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Artificial intelligence in the warehouse

11 March, 2021

edited on: 30 March, 2023

Large distribution companies, small and medium-sized enterprises operating in the area of e-commerce or 3PL logistics operators - the vast majority of companies related to the logistics industry face increasing challenges related to the need to increase the efficiency of operations, reduce costs and respond to changing conditions in the market. It is therefore not surprising that more and more entrepreneurs abandon the traditional approach to warehouse management in favor of innovative IT technologies. They implement modern WMS systems based on artificial intelligence and use their potential, reaping quickly measurable benefits for their businesses.

According to the calculations of market experts, the value of the global WMS market in 2020 amounted to USD 2.4 billion. Experts estimate that in the years 2021–2025 this value will grow at an impressive 16% cumulative annual growth rate (CAGR) and will probably reach the level of USD 5.1 billion by 2025[1].

“Today, innovative WMS systems are an integral part of an efficiently functioning warehouse. Modern technologies offer a number of benefits, such as: relieving employees by robotizing time-consuming and repetitive activities, significantly shortening the time of order processing, minimizing the costs of handling goods or increasing the efficiency of the entire supply chain. Due to the fact that the WMS system we have developed is cloud-based, PINQUARK users can automate and increase the efficiency of key processes in their warehouses without the need to build and maintain an advanced IT infrastructure, and the system itself is constantly updated in accordance with market trends and users' expectations. The development of our clients' companies is strongly supported by the artificial intelligence of PINQUARK, which has the ability to improve on the basis of collected data and acquire new knowledge. It helps to increase the efficiency of simple and complex processes, reduce the number of errors, and also indicates which areas in the company require improvement and have the potential for optimization. Our WMS allows clients to move from a "reactive" approach - which is based on adapting warehouse processes to the current situation - to a "proactive" approach. Allowing to predict purchasing trends and customer needs ”

Mateusz Kalinowski, CEO of AiTech and CEO of Meritus Systemy Informatyczne.

Intelligent WMS

There are many IT concepts associated with innovative WMS systems that may raise concerns among entrepreneurs who have so far supported the traditional approach to warehouse management or used older generation WMS systems. Terms such as Supply Chain Management (SCM), Machine Learning (ML) and Optical Character Recognition (OCR) can be mentioned here. To illustrate how new technologies support the effective operation of warehouses, it is worth looking at the operation of the WMS PINQUARK system.

Intelligent warehouse

Full optimization of key warehouse processes is closely related to properly planned and conducted warehouse logistics. Artificial intelligence algorithms used by the WMS PINQUARK system can analyze in real time huge amounts of data that are generated during warehouse operation. The information processed by the system includes data on the number and types of orders, order picking time, the level of complaints and returns, as well as the current and historical inventory. Based on the data constantly collected and analyzed by PINQUARK, the system helps to optimize processes related, among others to:

assigning the best warehouse locations to goods - artificial intelligence algorithms create the most effective models related to the placement of goods in the warehouse. The system, creating these models, takes into account many complex factors. These are e.g. the most common patterns of customer purchasing behavior, the frequency of releases of specific goods in a given period, product expiry dates or data on which goods are ordered together. The quickly measurable effects in this area are a significant reduction in path lengths and order picking times. PINQUARK users also pay attention to the optimization of the use of warehouse space;
tracking a batch of goods - the PINQUARK system enables accurate tracking of a batch of products and gives full control over the stored goods, including external releases. WMS stores data on, among others, expiry dates of delivered products, production dates or data of warehouse workers handling specific batches of goods. It also controls whether the goods meet the conditions for their entry into the warehouse. Additionally, artificial intelligence algorithms suggest which should be released first;
monitoring of stock levels - the PINQUARK system assumes the use of self-adhesive labels printed with a barcode and warehouse terminals used to scan them (terminals can be replaced with a mobile device with Internet access and the PINQUARK application installed). Labels carry the most important information about individual products (production dates, expiry dates, receipt dates, batch numbers, etc.), which are stored in the system and allow you to increase the automation of receipts and releases of specific goods. Labels are also used to mark warehouse zones, e.g. shelves, racks, alleys. The PINQUARK system analyzes the data generated during goods receipts and releases on an ongoing basis, thanks to which authorized persons have access to the up-to-date information on the stock level. The use of barcode labels and mobile terminals also significantly increases the efficiency of annual and continuous inventory;
order picking - artificial intelligence algorithms use digital warehouse maps and help to solve the so-called Traveling Salesman Problem (TSP). Based on constantly collected data, they calculate and propose the shortest routes covering all points on the route of completion of individual orders. The system takes into account both the current location of the picker and the place of completion, as well as all locations where the goods are stored. The algorithm for determining the optimal picking path works in real time, and thus frees you from the need to determine the route in advance. The solution offered by WMS PINQUARK translates into a significant increase in the speed of order processing, a decrease in the number of errors, and an increase in employee satisfaction;
control of processes in the warehouse - PINQUARK gives full control over the processes taking place in the warehouse from the level of a laptop, tablet or other mobile device with Internet access and the PINQUARK application. The system allows you to create a map of the warehouse that is fully consistent with reality, assess the level of stocking of the warehouse, track all changes in real time and quickly respond to emerging problems;
demand analysis - PINQUARK artificial intelligence algorithms can carry out a multidimensional analysis of the customers' purchasing behaviors. Its goal is to set future purchasing trends and determine the demand for a given product in a specific season. The data generated by the WMS system significantly facilitates making purchasing decisions, which translates into saving time and money, as well as reducing the risk of making mistakes;
supporting the company's activities - the PINQUARK system closely cooperates with ERP systems. Thanks to this, companies can gain new development opportunities and increase the flexibility of the system used.

Smart business

The improvements presented above are just a few examples of the possibilities that come with the implementation and use of an innovative WMS system using artificial intelligence algorithms. The fact is that by implementing new system solutions, both small and medium-sized enterprises as well as large enterprises can gain a lot. Eliminating unnecessary activities, automating key processes, increasing employee efficiency and minimizing the risk of making mistakes is just the beginning of a long list of benefits.

The PINQUARK system is available for sale in the subscription model at an affordable price. Customers get access to it immediately - without unnecessary formalities or time-consuming and costly implementations. Its great advantage is not only an attractive method of financing and short implementation time, but also simplicity of use, intuitive operation and flexibility.

[1] Warehouse Management System Market by Offering, Deployment, Tier Type, Industry | COVID-19 Impact Analysis | MarketsandMarkets ™ : https://www.marketsandmarkets.com/Market-Reports/warehouse-management-system-market-41614951.html

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