Artificial intelligence (AI) is currently being used in warehouse management and the route planning of order deliveries, but its levels of use is likely to develop greatly in the near future.
Some jobs that involve repetitive tasks and manual work will be automated using AI, but this will allow human workers to focus on strategy and complex planning tasks.
Perhaps the main contribution generative AI will make to warehouse productivity is in inventory management and order forecasting. This reduces the amount of time stock is held at a warehouse, as stock levels are determined by accurate demand forecasts. This can eliminate spoilage from overstocking and increase profitability.
Demand forecasting also affects staff levels. If a surge in sales is expected, more staff will need recruiting and extra equipment to process orders purchased from a warehouse equipment supplier. In the future, AI could automate staff hiring and equipment ordering.
AI does not have to be a major cost to a warehouse. Some AI tools are free or available on a low-cost subscription, but specialised warehouse management systems that use AI can involve expensive software, computing power and specialised staff. However, these costs are justified if AI generates more profits,
There are challenges associated with AI. Privacy and data protection issues are a concern. Staff attitudes to AI may be negative, especially if workers feel that AI will replace their jobs. The workplace culture may need changing so that the workforce sees AI not as a threat, but as valuable and beneficial to the business and their role in it.
Get a free quote