What You Need to Know About Inventory Scanning and Tracking Warehouse Robots
Introduction to Automated Cycle Counting and Stock Taking Warehouse Robots
Warehouses across the country experience the same challenge of labor scarcity coupled with chart topping attrition rates. Finding good talent and holding on to them has never been more difficult. These are just some of the reasons why warehouses are embracing automation for processes that tend to be both labor intensive and have a high-level of repeatability. One of those highly repetitive activities includes cycle counting, this process is the focus of several solutions including automated inventory stock taking and cycle counting robots. Before considering an inventory tracking and auditing robot, refer to this primer to understand your options for making an educated decision on how to best use automated solutions for your warehouse cycle counting.
What is Automated Robotic Cycle Counting in the Warehouse?
Case stow cycle counting is less intrusive than other forms of inventory auditing
Cycle counting is a periodic inventory auditing process where a subset of inventory is counted on a rotating basis. Unlike traditional physical inventory counts that require halting operations, cycle counting allows for continuous operations and more frequent inventory checks. Inventory tracking robots represent a potential path to automate this process by having automated robots (maneuvered by AMRs) navigate the warehouse, scan barcodes or RFID tags, and record inventory data.
Automated cycle counting robots perform periodic inventory counts, ensuring that stock levels are accurately tracked and managed. This introduction delves into the intricacies of robotic cycle counting, its benefits, limitations, challenges, cost considerations, and why warehouses are reconsidering these inventory auditing robots in favor of the safer and more cost-effective Vimaan StorTRACK solution.
How Does Automated Robotic Cycle Counting Work?
Using AMR technology, these automated inventory tracking and management robots are programmed to traverse warehouse environments and scan stored inventory in shelves. These cycle counting robots are typically equipped with:
>30’ High Masts – in order to satisfy the goal of scanning goods stored in 3 meter high racks, these inventory counting robots need to include dauntingly tall posts that provide a line of sight to the highest warehouse shelves. These masts are typically collapsable and include extendable telescopic components that form a towering post of cameras. Like any mechanized moving parts, these telescopic towers are subject to ablation.
Wide Mobile Bases – to prevent the extra tall masts from toppling, these AMR cycle counting bots include very heavy and extra wide bases. These bots travel through warehouse aisles using a variety of single and omni-directional wheeled bases. While these larges bases prevent disastrous toppling, they also prevent the AMRs from cycle counting very narrow aisles (VNAs). Deep within the lithium battery powered mobile unit is a highly sophisticated server responsible for collecting and processing cycle counting data. Unfortunately, these robotic bases are prone to software glitches and wear and tear that cause unexpected behavior and complete failures.
Scanners – masts are equipped with several cameras and lights that span the entire height of these towers. These automated cycle counting robots can have up to 20 different sets of cameras and lights to capture shelf stored inventory. This multitude of devices introduces a multitude points of data capture failure If any one of these components ceases to function, the inventory audit missions are compromised.
Data Reporting Applications – instead of transferring inventory information to the warehouse WMS, automated inventory management and tracking robot providers prefer to keep audit data in their own reporting portals. These applications will provide a comprehensive view of the data captured by the cycle counting robots, but this results in warehouse information residing in two different platforms. Integrating with WM systems can be time consuming and that’s why solution providers prefer not to offer this as a service. Vimaan on the other hand offers WMS integration as part of our standard service offering, in addition to providing one of the industry’s leading inventory visualization tools in ViewDECK.
Warehouse Cycle Counting Robot Return on Invesment (ROI)
Along with improving efficiencies, the ultimate goal in any warehouse automation solution like inventory tracking robots is to demonstrate a fast and long-lasting ROI. The primary drivers for ROI include the ability to reduce warehouse shrinkage and high labor costs.
Inventory Shrinkage – when inventory goes missing and needs to be written off, it is included in the warehouse shrinkage data. Several factors contribute to shrinkage including theft, administrative errors, supplier fraud, or damage during transit. In a warehouse setting, inventory shrinkage undermines inventory accuracy, leading to mismatches between recorded stock levels and actual physical inventory. This creates significant operational challenges, as warehouses rely on accurate inventory data to manage stock levels, fulfill orders, and plan replenishment effectively. The annual shrinkage rate across various industries can range from 1.4% to 2% of total inventory value.
Labor Costs – anywhere from 50 to 70% of warehouse expenses are labor related. This includes wages, salaries and benefits making it the largest operating cost in warehouse management. The more a warehouse can automate routine tasks like cycle counting the greater the chance they can reduce these high costs.
Inventory Cycle Counting Robot’s ROI – of all the cycle count automation options available, automated inventory management and tracking robots are the most expensive option on the market. These towering robots are comprised of the most sophisticated and costly electronics found in a warehouse. Reported costs to deploy cycle counting robots warehouse can include:
Install Set Up – depending on the size of the warehouse, these onetime costs can vary from $25,000 to $50,000 (and even higher).
Subscription – once installed, warehouses are then charged $20,000 to $30,000 a month.
Typical Automated Warehouse Cycle Counting Robot Costs – On average, warehouses can expect to spend $300,000 to $500,000 a year on inventory scanning robots. Based on these costs, achieving an ROI on this investment would be extremely difficult. Alternatively on average warehouses that use StorTRACK to automate their cycle counting experience an ROI in 6 – 8 months (and often less).
Even with the high costs associated with deploying cycle counting robots in the warehouse, the solution providers still lose money on each deployment. In an effort to break into the cycle counting market, these companies are charging customers less than their actual costs and are willing to lose money with each project. While the short-term advantages to this may appear worth it, if their gamble does not pay off than warehouses could lose their massive investments in these inventory cycle counting robots.
How to Service Automated Cycle Counting Warehouse Robots
These technological marvels require specially trained technicians to service, maintain and repair them. When considering these solutions, determine where the closest service technician is and the point of origin for part shipping. US-based warehouses working with solution providers outside of the country will be subject to service delays and interruptions in cycle count activities. These robots contain hundreds of moving parts that are all subject to wear and tear, making it a big gamble to count on service providers outside of the country. Vimaan on the other hand provides dedicated field support for all our customers allowing us to deliver the highest level of customer service no matter where they are based.
Q: Can cycle counting robots operate in any warehouse environment? A: Inventory tracking and management robots are best suited for well-organized warehouses with well-defined aisles and standard shelving. Environments with uneven floors or significant clutter will pose challenges. Additionally, as mentioned above, VNA cycle counting is not possible due to the broad bases associated with these robots.
Q: Do cycle counting robots work safely alongside human workers? A: Most of these inventory scanning robots contain obstacle avoidance technologies to reduce the number of collisions these AMRs encounter. Most of the towers are collapsable and many warehouse workers may be uncomfortable working alongside these mobile monoliths.
Q: What happens when something goes wrong with the automated cycle coutning robots? A: Because these systems are highly complex and expensive, all service and repairs are handled by the solution provider; this includes replacing cameras, lights, sensors and addressing any glitches experienced by the warehouse tracking robot.
Automated Warehouse Inventory Cycle Counting Robots Next Steps
The idea of dedicating fully autonomous robots to conduct automated cycle counting activity sounds exciting for many warehouses. The reality is that these systems are both daunting and subject to service challenges. Additionally, the ultra-high costs associated with these inventory tracking robots make it prohibitive for most warehouses, and those that can afford it are gambling corporate budget on expensive and risky technologies. For the rest interested in scalable cycle counting solutions that are safe, reliable and deliver the fastest ROI in the industry they choose StorTRACK. This computer vision solution from Vimaan reduces headcount requirements, generates the highest inventory accuracy and on average an ROI in 6-8 months.
