Nov 30, 2023

Smart warehouse design has been benefiting from automation for decades. The emergence of artificial intelligence presents a wealth of automated warehouse solutions that take efficiency, safety, accuracy, and productivity to an unmatched level. Working from the ground up on implementation, can AI improve your warehouse layout?

An Introduction to AI Usage in the Warehouse

AI isn’t new. We’ve been seeing or using the technology for years—from asking Siri or Alexa for help to getting Amazon recommendations. The 2022 MHI annual industry report showed that 14% of respondents to the survey were using AI technology at the time. However, that figure is expected to soar by 73% in five years. The benefits are too powerful to ignore!

What technology can you leverage for using AI in warehouse management?

• Machine learning refers to the ability of a computer to learn and adapt with minimal human intervention (i.e., programming). Machine learning uses algorithms and data sets that are coded into the computer to detect and respond to certain situations, like automatically flagging unauthorized credit card use and blind spot detection on vehicles. In the warehouse, this feature can prevent collisions that lead to injury and damage to machinery, inventory, and equipment.
• Neural networks are considered a subset of machine learning. They simulate the way neurons in the human brain send messages to each other; for example, feeling pain is the result of neurons communicating in the brain. Each layer in a neural network is an artificial neuron that connects with another, transmitting information to each other like the neurons in the human brain. 
• Deep learning—also known as “scalable machine learning—is also a subset of machine learning. As the name implies, deep learning utilizes larger data sets to enable the learning of more complex relationships. Deep learning examples include driver assist technology in vehicles and speech recognition on your phone. Deep learning can assist with warehouse space utilization, AI-driven supply chain optimization, inventory management, material handling, and demand planning are just a few applications of AI in warehouse management. 

Benefits of AI in Warehouse Layout Optimization

The algorithms that drive predictive “intelligence” deliver significant advantages that require management to understand why AI belongs in the warehouse.

An efficient operation begins with warehouse layout optimization. Done correctly, warehouse layout efficiency reflects the smart allocation of space that maximizes every square foot. AI can improve warehouse layout in various ways.

Improve picking and packing: Products and systems are laid out to be more accessible and require less movement, which increases order fulfillment volume and speed. A more efficient layout allows pickers to reduce the amount of travel from aisle to aisle and station to station—including the search for misplaced items. Pick-to-robot systems are guided by the human picker, using the AI software on a tablet to deliver instructions.

In addition to the slotting of inventory, one of the numerous automated warehouse solutions uses AI to identify processes that deliver more efficient and accurate results. Your data looks at the time it takes to complete specific tasks and calculates parameters, like distance, location from point to point, volume (quantity and weight), and the worker’s performance history. The analysis then shows how to change your processes (including warehouse layout) to improve efficiency.

Maintain effective inventory management: Artificial intelligence and logistics are the perfect match. Eliminate manual projections and engineering by relying on machine learning and deep learning.

Inventory management with AI enables planning for better slotting. AI analyzes the sales data and locates the products with higher demand for easier access, reducing the picking time. The algorithms also assist with tracking and managing inventory. Using AI algorithms for layout optimization reduces overstocks and stockouts, ensuring you can fulfill orders without carrying excess holding costs. 

Reduce labor costs: Improving your workforce productivity leads to a more efficient warehouse operation. The efficiency gained in picking and packing will reduce labor costs associated with unnecessary movement and human error. When inventory is placed in more logical spaces, pickers spend less time moving back and forth. In addition, the use of Autonomous Mobile Robots (AMRs) and Autonomous Guided Vehicles (AGVs) will reduce labor costs. Unlike its human counterpart, a robot can work 24/7, a definite plus to your operational efficiency.

With its intuitive analytical properties, AI can also guide you toward understanding your labor needs so you can better plan your workforce needs.

Increase safety: AI-driven warehouse planning allows for better organization, less congestion, and unobstructed aisles and pathways, which reduces hazards. AMRs and AGVs can handle risky materials, effortlessly get into hard-to-reach spaces, and reduce collisions.

Reduce equipment costs: Implementing AI in warehouse management solutions boosts your equipment repair and maintenance costs. Machine learning alerts potential problems and upcoming scheduled maintenance so you can be proactive rather than reactive. 

Expand warehouse capacity: Reducing wasted space allows for an increasing volume of inventory and orders. AI configures warehouse space utilization to make the best use of your warehouse space to maximize your profitability. 

Enable more agile seasonal adjustments: AI uses predictive models to identify a layout that supports seasonal inventory fluctuations. The data analysis shows how to plan for these changes—identifying reasonable volume, when to order, and where to place products for optimum picking efficiency. 

When you deploy AI-driven warehouse planning, the machines’ brains present real-time data analysis—more accurate and more timely than manual data collection and assessment. Machine learning—particularly deep learning—delivers information and insights you might otherwise overlook as well as eliminates human error. And you can put your workers to use on other tasks where their skills are more useful to your operation.

Automated Material Handling Systems

You have an option when choosing the robotics in your automated warehouse solutions strategy.

An automated guided vehicle (AGV) moves along a fixed, marked path or conveyor belt in the warehouse. The AGV navigates by using lasers, radio waves, cameras, or magnetic tape along the route. The AGV could be a cart, forklift, or other vehicle needed to transport materials.

An autonomous mobile robot (AMR) can move freely, unlike the AGV which cannot divert from the assigned path. The robotic vacuum disc used in so many households is an example of an AMR, using lasers to find its way across a floor. The flexibility of an AMR’s movement makes it a good choice in any area of your warehouse or distribution center. Moving pallets and loading and unloading trucks are just two examples of valuable AMR tasks in the warehouse.

Both AGVs and AMRs represent scalable solutions. Add to your robotic fleet as needed.

Warehouse Layout Planning

Can AI improve your warehouse layout? How do you deploy the technology to achieve smart warehouse design? It’s all about the data. The more information you provide in your data sets, the better the outcomes. 

AI-based software is at the root of your smart warehouse design. You integrate the technology with your warehouse management system (WMS). The mobility provided by robotics (AMRs and AGVs) and mobile devices makes AI a practical solution for warehouses and distribution centers of all sizes. 

Remember that your AI technology will continue to learn as it gains data. 

Future Trends in AI and Warehouse Management

What’s next for AI-driven supply chain optimization and smart warehouse design? Can AI improve your warehouse layout? 

Heartland USA is a leading innovator in customizing and deploying automated warehouse solutions. Our expertise in enterprise mobility has resulted in 99.99% order accuracy, delivers three times more productivity, and can reduce labor costs by as much as 30%. For artificial intelligence, IoT, RFID, and advanced mobility solutions, Heartland USA’s expertise in up-to-the-minute hardware solutions for  warehousing and distribution means your operation remains on the cutting edge. Contact Heartland USA to reap the benefits of AI in warehouse layout and management.