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Achieving an inventory warehouse accuracy rate of 99.9% is not just a nice-to-have, it’s a necessity to keep operations running smoothly and in many cases satisfying stringent SLAs. However, the reality of maintaining this level of accuracy is far from easy. To ensure that inventory levels are precise, most warehouses rely on labor-intensive cycle counting activities. These activities often involve warehouse workers physically walking aisles daily to scan and record inventory placement and location, a task that is essential but increasingly challenging due to rising labor costs and high attrition rates.
Cycle counting is a process where a small portion of inventory is counted at regular intervals to ensure that the entire stock is accurately reflected in the warehouse system. This process is repeated frequently, often daily, in large facilities to reach a 99.9% inventory accuracy. Workers are assigned specific aisles or areas within the warehouse, walking the entire space to scan barcodes, record quantities, and verify that everything is in the correct location.
While often effective, this method is labor-intensive and relies heavily on human effort. Workers must be diligent and efficient, as even the slightest mistake can lead to discrepancies. Many warehouses are required to record an entire warehouse every 20 days to maintain their accuracy levels and support corporate obligations. Given the number of SKUs and sheer volume of items warehouses handle this is a monumental task.
This is where challenges begin to surface. The demand for human labor in cycle counting is rising at a time when the labor force in warehouses is increasingly volatile. Attrition rates in warehouse jobs are notoriously high, meaning that companies are constantly hiring and training new workers. High turnover rates and the need to train new employees on cycle counting process add significant overhead costs. The pressure to maintain 99.9% accuracy while managing a workforce that is continually changing makes cycle counting a far more expensive and unreliable solution than it may seem.
The warehouse labor market has been facing significant challenges, particularly in the wake of the pandemic. Supply chain disruptions, increased demand for e-commerce fulfillment, and a general shortage of qualified workers have created a perfect storm for warehouses trying to keep up with inventory accuracy. Warehouse labor costs are steadily rising as businesses try to attract and retain workers through higher wages, bonuses, and better benefits.
However, this strategy comes with a catch. Higher labor costs do not necessarily lead to higher accuracy. The volatility of the labor market means that even though wages are going up, the workforce remains unstable, and employee turnover is rampant. This creates a cycle where warehouses are forced to spend more money on training, hiring, and motivating workers, yet still face a high risk of errors and failing to reach their 99.9% inventory accuracy targets.
Additionally, relying on human workers for cycle counting means that the process is inherently slow. Workers can only count a certain amount of inventory in a given day, and they can’t work around the clock. This leads to gaps in accuracy and slows down the overall supply chain process.
The idea of using warehouse drones to assist with inventory management has gained a lot of attention in recent years. Drones promise to speed up the process of cycle counting by automating the task of scanning and recording inventory. With their ability to fly over aisles and capture data, drones seem like the perfect solution to the challenges of labor-intensive cycle counting.
However, while drones are undoubtedly an exciting technology, they come with their own set of limitations that make them less of a miracle solution than they first appear. One of the biggest drawbacks is their limited battery life. Drones can only stay airborne for a certain amount of time before they need to recharge, which significantly limits their ability to provide continuous scanning capabilities throughout the day. Drone solution providers have an EASY answer to this challenge, just buy more of their technology!
Most drones do not fly on their own and require specially trained staff to manage, launch, and land these devices. Additionally, drones are not as adept at cycle counting in narrow aisles or scanning high density inventory. As a result, the idea of drones seamlessly replacing human labor for cycle counting is, at best, an optimistic one.
The cost of implementing drone technology in warehouses is far from negligible. The infrastructure required to support drone operations—charging stations, flight path management systems, and specialized training for drone operators—adds another layer of expense. These costs can be prohibitive for smaller warehouses, and even larger warehouses may find it difficult to justify the investment when their battery life and scanning capabilities are limited.
StorTRACK uses advanced warehouse computer vision technology to provide all-day scanning capabilities and rich visual data that delivers the truth faster and more frequently than any other method. Unlike drones or manual labor, StorTRACK operates seamlessly throughout the day capturing inventory data and providing warehouses with an accurate, up-to-date view of their stock. By utilizing high-definition cameras and sophisticated image recognition algorithms, StorTRACK can scan entire aisles and capture precise information about inventory placement, item counts, and even product conditions.
ONE StorTRACK is capable of scanning a 300’ long by 30’ high aisle in about a half hour and works with any existing MHE capable of lifting a pallet. StorTRACK will scan as high as any forklift or order picker can reach. This technology not only supports 99.9% inventory accuracy, but also significantly reduces the cost and time associated with traditional inventory management methods. It delivers insights faster, more frequently, and with a level of precision that was previously unattainable through manual labor alone.
While 99.9% inventory accuracy remains the ongoing goal for many warehouses, the high costs, labor shortages, and inefficiencies inherent in this process make it increasingly unreliable. Drones, though promising, also fall short due to their limited battery life and inability to handle complex environments. On the other hand, StorTRACK presents a far more scalable and efficient solution for maintaining 99.9% inventory accuracy, allowing warehouses to track and manage their inventory with greater ease and precision than ever before. In a world where accuracy and speed are paramount, StorTRACK represents the future of warehouse inventory management.
Vimaan provides inventory tracking solutions from the moment items enter your warehouse to the point where they leave – all while using your EXISTING processes.