
Global inflation lingers in every industry, and the food and beverage vertical is no exception. Meanwhile, businesses around the world continue to navigate geopolitical conflicts and their impact on global trade. As supply chain leaders consider how best to adapt, many businesses are turning to emerging technologies like artificial intelligence (AI) to supplement human work and brain power. In fact, Gartner research shows that through 2024, 50% of supply chain organizations will invest in applications that support AI and advanced analytics capabilities. That said, we’re in the early innings of AI adoption, and businesses must proceed with caution when evaluating the best use cases and applications of AI in logistics operations.
As we look to the future of warehouse robotics and the continued adoption and experimentation with AI technology, the industry is at an inflection point to view innovation through the lens of software and hardware holistically. Software can pair with existing hardware to chart new areas of innovation such as utilizing AI in the warehouse. Many practical use cases for AI in warehouse operations today are oriented around software innovation such as:
Streamline process flow. With increasingly diversified channels and density in operations, AI and automation can help simplify processes. We’re already seeing these types of process optimization technologies emerge in the market and it’s because having visibility into the products coming in and out of the warehouse is invaluable data for supply chain managers. AI in process automation can help supply chain leaders determine things like how much labor they need to account for (in a dynamic fashion from month to month), can find inefficiencies that can be corrected for time or cost savings, and can help predict demand changes to optimize inventory planning to avoid wasted stock. The value of this ability cannot be overstated - as warehouse operations become increasingly complex, software will help to transform automation and unlock new opportunities for increased efficiency, simplified processes and meeting new consumer demands in real-time.
Grade-A picking functionality. Another common application of AI in the warehouse is via machine learning (ML) and vision systems, which are utilized in piece-picking robots. Piece-picking robots perform a picking function, where the robot is capable of selecting the most appropriate motion for picking items from storage according to the shape, weight, position, and posture of the product in an inventory bin. This is particularly important in the food and beverage industry as the items these robots need to pick often differ in shape, size, and weight. Consider the difference between picking a soda can versus a fruit or vegetable product. AI and automation enable piece-picking robots to accurately handle loose goods in the warehouse such as individual food items or detect defects in a product before it gets shipped out such as detecting opened or damaged food containers or beverages. These robots use vision systems and implement machine learning to continually improve performance, find the next best way to grasp an object without damaging it or mishandling it and share that information with the rest of the systems to continually learn and improve performance.
Other ways AI and vision systems can be utilized in the warehouse include path optimization where algorithms help warehouse robots find optimal routes to take to complete their task in the most efficient manner. Or adaptive behavior which can enable robots to learn from their environment and continue to improve their performance based on their surroundings and external factors.
Optimize inventory placement. AI technology's potential reaches beyond merely managing warehouse operations; it serves as a crucial link among various segments of the supply chain, enhancing the entire system from production to consumer delivery.
For instance, AI can analyze sales and movement patterns of products across the supply chain to improve efficiency. Such insights increase supply chain visibility for managers, providing them with real-time data that is critical for making informed stocking decisions. Enhanced visibility allows managers to adjust inventory accurately based on fluctuating demand, shift resources as needed, and avoid excessive stock levels.
By managing inventory more effectively, businesses can not only meet consumer needs promptly but also significantly reduce the costs associated with unused or misallocated resources. This strategic inventory placement is especially beneficial in industries like food and beverage where managing products efficiently can directly influence profitability.
It’s time to prepare
We’re at a pivotal moment in time with AI and every industry, including food and beverage logistics, should be considering what AI could impact within their business. With how fast AI is advancing in real time, decision makers need to be very intentional about which technologies they select and it's even more important to set out clear business objectives. Not only so that they can ensure these emerging technologies are truly adding value and impacting their business positively, but to avoid the inevitable AI-washing that is percolating through every industry. Having clear intentions of how you want to use and integrate artificial intelligence in the warehouse is key to reaping its benefits, avoiding unnecessary complications, and impacting overall business goals.