How to transform your warehouse with AI technology

AI technology can transform your warehouse - this is how!

We recently explored the latest warehouse automation trends of 2024, and it’s no surprise that AI and machine learning technology are at the top of the list. AI is rapidly developing in all fields, including warehousing. For companies that want to stay ahead of the curve, investing in the latest innovations is imperative. This blog post covers all you need to know and introduces you to our market-leading WMS system nyce.logic WMS.

According to the 2024 Gartner report “Supply Chain Executive Report: Future of Supply Chain 2024”, 30% of large organizations operating warehouses and distribution centers were using AI and machine learning technologies by 2023. Other sources also indicate that the number is somewhere around 30-40%. This is estimated to grow, as more and more companies understand the value of digital transformation. Using AI and machine learning to your advantage before your competitors do it is indeed an opportunity not to be missed!

10 ways of transforming your warehouse management with AI technology

#1 Robotics and automation

For many, robotics and automation technology is the first thing that comes to mind when thinking about AI warehouse solutions. It’s for good reason because it can do a lot to improve efficiency and accuracy. Modern robots are capable of taking on many common warehouse tasks, e.g. picking, packing, and transporting goods. The technology speeds up processes and reduces human error while relieving workers of repetitive and physically demanding tasks.

Extenda Retail has noticed an increasing demand for effective robotics and automation integration. To meet these needs, we have developed the Automation API, a middleware microservice providing quick, easy, and flexible integrations. It’s one of several useful new functions in our nyce.logic WMS.

#2 Inventory optimization

AI algorithms can perform demand forecasts by looking into trends, historical data, and other relevant information. It will make it easier to anticipate demand, refine processes, and make well-informed decisions. You can also use the technology to optimize stock levels, automate reorders, and streamline picking and packing.

#3 Layout planning

AI and machine learning can also be used to analyze the warehouse layout, improving on important aspects, such as space utilization and travel times. By doing so, you can find a more cost-effective setup. Layout planning helps you ensure compliance with safety regulations, and using the space more efficiently can eliminate the need for additional storage facilities. 

#4 Demand forecasting

Demand forecasting can greatly enhance warehouse operations. The technology can make advanced predictions based on historical sales data, market trends, economic indicators, social media, and other relevant sources. These forecasting insights can help you plan more effectively, improving service levels and reducing costs.

#5 Predictive maintenance

AI is very good at using historical data to predict the future, and it can help you foresee upcoming maintenance needs. Sensors and historical data can be combined to provide real-time maintenance alerts and notifications. Predictive maintenance allows you to work more proactively, leading to a more reliable and effective warehouse operation.

#6 Improved order fulfillment and logistics

Artificial intelligence has a lot to offer when it comes to finding optimal routes and travel paths. The optimizations can increase efficiency and accuracy, reducing labor costs and creating a safer work environment. AI can also be used to predict and optimize workload, allowing you to deliver the highest possible service levels to your customers at all times.

#7 Real-time visibility and asset tracking

Warehouses are complex, and one of the main reasons for that is having to keep track of so many movable articles at the same time. AI-driven sensors can provide you with a whole new level of real-time visibility, allowing for swift, data-driven decision-making. You will never need to do manual asset tracking again.

#8 Quality control

AI technology is a great way to improve quality control. Warehouses handle a large amount of goods every day - fulfillment success and customer satisfaction rely on accurate and effective processes. It’s not possible to manually check all products leaving the warehouse, but AI can help you with large-scale quality control. It automatically keeps track of expiration dates, wasted inventory, discrepancies, and defects, continuously ensuring quality across the board.

#9 Improved safety

Warehouse AI can improve safety by real-time monitoring, and identifying potential hazards before they cause any incidents. WMS notifications can be set to alert workers and supervisors through visual or auditory signals, text messages, and other means. It will make the warehouse a safer place to work, protecting both employees and the business.

#10 Energy management and sustainability

Many warehouses struggle with rising electricity bills, and running a sustainable operation. AI can monitor energy usage across the warehouse and analyze historical data, identifying patterns and anomalies. Several leading companies have adopted this form of technology to simultaneously reduce costs and conduct business more sustainably.

Future AI warehousing trends

The technological advancements, increased adoption, and lower costs mean that more companies will invest in warehouse AI technology, especially small- and medium-sized businesses (SMBs). AI and IoT (Internet of Things) will be integrated further, increasing their usefulness and sophistication.

Lastly, the development is moving towards fully automated supply chains, where AI will drive the process from manufacturing to warehouse and distribution. If you want to know more about the future of warehousing, we recommend our blog post “Warehouse Automation Trends of 2024”.

Implementing AI in your warehouse

There are several ways to gain a competitive edge by using AI technology. Investing in a modern WMS is a good start. Easy-to-integrate solutions allow you to use the latest AI technologies alongside your other systems, maximizing efficiency and accuracy.

Introducing nyce.logic WMS

The nyce.logic WMS from Extenda Retail gives you the power to leverage AI technology, as well as many other cutting-edge solutions. Tailored for retailers and 3PLs, it's a cloud-based service with an open architecture that can easily be integrated with industry-standard solutions, from e-commerce to warehouse robotics.

nyce.logic WMS is built by logistic experts, to navigate complexity and adapt to change seamlessly, being highly advanced but easy to use. If you’re curious about seeing what the system can do live, please book a demo with our expert.

Seamlessly enhance your warehouse efficiency with nyce.logic WMS's latest innovations!