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Warehouse inventory management is a complex, multifaceted operation crucial to the success of supply chain systems. One essential component of effective warehouse management is stock taking, which ensures that inventory levels are accurately tracked and maintained. With recent technological advancements, automated stock taking has emerged as a revolutionary approach, transforming traditional inventory practices. This primer delves into the intricacies of automated stock taking, exploring its purpose, benefits, challenges, and the role computer vision plays in helping warehouses meet their inventory management needs.
Automated stock taking involves the use of advanced technologies, like computer vision, to automatically cycle count inventory within a warehouse. Unlike traditional methods that rely on manual counts and data entry, automated systems are used to monitor inventory levels accurately and in near real-time. Examples of these systems include warehouse drones, cycle counting robots, and the Vimaan StorTRACK. These systems can be integrated with warehouse management systems (WMS) to streamline operations, reduce errors, and enhance efficiency.
Warehouses implement automated stock taking for several critical reasons:
1. Accuracy and Efficiency: StorTRACK and other automated systems are designed to minimize human error, ensuring precise inventory counts. Inventory accuracy is crucial for maintaining optimal stock levels, reducing discrepancies, and preventing stockouts or overstocking.
2. Cost Savings: Manual stock taking is labor-intensive and time-consuming. Automated stock taking reduces the need for extra labor, cutting overall operational costs. Warehouses that use StorTRACK for automated stock taking have achieved cost savings in less than 6 months, unfortunately this fast ROI is not as easily achieved with other solutions. For more information on StorTRACK’s ability to transform warehouse operations check out this case study that documents a 40X improvement in cycle count activity.
3. Safety: Stocktaking in high-bay warehouses or hazardous environments can be risky. Automated solutions can perform these tasks safely, while keeping your worker’s feet safely on the ground.
4. Competitive Advantage: In an increasingly competitive market, efficiency and accuracy in inventory management is a significant differentiator. Automated stocktaking helps warehouses stay ahead of the competition by improving service levels and customer satisfaction.
5. Improved Inventory Visibility: near real-time data from automated systems provide better visibility into inventory levels, enabling more effective inventory management and demand forecasting. For example, StorTRACK automated stock taking significantly reduces errors associated with manual counts, ensuring inventory records are consistently accurate.
Warehouse computer vision plays a pivotal role in the effectiveness of automated stock taking systems. This technology enables systems to interpret and understand visual information, facilitating accurate and efficient inventory tracking. Here’s how computer vision enhances automated stock taking:
1. Warehouse barcode reading: 1D and 2D codes are still used as a primary method to identify warehouse goods, it’s important that automated stock taking systems quickly and efficiently capture and interpret these symbologies.
2. Image Recognition: Unlike other technologies like RFID, computer vision systems can recognize and identify logos, package alerts and even detect damages on cases, pallets and labels.
3. Digital Twin: Automated stock taking systems use computer vision to capture inventory and surrounding environment data which all contribute to the development of a digital representation of the warehouse. Using StorTRACK captured data, Vimaan shows the warehouse like a Google Street view of the warehouse, allowing users to zoom out to see entire aisles and zoom in to examine the condition of the smallest case stored on a shelf.
Q: How does automated stock taking improve accuracy?
A: Automated systems minimize human error by using precise technologies for counting and tracking inventory. Computer vision and other advanced techniques ensure accurate recognition and localization of items, leading to reliable inventory data. Additionally automated stock taking systems cycle count warehouse inventory much faster than humans, allowing warehouses to audit inventory more frequently. For example, StorTRACK can scan a 300’ long x 30’ high aisle in 35 minutes.
Q: How quickly can I see an ROI with automated stock taking?
A: This really depends on the type of automated stock taking system used, for example most StorTRACK customers see an ROI in 6-8 months, and some as little as 3 months. Alternatively, automated cycle counting robots can cost warehouses $20-30,000 a month, making the goal of achieving an ROI extremely difficult. Additionally, facilities that have chosen warehouse drones as their method of automated stock taking quickly discover that one drone is insufficient to adequately scan even a portion of their warehouse. Short battery lives and limited field of views make drones a slow option for automated stock taking and as a result warehouse are required to invest 3-4 additional drones to satisfy longer cycle count missions. The cost of these extra drones makes it difficult to see an ROI in less than 2 years. For more than 90% of warehouses, one StorTRACK unit is sufficient for supporting fast and efficient stock taking.
Q: Is automated stock taking suitable for all types of warehouses??
A: While automated stock taking can benefit many warehouses, its suitability depends on factors such as warehouse size, complexity, and the type of inventory handled. Warehouses with high-volume, high-value, or high-turnover inventory will see the most significant benefits. Warehouses that have adopted very narrow aisles as a strategy to maximize their inventory capacity will experience challenges with certain types of automated stock taking systems. For example, warehouse drones cannot support aisles less than 5’ wide due to the space required to adequately hover and maneuver to scan inventory. Automated cycle counting robots also experience challenges maneuvering around these tight environments due to their large and bulky mobile bases. StorTRACK on the other hand excels in VNAs. If a pallet can fit down an aisle, then so can StorTRACK.
Q: How does automated stock taking impact my labor?
A: For many warehouses, labor is their highest cost center. Typically, labor will account for 50-70% of the overall annual budget for these facilities. Additionally, this labor is not always easy to hire or retain. Warehousing experiences some of the highest attrition rates of any industry. This is why automated stock taking is so important to many warehouses since their cycle counting activities are highly manual processes. But automated stock taking should not be seen as taking jobs away from workers, instead with this level of automation warehouses can assign workers to more high valued jobs. Keep in mind that some automated stock taking systems will require warehouses to hire a different type of labor. For example, many warehouse drones require skilled operators to pilot the systems. In fact, warehouses that fly multiple drones at once could also need to staff multiple pilots. StorTRACK on the other hand just needs one existing MHE operator to handle the unit to scan your entire warehouse.
Automated stock taking is transforming the landscape of warehouse inventory management, offering unparalleled accuracy, efficiency, and cost savings. By leveraging technologies like computer vision, warehouses can achieve near real-time inventory visibility, optimize space utilization, reduce costs and enhance overall supply chain performance. As mentioned, there are multiple automated stock taking systems warehouses can consider:
While challenges exist, investing in automated stock taking provides modern warehouses with a competitive edge. As technology continues to evolve, the future of automated stock taking promises even greater advancements, further revolutionizing the way warehouses operate. When selecting an automated stock taking system warehouses need to consider a variety of factors in making their selection. ROI, reliability and labor dependencies are just a few of the factor’s warehouses need to keep in mind when choosing the system that best meet their business needs.
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