Artificial intelligence (AI) is fast becoming an essential technology in the supply chain. Combining robotics with management software, they make 360° logistics possible. With growth, profitability, saved time and durability as the goal, AI opens up an endless set of ways to improve the supply chain. Stock management in particular, a field that has grown more complex still now that sales processes are omnichannel. But in practical terms, how does artificial intelligence work in stock management? Here is the breakdown.
A quick tour of artificial intelligence
It is worth remembering that AI covers far more than simple process automation, essential though that automation is to the way today’s warehouses run. It is already in place at the big French logistics players, where on the ground it takes the form of RPA (Robotic Process Automation) and robots.
Where RPA automates mechanical, repetitive tasks, artificial intelligence pushes the technology further. It combines serious computing power with the ability to learn from data in real time. In other words, AI can process a huge volume of data and turn it into information that matters to a business and its operations.
That is what sets the technology apart. AI can analyse data and connect it while trying to reproduce the way a human thinks and acts. As well as saving a great deal of time and money, it turns out to be an ally in human decision-making.
How does artificial intelligence improve stock management?
Stock management is a complex problem, but an essential one. Getting the right stock to the right place at the right time quickly becomes a headache. This is exactly where artificial intelligence can support people and give them better control of their stock.
How does AI work in stock management?
Working from a range of data, artificial intelligence can predict what your business will need. That data includes historical sales, orders and stock. Once the prediction is made, AI delivers optimised decisions on replenishment, on transfers and on the physical layout of your stock.
In practice, AI analyses how fast items sell and builds a stock management model to match. That lets you adjust stock levels more precisely, so you avoid both shortages and surpluses.
AI also helps you anticipate what your customers will buy. Those forecasts are built from many inputs: the weather, major events, the time of day and so on. With AI, you plan the right stock levels for the right moments. The direct result is shorter delivery times for your customers, and so greater satisfaction.
Read next: How do you optimise your stock management?
Artificial intelligence: in the service of a more efficient warehouse
One of the biggest applications of AI in the supply chain is the automated warehouse. As the previous section showed, warehouse stock management gets better with AI. That is not its only use, though. The technology also optimises transport and storage movements and the running of operations.
Automate your stocktake with AI
Warehouses hold a great many components and items, so it is easy to lose track of them. Knowing exactly where each product sits makes teams faster and more effective.
A stocktake stays accurate for a very short time. Once the daily picture is complete, it already needs updating the next day. Automating the process is therefore essential if the inventory is to stay continuously up to date.
L’Oréal, for example, has put a drone-based system in place. Each drone carries a camera and travels along every shelf and down every aisle. With AI video processing on board, they scan barcodes and record empty locations. The technology saves the group time, cuts error rates, makes things safer for employees who no longer have to work at height, and produces accurate stocktakes.
Automate order picking
Artificial intelligence makes order preparation easier and automates it with robots. In practice, they organise product picking intelligently across the warehouse, optimise the robots’ routes to the picker, and suggest efficient ways of arranging parcels on a pallet. The result: lower costs and a smaller environmental footprint, plus gains in time and productivity.
How does AI work in order preparation?
The robots receive the orders, identify the products and move through the warehouse to collect them. They then bring the products to an operator, who can concentrate on filling the parcel with the items the robots have brought. AI directs the robots, optimising each of their routes for efficiency.
Automate parcel sorting
With the e-commerce boom, parcel volumes have intensified. Again, AI is an ally in structuring those flows and automating this stage of the supply chain.
How does AI work in automated sorting?
The robots work from a predefined storage plan to move parcels automatically. AI guides them independently, so that every parcel reaches the right destination zone. The optical reading built into the technology scans labels quickly to identify each item and its characteristics: the product’s weight, its size and dimensions, and the geographical area it has to be delivered to.
Artificial intelligence: one of the main levers of supply chain performance
Thanks to its many strengths, AI has quickly taken an important place in managing and optimising the supply chain.
Its advantages include:
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- faster decision-making
- better use of production, storage and transport capacity
- keeping multiple action and crisis-prevention scenarios up to date
- and more
Say you have an omnichannel warehouse that handles stock management. It sits at the centre of deliveries, click and collect, online sales and home delivery. Being omnichannel means different channels and different players coexist, along with a multitude of locations and picking methods.
Read next: Multichannel vs omnichannel: the strategies explained
AI then steps in to smooth that system out and make sure every resource is used to the full. It brings an increasingly connected logistics chain, which also means better product traceability and so higher performance. The effect cascades: consumers benefit from the technology too, getting more precise information that strengthens their confidence in your company.
Alongside artificial intelligence for optimising your stock management processes and cutting lead times, it is essential to be able to lean on a logistics partner you trust. Professional, tailored transport is what meets customer expectations.
Shippr, the same-day delivery specialist, offers you a wide choice of delivery solutions. Would you like to talk it through with one of our business experts? Contact us directly through this form and let us find the delivery solutions that fit your needs together.
