Page 4 - Logistics News April 2018
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Thought Leadership











                                 Paving the way



                 for AI in the warehouse






                                                                                By Luke Waltz, Supply Chain Quarterly

               Recent developments in artifi cial intelligence (AI) are set to revolutionise the way warehouses
              operate. But before companies jump into implementations, they must make sure they have the
                                                data and talent they need.




            STAYING ABREAST of changes in supply chain         Choosing a use case
            technology has become almost a full-time           As you consider opportunities to apply AI
            job. From robotics and automation to data          in the supply chain, it may be tempting to
            analytics and the industrial Internet of things    start with the technology and seek out an
            (IoT), new technologies are emerging that have     application. However, more useful applications
            the potential to further improve how goods are     are likely to emerge if you evaluate the
            shipped, handled, stored and delivered. With       business drivers that represent the greatest
            all of these technologies competing for our        challenges or opportunities for your company,
            attention, it can be diffi  cult to know where to   and then apply an appropriate understanding
            focus.                                             of AI technology’s capabilities to those issues.
               One new technology that does deserve               In relation to the warehouse, AI applications
            a close look is artifi cial intelligence (AI). In   should be guided by the key performance
            the simplest terms, AI is the development of       indicators (KPIs) a particular organisation is
            computer systems that can perform tasks that       trying to optimise, such as order accuracy,
            normally require human intelligence such as        safety, productivity, fulfi lment time, facility
            visual perception, speech recognition, decision    damage or inventory accuracy. Warehouses
            making and language translation. AI has been       typically already have a wealth of data that is
            around since 1956, but humans typically have       related to their KPIs and could be used by an
            had to explicitly programme intelligence into      AI application to automate tasks or decisions.
            computers.                                         However, this data typically is in a form that
               One type of AI called machine learning          is not conducive to using AI techniques and
            explores ways to enable computer programmes        it often is spread across various warehouse
            to improve their output based on learning          systems. As a result, many AI applications will
            from data inputs. These programmes can be          likely require information to be aggregated
            embedded in machines or they can operate           across various information systems in the
            on servers or in the cloud. Large technology       warehouse before it can be used.
            companies such as Amazon, Google, Facebook,           The following examples illustrate the
            Microsoft and others are already incorporating     potential for AI in the warehouse. Each of them
            machine learning into their off erings, creating   is focused on a KPI: productivity, equipment
            more intuitive web searches, better image and      utilisation or effi  ciency. While the examples
            voice recognition, and smarter devices.            may not be applicable to every warehouse,
               For many supply chain executives, AI – and      they do show how companies can take
            particularly machine learning – is an important    available data and fi t that data into a form in
            technology to consider because it allows tasks     which machine-learning techniques can be
            to be automated. Organisations that begin          applied.
            today to develop AI strategies that are relevant      Productivity. When it comes to picking
            to the supply chain will be positioned to          orders, all warehouses experience a range of
            increase productivity, speed and effi  ciency as   productivity, from their highest performing
            the technology matures.                            order pickers to their average performers.


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