Share to Facebook Share to Twitter Share to Linkedin Lior is cofounder and CEO of inVia Robotics with more than 20 years’ experience in internet networking, robotics and software development. getty Have you ever wondered how your online orders get fulfilled so quickly? It’s all thanks to distribution centers—the bustling hubs where countless decisions are made each day to fulfill and deliver your orders on time. It’s a complex process that requires quick and precise actions from warehouse managers. Imagine having to direct traffic in the city with one person deciding all the traffic signals. Very quickly, a single person might create lots of traffic jams. Warehouse managers often rely on their instincts and hard data to make decisions, but the sheer volume and complexity can be overwhelming. That’s why traditional decision-making methods are now being complemented by AI. It’s a significant shift in warehouse operations since AI can sift through vast amounts of data, identify trends and manage work with a speed and accuracy that far exceeds human capability. The Power Of Decisions In A Warehouse In the fulfillment process, every task, from receiving to shipping, needs to be precisely coordinated to deliver orders on time. The problem is that the tasks are interconnected; a delay in one area can cascade through the system, escalating idle time. If one traffic light fails and no alternative routes are found, there could be a major traffic jam, and traffic throughout the city could be affected. Idle time is more than just downtime—it’s a lost opportunity. Each minute a worker spends waiting for the next assignment or for equipment to become available is a minute that could have been spent fulfilling orders. For a business that operates under strict deadlines, even the smallest increments of wasted time can add up to significant financial losses. 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Human Decision Capacity And AI At the core of warehouse operations are managers and workers who make countless decisions that keep the wheels turning. Yet, human decision-making has its limits. Various studies have researched our decision-making capabilities. The most recent, commissioned by the psychology-based app Noom, found that adults make less than 200 informed decisions daily. Research in decision fatigue indicates that as people make more decisions, their ability to make sound judgments declines without proper breaks and rest. The complexity of modern warehousing means that managers are often required to make decisions beyond their daily cognitive capacity. This is where AI steps in to complement human decision-makers. Unlike humans, AI systems don’t tire. They can process thousands of data points simultaneously and continuously, making informed decisions at a speed and volume that is simply unattainable for any one person—bubbling up the issues so people can make high-level decisions. Making The Most Out Of AI Technology In Warehouse Operations Warehouses and distribution centers strive to fulfill orders on time and in the most efficient way possible. For that, AI can be a remarkable ally—the omnipresent traffic controller that keeps tasks flowing and instantly redirected if there is a possibility of a traffic jam. The first step to effective fulfillment is knowing service level agreements (SLAs) and the business rules that govern them. Each SLA can have a myriad of constraints. What is the delivery deadline? What should be the decision if the order is incomplete? Does the customer need to approve product replacement if the item they ordered is not in stock? The second step requires understanding what resources are available in your warehouse in general and, more specifically, today. Many types of resources are used to fulfill orders: forklift drivers, order pickers and cherry pickers, to name a few. Task scheduling needs to be aligned with what resources are available at any given moment. To consistently meet SLAs, order fulfillment requires merging these two steps: knowing the SLA rules and the availability of resources. Traditionally, managers have relied on “wave” systems to coordinate tasks. However, these methods often have limitations that lead to decreased productivity. Advanced AI offers a dynamic alternative. AI can seamlessly match SLA demands with real-time resource availability. This ability allows it to orchestrate order fulfillment with great precision. And the truly revolutionary aspect of AI in decision-making is its ability to continuously monitor and fine-tune task assignments. It plans, schedules tasks, prioritizes and reassigns people and equipment to meet SLAs. Moreover, based on past data, AI can predict what resources may not be available on any given day, which allows it to mitigate disruptions proactively. It’s a perpetual cycle of monitoring, analyzing and adjusting to maintain peak efficiency. Choosing A Decision Intelligence Technology When it comes to choosing decision intelligence technology for warehouse operations, it’s important to consider solutions that offer a variety of factors. • Holistic Approach: While there are many automation options tailored to specific tasks like picking or inventory management, AI decision intelligence shines when handling the interconnected nature of warehouse processes. Instead of piecemeal solutions, organizations should choose AI platforms that can seamlessly integrate and optimize every facet of warehouse operations to synchronize workflows throughout the facility. • Scalability: It’s essential to choose a solution that can grow with the business and is capable of orchestrating various robots and automation systems across the warehouse. • Integration Capabilities: Compatibility with other systems like ERP, WMS and TMS ensures smooth data flow and enhances overall efficiency. Final Thoughts Decision intelligence technology is a transformative force in warehouse operations. It brings a level of adaptability and foresight that traditional methods cannot match. Let’s take a look again at the analogy of traffic signals. Just as a single person cannot foresee and manage every potential traffic jam, a warehouse manager alone cannot anticipate and navigate every bottleneck in the order fulfillment process. AI makes sure operations are not only continuously optimized but also agile enough to adapt to unforeseen challenges. Just imagine what we could do if we could solve the traffic jam problem! Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify? Follow me on LinkedIn. Check out my website. Lior Elazary Editorial Standards Print Reprints & Permissions
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