Optimising warehouse inventories with AI

A smooth-running supply chain starts in an efficient warehouse. From inventory distribution to sorting, warehouses play a strategic role. That is why it is essential to avoid bottlenecks and ensure the warehouse is running efficiently.

Jean-Baptiste Clouard, CEO at Flowlity, an innovative AI-based supply chain planning and optimisation solution, shares how to effectively use AI to optimise warehouse processes, as well as highlighting the benefits of implementing these processes for businesses.

Forecasting

Every year, billions of pounds are lost as a result of shortages or overstocks at the manufacturing and distribution stage. Maintaining an optimal stock level is essential to avoiding shortages and costly overstocks, but finding this balance is a challenge.

AI-based self-learning solutions can set minimum and maximum boundaries that help to avoid overstocking and shortages. Instead of aiming for a ‘correct’ amount of stock at all times, the algorithms continuously recalculate these minimum and maximum levels based on consumption history and sales patterns to ensure recommended stock levels stay up to date. Real-time alerts can be set to flag potential overstocks or shortages in advance so that action can be taken to resolve this, before it becomes a larger issue.

Using a self-learning system also reduces the potential for human error in calculating these min/max levels and takes the manual work out of the process – removing the need for someone to crunch the numbers. This leads to efficient inventory planning that ensures a more accurate flow of items in and out of a warehouse.

Information visibility

AI can be used to process large amounts of information in a short time, leading to data being more easily condensed and accessible. This data can then be entered into a system that connects all parties in the supply chain, allowing the same information to be shared from end to end. The current supply chain is based on each party acting independently, but using software to centralise information means that all users have visibility on orders. This encourages a unified approach to inventory management.

By having visibility on processes and orders further down the supply chain, warehouses can become more reactive to disruption and can adjust their inventories based on real time information from how much stock is being used down the line. Storing data and information in a centralised system also eliminates the need to provide regular updates to the rest of the supply chain, leading to greater responsiveness to risk and enhanced contingency planning.

Warehouse planning

Having full visibility on orders coming in and out of a warehouse is crucial to ensuring efficiency and accuracy in fulfilling these orders. AI software can be used to automate these orders, putting them in one portal that makes it easier to manage incoming supplier shipments and outgoing customer shipments, and to verify that operational constraints such as minimum order quantity and full truckload are met.

The order process can be streamlined using automation, leading to greater efficiency in warehouse planning as there is up-to-date order information at hand – which is further continually updated using AI and reduces the need for updating manually.

An efficient warehouse is integral to the supply chain, supporting a smooth product journey from component parts all the way to the customer, so it’s essential to ensure processes are in place to aid efficiency and lessen volatility.

Using an AI system can solve issues in the warehouse quickly and accurately while simplifying processes and strengthening communication. Algorithms can automate and coordinate orders, centralise information and accurately forecast to ensure efficient stock levels – all processes that traditionally would be carried out manually. The use of AI and optimisation leads to increased accuracy and speed in orders, improving cycle times and the customer experience.

DHL Express deploys Pixis AI for demand generation

Global logistics powerhouse DHL Express deployed Pixis’ codeless AI technology to boost demand generation and observed a 35% increase in clickthrough rates within the first month. The logistics leader, which leverages multiple channels for customer acquisitions, has been making strides in harnessing AI, as the scale of its campaigns grow globally.

Pixis’ codeless AI infrastructure enabled DHL Express to continuously monitor campaigns and scale growth by exploiting market trends at the right time, contextually targeting the right audiences through real-time AI-led insights, and serving them with the relevant creative recommendations at the right time. When campaigns were underpinned by AI insights the brand was able to four times as cost efficient as its prior approach. DHL Express also observed an uptick in the quality of leads generated by tapping into previously unexplored high-intent audience groups.

Sanup Pillai, Global Head of Digital Marketing & Martech at DHL Express, said: “We found Pixis to be a non-biased infrastructure with powerful cross-platform capabilities. We were able to easily integrate Pixis into our marketing channels, CRM, and attribution platforms to begin deriving insights and initiate appropriate actions. We were able to quickly reach the right audience at the right time, and at scale – allowing us to free up resources to concentrate on strategy and other key value-addition efforts.”

Pixis believes that easy AI deployment and intuitive user flows are essential factors in democratising AI for marketers. Having solved those problems through their novel plugin deployment method, the company also focuses on educating and guiding users to steer the AI on their own.

Sanup added: “When it comes to adopting any new technology, integration and active usage are the usual hurdles to overcome. With Pixis, we had none of those teething troubles. We were able to deploy the codeless AI within minutes through a plugin and the AI was activated.”

For DHL Express, bridging the strategy-execution gap entailed shifting away from manual campaign monitoring and optimisation, adjusting and fine-tuning budgets, and recalibrating the outcome of campaigns across channels. Pixis’ codeless AI infrastructure enabled DHL to effortlessly scale campaigns without increasing marketing spend through AI-led predictive analysis and real-time recommendations.

Introducing Pixis’ codeless AI to their tech stack has enabled DHL Express to reduce manual dependencies across their demand-generation efforts. Moreover, given that the Pixis AI is self-learning and highly adaptable, DHL plans to apply it more broadly. In his concluding note, Sanup said: “We are pleased with the results and we look forward to leveraging AI for more global campaigns.”

“DHL maintains its position as a global leader in the logistics domain by adopting and fusing advanced technologies in its business approach,” expressed Neel Pandya (pictured), CEO – EMEA & APAC at Pixis. “DHL’s growth and tangible outcome is a testament of how AI can positively impact businesses as a whole. It’s been immensely rewarding to witness DHL’s journey with the Pixis AI infrastructure.”

Revealed: the worst industries for cyber security risk

New research carried out by cyber crime expert FoxTech has revealed that the five UK industries with the weakest cyber security – and therefore most at risk of a cyber security breach – are mechanical and industrial engineering (with a CyberRisk score of 59.1), environmental services (57.8), furniture manufacturing and installation (56.8), logistics and supply chain (56.5), and construction (56.2).

The research is based on analysis of 9,500 companies in the UK, and used a CyberRisk score, a diagnostic tool which calculates risk using publicly available information and an analysis of a wide range of cyber security indicators. Companies with scores of 25 or less are considered to be at a low risk of attack, while scores of over 50 demonstrate a high risk. FoxTech’s report found that other industries with scores over 50 included higher education (56.0), accounting (55.2) and hospitals and healthcare (53.4). Scores higher than 75 indicate an extreme risk of attack.

Anthony Green, CTO and cyber crime expert at FoxTech, explains more: “We audited thousands of UK companies across a wide range of sectors and found that while industries such as financial services, aviation and government administration had a lower risk of falling victim to a cyber crime, many other industries were not doing enough to protect their systems from attack.

“It is encouraging that no sector averaged at an extreme risk of attack, with a score more than 75. This is reflective of many businesses’ increased investment in cyber security in the past year. However, a score of over 50 still demonstrates a high vulnerability to cyber crime, so it is concerning that many of the UK’s key industries fell into this bracket.”

What common security issues did FoxTech’s report identify? Green explains: “It’s not that organisations don’t care about having good cyber security, but that they are unaware that their IT infrastructure contains weaknesses that make them a potential easy target for hackers.

“Companies often don’t realise that their anti-virus or endpoint protection software is incorrectly configured, or simply not robust enough to stave off an attack. Another common misconception is the belief that you are safe from attack if you use cloud-based services, rather than an internal server. This is not the case – in fact, 46.3% of the companies we surveyed were using a public cloud provider, but many were still at a high risk of attack.

“Inadvertently leaving assets exposed to the internet is another big issue. Some businesses we surveyed had databases visible to the internet, and over 40 companies had a camera accessible from the internet!

“Sometimes, an organisation can be exposed by something as simple as poorly managed user accounts or using out-of-date software and obsolete or end-of-life technology – as was the case with 4.7% of businesses we surveyed. Email filtering is also a vital aspect of any good cyber security strategy. Only 55.4% of companies we surveyed has email filtering in place, and just 13.7% had DMARC correctly configured to prevent email spoofing attacks.”

Green highlights that hacking is a gradual process, and not something that happens overnight. On average, hackers will spend 207 days between breaching a company’s IT security and exploiting it.

“The fact that hackers are going undetected for so long shows that businesses usually have plenty of time to detect intruders and prevent a cyber attack from occurring – if they know where to look.”

The answer? Green says: “The best thing to do for any company is to arrange a cybersecurity audit of their IT systems, processes and procedures. This won’t necessarily be through their IT provider, but via an independent cyber security company that is set up to focus fully on cyber security and can protect businesses and their customers on a much higher level. A good audit will involve vulnerability scanning – also known as ethical hacking, where a cyber security expert tries to enter your system, just as a malicious hacker would, but with the intention of helping you find and fix your security weaknesses before they are exploited by a cyber criminal.

Companies interested in finding out their own CyberRisk score to get an immediate indicator of how high or low their security risk is are invited to order this for free from FoxTech.

 

 

Siena joins Partnerverse to build visibility applications

Siena Analytics, a leader in supply chain AI and image recognition for high-volume logistics, has joined Partnerverse – the Splunk partner programme for accelerating customer success. Through this partnership, Siena is able to build powerful applications for supply chain operations that improve data accessibility, enable simple monitoring of inventory, and share business insights.

Siena’s flagship solution, Siena Insights, captures data in the warehouse through sensors at the tunnel and facility levels, while gathering learning insights with the aid of artificial intelligence (AI). The result is end-to-end visibility into the entire distribution lifecycle and elimination of inventory guesswork.

Siena Insights, built on the Splunk Enterprise platform, will utilise the company’s observability and data monitoring capabilities to develop applications that provide customers with greater visibility into their warehouse operations by leveraging images and data. The outcome is a first-of-its-kind sensor-agnostic solution that captures information across the entire supply chain for actionable package intelligence. Through this partnership with Splunk, Siena has enabled leading retail and parcel shipping organisations to take advantage of big data analytics and flexible AI deployments at the edge.

“In today’s economic climate, gaining real-time visibility into warehouse operations is more important than ever,” said John Dwinell, Founder and CEO of Siena Analytics. “This partnership allows us access to Splunk’s powerful observability and data monitoring platform to build applications that give warehouses greater insight into what’s taking place at their facilities. The result is software that marries data and images to enable package intelligence.”

Partnerverse allows logistics companies to ensure their organisations are secure, resilient, and innovative by removing barriers between data and action to enhance observability and empower IT and security teams. The Partnerverse programme helps Splunk partners deliver value to customers and accelerate their own growth, while expanding the Splunk partner practice.

 

SiB Solutions expands UK business

SiB Solutions, the Swedish enabler of flawless logistics, is expanding its UK business to meet the growing interest in its services. Experienced logistics expert Paul Bowes (pictured) joins the company as Technical Project Manager.

Eridge Associates Ltd. has represented SiB Solutions in the UK since 2021. Eridge Associates Ltd is represented by Michael Marienfeld and David Bingham with a combined 50 years of logistics expertise. Now they will be supported by the logistics expert Paul Bowes as he joins SiB Solutions as Technical Project Manager. Paul will lead the expansion and oversee the start, implementation and training for instant improvements using its intelligent video and AI services to current and new customers.

SiB Solutions offers cutting-edge technologies including AI and intelligent video analysis to enable companies to achieve flawless logistics. Companies using the service instantly save time and money, dramatically improving quality through superior visibility, visual evidence and insights. This is evident to UK logistics-intensive companies who are looking for further ways to improve quality to gain extra profitability and a competitive advantage.

Cutting-edge solution

“What appealed about SiB Solutions to me was that they have come up with a cutting-edge solution to problems for logistics operations,” says Paul Bowes. “In the last five years, Internet shopping has exploded, and naturally brought problems of traceability and visibility of what is picked and what goes out of the door. Being able to validate claims using visual evidence puts an end to any supply chain blame game.”

“We have known about Paul for some time and he was the person we wanted to lead our expansion in the UK,” says Stefan Borg, CEO of SiB Solutions. “We see a huge market potential there. All you have to do is drive down the M1 and see the number of warehouses and distribution centres, both manual and automated. The potential for a service like ours that enables logistics professionals make almost instant improvements is huge.”

“As internet shopping becomes ever more popular, DCs have gone from full pallet movement to lots of small transactions. Pickers go on autopilot, doing the same routine thing day in day and mistakes happen”, says Stefan Borg, CEO of SiB Solutions. “Video clips let you see the whole process and work out any operational hiccups. UK logistics operators then get better in their practices and see where mistakes happen. Which is why we now have an expert in Paul with his more than 25 years of logistics expertise to help companies reach flawless logistics.”

Paul of course had the final word on why he wanted to work with SiB Solutions. “As soon as I spoke to the people at SiB Solutions and saw the potential I was hooked. What really did it for me was the enthusiasm, belief, and downright fun the company show that it has. A job shouldn’t just be a job, it should be a pleasure to go to work every day. That’s what I know I’m signing up to with SiB Solutions.”

 

Helping shippers benefit from freight market pendulum

IntelliTrans, a leader in global multi-modal solutions for optimising supply chain operations in bulk and break-bulk industries, helps shippers better manage the freight market pendulum swings with expansive tendering algorithms and artificial intelligence embedded in its transportation management system (TMS).

Shippers are experiencing the ebb and flow of the current freight market. Many carriers that took advantage of shippers will feel the pinch because shippers will reward those carriers that honoured contractual rates. But with IntelliTrans’ ever-expansive tendering algorithm, our customers benefit from changing market conditions without resorting to the “revenge” mentioned in a recent FreightWaves article, “Shippers’ Revenge is Coming for Truckload Carriers.”

“IntelliTrans believes in a partnership mindset between shippers and carriers,” said Ken Sherman, President, IntelliTrans. “Our optimisation engine allows shippers to partner with carriers to give them a committed volume, rewarding carriers that continue to work with a shipper. We help shippers manage relationships with carriers throughout all the up and down cycles.”

IntelliTrans TMS offers flexible tendering, fixed-rate offers (“Buy It Now”), and spot bidding. Many TMS technology uses sequential tendering, which means carriers are given a particular time slot to accept or decline the tender. If they don’t respond or miss their time slot for acceptance, the tender moves to the next carrier in line. With IntelliTrans, carriers don’t miss out on the opportunity to cover a load. Instead, the timeline expands to add the next carrier(s) in the process, not replace one carrier with another. Shippers get loads covered in a tight market at an even better price. On average, IntelliTrans shippers in the US save $112 per load through this uniquely differentiated tendering process.

The flexibility of the IntelliTrans tendering algorithm allows easy reconfiguration as market conditions change, allowing shippers to choose from the least cost carrier to service-based selection, dedicated fleet utilisation, to spot bidding to a fixed rate offer. These can be used in concert with each other and easily adjusted with no software development required. It allows shippers to conduct spot bidding in a highly automated fashion where spot bids from their carriers are evaluated based on configurable, market-driven thresholds and can be automatically accepted if desired. These thresholds can be set to move with current market pricing, so they don’t have to be constantly reset.

IntelliTrans recently partnered with Emerge, allowing customers to leverage their technology and carrier network. “This helps shippers succeed in all types of markets. With Emerge’s strong RFP platform, customers can take advantage of this technology to conduct bids now or at any time that makes sense,” adds Sherman. “They can then use our spot bid or fixed-rate offer tendering techniques to obtain load coverage from qualified carriers in Emerge’s network.”

 

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