With the rise of e-commerce comes an increase in warehouses. According to the U.S. Bureau of Labor Statistics, the number of warehouses has increased by roughly 7% in the last 5 years alone. Having the right material and personnel in place at the right time has been one of the most challenging aspects of warehouse resource planning. If a warehouse has too much material on hand, not only will it result in a poor use of working capital, it can also result in additional holding and storage costs, and occupy space needed for other material, hindering operations and slowing production. On the other hand, if the warehouse doesn’t have enough inventory, this will result in lost revenue, as well as customer frustration. Warehouses continue to struggle to efficiently plan resource usage.
AI will enable your organization to accurately forecast traffic volume to improve resource planning. By leveraging AI’s time series forecasting capabilities, your organization will understand the impact of seasonal demand and economic conditions on incoming volume. With this information, you will be better equipped to manage short term changes in demand. Understanding changes in demand will ensure that your warehouse managers use its space, employees, and inventory effectively.
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Manufacturers use AI to deliver the best products on the market as quickly and ethically as possible, while increasing productivity and profits. They can significantly improve demand forecasting, supply chain management, predictive maintenance, and many other operational areas with the help of artificial intelligence.