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What is smart warehousing?
Smart warehousing uses the Internet of Things, warehouse management software, and other technologies to automate workflows and improve efficiency. In this way, machines, computing devices, and objects are linked into a single network. Through this network, you can transfer data and analyze it so that you can benefit from it.
However, most retail, manufacturing, and transportation organizations still use traditional methods to manage sales, storage, picking, and supply of merchandise. It can be enhanced by an intelligent warehouse management system.
Main benefits of smart warehousing
01
What decisions can intelligent warehousing automatically execute? What if there is a system error? The result can be serious.
Fortunately, all decisions are based on detailed data analysis. Here is an example: using smart algorithms and data collected in previous months, the smart warehouse management system can calculate the order frequency and quantity of each product. On this basis, it can distribute incoming goods between warehouse shelves to ensure that the most needed goods are easily and quickly obtained. Once someone has ordered a certain product, the warehouse management system can send out a reminder, allowing the robot to pick out the required number of products and bring them to the packaging platform.
This is exactly what online grocery retailer Ocado does. It uses artificial intelligence to predict the future demand of each specific product, and then uses warehouse management software and robots to place the most ordered products in the most conspicuous position, while the products with lower demand are placed below. This automatic decision-making allows Ocado to create and process 65,000 orders per week.
02
Traditional warehousing is labor-intensive, they involve a lot of manpower and manual operations, and this increases the risk of errors. Smart warehousing reduces the need for manual work. Delegating repetitive tasks to smart machines can prevent loss or damage caused by personnel.
The key here is not to replace employees, but to do more in a shorter period of time to increase the value of their work. According to the survey, 93% of respondents believe that automation is improving the way they work. They don’t need to walk around the shelves to find the goods, just find the position of the goods through the networked sensors, and let the robot carry them. In this way, you can speed up the processing of orders and allow employees to focus on other more important tasks.
03
In traditional warehousing, employees must wait days or even weeks to receive reports. With the help of the Internet of Things, you can understand the business flow in real time and optimize it at any time.
Through the networked screen, you can immediately view the heat map of the person and all the data collected. Therefore, engineers do not need to view multiple paper reports and react to them, but can view and adjust them immediately. This provides a brand new method for warehouse management.
IoT sensors installed in the track help monitor temperature and humidity conditions. This prevents any damage or deterioration of food due to incorrect transportation conditions. All data is sent from the sensor to the warehouse management software via the Internet.
Real-time tracking opens up huge opportunities for sales and customer service. Once a particular product is restocked, the IoT sensors attached to the product can send notifications to the central database. Through the warehouse management system, you can view the exact time and quantity of goods delivered, and send notifications to users when the goods arrive. (Source Wulianzhijia.com) According to reports, the conversion rate of inventory email notifications among customers is 22.45%. Similarly, you can monitor the status of each specific commodity through warehouse management software.
To take full advantage of warehouse automation, transportation tracks, shelves and commodities, and warehouse management software should all be connected to an IoT ecosystem. However, this requires a lot of planning and modification.
In addition, you can start small and then scale up. The main element of smart warehousing is the warehouse management system, so you can implement it first and then expand to artificial intelligence and the Internet of Things.
04
The intelligent warehouse system can also help you save money. Through smart device monitoring, you can get timely alerts about high downtime risks and save equipment maintenance costs. Similarly, smart lighting and temperature sensors can help you save energy costs and ensure the best environmental conditions. For example, once a person leaves the warehouse, the IoT system can immediately recognize and turn off the lighting through activity sensors.
Key components of smart warehousing
RFID (Radio Frequency Identification), IoT sensors and all are key components of smart storage. Let us explore them one by one.
Artificial intelligence analyzes the collected data to optimize decision-making. For example, it can use the order statistics of the previous month, analyze the report, and calculate and forecast the product demand for the next month.
Another application is robots driven by artificial intelligence. These may take into account the weight, size and type of each item in order to find the best storage location and quickly ship it there.
RFID
These are labels attached to individual commodities or packages and are used to transfer data to a central database. All data is sent through electromagnetic signals. Products with RFID can be scanned remotely for easy storage, search and management.
You can scan up to 200 labels at a time, track their location, number of days before expiration, etc. On this basis, you can make accurate and immediate decisions.
IoT sensors
Connected shelves can notify you when goods are insufficient, stolen or damaged. Because IoT sensors have longer battery life and cost reductions in recent years, it makes sense to start with these tools in warehouse management.
We also saw AR glasses that can display directions, scan barcodes, and provide instant data needed for inventory checks. They provide employees with a hands-free experience and simplify their daily work.
The fact is that the entire workflow can be optimized using IoT systems. If you need to speed up the packaging and shipping of your inventory, and deliver goods to customers quickly, the Internet of Things may be just what you need.
in conclusion
Compared with traditional working methods, intelligent warehouse management system has obvious advantages. Today, we have seen new IoT use cases in logistics and smart warehousing, and you can also improve warehousing efficiency through moderate investment.
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