Warehouses are the backbone of supply chain operations, serving as the hub for storing, sorting, and distributing products. In an effort to strengthen that backbone, many companies are turning to efficiency– and productivity-enhancing technologies like warehouse automation and artificial intelligence (AI).
Ready to get a glimpse into the future of warehousing? We’ll walk you through the current role of AI in warehouse management and what your company can do to get on board.
AI in warehouse management: An overview
AI operates like an artificial brain created by computers, and the algorithms at its core — like machine learning and natural language processing — enable it to learn from data and make decisions.
This smart technology can help you perform warehouse processes that usually require human input, like sorting items, managing inventory, and predicting equipment failures. And because AI can process large amounts of data at lightning speeds, it performs these tasks much more quickly and accurately than humans, leading to greater efficiency and productivity in the warehouse.
As machine learning continues to advance, we’ll see even more innovative applications for warehousing. But technology has come a long way since the first computerized warehouse management system (WMS) went into use — and that’s largely thanks to AI.
7 ways AI is improving warehouse management
AI’s ability to optimize operations is changing the game for warehouse management. Here’s how.
1. Automated order fulfillment
AI-powered robots can work without breaks and handle repetitive tasks much faster and more accurately than their human counterparts. The results of switching from manual picking, packing, and sorting to automated order fulfillment include increased accuracy, reduced errors, and faster fulfillment, which improves delivery times and customer satisfaction.
2. Real-time inventory tracking and management
Modern inventory management systems provide real-time visibility into inventory levels, allowing for precise tracking and management with the help of AI. By leveraging technologies like the Internet of Things (IoT) and analyzing data from various sources like RFID or barcode tags and cameras, the system can identify low stock levels, predict demand fluctuations, and optimize replenishment strategies, helping to minimize stockouts and maximize storage space.
3. Predictive maintenance that minimizes equipment downtime
AI’s predictive capabilities include monitoring machinery — a critical resource that warehouses can’t operate without. Broken-down conveyors and forklifts often lead to significant costs and delays, but AI can continuously analyze data from IoT sensors and equipment to detect anomalies and predict upcoming failures. With that knowledge, you can schedule proactive maintenance during non-peak hours with minimal disruption to operations.
4. Optimizing warehouse operations
AI can analyze data related to warehouse layout, picking routes, and other operational processes to identify opportunities for improvement. These insights let you optimize space to store more products and reduce costs, identify the most efficient picking paths to cut down on travel and picking times, and pinpoint bottlenecks in other processes to enhance overall warehouse efficiency.
5. Enhanced workplace safety
AI video systems can monitor the warehouse floor to identify potential hazards like spills or leaks and unsafe behaviors like wearing incorrect safety gear or using improper lifting techniques. These systems provide immediate feedback to supervisors and workers, enabling prompt corrective actions, reinforcing safety protocols, and ultimately ensuring a safe working environment.
6. Improved quality control with automated inspection
While any quality control process is better than none, manual processes are time-consuming and could miss certain defects. AI technologies like computer vision can inspect products for defects more accurately and efficiently than humans, especially at scale. These visual inspection systems typically use cameras and machine-learning algorithms to interpret the visual information from images or videos.
7. Support for sustainability initiatives
AI can optimize energy consumption by intelligently managing lighting and climate control systems based on real-time conditions. It can also minimize waste by optimizing packaging configurations and streamlining delivery routes to reduce fuel usage and carbon emissions. And with AI-powered demand forecasting, you can prevent overstocking, minimize waste, and promote efficient resource utilization across the supply chain.
How to implement AI warehouse management
Ready to embrace the power of AI in your warehouse? Here’s a roadmap to guide your implementation journey.
1. Identify your needs and objectives
Start by pinpointing the specific challenges you want to address with AI. Are you looking to optimize inventory management, improve order fulfillment, enhance safety, or all of the above? Clearly defining your goals will help you choose the right AI solutions and measure their success.
2. Choose the right AI solutions
Explore the various AI-powered technologies available and select those that align with your needs and objectives. Consider factors like your budget, existing infrastructure, and the level of technical expertise required within your team. If you’re running a small operation, you don’t need a complicated solution. But if you’re hoping to scale in the coming years, you’ll want a solution that can grow with you.
Don’t hesitate to seek guidance from AI vendors and consultants to find the best fit for your warehouse. But be wary of overpromising and underdelivering. AI is a new innovation that hasn’t been fully vetted like other technological marvels. The term AI is sometimes only used as a trendy buzzword to get people’s attention, so exercise caution.
3. Gather and prepare your data
AI thrives on data. Ensure you have the necessary data infrastructure in place to collect, store, and process the information required for your chosen AI solutions. That might mean integrating your existing systems, implementing new sensors or cameras, or using techniques like data cleansing and data validation to ensure the quality and consistency of your information.
4. Pilot and iterate
Start with a small-scale pilot project to test your chosen AI solutions in a controlled environment. This allows you to identify any challenges, fine-tune your approach, and demonstrate the value of AI to stakeholders. Once the pilot is successful, gradually implement it across the warehouse.
5. Invest in training and upskilling
AI will ultimately make the lives of warehouse managers and their teams easier, but implementing this technology isn’t as simple as plugging in a robot and flipping a switch. It requires a workforce equipped with the skills to effectively manage, operate, and maintain sophisticated systems.
But if you invest in training, your employees will be willing and able to embrace the technology, contribute to its success, and adapt to the changing demands of the modern warehouse.
You may also find that the mention of AI makes some members of the warehouse team nervous. But AI isn’t replacing jobs — it’s reshaping them. You’ll now have the opportunity to transition workers into roles that require greater technical expertise and problem-solving abilities. With the right focus on upskilling and professional development, implementing AI solutions has the potential to transform your employees’ careers and take tedious responsibilities off their plates.
Level up your warehouse management with Fishbowl
What if you had a dashboard with real-time purchase order recommendations? And what if the custom reports that used to take days or weeks to generate could be ready within minutes?
It’s possible with AI Insights from Fishbowl, the all-in-one inventory management solution designed to help you control stock, warehouse operations, manufacturing workflows, and more. The platform even integrates with QuickBooks to promote financial visibility and eliminate time-consuming, error-prone double data entry.
Are you ready to see how AI-powered inventory tools can help you get ahead with real-time data and intelligent tracking? Schedule a demo of Fishbowl, the intuitive, scalable, and user-friendly inventory management platform.