The Benefits of AI in Warehousing

AI will transform the logistics sector

The warehouse of the near future will have artificial intelligence (AI) embedded into every aspect of its operation. AI will be in the design, in the workflows and in almost every decision made about how the warehouse fits into the wider commercial landscape. This is because AI has so much to offer in terms of improving both productivity and profitability.

What’s a little harder to predict is how AI will impact some aspects of warehousing. These are relatively early days of mass adoption and in the next few years we’ll see huge changes in how it’s implemented. There is no doubt that AI will transform the logistics sector. It offers huge benefits, some of which are already being experienced.

This is our take on the benefits of AI in warehousing in the next few years.

The benefits of AI for your business

In short, here are the key benefits that AI brings to businesses choosing to implement it in their warehouse:

• More effective planning for future supply and demand
• Reduced stock damage and loss
• A more productive workforce
• More satisfied customers
• Improved profitability

Why AI offers benefits to warehousing

AI isn’t just another form of process automation. The technology offers you entirely new possibilities, because it harnesses machines that do (robots and conveyors) with machines that think. AI-enabled warehouse devices can sense, plan, learn and communicate.

New capabilities, of learning and reasoning, aren’t limited to the devices in and around the warehouse. They’re also available to the systems that design and run your strategic warehouse operations.

Of course, there’s still a place for your people in warehouse operations. Increasingly their roles will be less manual and more about managing systems. They’ll still be required to make key decisions and perform essential actions, but they’ll be equipped and informed like never before.

A well-implemented AI-enabled warehouse has the potential to see a significant boost to efficiency, enhanced problem solving capabilities and a more motivated and engaged workforce. All these offer huge benefits to the business that operates the warehouse, and to its customers.

Benefits of AI in warehouse design

AI-enabled robot pickers and vehicles can help increase productivity in your warehouse, but their effectiveness is always going to be restricted by the overall design. Optimising for AI starts with the layout of the warehouse itself.

Designing a warehouse involves taking a huge variety of factors into account, including:

• Size and nature of the inventory coming in and going out
• Your strategic business requirements
• The needs of your customers
• Seasonal trends
• Your budget

All these, and more, are taken into account when a warehouse is designed. The benefit of using AI is that enormous amounts of data can be analysed extremely quickly, allowing for swift creation of multiple designs, in detail.

The performance of these designs can then be modelled, again using AI, against multiple scenarios. The outcome is a design optimised for efficiency and cost-effectiveness, while meeting the needs of your customers.

This is the approach with our in-house AI warehouse design platform, DIDO. It uses a combination of machine learning, virtual twins and extended reality to revolutionise the warehouse design process.

Benefits of AI in day-to-day warehouse operation

These are the key areas where AI is already making a significant positive contribution to the performance of day-to-day warehouse operations.

Intelligent automation of repeated tasks

Receiving, picking and packing are essential warehouse tasks, many of which you can now hand over to machines. Warehouse robots know what they need to do, and they can do it faster than your human workforce. They don’t get tired or need breaks. By integrating robotics with AI, your machines can learn and adapt to circumstances. This allows your resources to be used more efficiently.

Reduced rate of error

Using robotics in your warehouse can help you maintain more accurate records of stock, and help you eliminate time wasted in correcting mistakes made by human error. Warehouse robots can pick, move and pack inventory faster and more consistently than your workforce. Using AI it can identify potential issues and send alerts or initiate adaptations.

Optimised route planning and picking optimisation

In a busy warehouse, a significant amount of energy and time is expended on transporting items from place to place. While you can now hand over much of this work to robots, if they are not enabled with AI, you are unlikely to be maximising their productivity.

When they are equipped with AI, the robots can plan the most efficient route around the warehouse. They can adapt their routes based on various pieces of information, such as the urgency of the task, the busyness of particular routes, and the nature of items being picked and transported.

Improved health and safety

Implementing AI-enabled robotic systems in your warehouse helps to reduce the number of accidents and injuries to your workforce. Machines do more of the lifting and carrying, allowing your team to concentrate on supervision and making key decisions.

Benefits of AI in warehouse and back-office management

AI-enabled solutions integrated into a Warehouse Management System (WMS) empower your team to analyse, plan, and implement strategies that improve workflows, increase productivity, and make smarter decisions By working with these tools, your team will learn valuable new skills in data interpretation and system management.

Improved demand forecasting

AI enhances your WMS by leveraging historical data and real-time inputs to forecast demand more accurately. By collecting data from across your business operation, and from external sources, you can build a better picture of future customer demand for particular products.

AI-driven demand forecasting enables your team to:

• Identify patterns and trends faster
• Plan inventory levels based on real-time and predictive insights
• Optimise stock replenishment to reduce overstocking and shortages

Better management of inventory

Improved demand planning helps you to maintain inventory at optimum levels. Using automated systems (WMS) you can keep track of this inventory in your warehouse, in real time, making stock counts more accurate and allowing you to more easily spot where levels are likely to be too high or too low.

The addition of AI into this, your warehouse becomes smart. It can alert you to quality control and stock loss issues, helping you to reduce the risk of customers returning products or of valuable items being lost.

Improved management of resources and energy

Environmental/sustainability concerns are an increasingly important aspect of supply chain management. Your business has an increased responsibility to protect the natural environment, while serving its customers well.

An AI-designed warehouse will already be optimised to reduce costs such as heating and lighting. These can be controlled further based on real-time information from warehouse systems, and by improving efficiency across business operations. AI-enabled tasks such as optimised route planning, alerts about potential issues with stock being shipped to a customer, and reduced stock loss, all contribute to a more efficient use of energy and other resources.

More efficient maintenance planning

Maintenance of your warehouse infrastructure is essential to ensuring uninterrupted operations. Software needs upgrading, machines need to be checked and all your systems should be reviewed on a regular basis.

By using AI through digital twin technology to plan your maintenance you can minimise the impact of downtime on business operations. A digital twin creates a virtual replica of your warehouse infrastructure, including machines, systems, and even workflows. Devices can also report on their performance, making it easier to spot potential breakdowns in advance. This allows you to plan for repairs at times less likely to disrupt key workflow.

How to implement AI in your warehouse

Businesses of all sizes are now using AI to improve productivity across their supply chain and warehouse operations and are enjoying huge benefits as they discover 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.