes can be quickly adjusted to help keep them optimal.

Scalability

Using AI to optimise design and workflows supports the scalability of your organisation, helping you achieve more with the same resources. You can use the space in the warehouse more efficiently, and optimise the workload of your warehouse team. This helps support business growth, and can allow you to manage periods of peak demand more cost-effectively.

Customer satisfaction

Keeping the customer happy is an essential of any materials handling and storage operation. Your customers aren’t much concerned about the processes you implement, except where it impacts their own objectives. They’re interested in factors such as security, speed of picking and packing, quality of service and your capability to respond to their changing needs.

Having AI-enabled systems in your warehouse can help with all of these. It’s also possible to integrate systems with other organisations, allowing for a seamless flow of data and faster, more accurate responses to requests and changes.

Return on investment

Any implementation of AI in a warehouse or logistics organisation must have an eye on return on investment. How that return is measured depends on the strategic objectives for your business.

There are opportunities for cost-saving. Autonomous guided vehicles and AI-enabled devices can help reduce labour costs by allowing you to deploy your team more effectively. Heating and lighting can be adjusted automatically by AI apps connected to sensors and controls.

Remote monitoring of hardware such as vehicles and conveyors can enable AI to identify and schedule maintenance, reducing the risk of unexpected breakdowns, and allowing machines to be taken offline at periods of low demand.

Other opportunities for return on investment come from reducing stock loss or damage, improved visibility of inventory in real time and more efficient processes.

How to implement AI in your storage organisation

Businesses of all sizes now use AI to improve productivity in their supply chain and warehouse operations. Some are enjoying huge benefits, while others are still discovering how AI can make a positive difference.

Our team of designers, data analysts and project managers have helped numerous businesses across many different industries. We have the experience and knowledge to help your business make better use of AI.

Get in touch with us today.

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Written by,

SEC Group

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